Attachment 5 - May 19, 2022, Housing Element Advisory Board Desk Item Report (with Attachment 6)PREPARED BY: ERIN WALTERS AND JOCELYN SHOOPMAN
Associate Planner and Associate Planner
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
MEETING DATE: 05/19/2022
ITEM NO: 1
DESK ITEM TOWN OF LOS GATOS
HOUSING ELEMENT ADVISORY BOARD REPORT
DATE: May 19, 2022
TO: Housing Element Advisory Board
FROM: Joel Paulson, Community Development Director
SUBJECT: Review and Discussion of the Housing Element Site Inventory
REMARKS:
In response to a Board Member request, staff has received Property Owner Interest Forms for
the following sites:
Property Owner Interest Forms Submitted by Property Owner Included in Tier 1
1.50 Park Avenue and 61 Montebello Way – Included as Site A-2
2.101 S. Santa Cruz Avenue – Included as Site A-3
3.165 Los Gatos Saratoga Road – Included as Site A-7
4.50 Los Gatos Saratoga Road – Included as Site C-1
5.15300 Los Gatos Boulevard – Included as Site D-1
6.15349, 15367, 15405 Los Gatos Boulevard – Included as Site D-4
7.15425 Los Gatos Boulevard – Included as Site D-5
8.16492 Los Gatos Boulevard and APN 532-07-085 – Included as Site D-29
9.440 Los Gatos Almaden Road and 445 Leigh Avenue – Included as Site I-1
10.14000 Blossom Hill Road – Included as Site J-1
Property Owner Interest Forms Submitted by Property Owner Not Included in Tiers 1, 2, and 3
1.9 Forrest Avenue – Zoned R-M:5-12
2.128 Mary Way – Zoned R-1:8
3.333 University Avenue – Zoned R-1D:LHP
4.APN 529-06-072 – Zoned RMH
Based on the site selection criteria utilized by staff, the four sites identified above were not
included in Tiers 1, 2, or 3. Should the HEAB wish to include additional sites, staff would
recommend including the site located at 9 Forrest Avenue to Tier 3 due to it having a lot size
less than half an acre. Staff does not recommend including the sites located at 128 Mary Way
ATTACHMENT 5
PAGE 2 OF 2
SUBJECT: Review and Discussion of the Housing Element Site Inventory
May 19, 2022
N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\05-19-2022\Item 1 - Housing Element Sites Inventory and Income
Categories\Desk Item\Item1.Desk Item.docx
REMARKS (continued):
and 333 University Avenue due to their zoning, General Plan land use designation, and lot size
less than half an acre. Additionally, staff does not recommend including the site located at APN
529-06-072 due to environmental constraints, with the location of the Los Gatos creek within
the site.
Attachment 6 contains a public comment unintendedly omitted from the Staff Report, as well
as additional public comments received after the completion of the Staff Report.
ATTACHMENTS:
Previously Received with the May 19, 2022, Staff Report:
1. Housing Element Site Inventory Guidebook, Department of Housing and Community
Development
2. Draft Tier 1 Sites
3. Draft Tier 2 Sites
4. Draft Tier 3 Sites
5. Draft Tier 1 Map
Received with this Desk Item Report:
6. Public Comments Received Between 11:01 a.m., Friday, May 13, 2022, and 11:00 a.m.,
Thursday, May 19, 2022
From: Lee Fagot <>
Sent: Friday, May 6, 2022 11:37 AM
To: Joel Paulson <jpaulson@losgatosca.gov>; Jennifer Armer <JArmer@losgatosca.gov>; Laurel Prevetti
<LPrevetti@losgatosca.gov>; Housing Element <HEUpdate@losgatosca.gov>
Subject: Site selection for RHNA target
Folks,
Thanks for the work you are all doing on the HEAB team.
I did want to ask that before submitting the final list of sites, with densities and height limits, that you
review the total number of new housing units to make sure we do NOT provide more sites than the
1993 units as mandated by ABAG, and in each affordability range. Not sure I understand the logic of a
buffer of 15%, and recommend to keep the number lower, especially as we know there are more than
two more RHNA cycles in the next 20 years that will also be challenging to our community, especially as
regards the character of our Town that is being challenged to deal with what is “perceived” as a need for
so much more housing that our population could be increased here by about 1/3 over the next 20 years.
Is that logical, given the lack of infrastructure, water, reliable energy, etc.
Thanks for considering my thoughts and hope you will review and make available the total number of
housing units by site and income levels before submitting to the Council. That would be the proper
transparency Thanks Lee Fagot
cell
ATTACHMENT 6
From: Phil Koen <>
Date: May 18, 2022 at 11:22:10 AM PDT
To: Joel Paulson <jpaulson@losgatosca.gov>, Shelley Neis <sneis@losgatosca.gov>
Cc: jak vannada <>, Rick Van Hoesen <>, David
Weissman <>, Lee Fagot <>, Peter Hertan
<>, Jim Foley <>, Catherine Somers
<>
Subject: lanhermosabeachadoptedout032322.pdf
Hello Shelley and Joel,
Would you please include the LGCA email below and the attached letter from HCD to the City of
Hermosa Beach in the HEAB meeting package. Thank you.
Dear Members of the HEAB,
Attached please find an example of the comment letters local SCAG jurisdictions have recently received
from the HCD after reviewing local jurisdictions adopted 6th cycle housing element updates. A carefully
reading of the letter will hopefully further inform the HEAB with regard to the critical areas being
analyzed by the HCD during the certification process. I am sure staff can vouch that the Hermosa Beach
letter is typical of the comment letters bring issued by HCD.
Informed of HCD’s focus areas, of particular note is the Town’s draft site inventory relies on non-vacant
sites to accommodate more than 50% of the RHNA for lower income households. Since it is more than
50%, the non-vacant site use is presumed by HCD to impede additional residential development, UNLESS
there are findings based on substantial evidence that the use will be likely discontinued during the
planning period.
This test raises questions in our mind whether at least 470 of the lower income sites (which account for
nearly 50 % of the lower income sites identified) consisting of 145 units on the N40, 264 units at Los
Gatos Lodge and 101 units at Nob Hill) can meet this high water test. If not, the identified sites should
not be included in the site analysis.
Additionally we note that the site analysis uses land use densities proposed in the draft 2040 General
Plan and not the current land use densities. Since the draft 2040 General Plan has not been adopted and
continues to be of great public concern, we question whether it is appropriate to use these densities in
the site analysis.
Regarding the income distribution of the 200 ADUs, the site analysis assumes 10% of the units will be
very-low income, 30% will be low-income, 30% will be moderate income and 30% will be above
moderate income. Has there been a study to confirm this income distribution and what is the
assumption regarding one person and two person households? We are aware of a study prepared by
SCAG which would suggest materially different income distributions for ADUs which could result in
substantially less units in the VLI and MI categories and more units in the LI and AM categories.
One last point we would like to raise to the HEAB is the importance of performing a capacity analysis for
each site to validate that the projected site capacity can be realistically achieved. There are new rules
that govern the development of the effective site capacity. HCB’s letter to Hermosa Beach discusses this
issue in detail.
In closing, we greatly appreciate the hard work the HEAB is putting forth in developing a thoughtful site
inventory that ultimately the HCD will certify. We hope you will find our comments constructive and will
assist you as you continue to refine the site inventory analysis.
Thank you.
Phil Koen
Los Gatos Community Alliance
Suja Lowenthal, City Manager
Page 2
(SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s
Affordable Housing and Sustainable Communities programs; and HCD’s Permanent
Local Housing Allocation consider housing element compliance and/or annual reporting
requirements pursuant to Government Code section 65400. With a compliant housing
element, the City will meet housing element requirements for these and other funding
sources.
For your information, some general plan element updates are triggered by housing
element adoption. HCD reminds the City to consider timing provisions and welcomes
the opportunity to provide assistance. For information, please see the Technical
Advisories issued by the Governor’s Office of Planning and Research at:
http://opr.ca.gov/docs/OPR Appendix C final.pdf and
http://opr.ca.gov/docs/Final 6.26.15.pdf.
HCD is committed to assisting the City in addressing all statutory requirements of State
Housing Element Law. If you have any questions or need additional technical
assistance, please contact Molivann Phlong, of our staff, at
molivann.phlong@hcd.ca.gov.
Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
City of Hermosa Beach’s 6th Cycle Adopted Housing Element Update Page 1
March 23, 2022
APPENDIX
CITY OF HERMOSA BEACH
The following changes are necessary to bring the City’s housing element into compliance with
Article 10.6 of the Government Code. Accompanying each recommended change, we cite the
supporting section of the Government Code.
Housing element technical assistance information is available on HCD’s website at
http://www.hcd.ca.gov/community-development/housing-element/housing-element-
memos.shtml. Among other resources, the housing element section contains HCD’s latest
technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks),
available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and
includes the Government Code addressing State Housing Element Law and other resources.
A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress
in implementation, and reflect the results of this review in the revised element. (Gov. Code,
§ 65588 (a) and (b).)
The revised element provides (p. A-2) general information on the previous element’s
programs. However, this information does not provide further analysis other than
implementation status of programs. A thorough program-by-program review is necessary to
evaluate City's performance in addressing housing goals. As stated in the previous review,
as part of this analysis, the element should describe the actual results of the prior element’s
programs with any metrics and numerical accomplishments, compare those results to the
objectives projected or planned, and based on an evaluation of any differences between
what was planned versus achieved, provide a description of how the objectives and
programs of the updated element incorporate changes resulting from the evaluation for
programs that are incorporated into the current cycle programs.
In addition, as part of the review of programs in the past cycle, the element must provide an
evaluation of the effectiveness of goals, policies, and related actions in meeting the housing
needs of special needs populations (e.g., elderly, persons with disabilities, large
households, female-headed households, farmworkers, and persons experiencing
homelessness).
B. Housing Needs, Resources, and Constraints
1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with
Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in
the jurisdiction (Gov. Code, § 65583, subd. (c)(10)(A))
Fair Housing Enforcement and Outreach: The revised element includes (p. III-16)
general information on fair housing enforcement and outreach and states that the City
City of Hermosa Beach’s 6th Cycle Adopted Housing Element Update Page 2
March 23, 2022
held a series of public hearings for the element. However, the element did not address
this finding. The element must provide further analysis and describe ongoing fair
housing outreach throughout the planning period or include a program. Outreach should
include more robust actions in addition to housing flyers on the City’s website. Please
refer to HCD’s October 4, 2021 review for more information.
Integration and Segregation: The element was not revised to address this finding. The
element should describe the population including factors behind the block groups with
the highest percentage of nonwhite residents located in the southern and eastern
portions of the City, and analyze whether this area overlaps with other areas of the
analysis. This analysis must include both local and regional data and analyze
segregation and integration based on race and ethnicity, income, familial status and
persons with disabilities. Please see HCD’s October 4, 2021 review for more
information.
Disparities in Access to Opportunity: The element was not revised to address this
finding. Please see HCD’s October 4, 2021 review for more information.
Disproportionate Housing Needs and Displacement: While this section of the element
was revised (p. III-18), additional information and analysis is needed to comply. The
element must include both local (comparing areas within the City) and regional
(comparing the City to the region) data to analyze cost burden by tenure, overcrowding
by tenure, substandard housing, homelessness, and displacement throughout the
community. The element must also analyze factors of displacement in addition to at-risk
properties, such as displacement due to investment, disinvestment and disaster. The
analysis must also address trends, patterns, and other local knowledge and conclude
with a summary of fair housing issues.
Contributing Factors: The revised element utilizes (p. III-19) the 2018 Analysis of
Impediments to Fair Housing Choice (AI) for the County of Los Angeles as the list of
contributing factors to fair housing issues. However, the contributing factors are regional
and many do not pertain to the fair housing analysis of the City (such as addressing
R/ECAPs within the City). The element should include a prioritized list of contributing
factors and analyze the factors specific to the City that create, contribute to, perpetuate,
or increase the severity of fair housing issues. Contributing factors are fundamental to
adequate goals and actions. The analysis should result in strategic approaches to
inform and connect goals and actions to mitigate contributing factors to affordable
housing.
Sites Inventory Affirmatively Furthering Fair Housing (AFFH) Analysis: While the
element was revised to state that the sites inventory includes underutilized sites that do
not contribute to displacement risk (p. III-18), additional data and analysis is needed.
The element must include an analysis that addresses how the sites inventory AFFH.
Sites must be identified and evaluated relative to the full scope of the AFFH (e.g.
segregation and integration, racially and ethnically concentrated areas of poverty and
affluence, access to opportunity, etc.). The site inventory and accompanying analysis
must identify and analyze selected sites, map the location of the sites including
City of Hermosa Beach’s 6th Cycle Adopted Housing Element Update Page 6
March 23, 2022
with Government Code section 65583, subdivision (a)(5) or add or revise programs
which comply with the statutory requirements.
3. An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the types of
housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as
identified in the analysis pursuant to paragraph (7), including land use controls, building
codes and their enforcement, site improvements, fees and other exactions required of
developers, and local processing and permit procedures… (Gov. Code, § 65583, subd.
(a)(5).)
Local Processing and Permit Procedures: The element was not revised to address the
analysis of the Precise Development Plan (PDP). While the element includes Program
11 to evaluate processing and permit procedures’ impacts, an analysis must be
completed to formulate an appropriate program to address identified constraints. For
example, while the element provides a description (p. III-3) of the PDP required for
housing developments, it must also analyze the PDP process, identify what is reviewed,
list typical findings and approval procedures by zone and housing type. The analysis
must evaluate the processing and permit procedures’ impacts as potential constraints
on housing supply and affordability and should consider processing and approval
procedures and time for typical single family and multifamily developments, including
type of permit, level of review, approval findings and any discretionary approval
procedures.
The revised element also includes a description of the City (p. III-11) within the Coastal
Zone. However, the element should include an analysis of whether the City coastal
preservation policies will potentially impact future or existing housing development
within the designated coastal zone of the City especially for sites that require rezoning
identified in Table B4. The element should also state when the City will receive approval
for the Local Coastal Plan.
Constraints on Housing for Persons with Disabilities: The revised element states (p. III-
11) that residential care facilities serving six or fewer persons are permitted in all
residential zones and that large residential care facilities are conditionally permitted in
most residential zones. However, residential care facilities serving seven or more
persons are limited to the same zones with the approval of a conditional use permit.
While the element states it will consider changing the review process, it must commit to
revising the requirements to remove constraints on persons with disabilities and add or
modify programs as appropriate to ensure zoning permits group homes objectively with
approval certainty.
In addition, while the element describes the City’s reasonable accommodation process,
it should evaluate impacts, including identifying and analyzing findings of approval. For
example, Section (4)(b) of the City’s Reasonable Accommodation (p. III-5) is a
constraint to the provision of housing for persons with disabilities and the element must
include a program to revise the reasonable accommodation procedure and specifically
remove identified constraints.
City of Hermosa Beach’s 6th Cycle Adopted Housing Element Update Page 7
March 23, 2022
4. An analysis of potential and actual nongovernmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the availability
of financing, the price of land, the cost of construction, the requests to develop housing
at densities below those anticipated in the analysis required by subdivision (c) of
Government Code section 65583.2, and the length of time between receiving approval
for a housing development and submittal of an application for building permits for that
housing development that hinder the construction of a locality’s share of the regional
housing need in accordance with Government Code section 65584. The analysis shall
also demonstrate local efforts to remove nongovernmental constraints that create a gap
between the locality’s planning for the development of housing for all income levels and
the construction of that housing. (Gov. Code, § 65583, subd. (a)(6).)
The element was not revised to address this requirement. Please see HCD’s October 4,
2021 review letter for more information on how to address the finding. In addition, the
element states (p. III-13) that the timeline of development projects from project approval
to building permit application can vary from project to project. However, the element
must include an estimate of the typical length of time between receiving approval for a
housing development and the submittal of an application for building permits that
potentially hinder the construction of a locality’s share of the regional housing need. The
element should also include an analysis of requests to develop housing at densities
below those anticipated, including sites listed in the inventory. The element must also
include a description of any program(s) that mitigate nongovernmental constraints that
create a gap in the jurisdictions ability to meet RHNA by income category.
5. Analyze any special housing needs such as elderly; persons with disabilities, including a
developmental disability; large families; farmworkers; families with female heads of
households; and families and persons in need of emergency shelter. (Gov. Code, §
65583, subd. (a)(7).)
The element was not revised to address this finding. Please see HCD’s October 4, 2021
review for more information.
C. Housing Programs
1. Include a program which sets forth a schedule of actions during the planning period,
each with a timeline for implementation, which may recognize that certain programs are
ongoing, such that there will be beneficial impacts of the programs within the planning
period, that the local government is undertaking or intends to undertake to implement
the policies and achieve the goals and objectives of the housing element through the
administration of land use and development controls, the provision of regulatory
concessions and incentives, and the utilization of appropriate federal and state financing
and subsidy programs when available. The program shall include an identification of the
agencies and officials responsible for the implementation of the various actions. (Gov.
Code, § 65583, subd. (c).)
City of Hermosa Beach’s 6th Cycle Adopted Housing Element Update Page 9
March 23, 2022
3. Address and, where appropriate and legally possible, remove governmental and
nongovernmental constraints to the maintenance, improvement, and development of
housing, including housing for all income levels and housing for persons with
disabilities. The program shall remove constraints to, and provide reasonable
accommodations for housing designed for, intended for occupancy by, or with
supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)
As noted in Findings B4 and B5, the element requires a complete analysis of potential
governmental and nongovernmental constraints. Depending upon the results of that
analysis, the City may need to revise or add programs and address and remove or
mitigate any identified constraints. In addition, the element should be revised, as
follows:
x Program 10 (Housing for Persons with Special Needs) should be revised from
“will be reviewed” and “may” to objective, specific actions that the City will take
during the planning period to create a meaningful program.
x Parking Requirements: While the revised element states (p. III-7) that the City will
reevaluate the appropriateness of the City’s parking requirements based on
current conditions as part of the comprehensive Zoning Ordinance update, it
must include a program with implementation actions to address or remove any
identified constraints.
4. Promote AFFH opportunities and promote housing throughout the community or
communities for all persons regardless of race, religion, sex, marital status, ancestry,
national origin, color, familial status, or disability, and other characteristics protected by
the California Fair Employment and Housing Act (Part 2.8 (commencing with Section
12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair
housing and planning law. (Gov. Code, § 65583, subd. (c)(5).)
The element was not revised to address this finding. Programs need to be based on
identified contributing factors from localized AFFH analysis, include metrics and
milestones, and be significant and meaningful. Please see HCD’s October 4, 2021
review letter for more information.
5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units
that can be offered at affordable rent, as defined in Section 50053 of the Health and
Safety Code, for very low, low-, or moderate-income households. For purposes of this
paragraph, “accessory dwelling units” has the same meaning as “accessory dwelling
unit” as defined in paragraph (4) of subdivision (i) of Section 65852.2. (Gov. Code,
§ 65583, subd. (c)(7).)
The element’s ADU program (Program 6) should commit to additional incentives and
strategies, frequent monitoring (every other year) of ADU production and affordability
and specific commitment to adopt alternative measures such as rezoning or amending
the element within a specific time (e.g., 6 months) if ADU assumptions for the number of
units and affordability are not met.
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