1991-175-Concerning The Update Of The Housing Element Of The Los Gatos General PlanRESOLUTION 1991 -175
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
CONCERNING THE UPDATE OF THE HOUSING ELEMENT
OF THE LOS GATOS GENERAL PLAN
WHEREAS, under Government Code Section 65353, the Town Council
conducted public hearings for consideration of an update to the Housing Element of the
Los Gatos General Plan, on August 5, 1991; and
WHEREAS, during this hearing, the Town Council considered the General Plan
Amendment GP -91 -1 relating to the update of the Housing Element; and
WHEREAS, the Planning Commission considered this item on January 3,
February 27, and July 10, 1991; and
WHEREAS, the Town has in good faith worked with the State in addressing their
concerns but the State has requested additional revisions not identified in previous
correspondence which is affecting the timing of the adoption of the element.
WHEREAS, the Town has reviewed the State's comments made on August 17,
1990, February 14, and May 22, 1991, and has adequately addressed all of their comments
to comply with Government Code Section 65580 et seq.
RESOLVED, the Town Council made the following findings that the Los Gatos
Housing Element substantially complies with the requirements established pursuant to
Section 65350 et. seq. of the Government Code which specifies the content of the Housing
Elements;
1. The State requested clarification of the status of all buildings damaged by
the earthquake and how many can be repaired or be replaced. Since
submitted to the State, the Housing Element has been amended to include
this information in Section 3.2(3)d.
2. Section 65583(a)(3) of the Government Code requires an inventory of land
suitable for residential development, including vacant sites and sites having
potential for redevelopment, and an analysis of the relationship of zoning
and public facilities and services to the site. The Town's Housing Element
c11 \reso \8- 5 #1.PIn 1
separately breaks down the acreage available for underdeveloped lots and
vacant lots, based on zoning, range of potential units and household
income. Since submitted to the State, the Housing Element has been
amended so that this inventory no longer includes commercial land which
could also be developed with a residential use nor does it take into
account density bonuses (See Section 3.2(4) of the Housing Element).
The Town has determined that until an actual development application
is filed, it is unclear exactly at what density a parcel will be developed,
therefore, the vacant /underdeveloped land inventory includes a range of
potential new units based on zoning density requirements. The Town has
also determined that in the areas where residential land is underdeveloped,
public services and facilities are available to the sites and the streets can
accommodate the additional traffic to be generated (See Section 5(c) of
the Housing Element).
3. As requested by the State, the Town has included in the Housing Element
a statement that the adopted Uniform Building has been amended by the
Town which affects construction of residential units, but the amendment
results in a minimal cost to the project and is needed to avoid extensive
costs at a later date for retrofitting the residence for additional livability
features such as grab bars in the bathrooms and wider doorways (See
Section 3.2(5)a of the Housing Element).
4. The State has questioned the implementation of the Below Market Price
(BMP) Program and the amount of fees or units the Town expects to
generate. The specific requirements and implementation of the BMP
program are established by Resolution No. 1990 -213 and, therefore, does
not need to be addressed in the Housing Element. The number of units
and fees to be generated cannot be estimated since it is based on the type
of application to be filed (which the Town has no control over) and the
building valuation of the project (which the Town cannot anticipate).
c17 \reso \ &5 #1.PIn 2
5. The State has questioned how the self help programs are implemented.
The Housing Element states that the Town shall facilitate or encourage
self -help programs for maintenance of older homes through the Town's
Housing Conservation Program and by the continuation of the Town's
support of existing programs as identified in the 1985 -1990 Housing
Element Programs Progress.
6. The State has indicated that the element should include specific program
actions to implement the Housing Market programs. The Town has
determined that the programs are all self explanatory and implementation
measures are not necessary.
7. The State has indicated that the Town may need to amend their time
frame of implementing the program relating to densities if there are not
adequate sites available at densities high enough to provide housing for
all income levels. The Town has determined that there are adequate sites
available as discussed in Section 3.2(4) of the Housing Element, therefore,
the time frame for implementation of the programs does not need to be
amended.
8. The State pointed out that the element indicated that some public services
and facilities are not at capacity and additional programs may be necessary
to ensure that these services are available. This section was misconstrued
by the State since the Town has determined that in the areas where
residential land is underdeveloped, public services and facilities are
available to the sites and the streets can accommodate the additional
traffic to be generated. The statement has been rewritten to clearly state
that in the event any facility is used at capacity at the time an application
is filed, the facility shall not be impacted beyond its service capability
unless implementation of programs to increase capacities is in process (See
Section 3.6(6) of the Housing Element).
c11 \reso \8 -5 #1. Pin 3
9. The State questioned if the 1985 -1990 Housing Element Programs
Progress, which includes the analysis of vacant land outside the Route 85
Corridor within one - quarter mile of the corridor, includes County property.
The Town has determined and incorporated in the 1985 -1990 Housing
Element Programs Progress that the vacant land includes Town and
County property. The Town is also currently conducting public hearings
to annex several County islands one of which is identified as Los Gatos
Boulevard #12 which is susceptible to major development for housing.
The majority of the county islands are prezoned for residential uses.
10. The State has indicated that a General Plan amendment may be
appropriate to facilitate a wider range of mixed -use since the plan only
encourages mixed uses in certain areas. The Town has determined that
a General Plan amendment is not necessary since mixed -uses are
encouraged in all non - residential areas to provide more housing as stated
in Section 3.5(10) of the Housing Element.
11. The Town shall continue to support programs that provide fair housing
services and shall continue to support the Los Gatos - Saratoga Board of
Realtors in upholding the Housing and Urban Development's fair housing
law (See Section 3.6(10) of the Housing Element).
12. As required by the State, the Town incorporated in the element for public
participation the Town's effort to contact groups and agencies which
represent all economic segments, to make copies of the element available
to these groups and the process for their input in addition to the public
hearings (See Section 3.1 of the Housing Element).
13. The State has indicated that the Uniform Building Code is a governmental
constraint. The Town has determined that the Uniform Building Code is
necessary for the proper construction and maintenance of residential units
and is not considered a constraint to housing production, and that other
communities with a certified housing element have a similar statement.
ci 1 \reso \8- 5 #1.PIn 4
14. Limiting the expansion of existing single - family homes maintains moderate
priced housing since major additions to a residence will result in a
considerably higher priced residence than what is existing.
15. The State has questioned what and when additional innovative ideas will
be used to promote rental housing. The Town will incorporate innovative
ideas to promote rental housing as they are developed.
16. The new secondary dwelling unit program is fairly new and the passage
of time is necessary to determine whether or not other incentives are
needed to facilitate the development of new secondary units.
17. It has been determined that sites where land is underdeveloped should not
be identified in the Housing Element since it would be likely to invite land
speculation resulting in inflated land prices which would inhabit rather
than promote the development of affordable housing. The Town has
adopted a density bonus program for low income housing as part of the
Housing Element Update. This program will result in the construction of
more low income units than designating individual sites and will disperse
these unit throughout the Town rather than constructing all the units on
a specific site.
18. The Town supports local programs which provide aid to the homeless
population such as the Voucher Program sponsored by the Salvation Army.
19. The Town provides numerous programs to assist development of housing
for low and moderate income households as identified in Section 3.6 of
the Housing Element. Due to current budget constraints, additional
programs cannot be funded at this time, but will be considered in the
future when funds are available. The Town currently leverages any
available housing funds to assist nonprofit housing developers in the
construction or development of affordable housing as the Town did for the
low income housing development by Mid - Peninsula Housing Coalition at
634 W. Parr Avenue.
ci 1\reso \8- 5 #1.P1n 5
FURTHER RESOLVED, that the Town Council finds that the amendment will
not have a significant impact on the environment since an Environmental Impact Report
was previously prepared for the General Plan when adopted and that the Environmental
Impact Report is applicable to the proposed amendments since they do not cause any
changes which would have a significant impact on the environment.
FURTHER RESOLVED, that the Town Council finds that the amendments to
the Housing Element, which is attached hereto, marked Exhibit A, are internally consistent
with the various elements of the General Plan.
PASSED AND ADOPTED at a regular meeting of the Town Council held on
August 5, 1991 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
l
}
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
of 1 \reso \8- 5 #1.PIn 6
HOUSING ELEMENT
UPDATE1990
EXHIBIT
3.0 HOUSING ELEMENT
3.1 INTRODUCTION
The intent of the Town of Los Gatos is to attempt to provide adequate housing for Town citizens,
regardless of age, income, race, or ethnic background. The Town encourages conservation and
construction of housing adequate for future populations and replacement needs, consistent with
environmental limitations and in proper relationship to community facilities, open space and
transportation.
The Housing Element establishes policies that will aid Town officials in daily decision- making and sets
forth implementation measures that will assist the Town in realizing its housing goals.
"A decent home and suitable living environment for ail" has been identified as a goal of the highest
priority by the California State Legislature. Recognizing that local planning programs play a significant
role in the pursuit of this statewide goal; and to assure that local planning effectively implements
statewide housing policy, the Legislature has mandated that all local jurisdictions and counties include
a housing element as pan of their adopted General Plan.
The State's General Plan law requires that the Housing Element be updated at least every five years_
The following Housing Element reflects the 1990 regional housing needs determinations prepared by
the Association of Bay Area Governments (ABAG). The element will again undergo revision when the
1990 census data become available.
The element establishes goals, policies and programs that provide incentives for the development of
affordable housing in order for the Town to achieve its share of affordable housing. Between 1980 and
1990 the Town approved 942 housing units including 124 very low and low income units. Of rice fifteen
cities in Santa Clara County, Los Gatos placed third in producing ABAG's Yak share allocation' of low
income housing and in the top 16 percent of the 98 cities in the Bay Area. The Town of Los Gatos was
able to produce these housing units in spite of the fact that the Town has adopted one of the most
stringent traffic policies in the State. This policy is referenced in the constraintsection of this element.
When evaluating the success of the Town's housing policies, it is important to recognize that the Town
has been relatively successful in producing the Town's 'fair share allocation' of low income housing
even though the cost of land is approhdmately a million dollars per acre.
The updated Housing Element was developed to be consistent with the other elements of Los Gatos'
General Plan. The Town will continue to require that all residential development proposals, General
Plan and Specific Plan amendments be consistent with the Town's Housing Element.
The development of the Housing Element involved numerous meetings of the Town's General Plan
Committee for over an eight month period. These meetings were open to the public and the agenda's
were posted at Town Hall and the Public Library to encourage public participation from all economic
segments of the community. Participation from the community included developers and builders,
handicapped citizens, special housing groups and concerned citizens several ofwhich were contacted
by the Town and were provided copies of the draft housing element. The review process and
adoption of this element involved meetings with the Community Services Commission, Planning
Commission and Town Council all of which were open to the public for their input. The public
hearings before the Planning Commission and Town Council were advertised in the local newspaper
(Los Gatos Weekly - Times) and the agendas were posted and drafts of the Update were available at
Town Hall and the public library .
3.2 EXISTING CONDITIONS AND PROJECTED NEEDS
Population Trends:
From the first 100 -acre Town site and an 1890 census population of 1,652, Los Gatos grew by
the time of its initial general plan adoption in 1963 to an area of approximately 4,000 acres, or 6.3
square miles, and a population in excess of 11,750. In 1975, the County of Santa Clara
conducted a special census that showed the population to be 23,882 persons. Once the County
conducted its special census, the State Department of Finance used it to base all future
population estimates. Since this special census, the State has prepared estimates showing the
Town's population for 1978 -79 to be 25,370. The 4980 census established the population of Los
Gatos at 26,906 in 1980.
The following selected population census data for the periods 1970, #975, and 1980 are provided:
POPULATION
1970
N
1980
(9'a)
Total
23,735
24,344
26,906
38
Under 18
8,097
(34.0)
6,143
(22.8)
18 -20
973
(4.0)
1,314
(4.9)
65 -Over
2,672
(11.3)
3,241
(12.0)
Median Age
30.3
* * **
35*
**
Group Quarters
586
(2.4)
747
(2.8)
Average age; median age not available
During the period 1970 -1980 the Town's population grew by 3,171 or 13.4% for an annual growth
rate of 1.27% per year This compares to an annual growth rate of 2.16% per year for the County as
a whole- Between 1980 and 1990, the Town's annual growth rate has slowed considerably. The
Department of Finance estimates the Town's 1990 population to have risen to 28,197, a 4.7% increase
since Me 1980 Census, for an annual growth rate of .46%. The early released data for the 1990
Census however, estimates the Town's 1990 population to have risen to only 27,357, a 1.7% increase
since the 1980 census-
Racial composition of those living in Los Gatos for the years 1970, 4975, 1980 and 1990 are provided:
PERSONS BY RACE
1970
1980
1990 * **
White
22,284
25,793
24,344
Black
38
108
187
American Indian, Esk, Aleut
* 52
* 86
90
Japanese
123
221
* * **
Chinese
89
P14
* * **
Filipino
27
75
* * **
Vietnamese
**
0
* * **
Korean
**
13
* * *:
Asian Indian
**
78
* : **
Hawaiian
**
24
* * **
Guamanian
**
0
* * **
Samoan
**
0
* * **
Other Asian
**
13
* * **
Spa"ishHispanic Origin
**
164
1,367
Other /Unknown
*
245
19
* Not comparable due to change in census definition
** Not available
* ** Early Release Data
* * ** Total for Asian, Pacific
Islander is 1,350
The Town experienced a rapid population growth during the early 1960's and into early 1970,
consistent with the rapid growth of the County as a whole.
This growth reflected the relative abundance of buildable lots and the favorable economic climate
for construction of housing units. Conversely, the slowing of the rate of population growth in the
Town in recent years indicates the declining availability of land suitable for residential
development, an unfavorable economic climate and the Town's policies for preserving the existing
quality of life through growth management.
For the period 1970 -1980, the total increase in Town population was 3,171. Of this increase, only
871 or 27.5% was from the construction of new housing units. The remaining 2,300 or 62.5% was
from existing units annexed to the Town.
ABAG projects a slow steady rate of growth through 2005 within the Town and its sphere of influence
as defined by LAFCO: (Projections 90. December 1989)
1980 1985 1990 1992 2000 2005
Total Population 30,474 31,000 31,200 31,600 31,700 31,900
Household Population 29,827 30,100 30,500 30,800 30,900 31,000
Households 11,802 12,150 12,490 12,900 13,080 13,190
Both the 1975 Special Census and the 1980 Census indicate that Los Gatos has maintained a
larger percentage of people 65 years of age or older than the County percentage. School
closures that have occurred in the Town in recent years are an indicator of a decrease in the
number of school age children residing in the Town. This decline in school enrollment has two
major causes; a nationwide trend of a drop in the birth rate, and a tight, high priced housing
market in Los Gatos and vicinity that contributes to forcing families with young children to seek
housing outside the Town and County.
2. Employment Trends:
The following employment data from the 1975 Special Gensus and the 1980 census are provided
1980
Total Population 26,906
Total Civilian Labor Force 14,610
Total Employed 14,096
Total Unemployed 504
Unemployment Rate 3.4%
% of Residents Participating
in Labor Force 54.3
Number and % of Residents between
Ages 18-64 Participating in
Labor Force 16,775 (87 %)
Santa Clara County as a whole has eVenenced rapid and sustained economic development and
employment growth Santa Clara County added about 98,000 new jobs from 1980 to 1985.
ABAG estimates that between 1985 and 1990, the County added another 81,000 new jobs_
Between 1990 and 2005, ABAG projects that the economy of Santa Clara County will generate
a demand for about 264,000 new jobs.
In conjunction with the anticipated employment growth, housing demands will increase.
Satisfaction of this housing demand will be partially dependent on the ability to supply housing
in close proximity to employment and at points of access to transportation corridors. Commuting
to work in other parts of the County and outside the County is anticipated to continue as part of
the existing employment /housing structure of the region.
expected. However, this trend may
decrease as a result of regional congestion management planning mandated under Proposition
111 passed by the voters on June 5, 1990.
In 1979, Santa Clara County determined that Los Gatos exhibited a housing shortage relative to
demand generated by jobs. The County indicated in its Background Report for the General Plan
Revisions, 1980, that this shortfall of housing was 617 units based on a demand for 9,167 and a
supply of 8,550.
This shortfall figure is probably not correct since the 1980 census counted 10,971 housing units.
Based on these revised figures, it appears that Los Gatos did deft not have a shortfall, even
when taking into account the increases in commercial and industrial square footage since 1980
meaning that the Town has had balanced job growth and housing.
Los Gatos should experience relatively less employment growth than the County as a whole. This
is mainly due to the increasing scarcity of vacant buildable land in the Town designated for
commercial or industrial uses, and the very high demand for new housing and additional housing
downtown.
ABAG projects an increase of approximately 2,750 new jobs in Los Gatos from 1990 to 2005, occurring
Primarily in the retail and service sector. Household population is expected to increase by 500
residents over the same period which indicates that in the future there may be a housing shortage
relative to the demand generated by jobs.
ASAG has made the following estimates and projections regarding employment growth in Los Gatos
and its sphere of influence (Proiecdons 90. December 1989).
1980 1985 1990 1995 2000 2005
Employee Residents 15,971 17,300 18,000 18,400 19,100 19,000
Total Jobs 13,309 14,490 15,740 16,880 17,790 18,490
Agriculture & Mining Jobs 195 150 130 120 120 100
Manufacturing & Wholesale Jobs 1,830 1,440 1,540 1,570 1,630 1,646
Retail Jobs 3,527 4,410 4,990 5,580 5,870 6,116
Service Jobs 5,313 5,850 6,360 6,730 7,016 7,280
Other Jobs 2,444 2,640 2,720 2,880 3,160 3,360
3. Household and Housing Characteristics:
a. Household Income/Housing Cost.
In 1980 Los Gatos had a mean household income of $52,643. In 1985, the mean income
increased to $58,000, a 11.7% change. The 1985 mean income for Santa Clara County was
$48,600. Thus, Los Gatos has a relatively highermean income than the Countyas a whole (ABAG
estimates in constant 1988 dollars)_
ABAG projects that the mean household income in Los Gatos will rise from an estimated $63,500
in 1990 to $67,000 in 1995, and again to $71,700 in 2000, and to $74,400 in 2005 (constant 1988
dollars)_
In determining housing needs, the State and HUD have traditionally required that housing
programs be focused towards households with very low income which is defined as less than 50%
of the local county median income.
The Town does have a significant population of very low income households. In 1965 1,107
households or 18.2 percent of the households in the Town were very low income households
compared to a County total of 15.2 percent. According to the 1975 Special Census that figure
had dropped to 17.7 percent in the Town but risen to 19.2 percent county wide. This indicated
an improvement in the Town's position county wide, but still included 1,497 households in the very
low income category for the Town. The 1980 Census reported the income statistics in a different
manner, however, for the purposes of comparison the statistics were interpolated to show that
in 1979, 2240 (21.5 %) Los Gatos households had an income below 50% of the County median.
The 1980 Census reported the number of persons and the number of households by poverty
status (see Tables below). The poverty statistics in the 1980 Census are not comparable to the
very low income statistics of previous Census' data due to the definition of poverty. The 1980
poverty figures are based on a nationwide income table, which, due to the relatively high income
and costs associated with Santa Clara County means that the need is understated, e.g. the
poverty income threshold for a four person household shows an income that is only 22.5% of the
Santa Clara County median income.
FAMILIES BY FAMILY TYPE BY POVERTY STATUS IN 1979
BY PRESENCE AND AGE OF CHILDREN 1979
Above
Below
Povertv
Povert v
TOTAL FAMILIES
Children 0 -5 and 6 -17
337
0
Children 0 -5 only
513
50
Children 6 -17 only
2,410
107
No Related Children
3,242
67
Total
6,502
224
FEMALE HOUSEHOLDER
NO HUSBAND PRESENT
Children 0 -5 and 6 -17
4
0
Children 0 -5 only
65
33
Children 6 -17 only
405
74
No Related Children
232
6
Total
706
113
PERSONS BY POVERTY STATUS IN 1979
-BY AGE
Above
Below
Povert v
Povert v
Under 55 Years
20,146
978
55 to 59 Years
1,378
103
60 to 64 Years
910
28
65 Years and Over
2309
290
Total
24,743
1,399
Increases in housing costs over the last several years have outdistanced the rise in income over
the same period. Housing cost has risen dramatically for many reasons the most prominent of
which are: market demand exceeding supply, rise in the price of land, rise in construction costs
and rise in financing costs, taxes and fees. In Santa Clara County, the housing cost has been
particularly acute due to the rapid industrial growth over the last few years and the demand for
housing that comes with it. Between 1966 and 1971 the cost of a median priced new home in
Santa Clara County increased 1 percent, with a corresponding rise in median income of 36
percent. From 1971 to 1978 however, median housing prices rose from $24,300 to $76,000 a 216
percent increase, while median income rose only 62% from $12,670 to $20,570.
Los Gatos is part of this larger housing market and it is assumed that the Town has experienced
the same if not a greater escalation in housing cost over the last several years due to the highly
developed nature of the Town and its desirability as a place to live.
The relative shortage of rental units, especially in the lower rental ranges, and the high cost of
ownership dramatically affects the ability of low and moderate income citizens and families of the
Town to find suitable housing within the Town.
According to ABAG estimates, the median housing value in Los Gatos in 1981 was $209,320 -
By 1988, that figure had risen to $345,161, a 64.9% increase (Regional Housing Needs
Determination Data Sheet, August 31, 1988). During Me same period, median household income
rose from $32,723 in 1981 to $52,335 in 1988, a 59.9% increase (dollars are not adjusted for
inflation).
A major effect of rapidly rising housing costs has been an increasing percentage of household
income spent for shelter. As the percentage of income spent for shelter rises, less money is
available for a household to spend on other necessities. This effect is more acutely felt among
the lower income groups because they have much less total income at their disposal.
Where in the past 25% of gross monthly income spent for shelter was considered affordable by
lending institutions, today it has become necessary to spend 30 -33% of gross monthly income
for shelter. As the proportion of income required to meet monthly housing costs rises, more
households are priced out of the housing market.
In Los Gatos, according to the 1980 Census, 29% of owner- occupied households and 54% of
renter households paid more than 25% of their gross monthly income for shelter.
According to ABAG estimates based on the 1980 census, 38% of the Town's low income owners,
and 81% of the low income renters paid more than 25% of their gross monthlyincome for shelter.
ABAG estimates that the County had a higher percentage of lowincome owners, 42% and a lower
percentage of low income renters, 68% overpaying for housing. ABAG has made the following
estimates reflecting the number of Los Gatos households overpaying for housing in 1980:
Total
Number
Households
Overpaying
Low Income Households Owning 1,063
408
Low Income Households Renting 1,860
1,510
(Housing Needs Determinations September 1988)
The Town has geographically targeted concentrations of these households in need. Their location
appears in the Technical Appendix.
In sum, the Town exhibits a relatively high median income, but is not insulated from the ever
increasing cost of housing which has increased more rapidly than incomes over the last several
years. The Town also has a significant number of households overpaying for shelter, many of
which are elderly and lower income households.
b. Housing Supplv
In 1970 the Census reported that the existing housing stock was 11,014 units within the Town and
the unincorporated lands within the Urban Service Area. In 1981 this figure had risen to 12,170
units according to the Vacant and Developable Land Survey conducted by the Town.
The Association of Bay Area Governments (ABAG) estimated in its 1981 Housing Needs Report
that Los Gatos had 10,863 housing units within the incorporated area in 1980. The Town's Vacant
and Developable Land Use Survey established the existing housing stock within the incorporated
area at 10,979 in April 1981. Over the years, annexation, as well as new construction, has
accounted for a significant portion of the increases in the number of housing units within the
Town. In fact, new construction of dwelling units has dropped significantly in the early 1980's and
has since leveled off as demonstrated in the following chart:
1977 1978 1979 1980 1981 1982 1985 1986 19871988 1989
Residential Building
Permits 167 253 175 75 22 57 80 56 66 40 49
According to 1989 Department of Finance data, there were 11,802 housing units in fire
incorporated area, 69.6% (8,220) single family, 29.5% (3482) multi - family, and 1% (118) mobile
homes. (Actual number of mobile homes counted by the Los Gatos Planning Department was
136).
The percentages change significantly
in the unincorporated areas where 97 percent of the housing units are single family, 2 percent
are two family and 1 percent are multiple family. Two major factors contribute to the large
amount of less intensive single family development in the unincorporated areas, they are:
(1) County ordinances require annexation to the Town prior to any intensification of use; and
(2) Much of the unincorporated area is located within environmentally sensitive hillside areas.
ABAG estimated that in 1980, 67% of the households in Town were owner occupied and 33%
were renter occupied. The 1980 census indicated, however, that 61 % of the residential units in
Town were owner occupied, while 36% were renter occupied. According to 1988 ABAG
estimates, 63% of the households in the Town were owner occupied and 37% were renter
occupied.
Within the entire County there is a relative shortage of rental units especially in the lower income
ranges. Apartment construction has dramatically slowed in recent years as a regional trend.
Additionally, housing purchase costs have risen so rapidly that home ownership has become
increasingly difficult for an increasing number of households and demand for rental units has
increased. Thus, the reduction in supply and increase in demand has made the rental housing
vacancy rate drop. In fact, the rental vacancy rate has dropped from 4.0 percent in 1975 to 2.4
percent in 1978 county wide, with a slight increase to 2.9% in 1989.
Los Gatos controls the conversion of existing rental stock to condominiums through provisions
of the Town code that limit conversions so that, "each building which is to be divided will meet
current code standards for new construction ". As a result, from 1975 to the present there have
been no conversions of rental stock to condominiums in the Town.
The Town has also worked to preserve the rental housing stock through the Secondary Unit
Program. Under the program, all illegal secondary units which were able to meet health and
safety codes were eligible for a Secondary Dwelling Unit Permit Between 1985 and 1990, 349
Secondary Dwelling Unit Permits were granted for existing units_ In 1990, the Town's Zoning
Ordinance and General Plan were amended to permit the filing of applications for new secondary
dwelling units. Due to the recent passage of these amendments no applications were filed in
1990.
Another important source of affordable housing is the Town's two mobile home parks, housing
136 homes, 70 percent of which are owner - occupied. Both parks are over 20 years old and so
are many of the coaches within them. As a result, the deterioration of this housing stock has
become a problem. The Town's rehabilitation program includes a voluntary program for the
rehabilitation of mobile homes. Between 1978 and 1982 the program rehabilitated 36 mobile
homes (estimated 100% of those needing rehabilitation). All of the owners of these mobile homes
are senior citizens with income below 50% of the Santa Clara County median income for single
persons over the age of 65. In an effort to preserve the parks, on January 1, 1986, the Town
rezoned the mobile home park lands exclusively for mobile homes. Later in July 1988, the Town
also adopted a mobile home conversion ordinance which creates uniform procedures and
standards for reasonable relocation benefits in the case of closure, conversion or change in use
of either of the mobile home parks.
The Town again sought to preserve small affordable homes in the aftermath of the October 17,
1989 Earthquake. The Town initiated a streamlined permit process and exempted application
fees for earthquake reconstruction. In order to discourage expansion of existing homes, the
Town restricted the streamline process to applicants pursuing only reconstruction. Earthquake
reconstruction is defined as replacement of an existing structure, by new structure with the floor
area, setbacks and exterior identical to previous structures.
The Town has no assisted housing developments which are eligible to change to non -low-
income uses during the next ten years . For any assisted housing developments proposed, the
Town requires a minimum 30 year deed restriction on all units funded, to maintain rents or resale
values affordable to low and income households.
Gverall vaeaney Fate for housing In the Town was 2.3596 in !97� -��ates.
in 49319, a Postal Survey ;ewealed'� vaeariey rate of 2.09G. The 1980 census listed a vacancy
rate in Los Gatos of 3.9 %. According to Department of Finance estimates, the vacancy rate had
dropped to 2.68% by 1989. The vacancy rate within a given housing market is a valuable
indicator of the availability of housing for rent or sale. in an ideal market, some number of
housing units should remain vacant to allow adequate selection opportunities for households
seeking new residences. A vacancy rate of 5 percent is considered appropriate for adequate
selection opportunities. Additionally, these vacant units should be evenly distributed across
various housing types, sizes, price ranges and locations within the market. The vacancy rates
for both rental and owner housing units in Los Gatos indicate that less than adequate housing
selections exist. This tight housing market is likely to continue to be felt in Los Gatos where a
limited amount of land remains available for new housing development and housing demand is
high.
For several years Santa Clara County has been
experiencing a light housing market. ABAG has estimated that Los Gatos has an existing ( +980}
(1988) housing units shortage of 5958 units. This estimate was calculated based on existing
vacancy rate and determination of a vacancy rate that would bring the housing market in the
Town nearer to an equilibrium of supply and demand.
To establish Los Gatos' share of future housing needs over a five year period, as required by
AB2853, ABAG calculated the projected housing needs for the Town for the 9980 1998 1988-
1995 decade period as: 9234 553 dwelling units. There were 842 89 dwelling units added to the
Town's housing stock in the 1980 1908 during the period of 1988 -1989. The additional units
served above moderate income groups since they were all single- family units which sold for over
the median housing value. This leaves a projected need for 1984-9990 1990 -1995 of 97-2 464
dwelling units.
ABAG also distributed the housing need across income group categories and established the
1980 4990 1988 -1995 share for Los Gatos as follows:
Need Actual Under
through Gonstruetion
9983
Very Low Income
(not exceeding 50% county median income =) 244105 0 18
Low Income
(50 - 80% county median income') 49383 14 **
Moderate Income
(80 -120% county median income=) 257-111 8* ** 12 **
Above Moderate Income
(above 120% county median income-) 590254 298 apprEw. 168
— Viila-Vasena
Wider Avenue + ** M meta , , BMP units
o
* Determined by the U.S. Department of Housing and Community Development
(ABAG, Housing Needs Determinations. September 1988)
In sum, the existing housing market that includes Los Gatos has created a less than adequate
choice of housing opportunities in both rental and owner households, as documented by low
vacancy rates and ABAG estimates of existing housing short fall. Further exeept for the un
known peiential--o�� 7the regional housing share established by ABAG for the Town
eannot could be met under existing General Plan maximum 1990zoning development potentials.
C. Household Size
Aeeording tathe 1980 Gensus, Los Gatos 'a' an average V42.-6 I--., d*a—ing unit.
A nationwide trend of decreasing number of persons per dwelling unit has also affected Los
Gatos. This trend is the result of a large percentage of senior citizens in the Town, children
of the 1950's baby boom leaving home, an increased divorce rate and a drop in the marriage
rate. According to the i 979 1 I.A.P. applieation, Les Gates does have an uvercrowding
problem. ABAG projects household size in Los Gatos to drop from an estimated 2.48
persons per household in 1985 to 2.38 in 1995, and again to 2.34 in 2005. According to
Department of Finance estimates, Los Gatos had an average of 2.39 persons per dwelling
unit in 1988.
d. Housing Condition
The Town of Los Gatos is one of Santa Clara County's oldest communities. A significant
portion of the housing stock is relatively old and includes many historically significant homes.
Given the age of many of these homes, especially in the Downtown area, rehabilitation and
repair needs have become increasingly apparent. In 1975, the Town established a Housing
Conservation Program to address the need of rehabilitating older units. Through this
program, the Town provides financial assistance for the rehabilitation of existing housing
10
and mobile home units. Loans provided by this program are at a low interest rate of o%
to 3 %. The Housing Conservation Program is designed to assist primarily lower - income
households with both financial assistance and construction supervision. Utilizing grants
from the federal government's 'Community Development Block Grant' (CDBG) program
and from paybacks of Housing Conservation Program Loans, funds are loaned out to
eligible property owners. Town staff works in conjunction with staff from the County of Santa
Clara to administer the programs. Between 1985 and 1990, 30 single -family residences and
one four-plex were rehabilitated through this program. Approximately 20 of the rehabilitated
units were occupied by senior citizens.
As of March 1991, the Town had a record of approximately 785 earthquake damaged
residential buildings. Of the damaged buildings, 72 percent only needed chimney repairs,
27.5 percent needed foundation repair and /or reconstruction of portions of the structure
and 0.5 percent of the damaged buildings were beyond repair. Of the 785 damaged
buildings, 575 have received building permits for rehabilitation and 37 have been
demolished (18 of which had replacement structures approved). The Town is aware that
five of the damaged buildings, all of which are not considered affordable units, have severe
damage and will most likely require demolition.
e. Housing Related Support Services
There are three non -profit agencies that are offering housing - related services in the Los
Gatos area. The Shared Housing Program is operated by Catholic Charities and helps
match single parenthouseholds forthe purpose of reducing housing costs. The Information
and Referral Program offers housing counseling and mediation services to Los Gatos
households. Information is provided regarding fair housing, tenant /landford rights,
deposits, and similar rental issues. Another agency, Project Sentinel, provides a variety of
services in Los Gatos to reduce the incidence of illegal discrimination in housing, to
investigate allegations of discrimination and to provide means of redress to persons who
have been the victims of such discrimination.
f. Redevelopment Agency
In 1989 the Town Council formed a Redevelopment Agency and designated a
Redevelopment Survey Area in 1991. The Redevelopment Program is expected to be
established in 1992. At least 20% of the Redevelopment tax increment funds generated from
11
this program will be spent on very low, low and moderate income housing. Between 1992
and 1995, the Los Gatos Redevelopment Agency expects to collect $114,000 in funds.
Once the program has gained momentum, the funds collected will represent a significant
and valuable resource for the Town in producing housing opportunities for very low, low
and moderate income households.
4. Suitable Sites:
To further assess the future potential for housing in the Town, 18 sites were examined in detail
as part of the General Plan process. These sites are discussed in the Land Use Element.
Assessment was made of their development potential, unhindered by existing General Plan
designations. Considered were traffic and access, surrounding land use compatibility, noise,
environmental constraints and community desires.
Based on the above assessment criteria a portion of these sites should be designated for
residential uses at various densities to attempt to meet the housing needs of the Town.
Subsequent to this examination, the following changes have occurred to three of the 18 sites.
One of the sites has partially been developed as a 107 unit low income senior citizen housing
project. Part of the remaining piece of that site has been rezoned by the Town for a low income
family housing project. Another site has been approved for a 175 unit senior care residential
facility and construction began in 1990. The last changed site has recently been partially
approved for 33 residential units, five of which will be designated as Below Market Price units.
An additional site has been identified for a potential intensification of land use from single - family
to multi - family use. The site is located on the east side of University Avenue west of Highway 17
just south of Saratoga Avenue. The zoning is multi- family residential The main concerns for
development of this site are potential traffic and grading impacts.
Listed below is a breakdown of the remaining vacant or underdeveloped land by zoning
Classification. The table indicates that there is a total of 210 acres of underdeveloped land in
the Town. It is estimated that 165 to 599 new units could be developed on this acreage. The
table also indicates that there is a total of 50 acres of vacant land in Me Town. It is estimated
that 125 to 425 new units could be developed on this acreage. Until an actual development
application is filed, it is unclear exactly at what density a parcel will be developed. Therefore,
the vacant /underdeveloped land inventory includes a range of potential new units. This range
was calculated using the minimum and maximum level of density permitted. As stated in the
Housing Supply section of this element, the Town's projected housing need for 1990 -1995 is 464
dwelling units. The inventory of vacantand underdeveloped land indicates that More is sufficient
land zoned for up to a maximum of 1,024 new units. This inventory does not include commercial
land which could also be developed with a residential use nor does it take into account density
bonuses. Therefore, the Town has sufficient land to accommodate the newhousing construction
needed.
5.
9
Underdeveloped
Land Summary
Amount of Acreage Zoning Range of Potential Units Household Income
177 acres Low 0-257
0-5 units /acre Upper/Moderate
21 acres Medium 105-117
5-12 units /acre Upper/Moderate
12 acres High 60-225
5-20 units /acre Upper/Moderate
Low/Very Low
210 acres 165-599
Vacant
Land Summary
Amount of Acreage Zoning Range of Potential Units Household Income
25 acres Low 0-125
0-5 units /acre Upper/moderate
25 acres Medium 125-300
5-12 units /acre Upper/Moderate
0 acres High 0
5-20 units /acre Upper/Moderate
Low/Very Low
50 acres 125-425
Government Constraints:
The subject of governmental constraints is continuously changing as laws, statutes, rules and
regulations are modified and enacted. These changes can occur at the State and Federal levels
and thereafter become standards and requirements which must be satisfied by local governments.
Local governments affect the supply, distribution and cost of housing through land use controls,
building codes, development permits, processing fees, and property taxes.
Land Use Controls
The Town's policies for development are set forth in the General Plan, which contains nine
state - mandated elements dealing with the issues of land use, circulation, housing, noise, safety,
seismic safety, open space, conservation and scenic highways. While issues and policies related
to housing are addressed primarily in the Housing Element, policies contained in all of the other
elements significantly affect the character location and production of housing.
The Land Use Element establishes the amount and distribution of various land uses throughout
the Town and determines the location and types of housing constructed within the Town. The
density of housing development allowed under the General Plan Land use designations further
determines the type of housing that is developed. The existing General Plan recognizes the
natural constraints of steep slope, flood and geologic hazards by reducing allowable housing
densities in these areas. The above constraints placed on housing are necessary to protect the
public health and safety. Additionally, the General Plan designates the Route 85 corridor,
eliminating potential land for residential development.
13
design, thus adding4&-eests- Los Gatos has adopted the Uniform Building Code (UBC), which
establishes minimum construction standards. The UBC is necessary for the proper construction
and maintenance of residential units and is not considered a constraint to housing production.
The UBC has been amended by the Town which affects construction of residential units, but the
amendment results in a minimal cost to the project and is needed to avoid extensive costs at a
later date ff retrofitting of the residence is needed for additional livability features, such as grab
bars in the bathroom and wider doorways. The Town may impose more stringent standards, but
it cannot adopt any which are below those of the UBC. These standards, which are not part of
Me UBC, include development standards which limit the size of residence to preserve moderate
priced housing and protect the architectural heritage and streetscapes of Town and to insure that
solar accessibility will not be impacted on adjacent parcels. Generally, major additions to a
residence will result in a considerably higher price residence than what is existing. Handicapped
accessibility and adaptability requirements are also enforced to provide housing for physically
disabled persons.
The requirements set forth by the Town under Zoning and Subdivision controls include minimum
lot sizes and setbacks, which may place constraints on the economic or physical viability of a site
for housing development. These constraints may be reduced ff a Planned Development (PD) is
filed for a parcel containing more than 40,000 sq. ft. or if the purpose of the development is to
provide housing for low income senior citizens. The purpose of the PD zone is to provide for
alternative uses and developments more consistent with site characteristics than are allowed in
any other zones, and so create an optimum quantity and use of open space and good design.
The PD zone permits establishments of a single use or the integration of several uses not
ordinarily permitted by regulations of other zones.
As part of a development proposal, residential developments must provide the required parking,
street improvements and utilities which may place economic or physical constraints on the site
However, the basic infrastructure needed to serve new residences on in -fill sites is already in
Place throughout the Town. The Town is currently in process of proposing a reduction to the
required size of parking stalls. This reduction, in some mslances, will reduce the area required
for parking. The Town also permits shared parking and a reduction in the required number of
spaces if the reduction can be justified The size and number of sidewalks and street widths
could be reduced if a Planned Development application is filed as w plained above.
b. Hillside DeVelOnment
The Hillside Specific Plan adopted by the Town in 1979 places limits on residential construction
based on a slope density formula developed after in -depth study of the existing topography and
problem areas. The change in permitted density resulted in a loss of approximately 20-40
residential units_ However, these units may never have been permitted due to the physical
constraints ofthe lot (i.e., slope, access, availability of services). Additional policies in the Hillside
Specific Plan cover circulation and access, provision of services and maintenance of scenic
resources in the Hillside Plan area. These also contribute to limiting the potential of residential
development, but are considered necessary to protect the safety of the residents in the hillside
areas and the integrity of the natural environment.
The Blossom Hill Open Space Study completed on July 18, 1989, outlined a strategy for improved
implementation of hillside development policies and on May 21, 1990, the Town modified the
Hillside Development Standards to further protect the natural terrain.
c. Tic
Over the last few years, the Town's tic policy has been the most significant governmental
constraint to the construction of affordable housing. On January 4, 1988, the Town Council
adopted amendments to the Town -wide Critical Intersection Traffic Impact Policy Statement, the
General Plan and Zoning Ordinance regarding traffic impacts. The amended policy considered
14
traffic as the primary consideration in approval or denial of a project. Although the policy
Provided for certain exceptions, it required a statement of overriding consideration to approve
any project that generated a single trip or more through an unmitigable intersection during the
Peak hour. In order to make a statement of overriding considerations, an Environmental Impact
Report (EIR) had to be prepared which created a significant economic impact on the applicant
and also greatly extended the permit process. For a project that would generate a minimal
amount of traliic, the cost of a consultant to prepare a traffic report is approximately $4,000.00
to $6,000.00. Also, for an Environmental Impact Report, the cost is approximately $10,000.
On July 2, 1990, the Town Council amended the tic policy to allow approval of a project if it
is determined that the benefits outweigh the impact of increased traffic, provided traffic mitigation
measures are required and specific sections of the General Plan and Specific Plan clearly state
that the type of project will benefit the community. Traffic mitigation measures may be exempt
by the Town Council for housing projects restricted to seniors, and very low and low income
residents and for mixed use projects that provide residential units in nonresidential zone.
In the areas where residential land is underdeveloped, public services and facilities are available
to the sites and the streets can accommodate the additional traffic to be generated.
d. Government Fees and Permits
Processing time, permits and fees may contribute to constraining housing development.
Reducing processing time could potentially lower housing costs to a certain degree; however,
Los Gatos exhibits processing times that are of comparatively short duration (minimum two month
processing time to get to the Planning Commission, depending on the applicant's ability to meet
Town requirements to deem the application complete). It is Town policy to give priority
processing to projects which include low income units.
Fees are collected by the Town to help cover the costs of permit processing, inspections,
environmental impact determinations, and other administrative expenses. These fees are based
on an adopted rate schedule. In 1990, the Town conducted an extensive analysts of fees and
charges for Planning Department services_ The study included a fee comparison of other
jurisdictions, dated February 1, 1990, within the Santa Clara County. At that time, the fees for a
new single- familyresidence in Los Gatos ranged from $boo to $1,900. Other jurisdictions ranged
from $100 to $1,150. The fees for a multi- family development in Los Gatos were $1,700 +$8o per
unit Other jurisdictions ranged from $613 to $11,400. As land use densities increase,the
proportion of the cost borne by each unit decreases, effectuating economies of a scale for higher
density developments. it is Town policy to waive exempt application fees for low income housing
projects. The Town also exempted application fees through the streamlined permit process for
earthquake reconstruction facilitated recovery from the October 17, 1989 Earthquake.
e. Proposition 13
In the long run, governmental constraints will continue to constrain housing availability. The
effects of Proposition 13 are particularly apparent in this regard.
to One effect of Proposition 13 has been to deter the mobility
of homeowners. A second effect has been a reduction in Town revenues.
Those losses must be offset in part by increased or new fees and amenity provisions by
developers, which in turn may increase development costs of homes and rental units.
Additionally, local jurisdictions have become unwilling to extend services to new developments,
as opposed to the past, because tax revenues realized do not meet costs. As a result, developers
are now required to finance extension of services, increasing the cost and resultant selling price
of units constructed.
15
6. Non - Governmental Constraints
There is a demand for a wide variety of housing types at different price ranges which closely
parallels the characteristics of the market population. The housing demands which are met
depend upon the developer's perception of the demand, the availability of land for various types
of residential development, the costs of land, construction and financing, and the developer's
opportunity to profit.
The major cause of increasing new home prices in all regions has been the cost of buildable land.
The costs are associated with the acquisition and improvement of land, including the market price
of raw land, the costs of holding land throughout the development process and necessary
improvements to the land prior to construction. All of these components comprise the "finished"
lot and are estimated to contribute 25 to 35 percent to the final sales prices of new homes.
The cost of holding land during the development process is determined by the interest rates of
acquisition and development loans. The rate of interest for these loans generally runs 2 to 4
percent higher than the prime interest rate. These costs are not within the control of the local
government, but rather a function of the regional and national economy. However, processing
time, which has an impact on holding costs, is within the jurisdiction of the Town. Efficiently
executed processing can help reduce sales prices by reducing processing time to a minimum.
Recognizing this, the Town has established a staff Development Review Committee that meets
weekly with applicants for development.
The availability of land for residential development within the Town is very limited, creating a
premium price for developable land, approximately million dollars per acre. There are veryfew
vacant lots, so land costs inevitably involve the additional costs of acquisitions and clearance
of existing structures, or of integrating new development with all or part of an existing structure.
Left alone, the rapidly escalating market price of land will tend to encourage higher priced
development. Higher density zoning may reduce the cost per unit of land, but land zoned for
higher densities commands a higher market price. Density bonuses rather than zoning changes
may be a preferred vehicle for reducing land costs in Los Gatos.
Construction costs represent between 40 and 50 percent of the sales price of new homes,
depending upon the level of amenities and type and amount of units constructed. According to
local builders, the 1990 estimates for new construction costs for residential units range from $60
per square foot to $110+ per square foot For homes with additional amenities such as upgraded
floor and wall materials, expensive countertop and plumbing fixtures, etc., the square footage cost
can increase up to $150 +per square foot. "Bare bones" construction, or a reduction in amenities
and quality of materials to the minimum level of acceptability for health, safety, and adequate
performance, could help reduce new housing costs.
Requiring developers to provide sewers, streets, open space, and other public facilities adds to
the price of new housing, as these costs are passed on to the buyer. Construction costs may
be increased by special construction methods which may be necessary for mitigation of flood
hazards, excessive noise levels, seismic safety and other environmental conditions.
Another cost factor is the location of development Los Gatos is comprised of flat and hillside
lands. Hillside homes add to the price of new housing due to the development constraints
relating to the engineering of the house, public improvements, grading, retaining walls and
drainage.
An additional construction cost factor is related to the number of units built at the same time. As
this number increases, construction costs over the entire development are reduced because
earlier build -out reduces the effect of inflation on prices, and some costs can be lowered by
buying and installing materials in larger quantity. This factor may provide an additional benefit
when density bonuses were and are utilized. Unfortunately, with the predominantly small parcels
remaining large scale development is limited.
IR
Estimated Average Housing Development Costs
1) Land
a. lots suitable for single family houses (8,000 - 10,000 sq. ff.)
Hills. $250,000 - 500,000
Flatlands. $225,000 - 350,000
b. lots suitable for townhouses and low -rise apartments
$20,000 - 70,000 per unit depending on location
$50,000 per unit average
2) Site improvements and contingencies: $10 - 15 per sq. ft.
3) Construction costs. $60 - 110 per sq. ft.
4) Indirect costs: $18 - 22 per sq. ft.
(Includes architect, engineering, legal and consultant fees, plan check and approval fees,
traffic mitigation fees, utility hook up, soils analysis, testing and inspection fees, appraisal,
fine recording and escrow fees and others)
5) Financing. $6 - 8 per sq. ft.
6) Developer overhead. $6 - 8 per sq. fL
7) Marketing: $5 - 6 per sq. It
Source: Discussions with local housing developers and contractors.
Financing problems have also contributed to constraining the housing market. The impact of
interest rates on housing is substantial, both for rentefs and purehasers, the requlre� down
payment fney be an obstaele to obtaining suitable housing to both the ability of home buyers to
afford purchasing suitable housing and the ability of residential developers to construct feasible
rental or for sale housing projects. According to the United States Department of Commerce,
during the past ten years, mortgage interest rates have fluctuated from about 12 percent in
January 1980 to a peak over 16 percent in mid -1982 to a low of under 10 percent in 1989. During
the next five years, it is likely that interest rates will continue to fluctuate. Rising interest rates for
buyers could eliminate the ability to purchase housing unless incomes rise in a corresponding
manner. Rising interest rates for construction and permanent financing for a developer means
increased carrying costs during the development process and can result in lowered profits. If
interest rates are too high, many developers will choose to not build housing and will wait for the
interest rates to fall. Therefore, rising interest rates can have a significant impact on both the
demand and supply for housing. Conventional financing generally requires 10 to 20 percent of
the sales prices be paid as a down payment. Accumulating such a large amount of capital can
be a problem for first time entrants into the housing market. Households which are relocating
will often have enough equity in a previous residence to meet the down payment requirements
of the next home. Government insured loan programs may be available to reduce down payment
requirements considerably if the household and desired property met certain qualifications.
Veteran's Administration (V.A.) loans require no down payment but have an upper limit on
purchase price. Federal Housing Administration (F.H.A.) insured loans usually call for
approximately a 5 percent down payment with a limit on the loan amount. These types of
financing generally require the seller to pay additional money, called points, to compensate the
lender for lower interest rates.
Major financial problems occurred between July and November of 1990 when the County
experienced a sharp decline in market value for new homes. Lenders could not project the value
of residence and appraisals were therefore inadequate. During this period, lenders pulled back
on long term financing which in turn affected developers who could not get short term
construction financing.
Another major problem which has affected financing for unincorporated parcels located in the
hillside area was the 1989 earthquake. Due to the uncertainty of the stability of the site, some
property owners in the County have been unable to obtain financing to rebuild their homes.
Aside from the two financial problems noted above, no other problems dealing with the availability
of financing exist, according to local developers which would affect the maintenance,
improvement, or development of new or rehabilitated housing for all income levels.
17
There are other financing programs available that can aid low and moderate income households
to obtain adequate housing. Graduated monthly payment mortgages allow a purchaser to make
smaller monthly payments during the early years of the loan and larger monthly payments during
later years when, it is likely, that, income will have increased. Low interest loans may be available
through mortgage backed revenue bonds.
Still other financing mechanisms continue to emerge as a result of escalating housing and money
costs. These mechanisms are primarily designed to allow the resale of housing to take place
when mortgage interest rates are high and to protect lenders from fluctuating interest rates.
7. Special Housing Needs:
a. Handicapped - While certain handicapped persons (blind, deaf or others with physical
disabilities) may live comfortably without special housing accommodations, persons with
ambulatory handicaps requiring wheelchairs often need specially designed barrier -free
housing that is affordable. This lack of accessibilitypreventsthephysica ltydisabledperson
from living an independent and active life. The Economic and Social Opportuni8es, Inc.
operates a home access grant program in the County which provides home modifications
for very low and low income handicapped households. In many cases, households have
members who are both elderly and physically disabled kandieat3ped. The Housing
Assistance Plan has grouped handicapped households with elderly households, see b). The
actual number of handicapped residents in Los Gatos is not available by the 1980 census,
Los Gatos or County handicapped programs or the County's Urban Analysis Department.
However, information will be made available between 1991 and 1993.
b. Elderly - In Los Gatos, there were in 1980 a total of 602 renter occupied households of
persons 65 years and older. In 1980 there were a total of 215 elderly households (65 years
and older) which were below the poverty level Because many elderly households operate
on a fixed income, the escalating housing costs associated with the demand for housing
and the ever increasing housing maintenance costs, place some households in the position
of needing housing and rental subsidy assistance.
In 1989, the
Town approved a 175 -unit senior care residential facility, The Terraces, which will help to
ease the situation-
s. Female Heads of Households - This special need category has dramatically increased in
number of recent years. Based on the 1980 census, there were 819 female heads of
households in Los Gatos. The 1979 Housing Assistance Plan (H.A.P.) indicated that 743
female - headed households required assistance, of which 337 were elderly. One of the
major needs of female- headed households is affordable, suitably sized housing units. The
Shared Housing Program of Catholic Social Services assists manysingle parenthouseholds
in Los Gatos. The program matches households in shared housing arrangements and the
majority of their clients are single parent households
-
d. Large Households - In 1980, there were 858 households in occupied housing units of five
or more, 86 of which were renter occupied and 772 of which were owner occupied. The
1980 census also indicated that there were 867 households in Los Gatos with five or more
persons. For the County as a whole, these households are typically of lower incomes and
many times a family is overcrowded because it cannot find a house large enough to
accommodate more than the traditional four person family. No census information was
available to determine how marry large households in Los Gatos were of low income- Due
to the need for large family housing in ffie late 1980's and early 19906, the Town
encouraged developers to design Below Market Price (BMP) units to accommodate large
families. In 1990, the objective of the BMP Housing Program was amended to maximize the
number of people who benefit from the BMP housing units - Applications for any BMP unit
is prioritized according to categories and then in order of household size.
ff.]
e. Homeless - A special housing concern is the homeless_ In 1989, the Santa Clara County
Board of Supervisors appointed the Homeless Overview Study Task Force to study
homelessness in the County. According to their report Homelessness in Santa Clara
County. 1989, New Faces and Hidden Costs it was estimated that there are between 1,800 -
2,000 homeless individuals on any given day in Santa Clara County. The task force did
note that one of the major reasons for homelessness in the County is the lack of affordable
housing. Many of the homeless have been reported as having a substance abuse problem
and therefore cannot afford housing. Other factors which contribute to homelessness is
unemployment and rite mental stability of a person.
The Task Force daily count, conducted on August 29, 1989, revealed that 43% of the
homeless are 18 years of age or younger. A total of 357 children were counted, with 149
(42% of all homeless children) under the age of five. Over 200 families with children were
identified; • two-thirds of these families had more than one child. Nine percent (9 %) of the
homeless counted were between the ages of 45 and 64, only one percent (1 %) were over
65. Of the 353 homeless persons surveyed who indicated their last place of residence, 6%
were from the south county.
According to the Los Gatos Police Department estimates, there are a total of ten to fifteen,
single homeless persons who live in Los Gatos. However, during the winter months, the
majority of the homeless people in Los Gatos relocate to rice San Jose area. According to
a local agency, there are an average of five homeless persons on any given day in Los
Gatos. These people generally live in their cars and travel between nearby community
centers and libraries of Los Gatos, Saratoga, and Campbell In Los Gatos, the homeless
are generally over 21 years of age and approximately 90 percent are male.
Listed below are five localions where homeless persons sleep at night in the Town of Los
Gatos:
L Under the bridge at the overpass of Saratoga Avenue and Highway 17
2. Along the west side of the Los Gatos Creek behind the Los Gatos Mobile Home Park-
3. Along the west side of Los Gatos Creek which runs parallel with Miles Avenue.
4. Along the east side of Highway 17 adjacent to rite Los Gatos High School.
5. North of Vasona Lake just below the dam.
The Salvation Army operates a voucher program in Los Gatos which local residents can turn
to in emergency situations_ The vouchers can be exchanged for food, gas and lodging and
are available at four voucher distribution centers in Los Gatos:
1. The Senior Coordinating Council, Neighborhood Center, 208 E. Main St., Los Gatos
2. St. Luke's Episcopal Church, 20 University Ave., Los Gatos
3_ The Los Gatos Police Department 110 E. Main St., Los Gatos
4. First United Methodist Church, 19 High School Cl., Los Gatos
The centers issue approximately 150 vouchers annuaity, an estimated 5% are issued to
homeless people. However, the vouchers are for one time help only. The program primarily
serves local people during hard times. Those in need of shelter are sometimes sentto local
hotels in nearby communities, or if transportation is available, to the Salvation Army shelter
on 41h Street in San Jose. The issuer determines the value of the voucher. Vouchers are
also given for food and gasoline which can be used at specific grocery stores and gas
stations located in Los Gatos. Some of the churches also provide food directly to an
individual in need_
19
Overcrowded Households - An overcrowded household is one in which there is more than
one person per room in a living structure (room is generally defined as any room in the
structure except for kitchens and bathrooms). The mean number of rooms in year round
housing units in Los Gatos in 1980 was 5.66. In Los Gatos time 1980 census indicated that
there were 858 overcrowded housing units.
g. Farmworkers - According to the 1980 census, no farmworkers resided within the Town. In
October 1990, there were an estimated 4,700 agricultural farmworkers in Santa Clara County,
based on information provided by the California Employment Development Department of
Labor Market information. No information was available for individual jurisdictions_ Based
on the high housing prices in Los Gatos and due to the fact that mere are no farmlands or
large greenhouses in Los Gatos, it is highly unlikely that any farmworkers reside in Town.
8. Eneray Conservation:
Much of the housing stock in Los Gatos was constructed during a time of abundant and relatively
cheap fossil fuel supplies. Many of the homes in the Town with historical significance reflect the
abundance of cheap energy supplies by exhibiting a lack of adequate insulation and lack of
orientation to maximize passive solar energy benefits.
The Energy Element identifies needs within the Town and establishes policies and implementation
measures to achieve energy efficiency and encourage the use of solar energy. in ten-F!'18 0
development in the Town, it is established that revision to e3Elsting _development regulations need
The Development Review Committee
encourages applicants to design dwelling units to take full advantage of solar energy and
recommends specific tree species and their location to provide winter solar access and summer
shade_ The Committee considers design of lot, size and configuration to permit orientation of
a structure in an east -west alignment of southern exposure and to take advantage of shade or
prevailing breezes.
In order to protect solar access to adjacent lots, time Town requires shadow studies for buildings
over one story in height. Through the public hearing process, citizens can express any concern
of shadow impacts which are then carefully considered by the deciding body. For all Planned
Developmentprojects, the TownreviewsprcjectCovenants, ConditionsandRestrictions (CC &R's)
for the protection of solar access_
In addition, solar hot water heaters are required on all new residential buildings where solar
access is available, and natural gas is not available. Pre - plumbing for solar water heaters is
required on all other new residential construction where solar access is available. The Town
also requires solar energy as the primary means of heating new swimming pools, where solar
access is available.
9. Quantified Objectives:
Listed below is a summary of the quantified objectives for new construction, affordable units and
rehabilitation of existing units:
New Construction - 464 new units
Affordability - 105 units - very low income
83 units - low income
111 units - moderate income
165 units - above moderate income
Rehabilitation - 25 owner occupied units
5 renter occupied units
20
3.3 ISSUES
1. Senior Citizens:
The 1980 Census indicated a proportionately large percentage of the Los Gatos population is in
the age bracket of 65 and above (12 percent as opposed to the County's 7.4 percent). As this
segment of our population becomes dependent on fixed incomes, which do not keep pace with
costs of older home maintenance, and as they find it increasingly difficult to meet the physical
demands of maintenance of a residential structure, they are forced to seek substitute housing.
The smaller percentage of rental units in the lower rent scale and the low vacancy factor have
often forced these senior citizens to move out of the community into an unfamiliar environment.
Given these facts, how can the Town help provide senior housing affordable to and adapted
to the special needs of seniors?
2. Maintenance and Preservation of Older Homes:
The large number of modest, older residential structures within the Town of Los Gatos
provides the main housing inventory for senior citizens and first time home buyers. These
homes are also critical elements of the Town's history and character as addressed in the
Town's Historic Preservation Element . '
How ean the fi
hemes be provided? What can the Town do to ensure that this important segment of the
Town's housing stock is preserved?
3. Depletion of Rental Market:
Census information indicates that there is a relative shortage of rental units of all types, and the
Town's land use survey indicates that there is little land available for the construction of new units.
Conversion of existing rental apartments to condominium ownership is not advantageous to the
Town for the following reasons:
a. Conversion will deplete the number of rental units available.
b. Conversion may displace persons and families who have neither the desire nor the
resources to buy their unit.
What can the Town do to discourage such conversion?
How can the Town maintain the existing percentage of rental units? without ehanaina the rati
What can the Town do to encourage Me construction of rental housing?
4. Housing Market:
The Town of Los Gatos does not encompass an entire housing market.
How can any unilateral action on the pan of the Town have a significant effect on the housing
market? How can the Town contribute towards the regional jobs housing balance?
5. SuMly of Very Low. Low and Moderate Income Housing:
21
The relative shortage of rental units, especially in the lower rental ranges, and the high cost of
home ownership dramatically affects the ability of very low, low and moderate income citizens
and families of the Town to find suitable housing within the Town.
What is 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 (eg., first time
home buyers, young adults who were raised in the Town and single heads of households)?
6. Quality of Life:
Suggested solutions for the creation of affordable and accessible housing may affect the
quality of fife for current and future residents of the Town.
How do we encourage the creation of affordable and accessible housing which will add to the
quality of life in the Town?
7, Homelessness:
Although only a small number of the County's homeless reside in Los Gatos, homelessness is
a serious concern.
What can the Town do to address homelessness?
78. Mobile Home Parks:
Mobile home parks provide needed affordable housing for seniors and others in the
How can the Town preserve the affordable housing provided by the its existing mobile home
parks?
9. Transportation and Energy Conservation
Regional issues of air quality, jobs - housing balance, energy prices, and transportation
efficiency portend significant changes over the next five to twenty years in how Town
residents commute, shop, and how and where homes and places of work are constructed.
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?
3.4 GOALS
To improve the maintain a choice of housing opportunities for senior citizens, families and
singles and for all income groups through by-- eneemaging a variety of housing types and
sizes, including a mixture of ownership and rental housing.
32. To preserve existing moderately priced and historically significant housing. b) rebabNitatian
and conservation-pregfams.
43. To improve the quality of existing eliminate housing deficiene e3 and prevent future blight
54. To eliminate racial, lack of handicapped accessibility and all other forms of discrimination that
prevent free choice in housing.
22
65. To emeou To make
infrastructure projects and residential and nonresidential developments to 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.
3.5 POLICIES
1. Developments restricted for occupancy by senior citizens, of handicapped or persons in the very
low and low income groups shall be eligible for a density bonus of up to 100% of the units
permitted by the land use designation as shown on the land use plan or any specific plan.
2. The Town shall utilize rehabilitation to preserve and improve the
quality of existing housing and eliminate blight
3. The Town shall attempt to maintain a range of 30-35 percent of the total Town dwelling units as
rental units.
4. The Town should shall encourage increased opportunities for home ownership but not at the
expense of the availability of multiple rental unit construction.
5. The conversion of existing rental projects to condominium ownership shall be discouraged in
order to maintain the stock of available rental units.
446. The Town shall encourage the provision of new units for ownership and rental by households
of very low, low and moderate income families households.
67. Housing for very low, low and moderate income families shall be encouraged by housing
assistance programs such as: Below Market Price Units, commercial linkage fees, Density
Bonuses, and Secondary Units, through restricting conversion of rental housing to other uses
or forms of ownership, and through rehabilitation of older homes, and limiting the size of additions
to modest size homes.
78. The Town should shall continue its participation in regional and county -wide housing efforts in
cooperation with the federal and state governments to develop realistic programs to provide
housing for very low and low income families.
89. The Town should shall encourage the preservation of residential dwellings located in nonresid
ential designated areas when all of the following conditions are met:
a. The dwellings are currently and have been historically used for residential purposes.
b. The dwellings are adequately maintained and are reasonably free from serious defects which
could result in health or safety hazards to residents.
C. It is evident that necessary amenities and a suitable living environment are provided.
910. The Town shall should support the mixing of residential uses with commercial uses on the same
site in nonresidential commercial areas, in order to provide
affordable housing closer to work sources and transportation facilities.
23
4911. New and existing dwelling units for ownership and rental by household of I very low, low and
moderate income families households shall be dispersed through the Town.
12. The Town shall actively pursue the development of very low, low and
moderate income and higher density housing.
13. The Town should shall encourage the development of housing suitable for families with children
in areas where adequate educational and recreational facilities exist.
14. for - healing �n +x; Smaller, moderate cost, quality housing
units wig shall be encouraged and the e)pansion of existing homes will be limited.
15. The Town shall encourage landlords and tenants to work together to develop rental rates fair to
the needs of both parties.
16. Non- Hillside residential property shall be lands should be
done developed or intensified in accordance with the Town's identified housing needs.
17. Secondary units shall be allowed subject to restrictions on lot size, floor area density and
occupancy. All existing secondary units wig required a Secondary Dwelling Unit Permit. Fees
vi g-be were kept to a minimum and processing of applications will be were expedited. All new
secondary units will require a Conditional Use Permit.
18. Newly- constructed residential units shall make provisions for
adaptability for the physically disabled.
19. The Town shall
parks: discourage the conversion of mobile home parks into other uses that would reduce the
availability of comparably priced housing units
20. The Town shall work with other agencies to provide housing or other appropriate assistance for
the homeless population -
21. For all property within the Town that is owned by any local or state agency, and that is declared
as surplus land, the Town shall determine the feasibility of developing such properly for very low,
low and moderate income families.
22. The Town shall assist in the provision of equal housing opportunities for all households
regardless of race, age, sex, marital status, ethnic background or other arbitrary factors.
3.6 IMPLEMENTATION
1. SPECIAL HOUSING PROGRAMS:
The Town's Below Market Price` Program, including the possibility of commercial linkage fees,
the General Plan's highdensily residential special use designation and provision for secondary
units, are intended to provide affordable family housing for very low, low and moderate income
families -
a. Density Bonuses and other Concessions
(1)a: All densgy-heNUS housing projects on lots in excess of 40,000 square feet must be
Processed as Planned Developments in order to receive a density bonus. sha#- be-subjeet
24
(2)a- Housing restricted to seniors, ar ha�dieapped, physically disabled persons, very low and
low income residents shall be eligible for a Town density bonus up to 100% of the units
Permitted by Me laird use designation as shown on the land use plan or any specific plan
and incentives based on the State DensitvBonus Law. --• °-
(3)b- Town Ddensity bonuses will also be granted for residential projects that actively facilitate
and encourage use of transit or directly provide transit services to residents.
(4)e: Concessions to the Town's density, traffic, and parking regulations may be granted for
mixed -use projects that provide residential units in nonresidential zones.
b.d- Below Market Price (BMP) Housing Program and Affordable Housing Fund:
(1) All residential developments (including subdivisions, planned developments and multi -
family rental developments) must provide a number
of Below Market Price (BMP) units or pay an appropriate in lieu fee as established by
Council resolution.
Responsible Agency: Town Council, Planning Commission
Schedule Ongoing
(2) The Town shall pursue with other jurisdictions and regions a coordinated program whereby
all new office, retail, research and development, manufacturing, warehouse and hotel
developmentshall paya commercial development linkage fee to provide affordable housing
for the very low, low and moderate income persons who may occupy the jobs new to fire
Town related to such development Within the context of such a regional program these
commercial development linkage fees shall be established by a Council Resolution.
Responsible Aoencv Town Council- Planning Commission
Schedule: December 1991
(3) BMP in -lieu fees and commercial development linkage fees shall be deposited into the
Town's Affordable Housing Fund. Possible use of in lieu fees include landbanking, writing
down the cost of owner occupied units to make them affordable to very low/low /moderate
income households and purchasing rental units for renting to eligible very
lowllow /moderate income tenants.
Responsible Agency Town Council Planning Commission
Schedule., Ongoinq
25
c.e: Secondary Units:
MINIM
MUMM
The Town shall provide an opportunity for property owners to file an application for existing or
new secondary dwelling units.
Responsible Agency: Planning Department Planning Commission
Schedule: Ongoing
d. Rehabilitation
The Town shall continue to provide financial assistance to lower income households for the
rehabilitation of existinghousing and mobilehome units through the Town's Housing Conservation
Program.
Responsible Agency Community Services Department
Schedule: Ongoing
d.-e. Residential Accessibility Reguirements:
EEP
All new residential developments, including detached single - family dwellings, shall be useable
by physically disabled persons and meet the Town handicapped requirements established by
Council Resolution_
Responsible Agency: Planning Department- Building Department Planning Commission
Schedule: Ongoin
Redevelopment Agency:
Pursuant to State Law, Los Gatos' Redevelopment Agency shall set aside 20% of each tax
increment dollar for housing purposes. This 20% housing set aside fund must be used to
provide housing opportunities for very low, low and moderate income households.
g. California Disaster Assistance (CALDAP) Program
This program was instituted in 1989 with a special allocation of State funds to assist owners
of both rental and owneroccupfed units who sustained damage from the October 17, 1989
earthquake. This program provides 3% interest deferred loans to eligible applicants for
rehabilitation of their property to cover earthquake damage and also previous health and
safely code violations.
27
2. MAINTENANCE OF OLDER HOMES:
a. The Town shall explore continue to cooperate with civic groups and service organizations
in the establisliffient of to maintain community self -help programs for the maintenance of
older homes by senior citizens. This shat/ be obtained through the Town's Housing
Conservation Program and by the continuation of the Town's support of existing programs as
identified in the 1985 -1990 Housing Element Programs Progress.
Responsible Agency: Community Services Department
Schedule: +9854999 On -going
0
. The Town shall limit
the expansion of existing single family homes to maintain moderate priced housing, the
historical characteristic of the house and the compatibility of the neighborhood. Generally,
major additions to a residence will result in a considerably higher price residence than what
is ehdstng. Limiting the size of an addition, will in turn keep the resale price of the house
down. The Town currently uses a floor area ratio formula for all single family residential
additions on lots between 5,000 square feet and 30,000 square feet in area which limits the
size of a residence based on the lot size. Findings can be made by the deciding body to
exceed the FioorArea Ratio. The Town will review this formula and determine its adequacy
and /f any modifications need to be made-
9985 9986 September 1991
C. The Town shall continue to periodically update the Housing Assistance Plan with goals for
the number of units to be conserved and rehabilitated. Current Goals (October 1988 - September
1991): Owner- occupied units to be rehabilitated. 21; Renter- occupied units to be
rehabilitated: 9. These rehabilitation goals will be attained through the Town's Housing
Conservation Program. (See 1d)
'r
3. OEP C fQN --G- PROMOTION OF RENTAL MARKET:
a- The Town shall continue to allow lower open space and parking requirements for multifamily
rental units as opposed to other multifamily units.
Responsible Agency: Planning Department
Schedule: #985 i98, Onaoina
be. The Town shall enaet maintain a rent mediation ordinance, or the Town shall maintain
voluntary, nonbinding procedures for landlord and tenant disputes.
0
Responsible Agency: Community Services Department
Schedule: #985 4996 Ongoing
cd. The Town shall tightly control the conversion of apartments to condominiums through
fegulstien the requirement of bringing the building up to current codes and regulations.
Responsible Agency Planning Department
Schedule: Ongoing
d. The Town shall explore with the Los Gatos - Saratoga Board of Realtors, a security deposit
guarantee program for low and moderate income households.
Responsible Agency- Planning Department
Schedule., 1992
4. HOUSING MARKET:
The Planning Commission sheuld-annu will periodically review the housing situation in the
Town of Los Gatos concerning:
a. The maintenance of a current inventory of housing.
b. The continued exploration of housing needs within the community by using relevant
economic and census data.
d:c. The continued review and coordination of county, regional, state and federal programs
(including Proposition 84 bonds, tax credits through syndicated projects and Section 8 rental
programs) for the satisfaction of housing needs in the Town of Los Gatos, and preparation of
studies and recommendations to the Town Council for continued responsiveness to demonstrable
housing needs.
des � ^ ^" The
rrieje the suitability of vacant land for multiple family, senior citizen and /or low and moderate
income ownership and rental housing projects.
5.6 DENSITIES:
The Planning Commission shaR will:
a. Identify all land within the Town's planning area that would be suitable for maximum
increased densities atpoints of access to the Vasona light rail corridor, Highway 85 corridor and
other transportation corridors.
91
b. Develop standards and criteria to determine acceptable levels of minimum and maximum
densities for each property.
C. Recommend general plan amendments regarding densities if necessary.
d. Recommend zone change to implement minimum and maximum densities.
e. Recommend procedures and restrictions to assure the provision of dwelling units on these
sites for very low, low or moderate income persons and families.
Responsible Agency Planning Commission; Planning Department
Schedule: - 49854990 July 7993
7-A AVAILABILITY OF SERVICES:
The Town shall consider the availability of such facilities as public transportation, schools, parks,
community services, shopping, police and fire protection, etc. , when making density
determination for new residential development. If any existing facilities such as schools, streets,
parks, sewer, and water supply are used at capacity, the facilities shall not be impacted beyond
their service capabilities unless implementation of programs to increase capacities is in process.
Responsible Agency Planning Commission
Schedule: 49854990 Ongoing
8-7. MEETING HOUSING NEEDS:
identified housin�
a. All applicants that propose a residential development (except one new single family
dwelling), shall submit a statement describing how the proposed project meets the goals and
Policies established in this Housing Element The statement of justification shall site specific
goals and /or policies of the Housing Element and provide evidence to support how the project
meets those goals and /or policies.
b_ The Planning Commission shall review all ordinances and development standards which
affect development, subdivisions, zoning, housing, building and the use of structures, to ensure
brat they incorporate innovative ideas achieving the goals and objectives stated in this element
Responsible Agency Planning Commission
Schedule: 4985 x998 i99t3 i950ngoinq
9-8. MOBILE HOME ZONE:
a. The Town shall develop maintain a mobile home zone for the existing mobile home parks
to protect the existing affordable high density housing at these sites, to recognize the status quo,
and to prevent change of use.
b. The Town shall require that any proposal to convert a mobile home park to a residential
development shall provide as least as many low cost housing units as could be accommodated
within the existing parks' capacity
n..
llr:`_flrlQlb[e -Aflnn Planning Gamn l9sion: L1I......:..
Gehe 9N
30
c. The Town shall develop maintain an ordinance requiring relocation assistance for any mobile
home tenant displaced by actions of the mobile home park owner.
d. The Town shall develop and enforce safety standards (fire,
earthquake and flood) for mobile home parks.
3 -4i- HOMELESS ASSISTANCE:
The Town shall continue to participate in the Voucher Program sponsored by the Salvation
Army to aid the homeless population and will participate in any other similar programs as they
become available.
Responsible Aaencv Town Council
Schedule: Ongoing
10. FAIR HOUSING:
The Town shall continue to support programs that provide fair housing services such as
Project Sentinel and Information and Referral Services and shall continue to support the Los
Gatos,%ratoga Bowd of Realtors in upholding the Housing and Urban Development's fair
housing law.
Responsible AgencwTown Council
Schedule: Ongoing
31
BIGDDCS AND SYS 25
REVIEW OF 1985 HOUSING ELEMENT
APPROPRIATION OF GOALS AND OBJECTIVES
The general intent of the goals and objectives of the 1985 Housing Element will be continued in the
1990 -1995 update. Several goals and objectives, however, have been modified or added to meet the
current and projected housing needs as discussed in this update. Specifically, these include the
following:
Preservation and Maintenance of Affordable Housin
The Town of Los Gatos continually encourages the preservation and maintenance of affordable
(including moderate priced) housing. Due to the highly developed nature of the Town and its desirability
as a place to live, housing prices are relatively higher than other portions of the County. Therefore, the
challenge which faces Los Gatos is to maintain the current supply of moderate priced housing and to
provide additional units at affordable costs.
To encourage moderate and affordable housing units, several policies have been revised in the update to
encourage housing for very low and low income groups. One program will permit a Town density bonus
for low income housing. New housing assistance programs (i.e., Redevelopment Agency and
Commercial Linkage Fees) are being reviewed. Amendments to the Town's Zoning Ordinance will also
be considered to limit the size of additions to modest size homes, which if not limited, will significantly
increase the resale price. The Town will also support the mixing of residential uses with commercial
uses on the same site in nonresidential areas in order to provide affordable housing closer to work
sources and transportation facilities. The Town will also work with property owners who have buildings
in need of rehabilitation or retrofitting to make them more earthquake safe.
Provision of New Affordable Housin
A policy has been added for the Town to research the feasibility of developing all surplus land for
affordable housing. The updated element also strengthens that the Town will actively pursue the
development of affordable and higher density housing.
Special Needs
Over the past several years the Town has become increasingly aware of the need to provide equal
facilitation opportunities for physically disabled persons. The 1990 -1995 update includes a goal to
eliminate handicapped accessibility discrimination that prevents free choice in housing. The Town
requires that all new residential developments, including detached single family dwellings, be usable by
physically disabled persons and must meet established Town handicapped requirements.
Although only a small number of the County's homeless reside in Los Gatos, homelessness is still
considered a serious concern by the Town. The update states that the Town will strive to reduce the
homeless population and will work with other agencies to provide housing or other appropriate
assistance for the homeless population.
In the past the Town has concentrated in providing affordable senior housing. The Town is now
experiencing a need for family housing. Therefore, the updated element strengthens the language to
encourage the development of family housing and identifies changes to Town programs to promote
family housing.
Transportation and Energy Conservation
Due to the current regional issues of air quality, jobs, housing balance, energy prices and transportation
efficiency, the Town must 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. Included in the
update is a revised energy conservation goal to make infrastructure projects and residential and
nonresidential developments to be compatible with environmental quality and energy conservation.
Fair Housing
The Town is in support of fair housing laws and policies have been added or strengthened to promote
fair housing.
32
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