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Recommend Ratification of the 2007-2014 Housing Element.�pW N OF ��9 GASp COUNCIL AGENDA REPORT DATE: MARCH 1, 2012 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER MEETING DATE: 3/5/12 ITEM NO: CONSENT SUBJECT: RECOMMEND RATIFICATION OF THE 2007 TO 2014 HOUSING ELEMENT (Dated November 1, 2010). RECOMMENDATION Recommend ratification of the 2007 to 2014 Housing Element (dated November 1, 2010). BACKGROUND On November 1, 2010, the Town Council approved the draft 2007 — 2014 Housing Element after an extensive General Plan Committee review, joint Town Council/Planning Commission study session, and public hearings by the Planning Commission and Town Council. Subsequent to the Town Council's approval of the draft Housing Element, the State Department of Housing and Community Development (HCD), the agency responsible for reviewing and certifying that Housing Elements are in compliance with State Housing Law, commenced the final review of the Element. In April 2011, HCD certified that Los Gatos' Housing Element complies with State Housing Law. Between the Town Council's November 2010 adoption of the draft Element and the April 2011 HCD certification, numerous revisions were completed to meet State Housing Law requirements. These revisions, namely requiring multiple family as a use by right in the AHOZ, were discussed in the November 1, 2010, Housing Element Adoption report (Attachment 4). Town Council considered the revisions on September 19, 2011, (Attachment 2) and continued the matter to a date uncertain to allow Town staff time to develop density and land use controls PREPARED BY : AWendie R. Rooney, Director of Community Development Reviewed by: S qAssistant Town Manager Town Attorney Finance NADEVUC REPORTS\2012\11ousing Element 3- 5- 12.doez Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 2007 to 2014 Housing Element March 1, 2012 to ensure the Town will maintain a level of certainty if the AHOZ sites are developed with affordable housing (Attachment 1). ANALYSIS: Staff and Canon Design Group, the Town's Architectural Consultant, are in the process of drafting development standards and guidelines for the AHOZ. The General Plan Committee (GPC) has held three meetings regarding the preparation of these guidelines and standards. It is anticipated that the standards and design guidelines will be drafted for Planning Commission review and recommendation to the Town Council later this year. At this time, the GPC has considered options for controlling the density, mass and scale of one of the seven AHOZ sites (County Courthouse site). This is the only AHOZ site about which the Town has had any recent inquiries regarding potential development. If Council review and action on the AHOZ require subsequent modifications to the Housing Element, then these changes will be brought forward at that time or incorporated into the subsequent Housing Element beginning in 2014. State law requires adoption of a valid Housing Element, and the Town is currently not in compliance with this requirement. Without a valid Housing Element, the Town remains limited in its ability to fully evaluate future residential development proposals. For example, when Town Council considered the Riviera Terrace project in early 2012, without a valid Housing Element, Town Council was restricted by State law during its analysis and consideration of the project. In order to prevent further limitations on the evaluation of future housing proposals, adoption of the Housing Element would provide additional tools for consideration of the projects that are brought to Planning Commission and Town Council. As discussed on September 19, 2011, one of the disadvantages of not having a certified Housing Element is that the Town's ability to apply for State bond funds, federal funds and transit - oriented development and park funds is jeopardized. One such program/grant that the Town regularly participates in is Safe Routes to School. MTC and VTA administer the transportation grant funding programs. As part of the Sustainable Communities Strategy (SCS), all state and federal transportation funds will be allocated through the OneBayArea Program (OBAG). The draft OBAG Program integrates the region's federal transportation program and its SCS land -use and housing policies. MTC and ABAG are developing the funding eligibility criteria for the OBAG Program. One of the more significant draft eligibility criteria is that a funding recipient must have a State certified Housing Element for this funding. It is highly likely that this proposed criterion will be retained in the final plan. Please refer to Attachments 2 and 3 for the analysis regarding the revisions PAGE MAYOR AND TOWN COUNCIL SUBJECT: 2007 to 2014 Housing Element March 1, 2012 SUMMARY AND RECOMMENDATION Based on the aforementioned, staff recommends that the Town Council ratifies the November 1, 2010, approval of the 2007 -2014 Housing Element with the revisions incorporated. Attachments 1. Excerpt of Town Council summary minutes from the meeting of September 19, 2011 2. September 19, 2011, Town Council Staff Report, which includes the following attachments: 1. HCD Comment Response Matrix 2. Final Draft of the 2007 — 2014 Los Gatos Housing Element and Technical Appendix (red -line tracked changes) 3. September 19, 2011, Town Council Desk Item Report, which includes the following attachments: 3. Communication from the public (two pages) 4. Figure 6 -1 (Housing Opportunity Sites) 4. October 13, 2010, Town Council Staff Report, which includes the following attachment: 1. Memorandum dated October 6, 2010, (excluding copy of second draft of the 2007 -2014 Housing Element) 5. Resolution Ratifying Housing Element T11is Page Intentionally Left Blank TOWN COUNCIL HUMTES — SEPTEMBER 19, 2011 Public Hearing Item #10 — continued MODIFICATIONS: Motion modified by Council Member Ba6ara Spector Eliminate the $2,500 community benef . Strike "nachos" from the list of app9ifers in paragraph 9 and add a phrase to clarify that the items i ted are not food for purposes of defining a meal. Require food service. Change the name of bus' ess from "Pizza Simpatico" to "Cento Nove" for all reference . Seconded by Coun Member McNutt. VOTE: Motion passedXnanimously. The following com/sdy de after the motion and prior to the vote: Council Comment - Commented tion occurred and the discussion focused on app ropriate cots to mitigate traffic and eliminating community benefits in the such as benches and banners that are not related to traffic. Ms. Propp Comm ted that Council can make one global motion with many layers. Com ented that if Council recommends a new conditional use permit, then Council co direct staff and the applicant to work together on logistics of noticing in a n spaper with daily publication. Pulled Consent Item #3 3. Requesting Town Council ratification of the November 1, 2010 approval of the 2007 -2014 Housing Element Wendie Rooney, Community Development Director, presented the staff report. ?zc 9 4 . a tq COUNCIL MINUTES - SEPTEMBER 19, 2011 Pulled Consent Item #3 — continued Council Comments - Expressed concern about specific language regarding the density of 20 units minimum per acre with use by right without discretionary review and building heights of at least three stories. - Commented that it is not clear what latitude the Council has. - Commented that in six overlay zones, conditional use permit discretionary review is removed. - Questioned what would happen if an application came in right now. - Questioned whether there is an urgent deadline to adopt the proposed resolution. Ms. Rooney - Commented that the Town has many alternatives to consider various development standards. - Commented that 20 units per acre is identified because the state designates the number of units per acre, based on the type of community; if the Town meets this "default threshold," then extensive additional studies are not needed to support the program. - Commented that density is the only factor in which discretionary review is removed because other standards are preserved within the Housing Element. - Commented that environmental review would remain. - Commented that the state may decertify the Town's Housing Element, putting grant funding for transportation and affordable housing in jeopardy. Council Comments - Questioned whether tonight is a deadline to adopt the resolution. - Questioned why we have not put design standards into place before getting this resolution. - Questioned what would occur in terms of height and density requirements, if an applicant came in after adoption of the resolution. Ms. Rooney - Commented that this is another implementation measure for the General Plan. - Commented that the density would be 20 units per acre and at least three stories. - Commented that there is still environmental review and architecture and site review and that an application has to go through rigorous review before it is complete. 10 TOWN COUNCIL MINUTES - SEPTEMBER 19, 2011 Pulled Consent Item #3 — continued Mr. Wu - Expressed concerns about the proposed language Mr. Allen - Expressed concerns about the proposed language. Ms. Quintana - Expressed concerns about the proposed language. Ms. Fok - Expressed concerns about the proposed language. Close Public Hearing Council Comments - Commented that the Housing Element was thoroughly studied, separate from the General Plan. - Commented that the item should be continued to a date uncertain to close the time window to allow for the Town to develop criteria to allow for as much local control as the state will allow. MOTION: Motion by Vice Mayor Steve Rice to continue the item to a date uncertain. Seconded by Council Member Diane McNutt. VOTE: Motion passed unanimously. Council Comments - Requested clarification on state density bonus law. - Questioned whether the proposed language is a reflection of the state imposing tighter restrictions. - Commented that if specific development standards are in place, then it would mitigate the concerns regarding lack of control. - Questioned how the Town's density bonus works in conjunction with the state's required density bonus. - Questioned whether each overlay zone could be analyzed individually. e ii TOWN COUNCIL MINUTES - SEPTEMBER 19, 2011 Pulled Consent Item #3 — continued Ms. Rooney - Commented that during every cycle, the state provides more restrictions and that jurisdictions that are revising their Housing Elements are subject to these restrictions. - Commented that just recently the first project in the Town's history requested a state density bonus. - Commented that the Town's density bonus can be combined with the state's density bonus. - Commented that staff will look at each overlay zone independently, but the framework would be consistent across the board. - Commented that a density bonus ordinance can get done sooner than the analysis of overlay zones, which will take until mid -2012. Ms. Propp - Commented that until recently, no applicant has requested a state density bonus. OTHER BUSINESS There was no other business or this meeting. ADJOURNMENT Attest: zarin A. Vakharia Administrator 12 MEETING DATE: 09/19/11 ` • /' B �� COUNCIL AGENDA REPORT ITEM NO: DATE: SEPTEMBER 19, 2011 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: REQUESTING TOWN COUNCIL RATIFICATION OF THE NOVEMBER 1, 2010, APPROVAL OF THE 2007 TO 2014 HOUSING ELEMENT. RECOMMENDATION: Ratify the November 1, 2010, Town Council Approval of the 2007 to 2014 Housing Element BACKGROUND: On November 1, 2010, the Town Council approved the draft 2007 — 2014 Housing Element after an extensive General Plan Committee review, joint Town Council/Planning Commission study session, and public hearings by the Planning Commission and Town Council. Subsequent to the Town Council's approval of the draft Housing Element, the State Department of Housing and Community Development (HCD), the agency responsible for reviewing and certifying that Housing Elements are in compliance with State Housing Law, commenced the final review of the Element. In April 2011, HCD certified that Los Gatos' Housing Element complies with State Housing Law. Between the Town Council's November 2010 adoption of the draft Element and the April 2011 HCD certification, numerous revisions were completed to meet State Housing Law requirements. Attachment 1 lists the principal revisions to the document, and Attachment 2 is a red -line copy of the Element and Technical Appendix. The red- line copy also includes minor, typographical -type, revisions. ANALYSIS The majority of the revisions listed in Attachment 1 are minor or technical in nature and do not modify the overall intent of the Housing Element goals or programs. The more substantive changes are to Action HOU -2.1 on Page 26, Action HOU -2.2, on Page 27, and Action HOU -6.7 lv� PREPARED BY : A) Wendie R. Rooney, Director of Community Development Reviewed by - . S� Assistant Town Manager ''own Attorney Finance N:dJHy W REPORTS 201 I Housing Element 9- 19- 11.doex Refonnatted: 5 30 ATTACHMENT 2 PAGE _ MAYOR AND TOAN COUNCIL SUBJECT: 2007 to 2014 Housing Element .September 19. 2011 on Page 37. Pursuant of HCD requirements Action HOC -2.1 was modified to allow a property owner to develop an Affordable Housing Overlay Zone (AHOZ) designated property by right and without discretionary review. The ToNcn would maintain the right to conduct .architectural and Site review. but could not dens' an application if it met the AHOZ requirements that will be developed over this next Fear. Action HOU -2.1 was also revised to require a minimum of 50 percent the units - on the AHOZ sites be affordable to moderate or below income levels. and finalh' three development standards from the M or Multi- family Residential Zone District were included in the Action item. These standards included height. parking. and that the design shall be compatible with its surroundings. Action HOC -2.2 was added. Action HOC' -2.2 states that in the interim until the AiIOZ standards are adopted_ an AHOZ designated property applicant swill be allowed: (1) to use the incentives identified for the AHOZ sites: (2) apply the Tosyn's Density Bonus Program. (3) apply the State's Density Bonus Program. and (4) the Town will expedite the review process. Action HOU -6.7 that requires the Town to conduct a study to evaluate park-ilia space requirements for the RM Zone District seas also added. Over the next year. staff will be working with the General Plan Committee (GPC) on the development and architectural standards for each of the AHOZ properties. In addition. staff will be developing and reviewing with. the GPC numerous Housing Element amendments and new programs required by Town Code, including: • Definitions of Group Home, Small Family Home Residential Care Facility. Supportive and Transitional Housing, and Family. • Conducting studies and analysis on: parking requirements in the RM Zone District. potential removal of the CUP requirement for multi - family housing in the NIF Zone District. and an equity share affordable housing program. • Preparation of a Reasonable Accbmmodation Ordinance. Town Density Bonus Ordinance. and Emergency Shelter Ordinance. Finally. it is important to note that planning for the next Ilousing Element has commenced with early work on the Regional Housing Needs Assessment Allocation (RHNTA) methodology. The final recommended distribution methodology will be released in early fall. Environmental Review The 2007 to 2014 Housing Element is a component of the 2020 General Plan. The General Plan is a project as defined under CEQA and accordingly an Environmental Impact Report (E1R) was prepared for the proiect. On September 20. 2010. the Town Council adopted Findings of Fact PAGES MAYOR AND TOWN COUNCIL SUBJECT: 2007 to 2014 Housing Element September 19. 2011 and a Statement of Overriding Considerations to certify the Final Environmental Impact Report prepared for the General Plan. PUBLIC CO \i\IENTS The Town has not received any further public comments on the Housing Element. SUMMARY AND RECOMMENDATION The Draft Housing Element was the product of extensive GPC, Planning Commission, and Town Council review. The State HCD has found the Element is in compliance with State Housing Element Law. The Housing Element meets state Housing Law, while maintaining the types of affordable programs the Town has historically encouraged and implemented. The Housing Element also addresses the Town's "fair share" of affordable housing. as articulated in the Regional Housing Needs Assessment through the unique AHOZ concept that does not require a "broad brush" rezoning of properties, but rather considers pre- identified parcels that could accommodate higher densities if developed in a manner consistent with Town policy and practice. In addition. based on the state's certification of the Element. the Town will continue to be eligible for certain affordable housing grants administered by HCD. maintain the authoritN to make land use decisions or approve development applications, and preserve the presumption that the Element complies with state law. This last point is most notable since noncompliant Housing _Elements make a legal targets for _parties who _seek-to -invalidate local land use -or redet elopment decisions. The laws provides attorney's fees to groups such as housing advocates, environmental groups, or builders if they prevail in a lawsuit challenging noncompliance. Based on the aforementioned. staff recommends that the Town Council ratify the November 1. 2010, approval of the 2007 -2014 Housing Element. As an alternative. Council could direct c 'onsideration of these HCD required modifications back to the General Plan Committee and'or Planting Commission for recommendation to the Town Council. Attachments 1. HCD Comment Response Matrix 2. Final Draft of the 2007 — 2014 Los Gatos Housing Element and Technical Appendix (red- line tracked changes) N RR:cgt Th is Page Intentionally Left Blank Los Gates 2-30 q Housing E e —e ^lajor Revs ors :: E Seco, A. Daft HE HCD Consistent Corresponding Revisions to the Housing Element Revise Action HOU -LI to describe how the Town will monitor implementation BMP Page 21 - Added language to Action HOU-1.1 regarding an of the Program. annual evaluation of the BMP Program. Revise Action HOU- (AHOZ? to specify a Page 26: • Added a requirement that a minimum 5C% percentage affordability requirement f:,r housing sites of of housing units on each AHOZ site must be in the AHOZ and to describe examples of affordable to moderate income levels and below. development standards that would be developed under the AHOZ. ♦ Added three RM zone standards and stated these would likely be a part of the AHOZ standards. HCD provided revised language for Action HOU. -'.1. These are minor revisions that do not change the substance of the Action. See page 26. Page 27 - Added Action HOU -2.2, stating that that in the Addiction that describes how AHOZ be interim period, developers will follow the incentives and sites will treated in the interim period before AHOZ standards described in Action HOU -2.1. (Use of Density Bonus Program and expediting for development standards are adopted. processing AHOZ applications also available.) Revise Action HOU -23 rues loss" program for AHOZ) so that rezoning, if required, must occur Page 28 - Included the following timefmme: "within one within a specified tlmeframe. year of approving a development less than 2C dwelling unia per acre.' Page 37 - Added Action HOU -6.7 to conduct a smdv and Include action to study parking requirements in the mitigate /reduce parking constraints. (Note: Technical Appendix page 4-4 was revised include RM zone, which could constrain housing development. to information about potential parking constraints and references Action HOU -6.7.1 HCD provided revised language for Actions HOU. 6.6 and HOU -6.7. See page 37. Revise Action HOU -6.9 to show that supportive and transitional housing should be created similarly in the Town Code. Page 38 - Added language about supportive housing to Action HOU -6.9. Technical Appendix pages 3-4 and M (fable 3 -3) - Adjusted RHNA, which includes units already built, proposed, under construction, or approved, revised to include South Ba Honda and Swanson Ford sites. [Note: these sites were removed from the Sites Inventory so that Revise Sites Inventory so that any proposed projects she Sites Inventory total numbers have changed throughout the document. See last two Housing on housing sires are counted toward adjusted RHNA and eat included in Sites Inventorv. pages of Element, and Technical Appendix Chapter 6. Sites Inventorv.] Add more information about the BMP program and Technical Appendix pages 4-19 and 4-22 - Added details the Affordable Housing In -Lieu Fee Fund. Irom Town's existing 8 \IP Ordinance. Attachment 1 This Page Intentionally Left Blank Town of Los Gatos 2007 -2014 Housing Element HCD Certified: April 2011 Attachment 2 This Page Intentionally Left Blank TABLE OF CONTENTS ASCOPE AND CONTENT............................ ...... _ ...................................... _........................... I B. PUBLIC PARTICIPATION EFFORTS .......................... _ .............. _ ....................... _ ............. 3 C GENERAL PLAN CONSISTENCY ...................... _ ........................................... .................. 6 D. HOUSING NEEDS SUMMARY ............................................................... ..............................6 E. POTENTIAL CONSTRAINTS TO HOUSING DEVELOPMENT .................... 12 F. ADEQUATE SITES ANALYSIS ........................... ... . ............................................ ...............15 G. ENERGY CONSERVATION POLICIES ............................................... _ .... _.._ ............... 17 H. GOALS, POLICIES, AND ACTIONS ....... .................................................. _...................20 I. SUMMARY OF QUANTIFIED HOUSING OBJECTIVES ......... .............................42 Appendices Technical Appendix TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 1014 HOUSING ELEMENT Tables Table H -1 Regional Housing Needs Allocation (RHNA) for Los Gatos, January 1, 2007 to June 30, 2014 ...... .............................16 Table H -2 Quantified Housing Objectives, 2007. 2014 .............................. 43 HOUSING ELEMENT The Housing Element is one of seven state- mandated elements that must be included in every local General Plan. The Housing Element assesses housing needs for all income groups within the community and identifies a program to meet those housing needs. The goals of the Housing Element are: • To increase the housing supply and the mix of housing types in an equita- ble manner. • To promote infill development and socioeconomic equity and protect en- vironmental resources. • To promote an improved intraregional relationship between jobs and housing. A. Scope and Content Unlike other General Plan elements, the Housing Element is subject to detailed statutory requirements regarding its content and is subject to mandatory review by the State of California Department of Housing and Community Development (HCD). The Housing Element must also be updated every five years, unlike other General Plan elements, which are typically updated every 10 to 20 years. In compliance with state law, this Housing Element contains the following information: • Scope and Content: A description of the scope of the Housing Element and its content and update requirements. • Public Participation Efforts: A description of the efforts to include all segments of the community in the Housing Element Update process. ♦ General Plan Consistency: A description of the relationship between the Housing Element and other elements of the General Plan. ♦ Housing Needs Summary: A summary of the Town's housing needs based on data and analysis required by state law and as provided in the Technical Appendix of this Housing Element. TOWN OF LOS GATOS 2020 GENERAL PLAN 1007-1014 HOUSING ELEMENT ♦ Potential Constraints to Housing Development: A summary of gov- ernmental, non - governmental, and env constraints that are ad- dressed in detail in the Technical Appendix. • Adequate Sites Analysis: A description of the Town's ability to meet its "fair share' of housing based on the Regional Housing Needs Allocation (RHNA) from the Association of Bay Area Governments (ABAG). • Energy Conservation Policies: A list of the goal and policies from the Environment and Sustainability Element related to energy conservation in residential development in Los Gatos. ♦ Housing Goals, Policies, and Actions: A fist of specific goals, policies, and actions that address housing issues based on the housing needs sum- mary, constraints to housing development, and the Town's fair share of housing over the next five -year period. ♦ Summary of Quantified Objectives: A table listing the number of hous- ing units to be built, rehabilitated, and preserved through the housing programs, which are listed as "actions,' under the goals and policies in this Housing Element. The Housing Element also includes a Technical Appendix, which provides a detailed report of the Town's population and housing stock characteristics, including: ♦ Background: A detailed description of what is included in the Housing Element Technical Appendix to satisfy Housing Element state law re- quirements. ♦ Housing Needs Assessment: Detailed demographic, economic, and hous- ing data for the Town. ♦ Projected Housing Needs: A description and analysis of the Town's 'fair share" of housing, or RHNA, and an inventory of subsidized housing units with an indication of which units could be at risk of conversion to market rate. This section also includes information on funding resources for housing development. TOWN OF LOS G A T O S 2020 GENERAL PLAN 1 a HOUSING E L E M E N T • Constraints to Housing Development: An analysis of the constraints to providing housing for all income levels. ♦ Review of the 2003 Housing Element: A review of the goals, objectives, and policies of the previous Housing Element and brief descriptions of ac- complishments. ♦ Housing Sites Inventory: An inventory of residential land resources, including suitable sites for housing, homeless shelters, and transitional housing. This section includes a map of the potential housing sites and de- tails the Town's ability to accommodate its RHNA, which is allocated to Los Gatos by ABAG. B. Public Participation Efforts This Housing Element was developed simultaneously with the broader General Plan Update. As part of the General Plan Update and Housing Element Update processes, the Town held a series of three public workshops and a community panel discussion to seek community input on housing and other issues. The workshops and panel were organized as follows: • Community Workshop 81: General Plan Review held Saturday, Na vember 1, 2008. This workshop provided an introduction to the overall General Plan Update and Housing Element Update processes. ♦ Community Workshop 82: Background Report and Focus Areas Re- finement held Saturday, April 18, 2009. This workshop included a sum- mary of existing conditions in the Town as well as an exercise to deter- mine which issues members of the public believed to be significant, and which warranted inclusion in the General Plan and Housing Element Up- dates. • Community Panels Held Saturday, May 2, 2009: Experts were con- vened in an open panel format to discuss issues of significance to the Gen- eral Plan and Housing Element Updates. Speakers discussed the need for affordable housing and senior housing and explained how other Bay Area communities are addressing similar needs. TOWN OF LOS G A T O S 2020 GENERAL PLAN 200] -2014 HOUSING ELEMENT ♦ Community Workshop #3: Focus Area Policy Preference Survey held Saturday, August 8, 2009. A survey was conducted during this workshop to receive community feedback on proposed draft policies for the General Plan and Housing Element Updates, including preferences for different housing types in Los Gatos. The Town conducted extensive public outreach to encourage community participation at these workshops and at the community panels. The Town encouraged participation of low- and moderate - income households by providing public meeting notices at the Adult Recreation Center and working closely with Regina Falkner, head of the Community Services Department for Los Gatos, to reach out to lower - income residents. Speakers for the community panels described above included representatives from The Terraces of Los Gatos and Los Gatos Meadows - both senior housing developments in Los Gatos - and a representative from Senior Housing Solutions, a non -profit affordable housing developer. The Town of Los Gatos encouraged community participation throughout the Housing Element Update process by convening the General Plan Committee (GPC), a Town Committee comprised of two Council members, three Planning Commissioners, a Community Service Commissioner, and two public members. The GPC held meetings to review data analysis and policies as they were developed and to receive community comment and feedback. Additionally, as part of the General Plan Update, the Town Council appointed the General Plan Advisory Committee (GPAC) to provide further input and direction on goals, policies, and actions for the General Plan; review input from the community workshops and panels; and make recommendations to the Town Council and Planning Commission. The GPAC is comprised of the GPC members, individuals from other Town Commissions, and public members. The GPAC provided input and d on four focus areas identified by Town Council for the General Plan: parks and recreation, environment and sustainability, youth needs, and senior needs. Feedback from the GPAC on overlapping issues between the four focus areas and the Housing Element topics were also incorporated into the 4 TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2007 -2014 HOUSING ELEMENT Housing Element. For example, environment and sustainability goals, Policies, and actions related to energy conservation in residential development were included in the Housing Element. Members of the GPAC included two Council members, three Planning Commissioners, individuals from various Town Commissions and Committees, and community members at- large. Local private and non -profit developers that build affordable housing were also consulted for input into the housing needs analysis. All public meeting agendas were posted at Town Hall and on the Town's website prior to each meeting. The Town made hard copy materials available at the Town Community Development Department (CDD) offices, the Town Clerk's office, and at the reference desk at the public library. Materials were also published on the Town's General Plan Update website. Comments and feedback from the community workshops, panels, GPC meetings, and developer conversations were incorporated into the Housing Element's goals, policies, and actions. For example, at the community workshops and at GPC meetings, community members requested policies focused on senior housing needs. The Town has created a new Housing Element goal (Goal HOU -6) and related policies under this goal that address the need for affordable senior housing in Los Gatos. Steering committee members also requested more clear policies for persons with disabilities and/or special needs. The Town has included actions HOU -6.2 through HOU -6.4 to address these needs. The review process and adoption of the Housing Element will include a joint Town Council and Planning Commission study session and separate public hearings with the Planning Commission and the Town Council, all of which will be open to the public for their input. As required by state law, a 45-day public review period for the Draft Housing Element will be held to receive community and agency comments. 5 TOWN OF LOS G A T O S 2624 GENERAL PLAN 2007 -2014 HOUSING ELEMENT C. General Plan Consistency The Housing Element is an independent element of the General Plan; however, pursuant to state law it must be consistent with other General Plan elements. For example, the land use designation and policies that are contained in the Land Use Element establish the development capacity necessary to implement the Housing Element Programs. Proposed Housing policies are consistent with existing land use policies and build upon relevant existing policies in the General Plan. Additionally, according to Government Code Section 65302, amendments to a General Plan's Safety Element and Conservation Element (incorporated into Los Gatos's Environment and Sustainability Element) would require a review of and amendments to the Housing Element as necessary for internal consistency, particularly as related to analysis and policies regarding flood hazards and flood management information. The Housing Element will be reviewed and amended every five years and as otherwise necessary in accordance with Government Code Section 65302 to remain consistent with other General Plan elements. D. Housing Needs Summary This section summarizes the housing needs of Los Gatos as determined through the comprehensive housing data assessment and analysis presented in the Technical Appendix. The housing needs summary describes population trends, characteristics of the housing stock, housing affordability, and special needs households. 1. Population Trends Los Gatos had a population of approximately 28,813 in 2008, according to Nielson Claritas data. Over the last three decades, the population has grown very little and at a fairly steady pace. The population is also aging. The 0 TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2007 -2014 HOUSING ELEMENT median age in Los Gatos is currently 45 years, while in 1970 the median age was 30 years.' According to ABAG, there were approximately 1.5 jobs per household in Los Gatos in 2005. This jobs /housing balance has remained the same since 2000. However, ABAG currently projects an increase in the number of jobs in Los Gatos, which could potentially increase demand for housing to accommodate persons employed in these new jobs.' ABAG projects that most of these new jobs will be in the Health, Educational, and Recreational Service Sector.' 2. Housing Stock According to the California Department of Finance, Los Gatos had 12,952 total housing units in 2008. Approximately 70 percent of the total housing stock in Los Gatos consists of single - family homes, while the remainin approximately 30 percent consists of multi - family apartments, duplexes, and a very small percentage of mobile homes. Sixty-five percent of households are owner - occupied. The housing stock of Los Gatos is generally in good condition, and few areas require reconstruction or rehabilitation. Just over half of the housing stock was built in the 1960s and 1970s, according to 2000 U.S. Census data. Approximately one -third of the housing stock was built prior to the 1960s, while the remaining 16 percent has been built since the 1980s. Much of the older housing stock is located near the Downtown in a redevelopment project area. According to the Town Building Department, a significant number of older homes in Los Gatos were rebuilt after the 1989 Loma Prieta earthquake. ' Claritas, 2008 and U.S. Census, 2000. ' Association of Bay Area Governments, 2006, Projections 2007: Forecasts for the San Francisco Bay Area to the Year 2035, pages 191- to 192. ' The Health, Educational, and Recreational Services Sector is defined by ABAG as a combination of several classifications from the North American Industrial Classification System (NAICS). This classification includes: Educational Services; Health Care and Social Assistance; Arts, Entertainment, and Recreation; Accommoda- tion and Food Services; and Other Services. TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT Overall, approximately 4.5 percent, or about 580 units, of the total housing stock, is currently in need of rehabilitation! Vacancy rates can be an indicator of demand for housing in a community. Los Gatos has a low overall vacancy rate of 3.1 percent. A low vacancy rate likely indicates an unmet demand for housing and higher homeownership and rental costs. 3. Housing Affordability Homeownership and rental costs in Los Gatos remain among some of the highest in Santa Clara County. a. For -Sale Market Single - family homes are the primary market for homeownership in Los Gatos. Between December 2007 and December 2008, 17 homes were sold in Los Gatos and the median price of a home fell about 30 percent from $1.4 million to $1 million. At $1 million by the end of 2008, Los Gatos remains in second place for the highest median home sales price in Santa Clara County. Close to one-fifth of the households in Los Gatos are classified as low- or very low - income, meaning that they earn less than 80 percent of the area median household income (AMI), which is $97,800 for Santa Clara County for a family of four. Based on the high home sale prices, homeownership opportunities in Los Gatos are generally limited and difficult to achieve for low- and very low- income households.. b. Rental Market The rental housing market includes apartments, townhouses, condominiums, second units, and some single - family homes. Based on a survey of online rental listings for Los Gatos conducted in 2008, the average monthly rent for an apartment is approximately $1,690. A one - bedroom unit has an average 4 Anthony Ghiossi, Building Official, Town of Los Gatos, personal commu- nication with Wendie Rooney, Community Development Director, Town of Los Gatos, March 22, 2010. TOWN OF LOS G A T O S 2 0 2 0 GENERAL P L A N 2007 -2014 HOUSING ELEMENT monthly rent of approximately $1,447, a two-bedroom/one -bath has an average monthly rent of $1,423, and a two-bedroom/two-bath has an average monthly rent of $2,200. The average monthly rent for a one - bedroom is likely higher than that of a two-bedroom/one -bath because most of the one. bedroom units on the market were newer than the two-bedroom units at the time of the survey. Based on this information, low- income households in Los Gatos would generally be able to afford a one - bedroom or two-bedroom/one -bath unit. Very low - income households would not be able to afford a rental unit in Los Gatos without a subsidy. c. Overpaying for Housing Thirty percent of a household's gross annual income is a commonly recognized standard for acceptable housing costs. Overpayment occurs when a household spends more than 30 percent of its income on housing. Overall, about 30 percent of homeowners and close to 35 percent of renters overpay for their housing in Los Gatos, according to 2000 Comprehensive Housing Affordability Strategy (CHAS) data from the Department of Housing and Urban Development (IiUD). When broken down by household income level, a majority of low - and very low - income renters are overpaying for housing in Los Gatos. In fact, over 80 percent of very low- income renters are overpaying for their housing. A majority of very low- income homeowners are also overpaying for their housing. 4. Households with Special Needs Special needs households are defined as households with circumstances that can make it particularly difficult to find adequate and affordable housing. These households refer to senior households, overcrowded and large - family households, the homeless population, single -parent households, and households with persons with disabilities. Households made up of farm workers are also included in this category; however, as they make up less than I percent of the labor force in Los Gatos, they are not considered to be a significant population in determining special needs housing in the Town. 0 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 20 1 4 HOUSING ELEMENT a. Extremely Low - Income Households Extremely low- income households are defined as households at or under 30 percent of the AMI as determined by HUD for Santa Clara County. An extremely low- income, four -person household in Santa Clara County would have an income level of $31,850 or less. In Los Gatos, there are approximately 900 extremely low- income households, or 7.5 percent of Los Gatos's total number of households. Half of these extremely low- income households are renters. A majority of both extremely low- income homeowners and renters have housing problems, which include having more than one person per room (overcrowding), paying over 30 percent of the household's income for housing costs (overpaying), or lacking plumbing or complete kitchen facilities' b. Senior Households Seniors are defined as persons who are 65 years or older. Seniors often have a limited income and a range of accessibility and health care needs that necessitate specific types of housing. Approximately 5,023 seniors reside in Los Gatos, according to Nielsen Claritas 2008 data, which represents approximately 17 percent of the total population. About two-thirds of existing senior households in Los Gatos are homeowners. Given Los Gatos's aging population, senior housing is a significant issue for the Town. Los Gatos has 150 subsidized units of senior housing in five housing developments. Villa Vasona at 626 West parr Avenue and The Terraces of Los Gatos at 800 Blossom Hill Road contain most of these subsidized senior housing units. Los Gatos also has Los Gatos Meadows Life Care, a licensed Life Care Residence with 170 senior housing units at 110 Wood Road. s "Housing problems" is defined by the U.S. Department of Housing and Urban Development for Comprehensive Affordable Housing Strategy data. 10 TOWN OF LOS G A T O S 2 0 2 0 GENERAL P L A N 2007-20 1 4 HOUSING ELEMENT c. Single -Parent Households Generally, a single- parent household may have more difficulty affording appropriate housing for a family than a family household with dual incomes. Single -parent households represented approximately one -fifth of all households with families in Los Gatos, according to the 2000 U.S. Census. Two percent of family households with married couples in Los Gatos lived below the poverty line compared to 13 percent of single-parent households in Los Gatos. These statistics have remained about the same since 1990, according to the U.S. Census. d. Households with Persons with Disabilities Approximately 1,776 persons in Los Gatos bad a disability that affected their mobility or self -care, according to the 2000 U.S. Census. A majority of these persons have a disability that affects their ability to work. The cost of hous- ing is prohibitively expensive for those on Supplemental Security Income (SSI), which provided an average of $800 to $900 per person per month in 2007 to 2008. Neighboring San Jose has three housing resource centers and/or programs for persons with disabilities in Los Gatos: the Silicon Valley Independent Living Center at 2306 Zanker Road, the Mental Health Advocacy Project run by the Law Foundation of Silicon Valley at 111 West Saint John Street, and the Shelter Plus Care Program administered by the Housing Authority of the County of Santa Clara at 505 West Julian Street. e. Overcrowded and Large - Family Households Large -family households are defined as having five or more persons. An overcrowded household is one that has more than one person per room, not including bathrooms and kitchens. Los Gatos has 760 large - family households, or 6.5 percent of its total household population, according to 2000 CHAS data. Overcrowding is more likely to occur in renter households because there are fewer rental units on the market with enough bedrooms to accommodate large families. However, most large - family households in Los Gatos are owner-occupied. Since owner-occupied homes are typically single- TOWN OF LOS G A T O S 2020 GENERAL PLAN 20072014 HOUSING ELEMENT family homes and generally larger than multi - family units, overcrowding is not considered a significant issue for the Town. f. Homeless Persons According to the 2007 Santa Clara County Homeless Census and Survey, a total of approximately 30 homeless persons live in Los Gatos, which represents less than 0.5 percent of the total count of homeless persons in Santa Clara County. Los Gatos contributes funds to the Santa Clara County Continuum of Care program, which includes prevention services, permanent affordable housing, the provision of emergency shelters, and transitional and permanent housing. HomeSafe and Sobrato Living Center in Santa Clara provide housing opportunities for homeless persons in Los Gatos. The Town provides food and shelter vouchers from the Salvation Army, and food pantries are available at local churches such as St. Mary's, St. Luke's, and Calvary Church. Los Gatos does not currently have emergency or transitional shelters within the Town limits. Based on recent updates to state law, local jurisdictions are required to address in more detail housing for certain special needs groups such as homeless persons (as mandated by Senate Bill 2). In compliance with these state law updates, Los Gatos will amend its Town Code within one year of the adoption of the Housing Element to incorporate these new provisions. E. Potential Constraints to Housing Development Potential constraints to housing development include governmental regulations, market factors, and environmental issues in Los Gatos. A brief summary is included below, while a more detailed discussion of these constraints can be found in the Housing Element Technical Appendix. 12 TOWN OF LOS G A T O s 2 0 2 0 GENERAL PLAN 2007 2014 HOUSING ELEMENT 1. Governmental Constraints Governmental regulations that require adequate, quality housing in Los Gatos can potentially drive up the cost of construction and affect the price of housing. Local land use and zoning regulations, development standards and design guidelines, fees and exactions, and permit processing procedures could impede the development of affordable housing. A Conditional Use Permit (CUP) is required for multi - family housing in the Multi- Familv Residential (Roll zone. Requiring a CUP may unduly constrain the development of affordable housing. Therefore, this Housine Element includes Action H_OU -6.6, which calls for a smdv to evaluate the removal of the CUP requirement for multi - family housing in the RM zone. Additionally, a parking requirement of 1.5 parking spaces per unit and allowing up to 1 additional visitor space with discretionary approval for multi- family housing may unduly constrain affordable housing development in Los Gatos. This Housing Element includes Action HOU -6.7, which calls for a studv to evaluate reducing parking requirements for multi- family housing in the RM zone. According to California Government Code Section 65583.2(c)(3)(B), the density at which affordable housing can be appropriately accommodated in Santa Clara County is 20 dwelling units per acre. A density of 20 dwelling units per acre is allowed under the RM zone. Additionally, there is no density maximum for the number of dwelling units that could be constructed on sites with the Mixed Use, Commercial land use designation, and development standards under this land use designation do not hinder development at 20 dwelling units per acre. Los Gatos also offers density bonuses to allow for developments with increased density based on certain requirements, consistent with the State's density bonus law. More detailed information on development standards and zoning regulations in the Town can be found in the Technical Appendix in Chapter 4 Constraints and Chapter 6 Housing Sites Inventorv. 13 TOWN OF LOS G A T O S 2070 GENERAL PLAN 1007 -3014 HOUSING ELEMENT State law requires that local jurisdictions evaluate any housing programs as potential constraints on housing development. Los Gatos has four local housing programs that have been evaluated to determine whether they pose potential constraints on housing development in the Town: the Below Market Price (BMP) Program, Affordable Housing Fund, Rental Dispute Resolution Program, and Density Bonus Program. However, because these programs are intended to facilitate the development of affordable housing, the Town does not consider these programs to be constraints on housing production. The BAD Program requires that all new residential construction (five or more units) in Los Gatos include a certain number of affordable units. In limited instances, developers can opt out of the BMP Program's affordable housing requirement and pay an in -lieu fee into the Affordable Housing Fund, whose funds are set aside specifically for the development of affordable housing in Los Gatos. The Rental Dispute Resolution Program is administered by Project Sentinel, a local non -profit organization contracted by the Town, and provides conciliation, mediation, and arbitration services for Los Gatos renters. The Density Bonus Program provides qualified projects the ability to develop more units on —site as outlined by the State's density bonus law regulations. 2. Non - Governmental Constraints Non - governmental constraints are primarily market - related and are outside of the control of the local jurisdiction. Such constraints include land costs, construction costs, and available financing for development. Los Gatos can help alleviate some of these constraints through the implementation of policies and programs that may offset some of these costs. These policies and programs are described at the end of this chapter. A list and descriptions of available financial resources for housing development can be found on page 3 -11 of the Housing Element Technical Appendix. 14 TOWN OF LOS G A T O S 2 0 2 0 GENERAL P L A N 200] -2014 HOUSING ELEMENT 3. Environmental Constraints As part of the Housing Element, Los Gatos must identify environmental issues that could potentially impact or impede the development of housing in the Town. The Town is generally built out, and most existing environmental constraints are mitigated by federal, state, and local plans, codes, or policies. The following key environmental issues could potentially affect housing development: ♦ Sensitive habitat. Water bodies, such as Los Gatos Creek, could poten- tially be sensitive biological habitat. Potential impacts on natural com- munities are mitigated by policies in the Safety Element and the Environ- ment and Sustainability Element of the Los Gatos General Plan. ♦ Hazards. Geology and soil characteristics, such as seismicity and slope instability, fire and flood hazards, and hazardous materials could affect where housing could be built. Potential impacts associated with hazards are mitigated by policies in the Safety Element of the Los Gatos General Plan, the Hillside Development Standards and Guidelines, and state and federal agencies such as the State Department of Toxic Substances Con- trol, the Federal Emergency Management Agency (FEMA), and the U.S. Environmental Protection Agency (EPA). ♦ Noise. Noise associated with Highways 17 and 85 and the Union Pacific Railroad (UPRR) line parallel to and south of Highway 85 could poten- tially impact housing. The California Building Code and the Noise Ele- ment of the Los Gatos General Plan contain policies and standards that mitigate these impacts. F. Adequate Sites Analysis State law requires regional governmental agencies such as ABAG to estimate a fair share of housing units, called a RHNA, which each community must be able to plan for within its jurisdiction in a specific timeframe. The RHNA for Los Gatos is 562 total housing units from January 1, 2007 to June 30, 2014. 15 TOWN OF LOS G A T O S 2020 GENERAL FLAN 2007-2014 HOUSING ELEMENT The RHNA is further distributed by income category, each of which is based on a percentage of the AAE for Santa Clara County. For Los Gatos, the RHNA requirement distributed by income category is shown in Table H -1. Based on a detailed analysis of potential housing sites in Los Gatos, the Town has identified properties that could be realistically developed during the Housing Element planning period and that would successfully accommodate Los Gatos's total RHNA number. In order to determine this focused list of the most feasible sites, the Town first cast as wide of a net as possible in order to identify an appropriate range of other sites for initial consideration. The Town initially considered approximately one dozen additional sites. After consultation with the GPC, Town staff focused on viable sites that are in areas where adequate infrastructure, services, and amenities are available to accommodate new housing. Between January 1, 2007 and June 30, 2009, Los Gatos has approved and/or built 110 housing units, leaving a remaining unmet RHNA of 452 units. The sites analysis determined that the Town can accommodate 526 housing units on various vacant and underutilized sites throughout Los Gatos and that the Town can meet its RHNA at all income categories. Chapter 6 of the Hous- ing Element Technical Appendix presents the housing sites analysis on which this conclusion is based. V TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2007 -2014 HOUSING ELEMENT TAaLEH -1 REGIONAL HOUSING NEEDS ALLOCATION (RHNA) FOR LOS GATOS, JANUARY], 2007 TO JUNE 30 2014 Income Category* RHNA Extremely Low (Less than 49a% AMID 77 Very Low (31% to 50% AW 77 Low (51% to 80%AMD 100 Moderate (81% to 120%AMD 122 Above Moderate (Over 120% AM)) 186 Total 562 s The income categories are defined by the U.S. Department of Housing and Urban Development (HUD). G. Energy Conservation Policies As required by state housing law, the Housing Element must analyze energy conservation opportunities in residential development. In the following section, Goal HOU -8 and its related policies and action address energy conservation in residential development in Los Gatos. Additionally, two of the elements of Los Gatos's Draft 2020 General Plan - the Environment and Sustainability Element and the Vasona Light Rail Element - specifically include goals and policies related to infill development, increasing density around transit, and energy - efficient building materials and construction in residential development. The relevant Environment and Sustainability Element goal and policies are: • Policy ENV -16.1. Encourage the use of energy conservation techniques and technology in existing and proposed development to improve energy conservation. ♦ Policy ENV -16.5. Require new subdivisions to examine the feasibility of incorporating site layouts that allow for passive solar heating and cooling. 17 TOWN O F LOS G A T O S 2 0 2 0 GENERAL P L A N 2007 -2014 MOUSING ELEMENT ♦ Policy ENV -16.6. Encourage new development to incorporate measures that reduce energy use through solar orientation by taking advantage of shade, prevailing winds, landscaping, and sun screens. ♦ Goal ENV -17. To promote green buildings that minimi >a consumption of energy and natural resources. ♦ Policy ENV -17.1. Require new construction and remodels to use energy and resource - efficient and ecologically sound designs, technologies and building materials, as well as recycled materials to promote sustainability. ♦ Policy ENV -17.2. Require higher levels of energy efficiency as house size increases. ♦ Policy ENV -17.3. Encourage reductions in the use of nonrenewable re- sources in building construction, maintenance, and operations. ♦ Policy ENV -17.4. Encourage new multi - family construction to include green roofs and common space for community gardens. • Policy ENV -17.5. Require all new homes to follow the Town's adopted GreenPoint Rated Building Guidelines. ♦ Policy ENV -17.6. Provide incentives, such as giving priority in plan re- view, processing and field inspections services, for projects that achieve a LEED - Silver or higher rating or comparable GreenPoint rating. • Policy ENV -17.7. Encourage LEED certification or comparable certifica- tion for new non - residential buildings over 5,000 square feet. ♦ Policy ENV -17.8. Provide expedited permit processing for new constmc- tion or substantial remodels that exceed Title 24 requirements by at least 20 percent. ♦ Policy ENV -17.9. New Town -owned facilities shall serve as examples of sustainable development by utilizing recycled and renewable resources, water conserving fixtures and landscaping, and energy efficient systems and appliances. ♦ Policy ENV - 17.10. Continue to promote the weatherization of all homes through publicizing available utility energy audit and financing programs 18 TOWN OF LOS G A T O S 2 0 2 0 GENERAL P L A N 2007 -2014 HOUSING ELEMENT and investigate the possibility of contracting with PG &E to identify par. ticipants. ♦ Policy ENV- 17.11. Provide public education and publicity about energy efficiency and emissions reduction programs and incentives. ♦ Policy ENV- 17.12. Provide green building information, marketing, train- ing, and technical assistance to property owners, development profession- als, schools, and special districts. • Policy ENV - 17.13. Coordinate with other local governments, special dis- tricts, nonprofits and other public organ to share resources, achieve economies of scale and develop green building policies and pro- grams that are optimized on a regional scale. ♦ Policy ENV- 17.14. Provide permitting- related and other incentives for energy efficient building projects, for example by giving green projects priority in plan review, processing, and Geld inspection services. The relevant Vasona Light Rail Element goal and policies are: ♦ Goal VLR -2. To encourage affordable housing (senior housing, multi- family housing, mixed -use with housing) in appropriate locations within the Vasona Light Rail area to address the Town's housing needs and take advantage of the opportunities afforded by mass transit. ♦ Policy VLR -2.1. Encourage development of residential rental units throughout the Vasona Light Rail area. Residential development propos- als shall demonstrate how they address the Town's unmet housing goals for affordable housing. ♦ Policy VLR -2.2: Proposed mixed -use projects in the Vasona Light Rail area, which include residential uses shall assist the Town in meeting its housing goals of providing rental units, senior housing, and affordable housing. T: TOWN OF LOS G A T O S 2020 GENERAL FLAN 1007 -2011 HOUSING ELEMENT H. Goah, Policies, and Actions The following goals, policies, and actions are intended to address the housing needs of Los Gatos. Goal HOU -1 Expand the choice of housing opportunities for all economic segments of the community by supporting the development of affordable housing in a variety of types and sizes, including a mixture of ownership and rental housing. Policies Policy HOU -1.1 Develop and utilize all available funding resources in order to provide the maximum amount of affordable housing as feasible. Policy HOU -1.2 Work with nonprofit agencies and housing developers to plan and develop a mix of affordable housing oppommi- ties in Los Gatos. PolicyHOU -1.3 Work with the Los Gatos Redevelopment Agency to develop housing affordable for extremely low- income households. 20 TOWN O F LOS G A T O s 2 0 2 0 GENERAL PLAN 200] -2014 HOUSING ELEMENT Actions Action HOU -1.1 Below Market Price (BMP) Program Continue to im- plement the BMP Program in order to increase the num- ber of affordable units in the community. Continue the policy that BMP units are not counted toward the maxi- mum density allowed on a site. Town staff shall review potential developments to determine whether affordable units provided beyond the minimum BMP requirements are to be considered a significant community benefit. The Town will evaluate implementation of the BMP Pro- gram on an annual basis, including impacts to market rate housing related to current market conditions project ap- plications, estimated affordable housing requirements fee collection, and actual construction of affordable housing units to address constraints based on the outcome of the evaluation. Funding Source: Housing Set -Aside Funds, Town Affordable Housing Fund Responsible Agencies: Community Development Department, Housing Authority of the County of Santa Clara Time Frame: January 1, 2007 to June 30, 2014 Action HOU -1.2 Second Unit Program Continue. the existing second unit incentive program to encourage the production of more second units on residential parcels. Regularly re- view the second unit incentive program to determine whether revisions would encourage the development of more second units. Funding Source: None required Responsible Agencies: Community Development Department 21 TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2007 -2014 HOUSING ELEMENT Time Frame: January 1, 2007 to June 30, 2014; Review program every three to five years Action HOU -1.3 Density Bonus: Continue to provide up to a 100 percent density bonus for developments that include housing for elderly, handicapped, and/or very low and low- income households. Eligibility requirements are as follows: A. All housing projects on lots in excess of 40,000 square feet must be processed as Planned Developments in order to receive a density bonus. B. Housing restricted to elderly, handicapped, and very low- and low- income residents shall be eligible for a density bonus up to 100 percent of the units permitted by the land use designation as shown on the land use plan or any specific plan and shall be eligible to request incentives based on the State's density bonus law. C. Town density bonuses will also be granted for residential projects that actively facilitate and encourage the use of transit or directly provide transit services to residents. D. Deviations from the Town's density, traffic, and parking regulations may be granted for mixed-use projects that provide residential units in non- residential zones. E. BMP (Below Market Price) units are not included when calculating density for a property. The Town will continue to develop and maintain available marketing materials that will ensure that Town staff and developers are aware of the various features of the density bonus program. 22 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT Funding Source: None required ResponsibkAgencies• Community Development Department Time Frame: January 1, 2007 to June 30, 2014 Action HOU -1.4 Redevelopment Housing Set -Aside Funds /In -lieu Feu: Implement the proposed programs and initiatives of the Town's Affordable Housing Strategy, developed and adopted in 2009, which describes strategies to incentivize the development of units for lower- income and moderate - income households, to increase and preserve affordable housing, such as purchasing affordability covenants in ex- isting apartments and promoting the zero-interest con- struction loan for secondary dwelling unit program. Funding Source: Housing Set -Aside Funds, Town Affordable Housing Fund ResponsibkAgencies: Town Redevelopment Agency, Community Development Department Time Frame: January 1, 2007 to June 30, 2014 Action HOU -1.5 Extremely Low- Income Households: Hold an annual outreach meeting with affordable housing developers to discuss the development of housing affordable to ex- tremely low- income households, provide expedited proc- essing for housing affordable to extremely low- income households, identify funding and grant opportunities, and offer incentives equivalent to the incentives offered under Action HOU -2.1 for the Affordable Housing Overlay Zone (AHOZ). Funding Source: Housing Set -Aside Funds, Town Affordable Housing Fund 23 TOWN OF LOS G A T O S 7020 G E N E R A L PLAN 7007 -1011 HOUSING ELEMENT Responsible Agencies Town Redevelopment Agency, Community Development Department Time Frame: January 1, 2007 to June 30, 2014 Action HOU -1.6 Funds for Development for Extremely Low- Income Households: Encourage the Redevelopment Agency to work with affordable housing developers to utilize a por- tion of Housing Set -Aside Funds for the development of housing that is affordable to extremely low- income households. Allocate a percentage of the Housing Set. Aside Funds to the development of housing for extremely low- income households. Funding Source.- Housing Set -Aside Funds, Town Affordable Housing Fund Responsible Agencies: Town Redevelopment Agency, Community Development Department Time Frame: Allocate a percentage of Housing Set -Aside Funds within one year of adoption of this Housing Element and reassess funds in 2012 if funds have not been expended on a qualified project by the end of 2011. Goal HOU -2 Maintain and /or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing that is compatible with the neighborhood and the community. 24 TOWN OF LOS G A T O S 2020 GENERAL PLAN 200] -2014 HOUSING ELEMENT Policies Policy HOU -2.1 Continue to designate sufficient, residentially -zoned land at appropriate densities to provide adequate sites to meet Los Gatos's new construction need for 2007 -2014. Policy HOU -2.2 Ensure that the Town will provide sufficient land at appropriate zoning categories to meet its need for very low -, low -, and moderate - income households, as demonstrated in the Housing Sites Inventory analysis in Chapter 6 of the Housing Element Technical Appendix, Policy HOU -2.3 Encourage mixed -use developments that provide affordable housing close to employment centers and/or transportation facilities, particularly along Los Gatos Boulevard and within a V2 -mile radius of the future Vasona light rail station. Policy HOU -2.4 Demonstrate that all new residential development is sufficiently served by public services and facilities, including pedestrian and vehicular circulation, water and wastewater services, police, fire, schools, and parks. Policy HOU -2.5 New single - family, multi - family, and mixed -use developments shall be compatible with the character of the surrounding neighborhood. Policy HOU -2.6 Strive to ensure that at least 30 percent of the housing stock is rental units. Policy HOU -2.7 Create new affordable housing opportunities through acquisition using Redevelopment or Below Market Price Housing Funds. 25 TOWN OF LOS G A T O s 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT Actions Action HOU -2.1 Affordable Housing Overlay Zone: Amend the Town Code to include an Affordable Housing Overlay Zone (AHOZ), which will elle� development of a prop- e t •, 95 -r f ight, to a- elep with owner - occupied or rental units at densities of a minimum of 20 units per acre by ripht, without discretionary review and amend the zon- ing map to apply the AHOZ to each of the sites identified in the Housing Sites Inventory while leaving the existing zoning in place as the base zone. The Town will develop new development standards specific to the AHOZ that al- low for a minimum of 20 dwelling units per acre These development standards will be similar to standards found under the RM zone such as: ♦ Allowing for a building height of at least three stories. • Requiring no more than 1.5 parking spaces per unit. ♦ Ensurine that the oroiect desien is mmoatible with its surroundings. A landowner may choose to develop a property consistent with either the base zoning or the AHOZ. The Town will monitor the development of sites within the AHOZ. If sites are developed without use of the overlay, the Town will designate additional AHOZ sites as needed. The AHOZ will include the following incentives and re- outrements • Require that a minimum of 50 percent of housing units be affordable to households at the moderate income level and below for housine oroiects in the AHOZ. ♦ Allocate 20 percent of the Los Gatos Redevelopment Agency Housing Set -Aside Funds and the Town's BMP funds for affordable housing projects in the AHOZ. 26 �. J TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT ♦ Defer building plan check and inspection fees until units in an AHOZ project are occupied. Funding Source: None required ResponsibleAgenciex• Community Development Department Time Frame.• Within one year of adoption of this Housing Element Action HOU -2.2 Reviewing AHOZ Site Applications That Are Submit. ted Before Adopting Standards: Prior to developing the AHOZ standards, affordable housing applications submit- ted for the AHOZ properties will be afforded the incen- tives and held to the standards listed in Action HOU -2.1. The applicants will also be able to utilize the Town's Density Bonus Program as well as request exceptions con- sistent with the State Density Bonus Program. The Town Will expedite the processing of affordable housing applica- tions for the AHOZ properties. Funding Source. None required Res ons ibleAgencier. CommunirvDevelooment Department Time Fume: Upon adoption of the Housing Element 27 TOWN OF LOS GATOS 2020 GENEEAL PLAN 2007-2014 HOUSING ELEMENT Action HOU -2.3 Meeting Los Gatos's Housing Needs Using the AHOZ: The Housing Element assumes that sites designated under the AHOZ will be developed at a density of 20 dwelling units per acre. If the Town approves a development on any AHOZ site that includes less than 20 dwelling units per acre, the Town shall identify and, if necessary, rezone one or more additional sites within one year of approving the development to maintain the Town's capacity to meet its housing needs as identified in the Housing Element. When selecting additional sites, the Town shall consider neighborhood compatibility and mitigation of traffic im- pacts. FNndineSource: None required Responsible Azencies. CommunityDevelopment ( " i Department Time Fume: Within one year of adoption of this Housine Element Goal HOU -3 Preserve existing residential opportunities, including the e affordable housing s Policies Policy HOU -3.1 Encourage the maintenance and improvement of existing housing units. Policy HOU -3.2 Support the preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents and workers. Policy HOU -3.3 Improve the quality of rental housing by acquisition and/or rehabilitation using Redevelopment or Below Market Price Housing Funds. 28 G TOWN O F LOS G A T O S 2020 GENERAL PLAN 200] -2014 HOUSING ELEMENT Policy HOU3.4 Preserve the affordability of units affordable to very low -, low -, and moderate - income households in Bonnie View Park, and enforce zoning regulations regarding conversion of mobile home parks in Los Gatos. Actions Action HOU -3.1 Preserve "At- Risk" Affordable Housing Units: Monitor affordable, multi - family housing units in the Town to ensure that they retain their affordability status. These developments include smaller owner - and renter- occupied units under the BMP Program as well as Villa Vasona, Aventino Apartments, The Terraces of Los Gatos, Open Doors, Los Gatos Fourplex, 95 Fairview Plaza, Los Gatos Creek Village Apartments, Blossom Hill, and Anne Way. Develop a strategy to retain affordability of units at Villa Vasona. Work with the Housing Authority of the County of Santa Clara (I-IACSC), which administers the Section 8 program, to identify noticing requirements and funding opportunities to help preserve these units. Funding Source: None required ResponsibleAgemies: Community Development Department Time Frame.- January 1, 2007 to June 30, 2014; develop strategy for Villa Vasona by June 2014 Action HOU -3.2 Rental Housing Conservation Program The Town's existing multi - family, privately -owned rental units provide housing opportunities for households of varied income levels. The Town will continue to implement Section 29.20.155 of the Town Code that addresses conversions of residential use, specifically Section 29.20.155(a)(2) that requires that any proposed conversion ii: TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -7014 HOUSING ELEMENT satisfy the housing goals and policies as set forth in the General Plan. Funding Source: None required Responsible Agencies.• Community Development Department Time Frame: January 1, 2007 to June 30, 2014 Action HOU -3.3 Housing Conservation Program Continue to provide Housing Conservation Program assistance to property owners to improve their housing units. Strive to improve at least 15 housing units through this program. Redesign marketing materials and aggressively market program to potential applicants. Funding Source: Community Development Block Grant (CDBG), Redevelopment Funds Responsible Agencies: Community Development Department Time Frame: January 1, 2007 to June 30, 2014; redesign and publish marketmg materials within one year of adoption of Housing Element Action HOU -3.4 Home Access Program Continue to support countywide programs, such as the Home Access Program, that provide assistance with minor home repairs and accessibility improvements for lower- income households. Funding Source: None required Responsible Agencies: County of Santa Clara Time Frame: January 1, 2007 to June 30, 2014 30 TOWN O F LOS G A T O S 2 0 2 0 GENERAL PLAN 200] -2014 HOUSING ELEMENT Goal HOU -4 Ensure that all persons have equal access to housing opportunities. Policies Policy HOU -4.1 Support housing programs that protect individuals' rights. Policy HOU -4.2 Continue to provide assistance to service providers of special needs households such as seniors, persons with disabilities, and the homeless. Policy HOU -4.3 Continue to encourage Los Gatos households to participate in the Mortgage Credit Certificate (MCC) Program and other financial assistance programs (e.g. Teacher Mortgage Assistance) provided in the County of Santa Clara. Actions Action HOU -4.1 List of Affordable Housing: Provide a list of developments that include affordable housing units on the Town's website. Funding Source: None required Responsible Agencies. Community Development Department Time Frame. Develop and publish list on -line by December 2010; update list annually Action HOU -4.2 Rental Dispute Resolution Program: Continue the administration of the Rental Dispute Resolution Program and consider revisions as necessary to make the program as effective as possible in protecting both tenants and landlords rights. TOWN OF LOS G A T O S 3 0 2 0 GENERAL PLAN 2007 2014 HOUSING ELEMENT Funding Source: Program fees Responsible Agencies: Community Services Department Time Frame. January 1, 2007 to June 30, 2014 Action HOU -43 Emergency Shelters: Amend the Town Code to define an emergency shelter as "housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by homeless persons" and create development standards to allow for an emergency shelter as a by -right permitted use in the Controlled Manufacturing (CM) zoning district, subject to appropriate development standards. As a by -right permitted use in the CM zoning district, emergency shelters will not requ discretionary review. Development standards established for emergency shelters will encourage and facilitate the development of such shelters, while requiring these shelters to meet the same development and management standards that apply to other allowed uses within the CM zoning district. Funding Source: None required Responsible Agencies: Community Development Department Time Frame: Within one year of adoption of this Housing Element Action HOU -4.4 Supportive Services for the Homeless: Continue to provide support for community and non- profit organizations providing supportive services for homeless persons in Los Gatos. Funding Source: None required Responsible Agencies: Community Development Department Time Frame: January 1, 2007 to June 30, 2014 32 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT Action HOU -4.5 Santa Clara County Fair Housing Consortium Support the efforts of the Santa Clara County Fair Housing Consortium, which includes the Asian Law Alliance, Mid - Peninsula Citizens for Fair Housing, Project Sentinel, and the Mental Health Advocacy Project. Continue to make referrals through Project Sentinel and provide updated fair housing information on the Town's website and at public locations through the Town, such as the Adult Recreation Center and public kiosks. These organizations provide resources for Los Gatos residents with tenant/landlord, housing discrimination, and fair housing concerns. Each organization conducts outreach including community education Presentations, distributed fivers, and referral calls. Funding Source: None required Responsible Agencies.. Community Services Department Time Frame. January 1, 2007 to June 30, 2014 Action HOU -4.6 Non - Profit Affordable Housing Providers: Recognize and support the efforts of non - profit affordable housing organizations that provide housing services in Los Gatos. Encourage the participation of these providers in developing housing and meeting the affordable housing needs of Los Gatos households. Meet with non - profit groups on at least an annual basis to develop strategies and actions for affordable housing development. Provide similar incentives for the development of affordable housing as provided under the Affordable Housing Overlay Zone (Action HOU -2.1). Funding Source: None required Responsible Agencies: Community Development Department Time Frame: January 1, 2007 to June 30, 2014 33 TOWN OF LOS G A T O S 2020 GENERAL PLAN 1007-2014 HOUSING ELEMENT Action HOU -4.7 Increased Range of Housing Opportunities for the Homeless: Continue to support the County of Santa Clara's °Continuum of Care' plan to provide housing opportunities for homeless households including emergency shelter, transitional housing, and permanent affordable housing opportunities. Funding Source: CDBG Responsible Agencws: Community Development Department Time Frame• January 1, 2007 to June 30, 2014 Goal HOU -5 Retain and expand affordable housing opportunit for seniors. Policies Policy HOU -5.1 Promote the Town's Housing Conservation Program to assist low - income seniors with basic home repairs and mamtenance. Policy HOU -5.2 Allow and encourage small-scale living facilities of two to six seniors that may include nursing care services that can be integrated into existing neighborhoods as ill development. Policy HOU -5.3 Work with existing senior lifestyle living and assisted living facilities in Los Gatos, and support the development of new senior housing that includes continuum of care facilities within the Town. 34 TOWN OF LOS G A T O S 2 0 2 0 GENERAL P L A N 200) -2014 HOUSING ELEMENT Action Action HOU -5.1 Senior Housing Resources: Provide regularly updated senior housing resource materials at the Adult Recreation Center. Funding Source: None required Responsible Agencies Community Services Department Time Frame: Update materials annually Goal HOU -6 Mitigate Town governmental constraints to affordable housing development. Policies PolicyHOU -6.1 Continue expediting the permit processing system for affordable residential development applications. Policy HOU -6.2 Require `universal design' features in all new residential developments. Actions Action HOU -6.1 Governmental Constraints: Regularly review Town planning and zoning regulations and remove affordable housing development constraints as appropriate. Funding Source: None required Responsible Agencies: Community Development Department Time Frame: Review and update regulations as appropriate at least every three years Action HOU -6.2 Reasonable Accomrnodation Ordinance: Amend the Town Code to include a reasonable accommodation ordinance that ensures equal access to housing for persons 3S TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2007 -2014 HOUSING ELEMENT with disabilities under the Fair Housing Act and establishes specific procedures for requesting and granting reasonable accommodations. Funding Source: None required Responsible Agencies: Community Development Department Time Frame: Within one year of adoption of this Housing Element Action HOU -6.3 Persons with Disabilities: Remove constraints and encourage accessible housing in new residential developments. Funding Source: None required Responsible Agencies: Community Development Department Time Frame: Review and update regulations as necessary, but at least every three years Action HOU -6.4 Special Needs Housing: Give priority to special needs housing by allowing for reduced processing time and streamlined procedures for such appropriate zoning /land use applications. Funding Source: None required Responsible Agencies: Community Development Department Time Frame: January 1, 2007 to June 30, 2014 Action HOU -6.5 Development Standards: Continue to review and streamline the development process for housing developments that will guarantee affordable units on a long -term basis for very low -, low -, and moderate - income households. 36 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT Funding Source: None required RespontibleAgenciev Community Development Department Time Frame: January 1, 2007 to June 30, 2014 Action HOU -6.6 Multi-Family Residential in the RM Zone: Conduct a study to evaluate the Conditional Use Permit (CUP) re- quirement for multi - family uses in the Multi- Family Resi- dential (RM) zone as a potential constraint on housing de- velopment and mitigate or remove the CUP requirement Funding Source. None required ReTonsibleA Community Develooment Department Time Frame.- Conduct study by Tune 30 2012• implement results of study within one year of completing the study Action HOU -6.7 Parking Requirements in the RM Zone: Conduct a study to evaluate parking space requirements, including the discretionary visitor parking space requirement, as po- tential constraints on housing development and mitigate or reduce the parking space requirements for multi -family uses in the Multi - Familv Residential (PM) zone. Fundirq Source• None required Resvom4le Agenciez Common; Development Department Time Frame: Conduct study by Tune 30 2012• implement results of study within one year of completing the study Action HOU -6.8 Town Code Definition for "Family ": Amend the defi- nition of "family" in the Town Code to include occu- 37 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007-2014 HOUSING ELEMENT �r^, pancy standards for unrelated adults and to ensure com- pliance with Fair Housing Law. Funding Source: None required ResoonsibleApenciev Community Development Department Time Frame: Within one year of adoption of the HE Action HOU -6.9 Town Code Definition for " Supportive and Transi- tional Housing ": Amend the Town Code to include a definition of " supportive and transitional housing" consis- tent with California Health and Safety Code Section 50675.2 that permits supportive and transitional housing as a residential use in Los Gatos. Supportive and transi- tional housing will be subject to the same development standards that apply to other residential uses of the same type in the same zone. Funding Source: None required ResnonsibleAoencies: Communiry Development Department Time Frame: Within one vear of adoption of the HE Action HOU -6.10 Town Code Definition of "Group Home ": Amend the definition of "group home" in the Town Code to be a li- censed facility that generally provides services for a group of seven or more adults or children needing or wanting care or supervision, consistent with California Health and Safety Code Section 1566.3. FintdingSource. None required RewonsibleAgencies Communiry Development Department 38 �_' TOWN O F LOS G A T O S 2 0 2 0 GENERAL PLAN 2007 20 1 4 HOUSING E L E M E N T Time Frame: Within one Year of adoption of the HE Action HOU -6.11 Town Code Definition of 'Small Family Home Resi• denial Care Facility": Amend the Town Code to allow by right small family home residential care facilities for six or less persons within all residential districts, consistent with California Health and Safety Code Section 1566.3. Funding Source: None required ResponsibleAQendm Community Development Department Time Frame: Withi one Year of adoorion of the INN Goal HOU -7 Maintain the Town's 2005 jobs -to- household ratio of 1.5 jobs per household. Policy Policy HOU -7.1 As pan of the development review process, evaluate applications that have significant numbers of jobs or housing in regard to the potential impact on the Town's jobs /housing ratio. However, the jobs /housing balance shall not be used as criterion for denying projects that include affordable housing opportunities. Goal HOU -8 Encourage residential construction that promotes green building and energy conservation practices. 39 TOWN OF LOS GATOS 2020 GENERAL /LAN 20022014 HOUSING ELEMENT Policies Policy HOU -8.1 Encourage sustainable housing development throughout the Town using the Town's voluntary green building program by continuing to require that all residential development applications complete the Build It Green GreenPoint Rated Checklist as part of the development application package. Policy HOU -8.2 Promote the construction of energy efficient new homes utilizing the Energy Star Homes Program. Actions Action HOU -8.1 Energy Conservation Opportunities: Continue to enforce State of California Title 24 requirements for energy conservation. Funding Source: None required ResponsibleAgemcies: Community Development Department Time Frame: January 1, 2007 to June 30, 2014 Goal HOU -9 Ensure that the Town has sufficient resources and takes appropriate measures to implement the Ho using Element. Policies Policy HOU -9.1 All approvals of residential developments of three or more units shall include a finding that the proposed development is consistent with the Town's Housing Element and addresses the Town's housing needs as identified in the Housing Element. 40 TOWN O F LOS G A T O S 2020 GENERAL PLAN 2007 2 0 1 4 HOUSING E L E M E N T Policy HOU -9.2 Provide adequate management and staffing of affordable housing funds and programs. Actions Action HOU -9.1 Annual Housing Report: Prepare an annual housing report for the review of the Town Council including information on progress made towards achieving new construction need, affordable housing conserved/developed, effectiveness of existing programs and recommendations for improvement. Consult with non- profit providers, special need providers, and other community resources in preparation and evaluation of the report. Funding Source: None required Responsible Agencies: Community Development Department Time Frame: January 1, 2007 to June 30, 2014 Action HOU -9.2 Housing Management: Consider additional staff support for the management and planning of housing programs and funding for the Town. Funding Source: Redevelopment Housing Set - Aside, Santa Clara Urban County Funds Responsible Agencies: Community Development Department, Redevelopment Agency Time Frame: Develop recommendation and plan for additional housing staff support by December 2011 Action HOU -9.3 Coordination with Water and Sewer Service Providers: Deliver the adopted Housing Element to the San Jose Water Company and the West Valley Sanitation District 41 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT so that they can prioritize current and future resources or services for housing development that helps meet Los Gatos's RHNA for lower - income households. Funding Source: None required Responsible Agencies: Community Development Department Time Frame: Upon adoption of this Housing Element L Summary of Quantified Housing Objectives Table H -2 provides a summary of the number of housing units that will be produced as a result of implementing the actions described in Section H of this Housing Element. Based on the housing sites inventory analysis pro- vided in detail in Chapter 6 of the Housing Element Technical Appendix, up to 5 =6 new units will be built in the Town over the remaining five years of the Housing Element planning period, of which 20C units will be affordable to very low- and low- income households. The Town also has a goal of reha- bilitating 15 units through the Rental Housing Conservation Program (Ac- tion HOU -3.2) and the Housing Conservation Program (Action HOU -3.3). The Town will take measures to conserve the 107 very low- income units of the Villa Vasona Apartments through Action HOU -3.1 Preserve "At -Risk" Affordable Housing Units. Based on Action HOU -3.1, the Town also hopes to conserve 228 additional subsidized units. 42 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HO U 5ING ELE NENT TABLE H -2 QUANTIFIED HOUSING O BJECTIVES, 2007 -2014 Income Category Number of Housing New Construction Rehabilitation Units Conservation E=emely Low 80 2 0 Very Low 85 3 129 Low 115 5 54 Moderate 120 5 152 ' Above Moderate 126 0 0 Total 526 15 335 43 This Page Intentionally Left Blank Town of Los Gatos 2007 -2014 Housing Element Technical Appendix This Page Intentionally Left Blank BACKGROUND The Technical Appendix for the Town of Los Gatos 2007 -2014 Housing Element presents a detailed population and housing stock report, including the following sections (also noted in Chapter 1, Introduction, to this Housing Element): ♦ Background: A detailed description of what is included in the Housing Element Technical Appendix to satisfy Housing Element state law requirements. ♦ Housing Needs Assessment: Detailed demographic, economic, and housing data for the Town. ♦ Projected Housing Needs: A description and analysis of the Town's `fair share" of housing, called its Regional Housing Needs Allocation (AIWA), and an inventory of subsidized housing units with an indication of which units could be at risk of conversion to market rate. This section also includes information on funding resources for housing development. ♦ Constraints to Housing Development: An analysis of the constraints to providing housing for all income levels. • Review of the 2003 Housing Element: A review of the goals, objectives, and policies of the previous Housing Element and brief descriptions of accomplishments. • Housing Sites Inventory: An inventory of residential land resources, including suitable sites for housing, homeless shelters, and transitional housing. This section includes a map of the potential housing sites and analyzes in detail the Town's ability to accommodate its RHNA, which is allocated to Los Gatos by ABAG. Los Gatos's previous Housing Element, which covered the planning period from January 1, 2002 to June 30, 2007, was certified by California Department of Housing and Community Development (HCD) as being in compliance with State Housing Element law. The updated Housing Element and its Technical Appendix will reflect the planning period from July 1, 2007 to June 30, 2014. According to HCD, the next Los Gatos Housing Element TOWN OF LOS G A T O S 2020 GENERAL PLAN 3 0 0 1 - 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X BACKGROUND Update is due June 30, 2009. Housing built, under construction and/or approved between January 1, 2007 and June 30, 2009 that is not accounted for in the previous Housing Element will be accounted for in this 2007 -2014 Update. The 2007 -2014 Housing Element Technical Appendix is based on the most current population and housing data for Los Gatos as of Fall 2008 at the time that this Housing Element was developed. Because data is not available from a central source, sources used to obtain data include 2000 U.S. Census information, Claritas (a private data vendor), State of California Department of Finance and the U.S. Department of Housing and Urban Development (HUD). The Town and HCD recognize that the use of different sources will lead to slight variations in data; however, the use of these sources for obtaining data is in compliance with Housing Element state law. The Town and HCD also recognize that economic and market information are not static, and that the Town will to the extent that data can be obtained at the time of this report address the current volatility in real estate markets relative to existing housing data. Wj HOUSING NEEDS ASSESSMENT This chapter provides an assessment of the housing needs for the Town of Los Gatos, including a description of population, household and employment trends and the current housing stock in Los Gatos. A. Population The population data in this section include age and race /ethnicity breakdown for Los Gatos, historical and future population growth, and the number of existing and projected jobs for the town. 1. Population Trends The Town of Los Gatos is located in Santa Clara County. With an estimated population of 1,837,075 as of January 1, 2008, Santa Clan County continues to have the highest population among the nine counties of the San Francisco Bay Area! The Association of Bay Area Governments (ABAG) projects that the population of Santa Clan County will increase from 1,763,000 persons in 2005 to 2,085,300 in 2020, an 18 percent increase during a 15 -year time period. The population growth of Los Gatos has remained fairly small and stable in the last three decades. The current population of Los Gatos is estimated to be 28,8132 Figure 2 -1 indicates population growth by decade, including the current year, for Los Gatos. ABAG projects that the population of Los Gatos will increase by approximately 6 percent during the 2005 -2020 time period, continuing at a similar rate of growth as in the past three decades.' s State of California, Department of Finance, Table 1: E -4 Population Esti- mates`or Counties and the State, 2001 -2008 with 2000 Benchmark, Sacramento, Califor- nia, May 2008. ' Neilsen Claritas, 2008. ' Projections 2007: Forecasts for the San Francisco Bay Area to the Year 2035, As- sociation of Bay Area Governments, December 2006, page 190. 2 -1 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2001 -2011 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING NEEDS ASSESSMENT Oaf" c 30'000 25,000 c 20,000 O 15,000 F 10,000 5,000 0 FIGURE 2 -1 POPULATION BY YEAR, 1950.2008 1950 1960 1970 1980 1990 2000 2008 Year Sources: U.S. Census Population Estimates 1950 -2000; State of California Department of Finance Table 2 E4 Population Estimatesjor Cities, Counties and the State, 1001 -1008 with 1000 Benchmark; Neilsen Claritas, 2008. 2. Population by Race /Ethnicity The 2000 U.S. Census estimates that the predominant population of Los Gatos is White (over 80 percent of the population). The Asian population represents approximately 8 percent of the population, the Hispanic /Latino population approximately 5 percent, and the Black population at less than 1 percent of the total population of Los Gatos. 3. Population by Age The current median age in Los Gatos is estimated to be 45 years, compared to 30 years in 1970. The increase in median age demonstrates that the population of Los Gatos is aging, with a larger percentage of the population being 21 years of age and older. The aging population is demonstrated in Table 2 -1, which shows the percentage change in Los Gatos's population by age from 1970 to 2008. r Neilsen Claritas, 2008 and U.S. Census, 1970. 2 -2 TOWN OF LOS G A T O S 2020 GENERAL PLAN 20073014 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING NEEDS ASSESSMENT TABLE 2 -1 POPULATION By AGE. 1 970.2008 Age Group 1970' 2008' Percentage Change Under 18 years 8,097 5,754 (23.9 %) 18-20 years 973 776 (20.2 %) 21-64 years 11,993 17,260 43.9% 65+ years 2,672 5,023 88.0% Total 23,735 28,813 ' U.S. Census, 1970. 'Neilsen Claritas, 2008. 4. Employment Projections and the jobs /Housing Balance ABAG estimates that there were 12,170 households and 18,650 jobs in Los Gatos in 2005, indicating that Los Gatos has approximately 1.5 jobs per household.' This jobs /housing ratio has remained the same in Los Gatos since 2000. The jobs /housing ratio measures the balance between the number of jobs and the number of households located in Los Gatos. A healthy jobs /housing ratio is typically between 1 and 1.5 jobs per household, indicating that there is a balance of employment opportunities to support the community. ABAG projects that by 2020, the number of jobs in Los Gatos will increase by approximately 2,695, or 12 percent, to a total of 20,850. The number of households is expected to increase by approximately 650, or 5 percent, to a total of 12,820. These projections indicate that the jobs /housing ratio for Los ' Projections 2007: Forecasts for the San Francisco Bay Area to the Year 1035, As- sociation of Bay Area Governments, December 2006, page 191 -2. Note: 1005 job and housing numbers were used for this analysis because 2008 job numbers were unavail- able. 2 -3 TOWN OF LOS G A T O S 2010 GENERAL PLAN 2007.201! HOUSING ELEMENT:TECHN ICAO APPENDIX HOUSING NEEDS ASSESSMENT FIGURE 2 -2 PROJECTED JOB GROWTH, 2005.2020 Health, Educational and Recreational Service Financial and Professional Service `o u Retail u rn a 0 " Manufacturing, Wholesale and Transportation Agricultural/Natural Resource Other O Total jobs in 2005 ■ Total Additional job in 2020 i 0 2,000 4,000 6,000 8,000 10,000 12,000 Number of Jobs Source: Projections 2007: Forecasts for the San Francisco Bay Aral to the YAar 1035, Association of Bay Area Governments, December 2006. Gatos is expected to increase, resulting in more jobs per household and a potential demand for more housing to accommodate these new jobs. Figure 2 -2 charts employment by sector for 2005 and shows the projected increase in jobs. The Health, Educational and Recreational Sector had the most jobs in Los Gatos in 2005 as well as the largest projected increase in jobs compared to other sectors.' s The Health, Educational, and Recreational Services Sector is defined by ABAG as a combination of several classifications from the North American Industrial Cimification System (NAICS). This classification includes: Educational Services; Health Care and Social Assistance; Arts, Entertainment, and Recreation; Accommoda- tion and Food Services; and Other Services. 2 -4 i TOWN OF LOS G A T O S 2020 GENERAL PLAN 1007 2014 HOUSING ELEMENT:TECNNICAL APPENDIX HOUSING NEEDS ASSESSMENT B. Households The household data in this section include the current and projected number of households in Los Gatos, the household size, and a breakdown of households by income level as well as tenure. This section also includes an analysis of households overpaying for housing and an analysis of special needs households in Los Gatos. 1. Current and Projected Households The 2000 U.S. Census estimated that there were 11,988 households in Los Gatos. The majority of these households (61 percent) were family households, defined by the U.S. Census as households with two or more persons who are related by birth, marriage, or adoption. The majority of non - family households (76 percent) were individuals living alone. According to the California Department of Finance, there are 12,636 total housing units in Los Gatos. From 2005 to 2020, ABAG projects that the number of households in Los Gatos will increase by approximately 5.3 percent to 12,820.' 2. Household Size The average household size in Los Gatos is very stable, having retrained at approximately 2.35 persons per household since 1990 and projected to remain essentially the same until 2020! 3. Households by Income Level In 2005, the mean household income in Los Gatos was estimated to be $136,400, which was the fifth highest household income in Santa Clara County! ABAG projects that mean household incomes in Los Gatos will ' Projections 2007: Forecasts for the San Francisco Bay Area to the Year 2035, As- sociation of Bay Area Governments, December 2006, page 191. 6 Projections 2007: Forecasts for the San Francisco Bay Area to the Year 2035, As- sociation of Bay Area Governments, December 2006, pages 180 and 183. Projections 2007: Forecasts far the San Francisco Bay Area to the Year 1035, As- sociation of Bay Area Governments, December 2006, page 181. 2 -5 TOWN OF LOS G A T O S 1 0 3 0 GENERAL PLAN 2007-20 1 A HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT increase to $144,800 by 2010 and $153,700 by 2015. Table 2 -2 provides the mean household income for all 15 incorporated cities and towns within Santa Clara County in 2005. Table 2 -3 lists maximum household income levels by household size. These income levels are used by federal, State and local programs to determine eligibility for housing assistance in Los Gatos. These income levels are based on an area median household income (Ahq for Santa Clara County of $97,800. Using U.S. Census data, the U.S. Department of Housing and Urban Development (HUD) develops housing data under the Comprehensive Housing Affordability Strategy (CHAS) for juridictions eligible for HOME Investment Partnerships (HOME) program funds and Community Development Block Grant (CDGB) funds. The HOME and CDBG programs, both administered by HUD, are federal block grant programs that provide funds for local affordable housing development programs. According to CHAS 2000 data, the majority of households in Los Gatos have income levels greater than 80 percent of AMI in Santa Clara County. Low -, very low- and extremely low- income households comprise less than 20 percent, or 2,349 households, of all households in Los Gatos. An estimated 7.5 percent, or 900 out of the 11,900 total households, are considered extremely low - income, with incomes below 30 percent of AMI. See Table 2 -4 for the breakdown of households by income level in Los Gatos. 4. Overpaying Households State and federal agencies define an "overpaying" household as one in which more than 30 percent of annual income is spent on housing costs. According to CHAS 2000 data, approximately 31 percent of all homeowners in Los Gatos, or 2,410 households, and 34 percent of all renters in Los Gatos, or 1,422 households, are overpaying for their housing. 10 The Town is using the most recent data available and recognizes that a five -year Housing Element cycle may need to rely on data that is on the 10-year cycle of the U.S. Census. 2 -6 TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2001 -2011 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING NEEDS ASSESSMENT TABLE 2 -2 2005 MEAN HO USEHOLD INCOMES, SANTA CLARA COUNTY Rank City/Town Mean Estimated Household Income in 2005 1 LOS Altos Hills $269,000 2 Monte Sereno $222,700 3 Saratoga $190,200 4 Los Altos $178,500 5 Los Gatos $136,400 6 Palo Alto $133,100 7 Cupertino $125,800 8 Morgan Hill $104,000 9 Milpitas $99,700 10 Sunnyvale $92,200 11 Mountain View $90,800 12 San Jose $89,300 13 Santa Clara $84,800 14 Campbell $83,900 15 Gilroy $76,800 Source: Pmjrctions 1007. Forerasn for the San Francisco Ary Area w the Year 2033, Association of Bay Area Governments, December 2006, page 181. When broken down by household income level, the percentage of households overpaying in Los Gatos becomes more significant. A total of 1,142 lower. income households in Los Gatos, of which 545 are homeowners and 597 are renters, overpay for their housing. A majority of extremely low- income and very low- income homeowners overpay for their housing, while a majority of 2 -7 TOWN OF LOS G A T O S 3030 GENERAL PLAN 3 0 0 7 - ] 0 14 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT TABLE 2 -3 FY 2008 MAXIMUM HOUSEHOLD INCOME LEVELS, SANTA CLARA COUNTY Income Moderate Category 1 Person 2 Persons 3 Persons 4 Persons Extremely Low Low Very Low (30 % AMU) $22,300 $25,500 $ 28,650 $31,85 Very Low (80 %AMI) Greater AMI) Total Number of (50 %AMD $37,150 $42,450 $47,750 $53,050 Low 900 677 772 9,611 (80 %AMII $59,400 $67,900 $76,400 $84,900 Source: Department of Housing and Urban Development, FY2008 Income limits TABLE 2 -4 HOUSEHOLDS BY INCOME LEVEL, 2000 - Due to rounding, the percentages do not add up to exactly 100 percent. Source: HUD, Comprehensive Housing Affordability Strategy (CHAS), 2000 extremely low- income, very low- income, and low - income renter households overpay for their housing in Los Gatos. Figure 2 -3 shows the percentage of homeowners and renters in Los Gatos that are overpaying for housing, by household income level. This measurement helps determine which households are potentially lacking housing that is affordable to their income level. FV Moderate Extremely and Above Low Very Low Low (80% or (30 % AMU) (50 %AMI) (80 %AMI) Greater AMI) Total Number of 900 677 772 9,611 11,960 Households Percent of Total 7.5% 5.7% 6.5% 80.4% 100V Households - Due to rounding, the percentages do not add up to exactly 100 percent. Source: HUD, Comprehensive Housing Affordability Strategy (CHAS), 2000 extremely low- income, very low- income, and low - income renter households overpay for their housing in Los Gatos. Figure 2 -3 shows the percentage of homeowners and renters in Los Gatos that are overpaying for housing, by household income level. This measurement helps determine which households are potentially lacking housing that is affordable to their income level. FV TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2 0 0 ] 2 0 1 / H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT FIGURE 2 -3 OVERPAYING HOUSEHOLDS BY INCOME LEVEL, 2000 0e .5 0 G o u G Ax C r u C. 100% 80% 60% 40% 20% 0% Source: HUD, CHAS, 2000. Household Income Level • =Ren • 5. Household Tenure The majority of households in Los Gatos are owner - occupied. The 2000 U.S. Census estimated that 65 percent, or 7,827 households, were owner - occupied, and 35 percent, or 4,161 households, were renter-occupied. According to CHAS 2000 data, half of the 900 extremely low- income households in Los Gatos were homeowners and half were renters. The proportion of homeowners to renters in Los Gatos has remained essentially the same since 1990. Compared to the percentage of owner - occupied units in Santa Clara County and the state, Los Gatos has a higher percentage of homeowner units, with Santa Clara County at 59.8 percent and the State at 56.9 percent. 6. Households with Special Needs This section analyzes households in Los Gatos with special needs, organized into the following sub - populations: ♦ Extremely low- income ♦ Homeless ♦ Overcrowded and Large - Family 2 -9 Extremely Very Low Low Moderate and Low Above TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2 0 0 1 . 2 0 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT ♦ Single- parent ♦ Elderly ♦ Persons with disabilities Special needs households are generally defined by the California Department of Housing and Community Development and must be specifically analyzed in Housing Elements. A review of available employment data indicates that less than one percent of the Los Gatos labor force is employed in agricultural work. Therefore, farm worker households are not specifically identified as a group with special needs in Los Gatos. a. Extremely Low - Income Households As noted above, extremely low- income households are households defined as having incomes less than 30 percent of Mg. The annual income for an ex- tremely low- income household in Santa Clara County is $31,950 or less for a four - person household, as shown in Table 2 -5. Households that are on Social Security Insurance (SSI) or disability insurance are typically extremely low - income households. As shown in, Los Gatos had approximately 900 extremely low- income households, which is about 7.5 percent of the total number of households in Los Gatos, in 2000. A majority of both extremely low - income renters and owners in Los Gatos are overpaying, living in overcrowded situations, or lacking kitchen or plumbing facilities. Specifically, 72 percent of extremely low- income households in Los Gatos are overpaying for housing. Of all households in Los Gatos, approximately 34 percent are overpaying for hous- ing. To project the housing needs for extremely low- income households, Los Gatos assumes that 50 percent of its RHNA for very low- income households (defined as less than 50 percent of AMO in Los Gatos is the extremely low - income household need. Los Gatos's RHNA, described in more detail in 2 -10 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2002.1014 HOUSING ELEMENT:TECNNICAL APPENDIX HOUSING NEEDS ASSESSMENT TABLE 2-5 HOUSING NEEDS FOR EXTREMELY LOW- INCOME HOUSEHOLDS ' 'Housing problem" is defused by HUD AS a cost burden greater than 30 percent of AMI (o paying); more than one person per room, excluding bathrooms and kitchens (overcrowding); and /or housing without a complete kitchen or plumbing facilities. b 'Cost burden" is defined by HUD as the portion of a household's total gross income that is spent on bowing costs. Source HUD, CHAS, 2000. Chapter 3 of this Technical Appendix, estimates a need of 154 units afford- able at the very low- income level; consequently, the Town's projected need for extremely low- income households would be 77 units. To address the range of needs for extremely low- income households, Los Gatos supports and makes referrals to the Housing Authority of the County of Santa Clara, which administers Section 8 Vouchers, Welfare- to-Work Vouchers, the Family Self - Sufficiency Program, and public housing. More information on these programs can be found in Chapter 3 under Section D.2, Santa Clara County Resources. Additionally, the Town has included a policy and actions to further address the housing needs of extremely low- income households in Los Gatos. Under Policy HOU -1.3, the Town will work with its Redevelopment Agency to develop housing that is affordable to extremely low- income households. Un- der Action HOU -1.5, the Town will work with affordable housing develop- ers on an annual basis, provide expedited permit processing, identify funding 2 -II Renters Owners Total Total Number of Extremely Low - Income Households 449 451 900 Percent with Any Housing Problems' 70.4% 80.0% 75.2% Percent with Cost Burden' of 30% or Greater of Income 6 3.9% 80.0% 72.0% Percent with Cost Burden' of 50% or r- -._- ..r T....,...._ 56.6% 74.1% 65.3% ' 'Housing problem" is defused by HUD AS a cost burden greater than 30 percent of AMI (o paying); more than one person per room, excluding bathrooms and kitchens (overcrowding); and /or housing without a complete kitchen or plumbing facilities. b 'Cost burden" is defined by HUD as the portion of a household's total gross income that is spent on bowing costs. Source HUD, CHAS, 2000. Chapter 3 of this Technical Appendix, estimates a need of 154 units afford- able at the very low- income level; consequently, the Town's projected need for extremely low- income households would be 77 units. To address the range of needs for extremely low- income households, Los Gatos supports and makes referrals to the Housing Authority of the County of Santa Clara, which administers Section 8 Vouchers, Welfare- to-Work Vouchers, the Family Self - Sufficiency Program, and public housing. More information on these programs can be found in Chapter 3 under Section D.2, Santa Clara County Resources. Additionally, the Town has included a policy and actions to further address the housing needs of extremely low- income households in Los Gatos. Under Policy HOU -1.3, the Town will work with its Redevelopment Agency to develop housing that is affordable to extremely low- income households. Un- der Action HOU -1.5, the Town will work with affordable housing develop- ers on an annual basis, provide expedited permit processing, identify funding 2 -II TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING NEEDS ASSESSMENT opportunities, and provide other incentives similar to incentives developed under the Affordable Housing Overlay Zone (AHOZ) under Action HOU- 2.1. Under Action HOU -1.6, the Town will dedicate a percentage of the Re- development Agency's Housing Set -Aside Funds to the development of hous- ing affordable to extremely low- income households. b. Homeless Population Homelessness is an issue of significant concern in Santa Clara County. Santa Clara County conducts the Santa Clara Homeless Census and Survey, which is a report of a point -in -time count, including comprehensive, qualitative interviews of homeless persons in the county. The Los Gatos Housing Element update references the 2007 Santa Clara County Homeless Census and Survey." In 2007, the Santa Clara County Homeless Census and Survey's point -in -time count estimated that 5,101 homeless persons lived on the street and 2,101 homeless people lived in shelters and transitional housing, for a total of 7,202 homeless persons in the county. Santa Clara County estimates that there were approximately 18,000 persons who were homeless at some point during 2006." While the homeless population is overwhelmingly male (approximately 70 percent), this population is racially /ethnically diverse. Figure 2-4 provides a breakdown of the estimated homeless population in Santa Clan County by race /ethnicity. Compared to the race /ethnicity of the total population of Los Gatos as estimated by the 2000 U.S. Census and described in Section A.2 of this chapter, the homeless population is much more diverse than the total population of Los Gatos. Over 80 percent of the total population in Los Gatos is estimated to be White, while only 35 percent of the homeless population in Santa Clan County, as shown in Figure 2 -4, is estimated to be White. Approximately 5 percent of the total population of Los Gatos is estimated to be Hispanic /Latino, while approximately 27 " The 2009 point -in -time homeless census was conducted in January 2009. Results are anticipated to be after publication of this report. " 2007 Santa Clara County Homeless Census and Survey, County of Santa Clara and Applied Survey Research, 2007, page 4. 2 -12 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 . 2 0 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT Figure 24 Homeless population by Race /Ethnicity in Santa Clan County, 2CW Asiaa/Pacific Islander 6% Other 10% African - American/ Black 22% Hispanic/ Latino 27% White Note: 'Ot her' includes American Indiaq Alaskan Native and persons of multiple mces/ethaicities. Source: Santa Clara County Homeless C &sus and Survey, 2007. percent of the homeless population in Santa Clara County is estimated to be Hispanic/Latino. Less than 1 percent of the total population in Los Gatos is estimated to be Black, while more than 20 percent of the homeless population in Santa Clara County is estimated to be Black. According to the 2007 Santa Clara County Homeless Census and Survey, approximately 80 percent of the homeless population in Santa Clara County is unemployed." Approximately one -third of the homeless in Santa Clara County repotted job loss or unemployment as the reason for their homelessness. The second major reason cited was alcohol or drug abuse. 12 2007 Santa Clara County Homeless Census and Survey, County of Santa Clara and Applied Survey Research, 2007, page 9. 2 -13 TOWN OF LOS G A T O S 3030 GENERAL PLAN 3 0 0 1 . 1 0 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT Other reasons for homelessness in Santa Clara County include incarceration, domestic violence, illness or medical problems, and mental health issues. The 2007 Santa Clara County Homeless Census and Survey estimated that there were 30 homeless persons in Los Gatos, specifically, 16 of which were unsheltered individuals and 14 of which lived in cars, recreational vehicles or vans or outdoor encampments. The number of homeless persons in Los Gatos represents less than 0.5 percent of the total point -in -time count of homeless persons in Santa Clara County." The Los Gatos Police Department confirms that the number of homeless persons in Los Gatos as estimated by the 2007 County Census and Survey remains an accurate estimate for the Town." i. Available ResourcesfortbeHomeless Los Gatos currently does not have any emergency or transitional shelters within town limits. Instead, the Town contributes funds in support of shelters under the auspices of the County's Continuum of Care strategy. The County's Continuum of Care approach includes prevention services, the provision of emergency shelters and the provision of transitional and permanent affordable housing. The Town of Los Gatos has contributed CDBG funds toward construction costs for HomeSafe and the Sobrato Living Center in Santa Clara. Both of these facilities provide emergency, transitional and permanent affordable housing opportunities available to the Los Gatos community. Additional limited resources provided by the Town include food and shelter vouchers from the Salvation Army as well as food pantries at local churches, including St. Mary's and St. Luke's and Calvary Church. ii. Site and Zoning Requirements Los Gatos has three types of residential care facilities, defined by Town Code as establishments that provide around - the -clock nonmedical care to persons " ° 2C07 Santa Clara County Homeless Census and Survey,' County of Santa Clara and Applied Survey Research, 2007, page 28. Is Captain Dave Gravel, Los Gatos Police Department, personal communica- tion with DC &E, October 28, 2008. 2 -14 TOWN O F LOS G A T O S 2 0 2 0 GENERAL PLAN 2 0 0 7 . 2 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT living in these facilities and unrelated to the licensee that can meet the housing needs of homeless individuals. These types of residential care facilities include (1) a "small family home" located in the licensee's home, which provides care for up to six persons; (2) a "large family home" located in the licensee's home, which provides care for seven to twelve children or seven to twelve adults; and (3) a "group home," which is a residential care facility that generally provides services for a group of adults or children needing or wanting care or supervision. Small family home residential care facilities are allowed in all residential zoning districts except the Mobile Home Residential zone (RMH). Large family home and group home residential care facilities require a conditional use permit for all residential districts. Because California Health and Safety Code Section 1566.3 requires that all licensed residential care facilities for six or less persons be allowed by -right in all residential districts, Actions HOU -6.9 and HOU -6.10 amend the Town Code definitions for "small family home residential care facility" and °group home" to be consistent with State law. Because Los Gatos does not have a homeless or transitional shelter within Town limits, the Town intends to amend its Zoning Code to allow an emer- gency shelter by right in the Controlled Manufacturing (CM) zoning district. This zone comprises approximately 57 acres of land located primarily along Winchester Boulevard, Lark Avenue, and University Avenue. Of the 57 acres designated in the CM zone, approximately 2 acres are vacant, on parcels less than one acre in size. Of the non -vacant sites in the CM zoning district, the average parcel size is approximately 2.5 acres. All sites in the CM zone are within approximately 0.5 miles of the future Vasona Light Rail station and existing El Camino Hospital of Los Gatos. All of these sites are along or in proximity to VTA Community Bus Route 48, which extends from the VTA Light Rail Winchester Station to the Los Gatos Civic Center with a stop at the El Camino Hospital of Los Gatos. t6 County of Santa Clara, Town of Los Gatos Assessor parcel Data, 2006. 2 -15 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007-2014 HOUSING ELEMENT:TECHNICAL APPENDIX H O U S I N G N E E D S A S S E S S M E N T c. Overcrowded and Large Family Households The U.S. Census defines an overcrowded household as one that is occupied by more than one person per room, excluding bathrooms and kitchens. Households with more than 1.5 persons per room are considered severely overcrowded. In Los Gatos, 312 households, or 2.6 percent of the total number of households, are overcrowded." Approximately 40 percent of these overcrowded households are severely overcrowded. The majority of overcrowded and severely overcrowded households in Los Gatos — 239 households — are renter- occupied. The U.S. Census defines a large family household as a household with five or more persons. Approximately 6.4 percent of Los Gatos households, or 760 households, are large family households." Approximately three- quarters of these large family households, or 567 households, are homeowners. Typically, large family renter households are more likely to be overcrowded because of the limited availability of appropriately sized rental housing. Because most of the large family households in Los Gatos are owner- occupied, overcrowding does not seem to be a significant problem for the town. d. Single- Parent Households Single - parent households are families with either a male or female head of household and children under 18 years of age. Single- parent households are more likely to be vulnerable to the housing market; their single household income can affect their ability to afford a home. Of all family households in Los Gatos that consist of married couples, about 2 percent have incomes below the poverty level. Of the single -parent households, 13 percent have incomes below the poverty level." The statistics have changed very little from 1990 Census data regarding family households below the poverty level. "U.S. Census, 2000. Is U.S. Census, 2000. "CHAS, 2000. 20 U.S. Census, 2C00. TOWN OF LOS G A T O S 2020 GENERAL PLAN 200T 3014 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING NEEDS ASSESSMENT According to the 2000 U.S. Census, single- parent households represent 611 households, or about 19 percent of households with families in Los Gatos. The majority of these single- parent households, 494 households, have a female head of household. e. Senior Households As of 2008, 5,023 persons age 65 or over represent the senior population residing in Los Gatos. Of all households in Los Gatos, approximately 24 percent, or 2,860 households, have at least one or more seniors. Almost 78 percent of all senior households in Los Gatos are homeowners, which is an almost 10 percent increase from the 69 percent senior homeowner households identified in the 1990 U.S. Census. Several developments, shown in Table 2 -6, currently provide housing for lower - income senior persons in Los Gatos. L Households with Persons with Disabilities According to the 2000 U.S. Census, approximately 6.7 percent of the population in Los Gatos, or 1,776 persons, have a disability that is either mental or physical and that affects their mobility or self -care. Approximately 67 percent of these persons have a disability that affects their ability to work. General support services for the disabled are available through the San Andreas Regional Center, a community- based, nonprofit organization for Santa Clara County that is located north of Los Gatos in the City of Campbell. However, this Center does not provide housing cost support. The cost of housing is prohibitively expensive for those on Supplemental Security Income (SSI) which provided an average of $800 to $900 per month for individuals with disabilities in 2007 to 2008. " Neilsen Claritas, 2008. "CHAS data, 2000. 2 -17 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 ] - 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT TABLE 2 -6 AFFORDABLE SENIOR HOUSING, JUNE 2008 Number Name Address of Units Eligibility HUD Section 8, Villa Vuona 626 W. Parr Avenue 107 $37,150 income The following list presents available resources for persons with disabilities in Los Gatos. ♦ Silicon Valley Independent Living Center. Main Office, 2306 Zanker Road, San Jose, CA 95131. The Silicon Valley Independent Living Center is a non - profit corporation that provides comprehensive services for persons with a variety of disabilities. Their services include counseling, housing referral and placement, independent living skills training and other services. Mental Health Advocacy Project, Law Foundation of Silicon Valley. 111 W. Saint John Street, Suite 315, San Jose, CA 95113. Started in 1978 by the Law Foundation of Silicon Valley, the Mental Health Advocacy Project is the only legal assistance organization in Santa Clara County providing legal services specifically for persons with disabilities. Their services include providing assistance with public benefits such as SSI; addressing housing issues such as evictions; discrimination and complaints associated with housing abuse and neglect; landlord/tenant 2 -I8 Low - and LOS Gatos Fourplex 221 -227 Nicolson Avenue 4 moderate- income seniors The Terraces of 800 Blossom Hill Road 29 80% of AMI Los Gatos Blossom Hill 14390 Blossom Hill Road 5 35% of AMI Anne Way 185 Anne Way 5 35% of AMI The following list presents available resources for persons with disabilities in Los Gatos. ♦ Silicon Valley Independent Living Center. Main Office, 2306 Zanker Road, San Jose, CA 95131. The Silicon Valley Independent Living Center is a non - profit corporation that provides comprehensive services for persons with a variety of disabilities. Their services include counseling, housing referral and placement, independent living skills training and other services. Mental Health Advocacy Project, Law Foundation of Silicon Valley. 111 W. Saint John Street, Suite 315, San Jose, CA 95113. Started in 1978 by the Law Foundation of Silicon Valley, the Mental Health Advocacy Project is the only legal assistance organization in Santa Clara County providing legal services specifically for persons with disabilities. Their services include providing assistance with public benefits such as SSI; addressing housing issues such as evictions; discrimination and complaints associated with housing abuse and neglect; landlord/tenant 2 -I8 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 ] 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X H O U S I N G N E E D S A S S E S S M E N T conflicts and habitability; and providing general technical assistance to housing and service providers for persons with disabilities. Shelter Plus Care Program, Housing Authority of the County of Santa Clara, 505 West Julian Street, San Jose, CA 95110. The Shelter Plus Care Program, a HUD program administered by the Housing Authority of the County of Santa Clara (HACSC), provides rental assistance in con- junction with supportive services for homeless persons with disabilities. C. Housing Stock This section describes housing conditions in Los Gatos and includes a discussion of housing types, vacancy rates, and homeownership and rental costs. Because data are obtained from several sources, including the U.S. Census and the State of California Department of Finance, data referenced in this chapter will vary slightly. 1. Housing Units by Type According to the California Department of Finance, there are 12,952 total housing units in Los Gatos in 2008.' Approximately 70 percent, or 9,013 units, are single -family units. Approximately one -fifth of these units are sin- gle- family attached units, which includes condominiums and townhouses. Approximately 22 percent, or 2,880 units, of all housing units in Los Gatos are multi - family, which includes structures with five or more units. The re- maining 8 percent, or 1,059 units, include multi - family housing structures that have two to four units and a small number of mobile homes. Figure 2 -5 shows the housing stock by type. 2. Vacancy Rates The vacancy rate is defined by the percentage of units that are vacant and/or for sale or for rent at a given time. A vacancy rate of 3 percent or less for for - sale units and a vacancy rate of 5 percent or less for rental units are considered n State of California, Deparunent of Finance Population and Housing Esti- mates, E -5, January 1, 2008. PAM TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 - 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT FIGURE 2.5 HOUSING STOCK BY TYPE, JANUARY 2008 Y 100% 0 F N 80% 0 n 0 F 40% `o __ -- m 22% n C 20% $ 7% u d t% 0% Single- Family Multi- Family Multi- Family Mobile Homes (5 or more units) (2 to 4 units) Housing Type Source: Stare of California, Department of Finance Population and Housing Estimates, E -5, January 1, 2008. low vacancy rates. Low vacancy rates typically indicate strong demand for housing in a community. According to the 2000 U.S. Census, Los Gatos has an overall 3.1 percent vacancy rate. A majority of these vacant units (75 percent) are rental units. 3. Age of Housing Stock According to the 2000 U.S. Census, almost one -third of the housing units in Los Gatos were built in the 1960s. Another one -third of the housing was built before 1960. Table 2 -7 provides the full age distribution of the housing stock in Los Gatos. 4. Housing Conditions Overall, the housing stock of Los Gatos is in good condition, and few areas require reconstruction or rehabilitation. The last comprehensive housing 2 -20 TOWN OF LOS G A T O S 2 0 2 0 GENERAL P L A N 2007 2014 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING NEEDS ASSESSMENT TABLE 2 -7 AGE OF HOUSING STOCK, AS OF MARCH 2000 Year Built Number of Units Percent of Total 1949 or earlier 2,129 17% 1950 to 1959 1,761 14% 1960 to 1969 3,599 29% 1970 to 1979 3,018 24% 1980 to 1989 1,089 9% 1990 to 2000 808 7% Total 12,404 Source: U.S. Census, 2000 conditions survey for the Town was conducted in 1983 -84 and estimated that approximately 4.5 percent, or about 580 units, of the total housing stock in Los Gatos is in need of rehabilitation. According to Town building inspec- tors, this percentage remains an accurate estimate of the number of units in need of rehabilitation today. According to the Town's Building Depart- ment, most aging housing stock was rebuilt after the 1989 Loma Prieta Earth- quake ss Much of the older housing stock is also located near the downtown area and is mostly encompassed by a redevelopment project area, which has invested funds in rehabilitating and building new housing in the project area. The Los Gatos housing market continues to have a high purchase and resale demand." ' Anthony Ghiossi, Building Official, Town of Los Gatos, personal com- munication with Wendie Rooney, Community Development Director, Town of Los Gatos, March 22, 2010. s Anthony Ghimsi, Building Official, Town of Los Gatos, personal com- munication with DC &E, November 3, 2008. m Anthony Ghiossi, Building Official, Town of Los Gatos, personal com- munication with DC &E, November 3, 2008. 2 -21 TOWN OF LOS G A T O S 2020 GENERAL PLAN 1007 -1014 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING NEEDS ASSESSMENT 5. Housing Affordability In general, the cost of a home has increased significantly in Los Gatos in recent years. Homeownership and rental costs in Los Gatos continue to be some of the highest in Santa Clara County. a. Homeownership Costs Housing prices are high in Los Gatos. over half of all owner - occupied homes in Los Gatos are valued at one million dollars or more." Despite the recent economic downturn, Los Gatos continues to have some of the highest home prices in Santa Clara County. The current median price for a home in Los Gatos is $1 million, placing Los Gatos in second place (with Cupertino) for the highest median home sales price in Santa Clara County, behind Los Altos." As of December 2008, Data - Quick reports that the median price of Los Gatos has dropped by almost 30 percent since December 2007, when it was $1.4 million and the third highest price in the county. Table 2 -8 provides a summary of median home sales prices in Santa Clara County. b. Rental Costs In general, rental costs in Los Gatos have gone down since 2001. The previous housing element for Los Gatos indicated that the average rent per month in Los Gatos in 2001 was $1,883, a 27 percent increase from that of 1999. According to a recent survey of online rental listings in Los Gatos, the average rent per month in Los Gatos in 2008 is $1,690. The previously high average rent in 2001 coincides with the height of the "dot -com° boom, which greatly affected the Silicon Valley housing market. Table 2 -9 provides current average rents in Los Gatos. Current rents for a one - bedroom and two- bedroom/one bath unit are comparable to the rents provided in the previous " Neilsen Clarhas, 2008. za DataQuick Real Estate News, California Home Sale Price Medians by County and City, December 2008, DQNews.com. 2 -22 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 1 . 2 0 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT TABLE 2 -8 MEDIAN HOME SALES PRICES, SANTA CLARA COUNTY, DECEMBER 2008 County/City A Sold in Dec. 2008 December 2008 December 2007 % Change in Price, 2007 to 2008 Los Altos 11 $1,743,000 $1,617,000 7.8 Los Gatos 23 $1,000,000 $1,400,000 (28.6) Cupertino 15 $1,000,000 $1,100,000 (9.1) San Martin 5 $786,000 $892,500 (1119) Saratoga 12 $750,000 $1,562,500 (52.0) Mountain Yew 29 $700,000 $730,000 (4.1) Campbell 25 $630,000 $715,000 (11.9) Sunnyvale 37 $599,000 $706,000 (15.2) Santa Clan 52 $470,500 $623,750 (24.6) Morgan Hill 47 $460,000 $642,500 (28.4) Milpitas 39 $435,000 $563,500 (22.8) San Jose 764 $390,000 $625,000 (37.6) Palo Alto 9 $385,000 $1,179,000 (67.4) Gilroy 55 $375,000 $605,750 (38.1) Santa Clara County 1,134 $430,000 $664,000 (35.2) Note: Data for the City of Moore Sereno is not available from tWs source. Source: DauQuick RealEsure News, hnp: //w .DQNew . com, wcessed Febnwy 5, 2009 Housing Element update. It is likely that the proportion of newer, one bed- room units is higher than that of older two-bedroom units on the market, which could push the cost of one - bedroom units in Los Gatos up. 2 -23 TOWN OF LOS G A T O S 0 3 0 GENERAL PLAN 2 0 0 7 - 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING NEEDS ASSESSMENT TABLE 2 -9 AVERAGE MULTI- FAMILY RENTAL COSTS, 2008 Bedroom Size Average Monthly Rent One Bedroom 51,447" Two Bedroom/One Bath $1,423 Two Bedroom/Two Bath $2,200 Overall Average Monthly Rent $1,690 The average monthly rent for one - bedroom units is estimated based on a weighted average of new or newly remodeled one - bedrooms and older one - bedrooms on the market in Los Gatos. It is estimated that 40 percent of one - bedrooms currently on the market in Los Gatos are new or newly remodeled units. _ Source: Craigslistorg, Apartments.com. c. Overall Housing Affordability Table 2 -10 analyzes the affordability of housing in Los Gatos based on 2008 HUD Income Limits. TABLE 2 -10 HOUSEHOLD INCOMES AND AFFORDABILITY, 2008 Affordable Low Income $7,075 $2,358 Yes $325,000 '2008 HUD Income Limits for 4-person household divided by 12 to determine monthly income. n Avenge monthly rent is calculated based on a Survey of rental listings as shown in Table 2 -8. `Estimate rounded and baud on monthly income with 10 percent down payment and 30 -year amortized loan, with an allowance for taxes and insurance. 2 -24 Housing Average Affordable Income Payment Monthly Single - Level for (30% of Rent Family 4- Person Monthly Monthly ($1,690') Home Sales Household Income Income) Affordable? Price Extremely $2,654 $885 No $120,000 Low Income Very Low $4,421 $1,474 No $200,000 Low Income $7,075 $2,358 Yes $325,000 '2008 HUD Income Limits for 4-person household divided by 12 to determine monthly income. n Avenge monthly rent is calculated based on a Survey of rental listings as shown in Table 2 -8. `Estimate rounded and baud on monthly income with 10 percent down payment and 30 -year amortized loan, with an allowance for taxes and insurance. 2 -24 PROJECTED HOUSING NEEDS This chapter describes the number of housing units that must be built, renovated or conserved in order to meet the current and future housing needs in Los Gatos. A. Regional Housing Needs Allocation Regional governments are required by State law to estimate and allocate the number of housing units needed among each member community. This estimated number of housing units is called the Regional Housing Needs Allocation (RHNA) and is broken down by income level with the goal of fairly distributing affordable housing throughout the region. The Town of Los Gatos is located in Santa Clara County, one of the nine Bay Area counties that is represented by the Association of Bay Area Governments (ABAG). ABAG estimates the total RHNA for Los Gatos to be 562 housing units for the planning period starting July 1, 2007 and ending June 30, 2014. Table 3 -1 provides the RHNA by income level for Los Gatos. B. RHNA Adjusted New Construction Need for 2009 -2014 Planning Period The Town's previous Housing Element update covered the planning period ending June 30, 2007. According to HCD regulations, housing developments that were not counted toward the previous Housing Element and that were built, under construction and/or approved after January 1, 2007 and before submission of the current Housing Element by June 30, 2009 can be counted toward an adjusted RHNA for the 2007 to 2014 planning period. Table 3 -2 below lists all housing developments not counted toward the previous Hous- ing Element and built, under construction and/or approved between January 1, 2007 and June 30, 2009. As shown in Table 3 -2, 9-2-110 total units were built, or000sed, under con - struction and /or approved between the previous Housing Element planning 3 -1 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 2 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS TABLE 3 -1 RHNA BY INCOME LEVEL, 2007 -2014 Above Moderate Income 186 33.1% (Above 120%AMD Total 562 100.0% - AMI, or Am Median Income, is baud on State of California definitiom period and the current planning period starting July 1, 2009. Table 3 -3 adjusts the RHNA to account for the units listed in Table 3 -2. C. Conservation of At -Risk Housing Units As required by State law, Housing Elements must address the issue of existing affordable and other subsidized housing developments that are at risk of conversion to market -race housing within the next 10 years. Housing units that are subject to the termination of a government subsidy program or the termination of rental restrictions are considered at -risk units. Table 3.4 lists all subsidized units in Los Gatos from 2007 to 2017. This inventory indicates the type of governmental assistance received, the potential date of conversion to market -rate and the total number of senior housing units that could potentially be lost, if any, from each development. For each development, Table 3 -4 indicates whether each housing unit is at risk of conversion over the next ten years, which includes the current and subsequent five -year Housing Element planning periods. 3 -2 Housing Need Percent of (Number of Total Housing Income Category Housing Units) Need Extremely Low Income (Less than 30% AMI *) 77 13.7% Very Low Income 77 13.7% (31% to 50% AM; Low Income 100 17.8% (51% to 80% AN" Moderate Income „ 122 21.7% Above Moderate Income 186 33.1% (Above 120%AMD Total 562 100.0% - AMI, or Am Median Income, is baud on State of California definitiom period and the current planning period starting July 1, 2009. Table 3 -3 adjusts the RHNA to account for the units listed in Table 3 -2. C. Conservation of At -Risk Housing Units As required by State law, Housing Elements must address the issue of existing affordable and other subsidized housing developments that are at risk of conversion to market -race housing within the next 10 years. Housing units that are subject to the termination of a government subsidy program or the termination of rental restrictions are considered at -risk units. Table 3.4 lists all subsidized units in Los Gatos from 2007 to 2017. This inventory indicates the type of governmental assistance received, the potential date of conversion to market -rate and the total number of senior housing units that could potentially be lost, if any, from each development. For each development, Table 3 -4 indicates whether each housing unit is at risk of conversion over the next ten years, which includes the current and subsequent five -year Housing Element planning periods. 3 -2 TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2007-20 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS TABLE 3 -2 HOUSING UNITS BUILT, PROPOSED. UNDER CONSTRUCTION, AND /OR APPROVED, JANU -I ARY 1. 2007 -JUNE 30, 2009 Number of Units by Income Level Total Very Above Project Name Status Units Low Low Moderate Moderate Affordability 237 Almendra Ave. Approved 1 - 0 0 0 1 Market rate 245 Almendra Ave. Approved 1 0 0 0 1 Market rate 80 Reservoir Rd Unde` Construction 1 0 0 0 1 Market rate 90 Reservoir Rd. Under Construction 1 0 0 0 1 Market rate 100 Reservoir Rd. Uncle` Construction 1 0 0 0 1 Market rate 110 Reservoir Rd. Under Construction 1 0 0 0 1 Market rate 14830 Blossom Hill Rd. Approved 1 0 0 0 1 Market rate 20103 poster Rd. Approved 1 0 0 0 1 Market rate 16461 S. Kennedy Rd. Approved 1 0 0 0 1 Market rate 52 Oak Hill Way Approved 1 0 0 0 1 Market race 117 Isabella Ct. Approved 1 0 0 0 1 Market rate 118 Dover St. Approved 1 0 0 0 1 Market rate 215 Bean Ave. Approved 1 0 0 0 1 blanket rate 15275 Suview Rd. Approved 1 0 0 0 1 Market rate 15700 Shady Ln. Approved 1 0 0 0 1 Market rate 16111 Kennedy Rd. Under Construction - 1 0 0 0 1 Market rate 16575 Kennedy Rd. Approved 1 0 0 0 1 Market rate 16330 Englewood A- Built 1 0 0 0 1 Market raw 3 -3 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2001 -2014 HOUSING ELEMENT:TECHNICAL APPENDIX / - � PROJECTED HOUSING NEEDS TABLE 3 -2 HOUSING UNITS BUILT, PROPOSED, UNDER CONSTRUCTION, AND /OR APPROVED, JANUARY I 2007 - JUNE 30 2009 (CONTINUED) Number of Units by Income Level Total Very Above Project Name Status Units Low Low Moderate Moderate Aff 140 Cleland Ave. Approved 1 0 0 0 1 Market rate 14329 Mulberry Dr. Approved 1 0 0 0 1 Market rate 15588 Corinne Dr. Constructed 1 0 0 0 1 Market rate 16357 Chiquita Under 1 0 0 0 1 Market rate Ave. Construction 16010 Stephenie Rd. 1 0 0 0 1 Market rate Constructi 590 Monterey Ave. Under 1 0 0 0 1 Market rate Construction 149 Cardinal Ln. Built 1 0 0 0 1 Market rate 380 Pinehurt Ave. Built 1 0 0 0 1 Market rate 16538 Topping W PP 8 y Under 1 0 0 0 1 Market rate Construction 460 Monterey Ave. Under 1 0 0 0 1 Market rate Construction 514 San Benito Ave. Approved 1 0 0 0 1 Market rate 16663 Leroy Ave. Under 1 0 0 0 1 Market rate Construction 23O Wooded View Under 1 0 0 0 1 Market rate Dr. Construction 17140 Mill Rise Wy Approved 1 0 0 0 1 Market rate Moderate Thrash House Under 19 0 0 2 17 income and Conswction — above Loa- income South Bav Honda Pr000sed 24 0 1 1 22 and above Low - income Swanson Ford Pr000sed 35 0 3 3 29 and above Total 3 110 0 04 16 33 100 3 -4 - TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007.2014 HOUSING ELEMENT:TECHNICAL APPENDIX PROJECTED HOUSING NEEDS TABLE 3 -3 ADJUSTED RHNA FOR 2007 -2014 PLANNING PERIOD A B (A minus B) Very Low 77 0 77 Low 100 04 4GO 96 Moderate 122 36 4Z0 116 Above Moderate 186 34100 44;' 86 Total Units 562 44 110 5?-1 452 Villa Vasona was the only property at risk of conversion to market rate within the 2007 -2017 planning period. Villa Vasona contains 107 senior units, which are subsidized by a HUD Section 8 contract and are therefore subject to a restriction expiration; the Section 8 contract expired on May 31, 2010 and was subsequently renewed for an additional five years.1 Under State law, the Housing Element must provide a cost analysis of preserving at -risk units by replacing the units or preserving the units through rehabilitation and/or rental subsidy programs. I BOW Rosenquist, The Mcfertin Group, personal communication with Joel Paulson, Senior Planner, Town of Los Gatos, November 3, 2010. 3 -S Units Built, Under New Construction Construction and /or Income Need Approved since Adjusted Category (RHNA) Jan. 1, 2007 RHNA Extremely Low 77 0 77 Very Low 77 0 77 Low 100 04 4GO 96 Moderate 122 36 4Z0 116 Above Moderate 186 34100 44;' 86 Total Units 562 44 110 5?-1 452 Villa Vasona was the only property at risk of conversion to market rate within the 2007 -2017 planning period. Villa Vasona contains 107 senior units, which are subsidized by a HUD Section 8 contract and are therefore subject to a restriction expiration; the Section 8 contract expired on May 31, 2010 and was subsequently renewed for an additional five years.1 Under State law, the Housing Element must provide a cost analysis of preserving at -risk units by replacing the units or preserving the units through rehabilitation and/or rental subsidy programs. I BOW Rosenquist, The Mcfertin Group, personal communication with Joel Paulson, Senior Planner, Town of Los Gatos, November 3, 2010. 3 -S A R Y V Y V U Y V U Y U V U Y Y C C C C C C C C C C C C C C w w 8 x x 8 x 8 g g x x g g x K w C 0 0 0 o O o 0 0 0 0 0 z z z z z z z z z z z d ° U w 0 u• t C z Y C G C C C C C C C C C C G F U E V E Y E Y E 4 E 4 E Y E U E Y E V E 4 E V E V E Y E •w ' d d d d d G d d F d d d d G N PO W W W Pa 07 fA W W Pa GI W iq R7 Q L.I x o n z W N y 'O b 'O 'O 'O S 'E b •O 'E � 'O 'O b d ^ G N F ? u u O O 0 O O O O 0 0 O O O O O N O 4. L IL L 7 C C C C C C C C C C C Z x 0 0 0 0 0 0 0 0 0 0 0 0 0 W 2 u N W D r N ■ j 'j WO V •• Yu u u . 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Y u r n � a ° aa as m O as rr \ \ \k/ ! \ !! § f / I >'t 1 / _. .i 2 � , / I 2 ;) C § § §%�)\ -2 rC4 o «; --§Q ) 02 o � < eau� =�. ±) '+ \ \\ \ $rB / } }E k } \ \ }, �| )| !« ;# } \\ j0 i } } ) ! - 272 § § ~ \) d\ / m) k\ k < � \§� � z - � \ \ \k/ ! \ !! § f / I >'t 1 / _. .i 2 � , / I 2 ;) C § § §%�)\ -2 rC4 o «; --§Q ) 02 o � < eau� =�. ±) '+ \ \\ \ $rB / } }E k } \ \ }, �| )| !« ;# } \\ j0 i } } ) ! - 272 § § . k\ k < � }\ J - � )k % § § )a �» }} . � & f . )s }\ LLI § ° ( § �. /} }\ � ƒ §; )| j) §'�� ) (} \ \ !! $ () \ \ \k/ ! \ !! § f / I >'t 1 / _. .i 2 � , / I 2 ;) C § § §%�)\ -2 rC4 o «; --§Q ) 02 o � < eau� =�. ±) '+ \ \\ \ $rB / } }E k } \ \ }, �| )| !« ;# } \\ j0 i } } ) ! ) ` § k\ � }\ )k % ± )a �» }} \\ . )s }\ �. ƒ §; )| j) (} \ !! $ () TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT:TECHNICAL APPENDIX PROJECTED HOUSING NEEDS Within the 2007 -2017 planning period, the Villa Vasona property's 107 senior units are considered to be at risk of termination of their Section 8 contract. Thus, this background report must estimate and compare costs are for preserving units through new construction and for preserving units through tenant -based rental assistance. ♦ New Construction/Replacement. One strategy for preserving at -risk units is to construct a similar number of units in a development with similar amenities as the at -risk property. The con of constructing these new units is estimated based on information from local developers and the Town Building Department and summarized in Table 3 -5. Based on the assumptions and estimates in Table 3 -5, the new construction costs of a 107 -unit project of similar size and type would be approximately $14,646,000. ♦ Tenant -Based Rental Assistance. Tenant -based rental subsidies are Simi- lar to Section 8 vouchers and are a vehicle to preserve affordable housing for very low- income households. The rental subsidy would be equivalent to the difference between the Fair Market Rent (FMR) and the cost of housing for a very low- income household. Table 3 -6 provides an estimate of the rental subsidies required to preserve the Villa Vasona units. The estimates are calculated based on 81 studio units and 26 1- bedroom units, the total number of currently subsidized units in the Villa Vasona prop- erty. Based on the assumptions and estimates provided in Table 3 -6, the total cost of providing a tenant -based rental subsidy, assuming a typical 20 -year affordability, would be $2,288,900. Based on the estimates in Tables 3 -5 and 3 -6, the cost of replacing Villa Vasona through new construction, at $14.6 million, would be higher than the cost of continuing to provide d rental subsidies (approximately $2.3 million). 3 -9 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 - 1 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS TABLE 3 -5 NEW CONSTRUCTION/REPLACEMENT COSTS, DECEMBER 2008 Cost /Fee Type Cost per Unit Land Acquisition' $ 46,729 Construction" $60,750 F i nanci ng/ O ther' $ 29,400 Total Cost per Unit $ Total Cost for 107 Units" $14,646,053 ' Estimated based nn $100 per square foot land costs for 50,000 square -foot housing development. " Estimated based on 50,000 square -foot assisted senior living development ' Estimated based on Town of Los Gatos Residential Planning and Development Fees for multi. family project as part of Planned Development. " Based on 81 studio units and 26 1- bedroom units affordable to very low- income households. Source. Local developers,ht apt// www. rsmeans. com/ calcu lator /indmup?speoalUser —FSONL TABLE 3 -6 TENANT -BASED RENTAL SUBSIDY FOR VILLA VASONA APARTMENTS, 2008 Studio 1- Bedroom Total (Cost per Unit) (Cost per Unit) Cost' Affordable Monthly Rent Income for Very Low- $1,076 $1,179 $114,246 Monthly Rent Allowed by $928 $1,113 $106,779 FMR5 Monthly Subsidies" $7,467 Annual Subsidies $89,604 20 -Year Subsidiese $2,288,904 ' Based on 81 studio units and 261- bedroom units affordable to very low- income households. " Based on 2008 HUD income limits for very low- income households and estimated under California Health and Safety Code definitions of affordable housing, which establishes that an affordable rent is between 30 and 35 percent of household income- ' FMR for Villa Vasona Apartments, HUD Multifamily Assistance and Section 8 Contracts Database, as of December 4, 2008. " Difference between affordable monthly rent income for very low - income households and monthly rent allowed by FMR. ' Future value calculation using a 2.5% inflation rate over 20 years. 3 -10 TOWN OF LOS GATOS 2020 GENERAL PLAN 2 0 0 ] 3 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS D. Housing Resources The Town of Los Gatos has identified several sources of funding for potential development and preservation resources for affordable housing units in Los Gatos. These sources include local, county, State and federal funds and programs. 1. Town Resources The Town of Los Gatos has several local programs that provide funding and/or subsidies for the development and preservation of affordable housing in Los Gatos. a. Redevelopment Agency The Los Gatos Redevelopment Agency manages a Housing Set -Aside Fund, which, by State law, holds 20 percent of tax increment revenues generated by the Redevelopment Agency. This fund is set aside primarily for developing and preserving low- and moderate - income housing in Los Gatos. Using its Housing Set -Aside Funds, the Redevelopment Agency develops housing projects, monitors new and substantially rehabilitated units for inclusionary requirements, and regulates and enforces affordability covenants on applicable rental units in the Project Area. The Redevelopment Agency's FY 2009/2010 to FY 2013/2014 Five -Year Implementation Plan (Five -Year Plan), adopted December 21, 2009, projects that 41 total new affordable housing units will be developed within a ten -year period ending FY 2013 /2014 using the Housing Set -Aside Fund. From FY 2004/2005 to FY 2008/2009, the Redevelopment Agency reports that 34 affordable units were produced, so that the Agency's remaining housing development obligation is seven affordable units. The Redevelopment Agency projects that 37 affordable units will be produced by FY 2013/2014. As of FY 2008/2009, the Housing Set -Aside Fund had a balance of approximately $8.4 million. It is projected that the Fund will accumulate an 3 -II TOWN OF LOS G A T O S 1030 GENERAL PLAN 1001 -1011 HOUSING ELEMENT:TECHNICAL APPENDIX PROJECTED HOUSING NEEDS additional $9.2 million by FY 2013/2014. Table 3 -7 provides the projected Set -Aside Fund estimates for the current Five -Year Plan. In November 1991, the Redevelopment Agency established a 441 -acre Los Gatos Redevelopment Project Area (Project Area), through which the Agency can administer its Housing Set -Aside Funds. The Project Area includes two potential multi -family housing sites identified by the Town - the Los Gatos Lodge and Dittos Lane. The Agency's Implementation Plan, which expires FY 2008 /09, includes a provision for affordable housing in its Five -Year Goals and Objectives that calls for "the expansion and improvement of the community's supply of low and moderate income housing" in order to meet its affordable housing obligation (California Government Code Section 33413). As of June 30, 20D9, the Redevelopment Agency has used $4.2 million of its Housing Set -Aside Funds to provide grants to the Housing Trust of Santa Clara County (HTSCC) to develop very low -, low -, and moderate - income housing in Los Gatos and to provide funds to Habitat for Humanity and Senior Housing Solutions' Blossom Hill and Anne Way development projects.' As of June 30, 2008, the Housing Set -Aside Fund had a balance of approxi- mately $7,198,500. b. Density Bonus Program The Density Bonus Program, described in detail in Chapter 4, allows qualified projects to add up to 100 percent of the units provided by the General Plan land use designation as long as these additional units are r Five -Year Implementation Plan: FY 2009/10 - FY 2013/14, November 2009, Prepared for the Los Gatos Redevelopment Agency, Seifel Consulting, Inc., p. III -9. ' Five -Year Implementation Plan: FY 2009/10 - FY 2013/14, November 2009, Prepared for the Los Gatos Redevelopment Agency, Seifel Consulting, Inc., Appendix Table A. 3 -12 TOWN OF LOS G A T O S 1020 GENERAL PLAN 2001 -2011 HOUSING ELEMENT:TECHNICAL APPENDIX PROJECTED HOUSING NEEDS TABLE 3 -7 HOUSING SET -ASIDE FUNDS, LOS GATOS REDEVELOPMENT AGENCY, FY 2009/2010 To 2013/2014 Fiscal Year Housing Set -Aside Funds Fund balance through FY 2008/2009 $8,448,000 FY 2009/2010 only $1,771,000 FY 2010 /2011 only $1,808,000 FY 2011/2012 only $1,845,000 FY 2012/2013 only $1,883,000 FY 2013/2014 only $1,922,000 Total (FY 2009/2010 to 2013/2014) $9,229,000 restricted to seniors, disabled persons, very low and/or low- income households. To date, 218 units have been provided through this program. The most recent developments receiving approval through the Density Bonus Program are the Los Gatos Creek Village Apartments and the Open Doors development. c. Below Market Price (BMP) Program As described in more detail in Chapter 4 of this document, the Town's BMP Program, which is administered by the Housing Authority of the County of Santa Clara (HACSC) and the Los Gatos Community Development Department, requires the development of a certain number of quality affordable units per development project in Los Gatos, based on the size of the project. Affordable units developed under the BMP Program are subject to deed restrictions approved by the Town Council, which ensure that the units remain affordable in perpetuity. The BMP Program preserves affordable housing in Los Gatos by requiring the development of these long- term affordable units. 3 -13 TOWN OF LOS G A T O S 3030 GENERAL PLAN [ 0 0 1 . 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS d. Affordable Housing Fund The Town's Affordable Housing Fund, which acts as a depository for in -lieu fees paid under the BW Program and as part of the approval process for Hillside Planned Developments with five or more residential building sites, is a financial resource for both preserving and developing affordable housing in Los Gatos. This in -lieu fee fund can support projects including, but not limited to: ♦ Subsidizing the cost of converting owner - occupied units into affordable units. ♦ Purchasing market -rate rental units for conversion to affordable units. ♦ Purchasing land for future development of affordable units. ♦ Providing funds to develop affordable housing. ♦ Providing funds to supplement affordable housing developed through the Los Gatos Redevelopment Agency. As of June 30, 2008, there is approximately $1,380,800 in the fund. e. Housing Conservation Program The Town adopted the Housing Conservation Program in 1976 to provide assistance in rehabilitating lower- income housing units. Through this program, the Town currently provides technical and financial assistance to owners of affordable housing. Town loans and grants are available for repairs correcting code violations, accessibility modifications, seismic retrofit and the addition of bedrooms to alleviate overcrowded households. Currently, approximately $500,000 is available through the Housing Conservation Program for loans and grants. 2. Santa Clara County Resources Santa Clara County provides a variety of housing- related financial support services. 3 -14 TOWN OF LOS G A T O S 3030 GENERAL PLAN 1 0 0 7 . 3 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS a. Santa Clara County Office of Affordable Housing The Office of Affordable Housing administers Community Development Block Grants (CDBG) and Department of Housing and Community Development (HCD) loans and grants. Some of these affordable housing programs are described below. • Community Development Block Grants. HUD provides CDBG funds on an annual basis that assist urban communities in providing facilities and services. Los Gatos is located in the San Jose-Sunnyvale-Santa Clara metropolitan statistical area (MSA), which makes Los Gatos eligible for CDBG grants.' According to the County Office of Affordable Housing, the FY 2008/2009 CDBG Budget consisted of $1,727,669 and served seven cities, including the Town of Los Gatos and some unincorporated areas. The Town received $133,214 (including $15,000 for administration). Annual grant amounts have steadily decreased over recent years.' ♦ CalHome Program HCD's CalHome Program provides funding to nonprofit corporations and localities to assist first -time homebuyers through its Building Equity and Growth in Neighborhoods (BEG" program. This program is funded by Proposition lc and Proposition 46. Although the Town of Los Gatos did not submit an application for grants in FY 2008 /09, the Town is eligible to receive funding through this program.' ♦ Mortgage Credit Certificates (MCC) Program. The MCC program provides assistance to first -tine homebuyers by reducing the amount of federal taxes owed on a mortgage by as much as 15 percent. Under the program, the purchase price for the resale of an existing residence is ' OMB Bulletin No. 08-01, November 20, 2007 http: / /www.Whitchouse. gov /omb /bulletins /fy2008/608- O1.pdf. 'Judy Borah, Management Analyst, County of Santa Clara, personal com- munication with DC &E, August 5, 2008. ' Gwen Espinoza, BEGIN Program Representative, Department of Housing and Community Development, personal communication with DC &E, August 5, 2008. kn7 TOWN OF LOS GATOS 2020 GENERAL PLAN 2 0 0 7 - 2 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS $570,000; the purchase price for a new home is $630,000. The income eligibility limits start at $94,500 for a moderate income one- or two- person household and $63,000 for a low- income one- or two-person household. As of 2008, MCC funds are currently available for eligible homebuyers in Los Gatos. b. Housing Authority of the County of Santa Clara The HACSC administers several federal programs and a waiting list for low - income applicants to be placed into affordable units as they become available. In Los Gatos, the HACSC assists in the placement of residents into available BMP units. The HACSC keeps a waiting list of potential residents under a contract with the Town. The HACSC manages the Family Self - Sufficiency Program and the Welfare - to-Work Voucher Program, described below. The HACSC also administers two federal programs - the Section 8 Voucher program and the Low - Income Housing Tax Credit Properties program. ♦ Family Self- Sufficiency Program (FSS). The FSS is administered by the HACSC and provides rental assistance for low- income families. FSS provides assistance for job training, child care and transportation with the requirements that participants maintain employment or are enrolled in school or job training. HUD matches program participants' earned income paid to rent and deposits the match into an escrow account which is later awarded to the participant upon completion of the program. ♦ Welfare -to -Work Voucher Program The Welfare- to-Work Program is also administered by the HACSC and is much like the FSS program described above, but participants are families drawn from the CaIWORKs program. ♦ Federal Low Income Housing Tax Credits (LIHTCs). LIHTC programs provide federal tax breaks that are administered by the State for projects that are entirely or partially restricted to low - income tenants. The tax credits encourage developers and their investors to take a federal 3 -16 TOWN OF LOS G A T O S 3030 GENERAL PLAN 3007.301/ HOUSING ELENENT:TECHNICAL APPENDIX PROJECTED HOUSING NEEDS tax credit equal to a large percentage of building acquisition, development or rehabilitation costs in exchange for maintaining low- income units in multi - family rental projects. The project owner must enter into a Land Use Restriction Agreement to maintain the low - income units for at least 30 years. ♦ Section 8 Voucher Program. The Section 8 Rental Vouchers and Certificates Program provides rental assistance through the HACSC, under contract to HUD. The program permits very-low income households to obtain access to market -rate or near market -rate rental units by covering the difference in cost between the rent and the tenant's adjusted income. Section 8 voucher holders who are seniors, disabled or who are enrolled in or graduated from the Family Self - Sufficiency Program may use their voucher payments on a home mortgage rather than rent. According to HACSC, Los Gatos currently leases 67 vouchers. HACSC has lobbied HUD to increase the maximum rent amounts permitted for vouchers in Santa Clara County to provide more incentive to property owners to participate in the program. 3. Federal Resources Along with the federal programs administered by Santa Clara County and HACSC, the Federal Home Loan (FH) Bank system also manages some grant programs for affordable housing development. The regional district bank supporting projects in California, Nevada and Arizona is the Federal Home Loan Bank of San Francisco, which is one of 12 regional district banks established by Congress to support' residential mortgage lending. The following grant programs are administered by the FHL Bank system. ♦ Affordable Housing Program (AHP). The AHP is a competitive program that provides grants through member banks to developers and community organizations for construction, rehabilitation, and financing of affordable housing. The AHP grants can be used with other programs to increase project feasibility. • Homeownership Preservation Subsidy (HPS) Program. The HPS program provides grants to member banks to restructure or refinance 3 -17 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 . 2 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEE05 mortgage loans for eligible low- and moderate - income homeowners at risk of foreclosure. 4. Non -Profit Agencies There are several non - profit agencies that have assisted in providing and conserving affordable housing in Los Gatos. These agencies are the Housing Trust of Santa Clara County, Mid - Peninsula Housing Coalition, Community Housing Developers, Inc., Silicon Valley Habitat for Humanity, Senior Housing Solutions, Catholic Charities of Santa Clara County and American Baptist Homes of the Wen. a. Housing Trust of Santa Clara County The Housing Trust of Santa Clara County administers several programs, which provide financial assistance for affordable housing. The Affordable Multi - Family Rental Program, described under Section D.2 above, provides loans for developers of affordable multi- family projects. The First -Time Homebuyer Program provides below - market secondary financing loans for homebuyers who have not owned a home in Santa Clam County for at least three years. The program also provides below - market secondary financing loans to reduce monthly mortgage payments by reducing the fast loan's interest rate and by paying off private mortgage insurance. The Affordable Multi - Family Rental Program is administered by the Housing Trust of Santa Clara County, a non- profit community-based organization located in the City of San Jose. The Rental Program provides loans and grants for the acquisition, preservation, new construction or rehabilitation of affordable housing throughout Santa Clara County, including within the Town of Los Gatos. This Rental Program assists developers of affordable rental projects to close financial feasibility gaps in the projects and to reduce pre - development costs. According to the regulations of this program, 30 percent of units must be affordable to household incomes of 30 percent of AMI and the remaining units must be affordable to household incomes of 80 percent of AM or below. 3 -18 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 1 . 2 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS This program also provides: ♦ Long -term loans of up to $500,000 with a 55 -year term; ♦ Construction gap loans of up to $15,000 per affordable unit, up to a maximum of $500,000 total for a project; and Predevelopment loans of up to $2,500 per affordable unit, up to a maxi- mum of $150,000 total for a project. Applications for this program must be submitted by a 501(c)3 organization or public agency that is sponsoring the project. b. Mid- Peninsula Housing Coalition The Mid Peninsula Housing Coalition is a non -profit developer that has been building, acquiring and rehabilitating affordable housing in the San Francisco and Monterey Bay regions since 1970. The Coalition currently owns two affordable housing developments in Los Gatos and is not pursuing any other projects in Los Gatos at this time! c. Community Housing Developers, Inc. Community Housing Developers, Inc. (CHD) is a non- profit housing developer that works throughout Santa Clara County and is based in San Jose. CHD built and currently owns Los Gatos Creek Village Apartments and also rehabilitated and owns the Los Gatos Fourplex at 95 Fairview Plaza in Los Gatos. d. Silicon Valley Habitat for Humanity Silicon Valley Habitat for Humanity built a three- bedroom detached home in 2003 on Charles Street in Los Gatos. The affordability restrictions are limited to the 30 -year terms of the occupant's home loan. When the loan is repaid, the occupant will have the option to sell the house at market rate. Silicon Susan Mofft, Development Department Project Manager, Mid - Peninsula Housing Coalition, personal communication with DC&E, August 5, 2008. K�F7 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 - 2 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X PROJECTED HOUSING NEEDS Valley Habitat for Humanity is not pursuing other projects in the Town at this time.' e. Senior Housing Solutions The Town of Los Gatos pledged a total of $300,000 for FY 2005/2006 through FY 2008/2009 to Senior Housing Solutions, formerly called Project Match, to rehabilitate a home in Los Gatos. Senior Housing Solutions manages two affordable housing developments in Los Gatos, Blossom Hill and Anne Way. f. Catholic Charities of Santa Clara County Catholic Charities of Santa Clara County, located in San Jose, provides HUD- certified housing counseling services and provides case management services to formerly homeless individuals and families who have found housing through Catholic Charities. Catholic Charities owns several supportive housing facilities throughout the County. g. American Baptist Homes of the West American Baptist Homes of the West developed and manages the Terraces of Los Gatos, a continuing care retirement community located at 800 Blossom Hill Road in Los Gatos. The organization is a non - profit operator of affordable developments throughout California and the West Coast. ' Robert Frain, Executive Director, Habitat for Humanity Silicon Valley, personal communication with DC &E, August 6, 2008. 3 -20 4 CONSTRAINTS To HOUSING DEVELOPMENT Housing development is affected by both market forces and public regulations and policies. This chapter discusses both governmental and non- governmental constraints that affect housing in Los Gatos. A. Governmental Constraints Potential governmental constraints that impact housing development in Los Gatos include land use and zoning regulations, building code standards and code compliance, Town design and development standards, governmental fees and exactions, processing and permitting time, and local housing programs. 1. Land Use The Town of Los Gatos General Plan regulates residential development, identifying appropriate residential development densities within the following six residential land use designations. ♦ Hilhide Residential Single - family homes of up to 1 dwelling unit per acre. ♦ Low Density Residential Single- family homes of up to 5 dwelling units per acre. ♦ Medium Density Residential. Multi - family and small single - family homes at 5 and 12 dwelling units per acre. ♦ High Density Residential. Multi -family development at 12 to 20 dwelling units per acre. ♦ Mobile Home Park. Mobile homes at 5 to 12 dwelling units per acre. The Mixed Use Commercial designation in the Los Gatos General Plan also allows residential uses as a part of mixed -use development, but does not specify a minimum or maximum residential density. Residential uses are allowed in all office and commercial zones in Los Gatos with a conditional use permit. 4 -1 TOWN OF LOS GATOS 3070 GENERAL PLAN r 0 0 7 • a 0 1 0 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT 2. Town Code The Town of Los Gatos Municipal Code provides zoning regulations that are more specific than the General Plan Land Use designations. This section describes residential development standards; overlay zones; zoning for secondary dwelling units; and density bonuses. This section also analyzes constraints on housing for persons with disabilities. a. Residential Development Standards There are seven residential zoning districts in Los Gatos. Table 4-1 provides the regulations for each zone. ♦ Resource Conservation (RC) ♦ Hillside Residential (I-M) • Single - Family Residential (R -1) ♦ Single - Family Residential Downtown (R -1 D) ♦ Duplex Residential (RD) ♦ Multiple - Family Residential (RM) ♦ Mobile Home Residential (RMI:-I) As shown in Table 4-1, development standards for each residential district would not impede a project's ability to achieve maximum densities on a site. The 30 -foot height limit for all residential designations allows for up to three building stories and a maximum density of 20 dwelling units per acre in the RM zone. Table 4-1 also provides the parking requirements for residential development in Los Gatos, by zoning district. Parking is often a significant component of the cost of residential development and can be viewed as a constraint to the provision of housing. The Town has provided some flexibility in its parking requirements, particularly for Planned Developments and for some developments providing affordable units for elderly and disabled persons, generally easing the constraint of parking requirements on the development of higher density and affordable units. 4 -2 N I N I N I N I N I N O N m a N O o� 0 0 N 0 C4 O O n n o• c 00 C ri vi . ti N r O O 0 0 0 0 N O O ° o 0 0 C4 S v q C O p O m O nE:n C c v y c c o v rt V V C d � E c my V ❑ E c s � o r�• P T O O ❑s Y 00 C N a y R R Y O H z 4 C b A � U y y w r l � O N u u u � 'd Y a u o. c w • „ N c o n o 0 U o L U v u � y n N e v 6 Z Y w 'v d Z a O � u - N a m E cu y o a� 0 U O R w 5 3 O O O O Y O �— � N C Q a `o Y L c� o W m O 2 r x oo_ 1 C U O Z n a z _ S - l u R y C N d Q 0 u•. D a v+ J p 7 • N W � • G .� � •-� N Vl �N W p N CI O y r til V1 y H n a N I N I N I N I N I N O N m a N O o� 0 0 N 0 C4 O O n n o• c 00 C ri vi . ti N r O O 0 0 0 0 N O O ° o 0 0 C4 S v q O p O m nE:n c y rt � E c my V ❑ E c s r�• P T ' C O y 00 C N a y R H V 4 C � O u � o. c c o n o 0 o v u � y e v 'v u - a� 5 3 O O O O Y O �— a `o c� o 2 r x oo_ o n 'G S - R y C N 0 N CI O y r til V1 y H n a � 3 ? O r" ❑ S 11 -'E y= TOWN OF LOS G A T O S 2020 GENERAL PLAN 2001.2011 HOUSING ELEMENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT b. Overlay Zones Two overlay zones in the Town Code, the Planned Development (PD) and the Landmark and Historic Preservation (LHP) zones, apply to housing development in Los Gatos. In the LHP overlay zone sites, new construction is subject to special standards regarding appearance. The PD overlay provides alternative standards for development that encourages consistency with site characteristics, including flexibility in setback and height requirements.` The minimum lot size for a site in the PD overlay zone is 40,000 square feet. If the site were to provide housing for low- income seniors, no minimum site area is specified. c. Multi - family Housing In Los Gatos, two-family dwellings, or duplexes, are allowed by right in the RD zone. Multi- family housing is allowed in the RM zone with a Condi- tional Use Permit (CUP). State Housing law requires that multi - family hous- ing be treated the same as other residential uses in the same zone. Requiring a CUP for multi - family housing in the RM zone may unduly constrain afford- able housing development in Los Gatos. Action HOU -6.6 of this Housing Element calls for the Town to conduct a study to evaluate removal of the CUP requirement for multi - family housing, thereby allowing multi - family housing by right in the RM zone. In the RM zone, the Town requires that develooers of multi -family aDart- ments include 1.5 parking spaces Der unit. plus uo to 1 visitor space with Town discretionary approval. Requiring 1.5 parking spaces per unit and al- lowing no to 1 additional visitor space with discretionary approval may un- duly constrain affordable housing development in Los Gatos given the cost to build Darking. Action HOU -6.7 calls for the Town to conduct a smdv to I Sites developed within the PD overlay zone may be developed in compli- ance with the underlying zone or with the PD overlay zone regulations. Regulations from the overlay and underlying zone cannot be combined for developments. 4 -4 �� TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 - 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT evaluate reducing the Parking requirement for multi - family apartments in the RM zone. d. Manufactured Housing Manufactured, otherwise known as prefabricated or factory- built, housing is housing that is constructed off -site and then transported to the property. It is allowed in all residential districts in Los Gatos. e. Transitional and Supportive Housing According to California Health and Safety Code Section 50675.2, transitional housing is rental housing with, at most, a six -month limit on the length of stay for tenants. Transitional housing would be available to homeless indi- viduals and/or families in need of temporary housing until they can secure more permanent housing. Los Gatos currently does not define "transitional housing" in the Town Code. Action HOU -6.9 would amend the Town Code to include a definition for transitional housing that is consistent with State law and permits transitional housing as a residential use in Los Gatos. According to California Health and Safety Code Section 50675.14, supportive housing is housing that is linked to on- or off -site services and is occupied by low- income persons with mental disabilities, chronic health issues or sub- stance abuse issues or persons with disabilities that were developed before age 18. Supportive housing has no limit on the length of stay for tenants. Sup- portive housing in Los Gatos consists of small family home residential care facilities, which are permitted in all residential zoning districts except Mobile Home Residential (RIVI". lanua.ry 12. 2011 Because California Health and Safety Code Section 1267.8 requires that licensed residential care facilities for six or less persons be allowed by right in all residential districts, Action HOU -6.11 amends the Town Code to permit small family home residential care facilities in all residential districts. L Secondary Dwelling Units Secondary dwelling units are an important tool to create housing that can be affordable in Los Gatos. A secondary dwelling unit is a permanent structure 4 -5 TOWN OF LOS G A T O S 3030 GENERAL PLAN 3 0 0 r • r 0 1 a HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT that contains independent living facilities and is located on the same property as a larger, primary structure. Secondary dwelling units are allowed on conforming lots in the R -1, RM, and Rl -D zones. Los Gatos has a secondary dwelling unit incentive program, administered under the Below Market Price (BMP) program that offers a no-interest construction loan to a property owner for development of a deed - restricted, affordable secondary dwelling unit. All secondary units require a secondary dwelling unit application. The total number of secondary units, which is 416 units as of August 2008 in Los Gatos, includes the number of existing, legal secondary units located in the Town as well as the number of secondary units that could potentially be created in new residential developments in the RM, R -1 D, and PD zones. Of these 416 secondary units, 19 units were approved between 1999 and 2007. 3. Building Code and Code Compliance In addition to the General Plan land use designations and Town Code, Los Gatos has recently adopted updated building codes that enforce Town regulations with the purpose of protecting the lives, health, property, and public welfare of Los Gatos residents. Each Code is an enforcement of State and local standards and is not considered a constraint on housing production in Los Gatos. The following Codes have been adopted by Los Gatos: ♦ 2007 California Building Code ♦ 2007 California Reference Standards Code ♦ 2007 California Plumbing Code (based on 2006 Uniform Mechanical Code) ♦ 2007 California Mechanical Code ♦ 2007 California Electrical Code (based on 2005 National Electrical Code) ♦ 2007 California Energy Code ♦ 2007 California Fire Code (based on 2006 International Fire Code) ♦ 2007 California Existing Building Code ♦ 2007 California Historical Building Code • 2006 International Building Code GS: TOWN OF LOS G A T O S 2020 GENERAL PLAN 3001 -1014 HOUSING ELENENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT The Town also has a Code Compliance program that enforces the Town zoning regulations and building and safety codes. The program reviews and responds to code complaints. Affordable units developed under the Below Market Price (BMP) Program must undergo an annual compliance audit. 4. On- and Off -Site Improvements The Town requires standard on- and off -site improvements for development, which are intended to meet health and safety requirements of the community. These standard improvements are not considered a constraint on develop- ment because the Town does not include improvements beyond what is re- quired to meet health and safety requirements. Subdivision design standards for the Town, described in the Town Code starring at Section 29.10.06701, include the following on and off -site improvements: • Parking bays may be required on narrow streets where parking may be prohibited on either or both sides of the street. ♦ Roadways must be paved with asphalt concrete. ♦ Sidewalks are required on all streets in a subdivision unless the lots will be 20,000 feet in size or more. ♦ Curbs and gutters must be constructed on all streets. ♦ Culverts, storm drains, and drainage structures will be required in a sub- division. ♦ Sanitary sewers with house service laterals are required to serve each lot, with some exceptions in hillside areas. • Underground utilities with connections are required for each lot. ♦ Street lighting shall be installed in accordance with Town standards. 5. Development Standards and Design Guidelines The Town has adopted Residential Design Guidelines for single - family and two-family dwelling units, which incorporate the Town's previous Residential Pre -1941 Design Guidelines for historically- significant structures, sites, and districts in Los Gatos. The Town has also adopted Hillside 4 -7 TOWN OF LOS GATOS 2020 GENERAL PLAN 2007.2014 HOUSING ELEMENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT Development Standards and Guidelines. These sets of development standards and design guidelines are used in the development and design review process for Los Gatos and complement the Town Code zoning regulations. The Hillside Development Standards and Guidelines were adopted in January 2004. The Residential Design Guidelines were updated and adopted in 2008. These sets of standards and guidelines are summarized below. a. Residential Design Guidelines Residential Design Guidelines in Los Gatos address the following design characteristics for single - family and two-family dwelling units in all zoning districts except for the RC and HR zones: ♦ Historic Designations. When necessitated by the designating ordinance, Historic Preservation Committee review of a development is required for developments that affect a historically designated property or are located in a historic district. ♦ Site Development. This section focuses on the design and layout of the housing development in relation to its site. Site planning issues addressed include site design, solar orientation, shadow effect, and easements and dedications. Building Design. This section focuses on the design and layout of de- velopment in relation to the surrounding neighborhood. Issues addressed include harmony and compatibility with the streetscape and surrounding structures; the scale and mass of the development including second -story additions, significant remodels, demolitions and replacement structures, exterior material and colors, building components, energy conservation, and privacy. Neighborhood compatibility for replacement structures shall be based on the following criteria: • Existing architectural style of surrounding neighborhood. • Size of the lot on which the development is located. • Size of homes adjacent to the development and along the street on which the development is located. • Transitioning neighborhood. • Impacts on the site and surrounding property. W7 TOWN OF LOS G A T O S 7010 GENERAL PLAN 7 0 0 7 . 7 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT ♦ Landscaping /Open Space. This section addresses tree preservation in accordance with Town Code Section 29.10.0965, adherence to the Town's Landscaping Policies for Application for Zoning and Subdivision Approvals, and screening of outdoor areas for compliance with landscap- ing and fencing requirements. The Los Gatos Residential Design Guidelines promote safe, compatible, and well- designed housing in Los Gatos. These standards are not seen as a constraint on housing development. b. Hillside Development Standards and Guidelines Hillside Development Standards and Guidelines are consistent with the Town's policies and complement and coordinate with the Town's Hillside Specific Plan. These standards and guidelines apply to all areas zoned HR RC and some lots zoned R -1 as noted on the Town's Hillside Area Map. The goal of these standards and guidelines is to encourage high -quality design that incorporates sustainable development and open space preservation. The following summarizes the Hillside Development Standards and Guide- lines for Los Gatos: • Constraints Analysis and Site Selection. Developers must conduct a constraints analysis as deemed necessary by the Town, consult with neighbors, meet with Town staff to discuss the development site, and conduct a view analysis for the development site. The constraints analy- sis, as required by the Town, requires that developers of hillside property identify the Least Restrictive Development Area (LRDA), or areas deemed most feasible for development on hillsides. For the view analy. sis, developers must analyze aesthetic impacts; preserve hillside and ridge - line views; and preserve natural features, riparian corridors, and wildlife. ♦ Site Planning. This section describes site planning standards and guide- lines that minim' physical and aesthetic impacts to the site topography. Standards and guidelines discuss grading, drainage, driveways and park- ing, and safety regarding geologic and fire hazards. 4 -9 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2001.3011 HOUSING ELEMENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT ♦ Development Intensity. This section outlines the maximum allowable floor area of development based on lot size. ♦ Architectural Design. The following architectural design characteristics are addressed in this section: • Neighbor - friendliness • Sustainability • Fire safety • Building height • Bulk and mass • Roofs • Architectural features and detailing • Materials and colors • Site Elements. The specific elements of a hillside development site are addressed: • Fences and walls • Driveway entries • Retaining walls • Outdoor lighting • Accessory buildings, swimming pools, and sport courts • Impervious surfaces ♦ Landscape Design. Because hillside sites are more prone to erosion, landslides, mudslides, and fire and water hazards than flatter sites in Los Gatos, the following concepts are addressed in the landscaping standards and guidelines for hillside development: • Fire safety • Garden and turf locations and plant selection • Irrigation • Impervious surfaces • Plant materials • Tree preservation ♦ Planned Development Projects. This section describes standards and guidelines that relate specifically to hillside Planned Developments (PDs) in Los Gatos. Additional restrictions are placed on the LRDA for PDs. 4 -10 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 - 2 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N O I X CONSTRAINTS TO HOUSING DEVELOPMENT This section includes standards and guidelines focusing on site prepara- tion, drainage, lot configuration and building locations, street layout and driveways, and trail design. 6. Governmental Fees and Exactions Governmental fees can be a significant portion of the cost of housing devel- opment and can therefore be considered a constraint to housing development. Table 4-2 below provides the 2009.2010 planning and development fees in Los Gatos. Fees are due at the time an application is submitted. In addition to these planning and development fees, developers must pay the following impact fees (provided in dollars per square foot, or per unit if flat rate) that are intended to offset the cost of new residential development to public services in Los Gatos: • School Impact Fee (Los Gatos Union School District): $2.97 per sf ♦ Road Impact Fee: $0.15 per sf • Local Traffic Impact Fee: Actual cost of development review and con- sultant report fee • Sewer Impact Fee: $196 per unit (flat rate) According to the Town of Los Gatos's Community Development Department Planning Division, developing a new single - family home in Los Gatos typically costs at least $4,800 in fees. Multi -family units in Los Gatos are generally developed as part of a Planned Development, so that new multi- family housing will typically cost at least $30,000 in total fees. These fees. include Planning Commission approval, fees associated with a Planned Development that does not require a General Plan or Specific Plan amendment, and related impact fees. Multi - family housing in the Multi- family Residential (RM) zone requires a Conditional Use Permit, resulting in an additional planning fee of approximately $870, unless the development is part of a Planned Development application. These fees represent approximately less than 1 percent of total development costs for multi -family housing and are comparable to the planning fees of nearby communities such 4 -II TOWN OF LOS G A T O S 1 0 2 0 GENERAL PLAN 2 0 0 7 . 1 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT TABLE 4 -2 2009 -2010 RESIDENTIAL PLANNING AND DEVE LOPMENT FEES c. New single-family or two - family omits $3,916.00 $156.64 N/A $391.60 $391.60 $4,855.84 d. New single - family or twolemly (any other zone) per unit, as part of a Planned Devel- $2,938.00 $117.52 N/A 8293.80 $293.80 53,643.12 C. honor profem fa nevempmen propom 53,649.00 $145.96 N/A 10% Advance 715% 84,524.76 that dots not aigni(ontly change the size, $1,490.00 4% Permit N/A Planning Engineering $1,847.60 mass, appearance or neighborhood impact $4,221.00 Tracking 10%Gmeral Special Dcv Review 85,234.04 f structure, P operry m king bt) $701.00 Fee Plan Update Project Services Fee 886914 Application Fee PLTRACR GPUPDATE PLANAP ENGDEV Total Fee I ZONI APPROVALS 52,569.00 $102.76 N/A $256.90 $256.90 83,185.56 A Ar chiumue and Site Application $2,158.00 $86.32 N/A $215.80 $215.80 $2,675.92 1 Development Review Comminee (DRC) Approval $2,158.00 $86 -32 N/A 8215.80 $215.80 82,675.92 a. New single-familydeuched(I-RL8c RC $5,523.00 $220.92 N/A $55230 $552.30 $6,848.52 It. New two - family unit $3,916.00 $156.64 N/A $391.60 $391.60 $4,855.84 b. New single -family detached (FUL K RC $6,089.00 $24356 N/A $608.90 5608.90 $7,550.36 tones) per snit, at part of a Planned Devel- $4,144.00 $165.76 N/A $414.40 $414.40 $5,13856 c. New single-family or two - family omits $3,916.00 $156.64 N/A $391.60 $391.60 $4,855.84 d. New single - family or twolemly (any other zone) per unit, as part of a Planned Devel- $2,938.00 $117.52 N/A 8293.80 $293.80 53,643.12 C. honor profem fa nevempmen propom 53,649.00 $145.96 N/A $364.90 S364.90 84,524.76 that dots not aigni(ontly change the size, $1,490.00 $59.60 N/A $149.00 $149.00 $1,847.60 mass, appearance or neighborhood impact $4,221.00 5168.84 N/A S422.10 $422.10 85,234.04 f structure, P operry m king bt) $701.00 $28.04 N/A $70.10 $70.10 886914 2 Pl anning Commission Approval a. Supplemental in for DRC application as 52,569.00 $102.76 N/A $256.90 $256.90 83,185.56 determined in Section I.A.(1) or minor rmi- $2,158.00 $86.32 N/A $215.80 $215.80 $2,675.92 denial development application that m- $2,158.00 $86 -32 N/A 8215.80 $215.80 82,675.92 quire Planning Comoussion approval Ac ml Con ($500 in.) N/A N/A N/A N/A Varies It. New two - family unit $3,916.00 $156.64 N/A $391.60 $391.60 $4,855.84 c. New nonresidential $6,089.00 $24356 N/A $608.90 5608.90 $7,550.36 d. New multiple-fnoily $5,538.00 $22152 N/A $553.80 $553.80 $6,867.12 e. Demolition request with a Planned Devel- $1,490.00 $59.60 N/A $149.00 5149.00 $1,847.60 f. All other 53,649.00 $145.96 N/A $364.90 S364.90 84,524.76 B Conditional Use Permit, I Conditional Use Permit $4,221.00 5168.84 N/A S422.10 $422.10 85,234.04 Covditional Use Permit (when conohdaud 2 with another application for new develop- $701.00 $28.04 N/A $70.10 $70.10 886914 3 Covdisianal Uae Permit for Rona-rant Minor Reauptmt(DRC Approval) 52,569.00 $102.76 N/A $256.90 $256.90 83,185.56 Major Restamm,(PC Approval) 54,221.00 $168.84 N/A $422.10 $422.10 $5,234.04 4 Application that require TC Approval (this fee tupplements the b established fees) $2,158.00 $86 -32 N/A 8215.80 $215.80 82,675.92 a. Transcri Fee of PC Minutes Ac ml Con ($500 in.) N/A N/A N/A N/A Varies C Variance $3,104.00 $124.16 N/A $310.40 $310.40 83,848.96 D Rezoning (other than Planned Development) 1 Without General Plan or Specific Plan Amend- men[ $4531.00 $18134 $453.10 $453.10 $453.10 $6,071.54 2 With General Plan or SpeciFa Plan Amend- meet $6,937.00 $277.48 $693.70 5693.70 8693.70 89,295.58 3 Transcription Fee of PC Mimes Actual Con f55C0 min] N/A N/A N/A N/A Varies 4 -12 TOWN OF LOS G A T O S 7020 GENERAL PLAN 2 0 0 7 . 3 0 1 4 H O U S I N G ELEMENT: T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT TABLE 4 -2 RESIDENTIAL PLANNING AND DEVELOPMENT FEES (CONTINUED) 1 ChmgeofUw $229.00 $9.16 N/A 10% Advance 7.25% $261.06 2 Change of occupancy (=eluding change of $309.00 4% Pamir N/A Planning Engineering $35 proprietor of a continuing business eotemrise) $112.00 Tricking ID%General Special Dry Review $127.68 U./occupancy clearance 9 Conditional use $127.00 Fee Plan Update Project Servica Fee S144.78 Avoliation Fee PLTRACK GPUPDATE PIANAP ENGDEV Total Fee E Planned Development secondary dwelling unit $149700 $59.88 N/A $149030 N/A Without General Play or Specific Plan Amend- Haeardous Materials Storage Facility Appha- 7 537.84 N/A $94.60 N/A 1 men[ $19,121.00 $764.84 $1,912.10 $1,91210 $1,912.10 $25.622.14 2 Without General Plan °r$peac Plan Amend- J Home O ccupation P ermit $141. $5.64 - $2,156.90 $2,156.90 N/A men[ (HR or RC Underlying Zone) $25,169.00 11,00676 $2,156.90 $33,726.06 3 With General Plan or Specific Plan Amend- 522.622.00 $2,26210 S2 ,26210 $2,26210 ,5904.88 $10,313.48 With General Plan or Specific Play Amend 4 meat (HR or RC Underlying Z ove ) $28,664.00 $1,14656 $2,866.40 $2,866.10 $2,866.10 $38,40976 Town Council Modification to a Planned 5 75% of Development Current Fee Varies Varies Varies Varies Varies 6 DRC Modification to a Planned Oevelopment Zone S7.575.00 $303.00 $757.50 $75750 $757.50 $10,15050 7 Publica cost fo r the Planned Development Ordinance shall be paid by the apph t. 8 Transcription Fee of PC Minutes Amud Con N/A N/A N/A N/A (5500 min.) Varies F Minor Residential Developm $1,490.00 $ 59.60 N/A $149.0 N /A 11 1 ,6 96.60 G Agricultural Preserve Withdraml $2,816.00 $112.64 N/A $ 281.60 N/A $ 3,210.24 H Plan Divisio Certificate of Use and Occupancy 1 ChmgeofUw $229.00 $9.16 N/A $22.90 N/A $261.06 2 Change of occupancy (=eluding change of $309.00 $ 1236 N/A 530.9 N /A $35 proprietor of a continuing business eotemrise) $112.00 $148 N/A $1121 N/A $127.68 U./occupancy clearance 9 Conditional use $127.00 55.08 N/A $72.70 N/A S144.78 3 permit is required or occupancy of a new No fee No fee No fee No he N/A No fee secondary dwelling unit $149700 $59.88 N/A $149030 N/A 111,706.58 Haeardous Materials Storage Facility Appha- 7 537.84 N/A $94.60 N/A $1,079.44 non $1,240.00 $49.60 N/A $124.00 N/A $1,413.60 J Home O ccupation P ermit $141. $5.64 - N/A N/A N/A $146.64 K Sign Application ($2,000 ia.) N/A N/A N/A N/A Varies 1 New Permenem Si $309.00 $ 1236 N/A 530.9 N /A $35 2 Tempora No nr esid ential $ 65.00 52.60 N/A $65 N/A 574.10 3 Change of Face Only $127.00 55.08 N/A $72.70 N/A S144.78 4 SigaProg $1,470.00 $58.80 N/A $147.00 N/A S167580 L Seconda Dwelling Units $149700 $59.88 N/A $149030 N/A 111,706.58 1 New a e xisting unit $946.00 537.84 N/A $94.60 N/A $1,079.44 2 Two existing units $1,311.00 $52,14 N/A $i31.10 N/A $1.494.54 M Mobile Home Park Conversion Permit Actual Con ftc Mn ...:.1 Varies Varies Varies N/A Vatic, N Town Code Amendments ($2,000 ia.) N/A N/A N/A N/A Varies O Adminnar ve La Use Permit $5,907.00 $26318 $590.70 $590.70 $5 $ Minor telecommurriatiom facility (i.e. micro- $ $374.72 $936.80 $936.80 $936.80 $12553.12 1 cell, 8021 lb or equivalent) $124.00 $4.96 N/A $12.40 N/A $147.76 2 Major telecommunications facilities which do not require se mis a Conditional U Per $149700 $59.88 N/A $149030 N/A 111,706.58 2 SUBDIVISIONS A Lot Li ne Adjunmena(DRC Approval) $1,414.00 $5656 N/A $141.40 $141.40 $1,753.36 B 4Lou or L ess $5,907.00 $26318 $590.70 $590.70 $5 $ C 5Lotsor M om $ $374.72 $936.80 $936.80 $936.80 $12553.12 4 -13 TOWN OF LOS G A T O S 2020 GENERAL PLAN 1007.1014 HOUSING ELEMENT: TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT TABLE 4 -2 RESIDENTIAL PLANNING AND DEVELOPMENT FEES (CONTINUED F Co ndominium $4,947.00 $197.88 5494.70 10% Advance 715% $6,628.98 G Certi fiate of Compliance (DRC Approval) $2,834.00 4 % Permit N/A Planning Engineering $3514.16 DRC applications that requires Planning $1,850.00 Tracking 10% General Special Dev Review $2,0335.00 H Co mmissianapproval(thufeesupplemmts $2,158.00 Fee Plan Update Pmjea Services Fu $2,675.92 the abose established $ ) Application Fee PLTRACR GPUPDATE PLAN EN Total Fee 3 MISCE LLANEOUS APPLICAT FEES Fee to he Based o. the D Vening Teou,ive Map .umber of lots node, Varies Varies Varies Varies Varies B Modifi of Appro Application 2B or 2C Varies N/A Varies Varies Vida Los Merger and Reversion to Aaage IDRC E $700.00 $28.00 N/A $70.00 $70.00 $868.00 F Co ndominium $4,947.00 $197.88 5494.70 $494.70 5494.70 $6,628.98 G Certi fiate of Compliance (DRC Approval) $2,834.00 511336 N/A $283.40 $283.40 $3514.16 DRC applications that requires Planning $1,850.00 N/A N/A N/A 5185.00 $2,0335.00 H Co mmissianapproval(thufeesupplemmts $2,158.00 $8632 N/A $215.80 $215.80 $2,675.92 the abose established $ ) $10,241 Plus 10% N/A N/A N/A $1,024.10 Varies 3 MISCE LLANEOUS APPLICAT FEES $1,5m deposit plus A Time Extensions m Approved Applications 50% of Currmt F« Varies Varies Varies Varies Varies B Modifi of Appro Application 75% of Current Fre Varies N/A Varies Varies Vida C Conceptual Development Advisory Commit- $1,675.00 567.00 N/A $16750 N/A $1,90930 lee Review D Push C art Permit $ 3 2 7. 00 $13 N/A 8 32.70 N/ 5 372.70 E Auto Diner Events I Small pro motional ev ents 8 6200 82.48 N/A $610 N/A $70.68 2 Sargepro $ 307.00 $ 1218 N/A $3010 N/A $349.98 4 ENVIRONMENTAL ASSESSMENT FEES A Categorica Exemptio No Fee N/A N/A N/A N/A No Fa B I nitial Srody (Deposit)" $3,500 min N/A N/A N/A N/A $3 ,500 min. C NegativeDd anus $1,850.00 N/A N/A N/A 5185.00 $2,0335.00 D Environmental Impat Report Conndrant i Fee N/A N/A N/A N/A Varies E Daft EM Review Fee $10,241 Plus 10% N/A N/A N/A $1,024.10 Varies $1,5m deposit plus D Peer/Techr ical Review Amaral Cost o. an N/A N/A N/A N/A Varies F Impact Monitoring Program(AB3180) hourly basis plus con N/A N/A N/A N/A Varies E Fees for Additional Tech Review d/., DRC Aeview of Consoles., N/A N/A N/A N/A Varies 5 OTHER A Preapp6cation Conference Fee Actual Cost Varies Varies Varies N/A Varies B Fe.xe Height Exceptions $184.00 N/A N/A N/A N/A $184.00 Request For Service Not Covered By Any C Actual Cost Varies Va ries Varies N/A Varies Other Fre $1,5m deposit plus D Peer/Techr ical Review 10% of mo l Co. for N/A N/A N/A N/A Varies administrative chart, E Fees for Additional Tech Review d/., DRC Aeview Actual Co. N/A N/A N/A N/A Varies F Microfilming Files Actual Cost N/A N/A N/A N/A Varies G B uilding Permit Plan Check Fee 20% of Building Fee N/A N/A N/A N/A Varies H Sumharga 4% of Development Permit Tacking Maivtensnu and Update Application Fee N/A N/A N/A N/A Varies 1 Surcharge IS 100 mie.) 0.5% of Bldg. Valuation for new con - 2 General Plan Update Surcharge etmaion and additions or 10% of nave N/A N/A N/A Varies 4 -14 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 . 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT TABLE 4 -2 RESIDENTIAL PLANNING AND DEVELOPMENT FEES (CONTINUED) 10% Advance 715% 4% Permit Planning Engineering Tacking 10% General Spe" Dev Review Fee plan Update Project Services Fee 10% of Development Application Fee 3 Route 85 Study Plan Surcharge " for property in Route 85 Study Plan N/A N/A N/A Varies 4 Advanced Planning Projects 10% of Development Application Fee N/A N/A N/A N/A varies, 5 North 40 Study Plan Surchn a B Actual Cost on propor- N/A N/A N/A N/A Varies tiomre basis I Applications for 'Work Unlawfully Completed Double Current N/A N/A N/A N/A Varies Application Fa f Consultation Actual Con on an hourly basis N/A N/A N/A N/A Varies R Appeals 5321 per residential 1 Fee to Appeal Planning Commission Decision $1,288 per commercial, w to Ton Council multifamily or teen- N/A N/A N/A N/A varies twr Map Appal Fee to a maud applications from Town Conn. 50% of orsgiml Phoning 2 cil to P Commission where no error application f.(,) N/A N/A N/A N/A Varies by P was mad by Planning Commission Fre to Appeal Director of Community Devel- $161 per residential 3 opment or Development Review Comminee 5645 per N/A N/A N/A N/A Varies deddon to Planting Commission commercial 4 Tree Appeals $ 65.00 N/A N/ A N/A N/A $60.00 Appeal Transcription fee of Planning Com- Actual Con min. $500 5 mission minutes deposit N/A N/A N/A N/A Varies L. Research Services Minimum Cho a B Acual Con min. 5100 a � _. ;- N/A N/A N/A N/A Varies M Zoning Resareh 1 Basic zoning letter $184.00 N/A N/A N/A N/A $ 184.00 2 Legal mm c v $431.00 N/A N/A N/A N/A 5431.0 3 Reconstruction of legal nonconforming stmt- $184.00 N/A N/A N/A N/A tares (Bumdown Letter) f 189.00 * The $3,500 deposit is a deposit only. The specific cost of the btitial Study and any required special studies shall be home by the applicant. The deposit shall be inamesed before the Town will authorize work exceeding the amount on deposit --Not charged to the following application 1H, 1j, 1%, 3C, 3D, and 3E. 4 -15 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 1 . 2 0 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT as Saratoga. The Town finds that these fees do not constrain development in Los Gatos. 7. Processing and Permitting Time Each stage of the residential development process must go through some form of Town approval. According to Town staff, a single -family in£ill residential application typically processes in approximately three to six months, unless environmental review is required. Hillside residential applications on average take four to six months to process. Mixed -use and multi - family projects are processed in approximately four to eight months, unless environmental review is required. With environmental review, the process generally takes six to 18 months, depending on the size and complexity of the project. Processing of a typical single -family housing application includes the following steps: • Submission of an Architectural and Site Application. • Distribution of application to Town Planning, Building Engineering, Parks, Police, and Fire District departments. Application is also submit- ted to other relevant public agencies, such as utility districts and school districts, for review. • Staff review of application and staff conference with applicant to resolve any concerns or plan deficiencies, including design issues. • If deemed complete, staff continues processing the application and begins environmental review, if necessary. • Completion of environmental review and traffic impact analysis, as ap- propriate. Arborist review, architectural review, and/or geotechnical re- view may be conducted during this time through the Development Re- view Committee. • Approval is required by the following bodies: • Development Review Committee ( with appeal to the Planning Com- mission and further appeal to the Town Council) for projects that re- quire no change in the General Plan or zoning. 4 -16 TOWN OF LOS G A T O S 2020 GENERAL PLAN 1001 -t 014 HOUSING ELEMENT:TECNNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT • For hillside development applications, Planning Commission approval may be required depending on the project's potential impacts on the surrounding properties and the community. • Town Council for projects that require a change in the General Plan or zoning, and for Planned Developments. Processing for a typical multi - family housing project includes the following steps: • Submission of application, including application for a Conditional Use Permit (CUP), and an Architectural and Site Application. • Distribution of application to Town Planning, Building Engineering, Parks, Police, and Fire District departments. Application is also submit- ted to other relevant public agencies, such as utility districts and school districts, for review. • Staff review of application and staff conference with applicant to resolve any concerns or plan deficiencies, including design issues. • if deemed complete, staff continues processing the application and begins environmental review, if necessary. • Completion of environmental review and traffic impact analysis, as ap- propriate. Arborist review, architectural review, and/or geotechnical re- view may be conducted during this time through the Development Re- view Committee. • Approval is required by one or both of the following bodies: • Planning Commission (with appeal to the Town Council) for projects that require no change in the General Plan or zoning, and for use per- mits, including the CUP and Architectural and Site Application. • Town Council for projects that require a change in the General Plan or zoning, and for Planned Developments. Requiring a CUP for multi - family housing is a potential constraint on multi- family housing development within the Town and can lengthen the 4 -17 TOWN OF LOS G A T O S 3 0] 0 GENERAL PLAN 2007-3010 HOUSING ELEMENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT permitting and processing time. This Housing Element includes Action HOU -6.6, which requires the Town to study removal of the CUP requirement for multi - family uses. Design and neighborhood compatibility issues also often lengthen the permitting and processing time. To address this problem, the Town contracts out to an architectural consultant to review plans and provide recommendations on development applications. According to Town staff, the use of an architectural consultant has reduced the amount of processing time for development applications. The architectural, geotechnical, and arborist reviews are conducted early in the development application process. These reviews are conducted during the review of the Planned Development or Architecture and Site applications and do not lengthen the processing time. These reviews also streamline the public hearing process, allowing the Planning Commission to rely on the recommendations of Town staff and architectural consultants and to receive qualified input from an arborist and a geotechnical consultant, leading to a more efficient approval process. 8. Local Housing Programs State Housing Element law requires that an analysis of governmental constraints on housing production include local government programs that regulate housing development in any way, including imposing housing cost limitations or encouraging changes in density. Los Gatos has four local housing programs that are potential constraints on housing production in the Town. The Below Market Price Program, Affordable Housing Fund, Rental Dispute Resolution Program, and Density Bonus Program are discussed below. a. Below Market Price (BMP) Program The BMP Program implements the Town of Los Gatos's inclusionary zoning ordinance, which requires that a portion of new residential construction in Los Gatos be dedicated to affordable housing. Los Gatos's inclusionary 9M. TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 7007-20 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOVSING DEVELOPMENT zoning ordinance was adopted in 1979 as one of the fast of such programs in California. The BMP Program promotes the development of affordable housing units by providing standards and guidelines that require the development of a certain number of quality affordable units per rental or owner development project, based on the size of the project. The BMP Program requires the development of affordable housing where rents cannot be more than 80 percent of the current HUD Fair Market Rents (FMR) as determined by the HACSC. Table 4-3 shows the FMR for FY 2007 /2008 used by the Town of Los Gatos's BMP Program. Table 4-4 lists the requirements for new residential construction as imple- mented by the BMP Program. The BMP Program requirements apply to all residential development projects that include five (5) or more residential units or parcels which involve: 1. New construction of ownership or rental housing units, including mixed use developments and addition of units to existing projects, or 2. Subdivision of property for single family or duplex housing develop- ment, or 3. Conversion of rental apartments to condominiums or other common interest ownership, or 4. Conversion of non - residential use to residential use. Planned development with an underlying zone of HR shall only be required to pay an in -lieu fee as established by a separate resolution. Affordable units developed under the BMP Program are subject to deed restrictions approved by the Town Council. If units are to be resold, the Town determines the resale price and resells the unit through the BMP 4 -19 TOWN OF LOS GATOS 2070 GENERAL PLAN 3007.2014 HOUSING ELEMENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT TABLE4 -3 HUD FAIR MARKET RENTS, SANTA CLARA COUNTY HOUSING AuTNORITY. FY 2007/2008 Number of Bedrooms 0 1 2 3 4 5 6 Fair Market Rent $928 $1,076 $1,293 $1,859 $2,047 $2,354 $2,661 TABLE 4-4 BMP PROGRAM GUIDELINES Total Number of Market -Rate Units Number of Affordable Units Required' 5 to 20 10% of total units 20 to 100 (22.5% of total units) - 2.5 More than 100 20% of total units - Calculations that result in a fraction of one-half or more span be rounded up to the next whole number. Requ affordable unit will be of the same ownership tenure as that of the market- raw unit in a residential development. In development that contain both renter. and owner - occupied units, the required affordable unit will be designated in a similar tenure ratio m that of the market -rate unit. Program. Through this process, each affordable housing unit remains affordable in perpetuity. Because the BMP Program regulates the number of affordable units required as pan of new residential construction in Los Gatos, the program could be considered a constraint on housing development. However, because the BMP Program requires the construction of affordable units with every new development in Los Gatos, the Town sees this program as an opportunity to preserve affordable housing for the Los Gatos community. As of September 2008, 134 units in Los Gatos have been developed under the BMP Program. Additionally, under the Secondary Unit Incentive Program, the Town offers no-interest construction loans to facilitate the development of affordable, 4 -20 TOWN OF LOS G A T O S 2 0 2 0 GENERAL P L A N 1 0 0 ] 1 0 1 1 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT deed - restricted secondary dwelling units. Based on the successful development and preservation of affordable housing through the BW Program, Los Gatos does not consider the program to be a constraint on affordable housing development. b. Affordable Housing In -Lieu Fee Fund In -lieu fees are paid into the Town's Affordable Housing Fund and are calculated as 6 percent of building permit valuation as determined by the Building Official. As previously noted, these fees may be paid by'developers of new residential construction with 5 or more units but less than 10 units, instead of building an affordable housing unit under the BMP program. Payment of in -lieu fees is required for the approval of Hillside Planned Developments with five or more residential sites. This additional fee levied on developers could be considered a constraint on housing development; however, because the fees are paid into a fund that will be used to develop more affordable housing in Los Gatos, these fees are not considered a constraint. c. Rental Dispute Resolution Program The Los Gatos Rental Dispute Resolution Program, provides conciliation, mediation and arbitration services for renters in Los Gatos. The program is administered by Project Sentinel, a local non- profit organization contracted by the Town. This program is not considered a constraint on housing development in Los Gatos. d. Density Bonus Program The Density Bonus Program allows qualified projects to add up to 100 percent of the units provided by the General Plan land use designation as long as these additional units are restricted to seniors, disabled persons, very low and/or low- income households. Between 1985 and 1990, the Town approved 115 density bonus units. Between 1990 and 2002, the Town approved 29 additional density bonus units, including density bonuses for the Los Gatos Creek Village Apartments 4 -21 TOWN OF LOS G A T O S 3010 GENERAL PLAN 3007 -2010 HOUSING ELEMENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT and Open Doors. The Town has not approved any density bonus units since 2002. Because the Density Bonus Program provides opportunities to build additional, affordable units in Los Gatos, this program is not considered a constraint on housing development. 9. Constraints on Housing for Persons with Disabilities State law requires that Housing Elements analyze governmental constraints to housing for persons with disabilities. How a jurisdiction defines "family" in its zoning regulations can be a potential constraint to facilitating housing for persons with disabilities. The existing definition of "family" in the Town Code is "one (1) or more persons related by blood or marriage, or a group of not more than five (5) persons, not including servants, who need not be related by blood or marriage, living as a single housekeeping unit." This Housing Element includes an Action (Action HOU -6.8) to amend the definition of family to include occupancy standards for unrelated adults and to comply with Fair Housing Law. In Los Gatos, group homes are defined by the Town Code as residential care facilities of any capacity that provide services to a group of adults or children. These residential care facilities also provide housing for persons with disabilities. Group homes require a conditional use permit in all residential districts and are prohibited in the Mobile Home Residential (RN", Commercial - Industrial (LM), and Controlled Manufacturing (CM) zones. Because State law requires that licensed residential care facilities for six or fewer persons be allowed by right in all residential districts, the Housing Element includes an Action (Action HOU -6.10) to amend the definition of "group home" to be a licensed residential care facility for six or more persons. The Town imposes no spacing or concentration requirements on any of the allowed residential care facilities. Los Gatos also has two other types of residential care facilities: small family homes, which have a capacity for six or fewer persons, are allowed in all residentially -zoned districts without a use permit; large family homes, which have a capacity for seven or more persons, 4 -22 TOWN OF LOS G A T O S 3 0 7 0 G E N E R A L PLAN 2007-20 1 0 HOUSING E L E M ENT : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT are allowed in all districts with a conditional use permit, except where large family homes are prohibited in the RMH, LM, and CM districts. Generally, the Town facilitates housing for persons with disabilities by following the accessibility requirements of the California Title 24 Multi. Family Accessibility Regulations for multi - family housing of three or more units. Housing rehabilitation assistance and accessibility improvements are provided through the Town's Community Services and Community Development departments. The Town encourages accessibility improvements by requiring that specific design features be incorporated into all new residential home projects as a condition of approval. These requirements include: ♦ A wooden backing that is no smaller than 2 inches by 8 inches in all bathroom walls, at water closets, showers, and bathtubs. It will be located 34 inches from the floor to the center of the backing, suitable for the installation of grab bars. ♦ All passage doors of at least 32 inches wide on the accessible floor. ♦ A primary entrance that is a 36-inch -wide door, including a 5-foot by S foot level landing, no more than 1 -inch out of plane with the immediate interior floor level, with an 18 -inch clearance. B. Non - Governmental Constraints to Housing Development Market constraints to housing development in Los Gatos are the primary non - governmental impediment to housing production. The Town is located near Silicon Valley jobs, and offers residents desirable amenities such as an historic downtown and a school district in which student performance ranks 4 -23 TOWN OF LOS G A T O S 1 0 3 0 GENERAL PLAN 1001 -1010 HOUSING ELEMENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT in the top 5 percent of the State.' The high cost of buildable land is primarily a result of constrained supply, as described below. 1. Land Costs Most single-family vacant parcels are zoned for one or two units per acre, with the average costs per acre ranging from $3 to $4 million dollars.' According to a local realtor with Sereno Group Real Estate, smaller vacant parcels are uncommon, costing approximately $1 million for as 8,000 to 10,000 square -foot, single -family lot. Land value accounts for 50 to 60 percent of the sale price of homes built in the 1960s and 1970s.' However, for new homes, the cost of construction has risen, so the value of the land accounts for 30 to 40 percent of new home prices.' There are few unimproved parcels zoned for multi -family development, and such parcels demand premium prices because of the high demand to live in Los Gatos. Additionally, most parcels have existing improvements that increase acquisition costs. The land costs for multi -family development sites cost $90 to $110 per square foot, or approximately $3.5 million to $4.5 ' "Student performance in Los Gatos ranks in the top 5% in the state," Los Gatos School District Excellence in Education Initiative, htt p:// www. Igusd .kl2.ca.m /E2_Initiative.htm, accessed July 2008. ' Tim Stanley, Vice President of Construction, Greenbrier Homes, personal communication with DC &E, July 18, 2008. ' Bob Campbell, Executive Director, Senior Housing Solutions, personal communication with DC &E, July 14, 2008. ' Tim Sunley, Vice President of Construction, Greenbrier Homes, personal communication with DC &E, July 18, 2008. 4 -24 TOWN OF LOS G A T O S 2 0 1 0 GENERAL PLAN 7007-20 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X CONSTRAINTS TO HOUSING DEVELOPMENT million per acre.` On average, the land cost for large parcels for multi - family development is at least $5 million per acre.' 2. Construction and Soft Costs Construction costs for a 2,000•square -foot single - family home in Los Gatos averaged about $200,000 to $270,000, or $100 to $135 per square foot, as of July 2008. In general, construction costs for multi- family units in a 4. to & unit per acre development are $100 per square foot, while units in a large, single - family home on 1- or 2 -acre parcels cost up to $200 per square foot to develop. Based on July 2008 construction costs, a low -rise 20,000 - square -foot multi - family development costs approximately $158 per square foot to build.' As of summer 2008, given the high cost and regulatory density limitations, multi -family apartments are generally more expensive to develop than condominiums, which makes condominiums more desirable development projects for developers. According to the San Jose -based real estate company Morely Bros., Inc., condominiums are estimated to sell for between $750,000 and $900,000 in Los Gatos. 10 More detailed cost estimate ranges for local construction costs are listed below. These estimated costs account for labor and materials only. In Eric Morely, Principal, Morely Bros., LLC, personal communication with DC &E, August 5, 2008. I Chris Ray, Realtor, Sereno Group Real Estatq personal communication with DC &E, July 15, 2008. ' Tim Stanley, Vice President of Construction, Greenbrier Homes, personal communication with DC &E, July 18, 2008 and Eric Morely, Principal, Morely Bros. LLC, personal communication with DC &E, August 5, 2008. ' RSMeans Quick Cost Calculator, Reed Conswction Data, hap:// www. mmems. com/ cal miator /index.asp ?specialUser— FSONL, Accessed July, 2008. 10 Eric Morely, Principal, Morely Bros., LLC, personal communication with DC &E, August 5, 2008. 4 -25 TOWN OF LOS GATOS 2020 GENERAL PLAN 2007 -2014 HOUSING ELEMENT:TECHNICAL APPENDIX CONSTRAINTS TO HOUSING DEVELOPMENT f general, half of the construction costs are associated with labor and equipment and half with materials. ♦ Single- family detached: $100 to $135 per square foot ♦ Attached townhouses: $135 to $145 per square foot ♦ Three - and four -story multi - family condominiums: $150 to $190 per square foot ♦ Three. to four -story multi - family condominiums with structured podium parking: $220 to $275 per square foot" 3. Availability of Financing The residential real estate market is strong in the Town of Los Gatos. Local realtors and developers have noted that Los Gatos has not been affected by the recent home mortgage foreclosure crisis and that adequate financing through local banks is available to the Los Gatos community.' n Los Gatos Gateway is one of the few projects in Los Gatos with concrete podium parking. 12 Eric Morely, Principal, Morely Bros., LLC, personal communication with DC &E, August 5, 2008. 4 -26 S REVIEW OF 2003 HOUSING ELEMENT The Town's previous Housing Element was adopted in 2003. In order to effectively plan for the future, it is important to reflect back on the goals of the 2003 Element and to identify those areas where progress was made and those areas where additional effort is needed In fact, State Housing Element guidelines require communities to evaluate their previous Housing Element according to the following criteria: ♦ Effectiveness of the Element ♦ Progress in Implementation • Appropriateness in Goals, Objectives and Policies A. Effectiveness of the Element The Town's 2003 Housing Element identified the following goals: ♦ To improve the choice of housing opportunities for senior citizens, families and singles and for all income groups through a variety of housing types and sizes, including a mixture of ownership and rental housing. • To preserve existing moderately priced and historically significant housing. ♦ To improve the quality of existing housing and prevent blight. ♦ To eliminate racial discrimination, disability discrimination and all other forms of discrimination, which can prevent free choice in housing. ♦ To make infrastructure projects and residential and nonresidential developments compatible with environmental quality and energy conservation. ♦ To reduce the homeless population. ♦ To provide housing affordable to people who work in the Town. In order to achieve these goals, the 2003 Element listed a series of policies and programs. Table 5-1 identifies the policies and programs of the 2003 Element. The table also includes a description of the actions that were taken from 2002 FSI V 2 I u W F f Z H F Z w W ° J Z W N Zug <Z0 6 y 0 o < O o c x n W LL z W p un3 O h n e > n c V r n 0 L O O O ° o" 8 0 3 a f' = u 0 D u u O u u H .u. U O V 1 0 Y E C g 1 m H x ' E y u = Eo�'va'as 'v o o a c o W o E o p > w n o > ^ e o u 0 c c v y W d s E y a c u Q Q u C n o a 0 0 t M � o: � x L ° C n ° C n 0 C c y N c V 7 C 0 �F C u C C a t � V a V O O ` c. c V V � C p O > z .c ' u C 'a w s n 0 M a o W �: o n s � C O C O V Y off._ e E o A° m V C —8 C q C L O O e c d s O T > s O °� � C u u 0 a � e a 0 > o n L C n E V U " ° > 1« < Y.E ' a s O 9 F a 6 � C L O O O ° o" 8 0 3 a f' = u 0 D u u O u u H .u. 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O n x L O ci 0 °O N r V O C u V N V C u A V C a •a o e 0 0 pu •pu a U F Fg Y mar E F Y o .0 O O v Y U N G O >F o—. d u i 6 5_ ao C C V o O y P. Xos E 0 az « v M u E O L C e V n i7 O t 0 s C Ir v ° > O c ° 6 0. C e � S y C � a �D 4 � �n V .r N C. d d u Q u C Y V L M1: u U � S L � o • e . F O 0z _9 C G r, a.4 F ° u Q F aG n C y �•' V N � V E � d iN C u' Y O � u `a C � d C n �p w R O Y r 0 u O •� dY, a o.� � O E a � o � p � N y e � d Y 4' o c V x LA 0.5 5 � L E o E A o c 6 L V O A C O 1° u� L "tea 6 c F a z x u W F F Z W u J Z � W N O Z O a _ 0 x o s r N J � a 0 a O o W LL = = O ° W Q z o"3 O n o > rnw Z J m � F- z S K L V u ) H N � Y Y 1 o y i 7 „ O o I �U I � • c p � o � C V V �w O � V � m C a C 7 h p O O •C H Y x U c u w ° o m R n p -e•� ;"; g E Q(� 0 L �a • °- O u F x V Y L O 0 9S C CN pO M o N N N O n � a nV s ° s o F U V .o . E W C � E Y �s -o E ai dw 8 y _ n E � O s C d o F E m A W � C E ;a e Z a E .n Y o a m c 'o C S , O O m E o n Z yy y O O \0Y Pi m 00 E C C 0 M N 4 G O 4• o E° v U ti ° y v o B V e' a "� u C4 8' - .« c �, o C z O .. V '� O� L0 0 a `o 0 w .5 •y 3 E 0V o ���os m S c e a U m 3 s O. m0 v ei a o v$ 2 `Y o �, a o 3 .� .e O V E .E o g .° .o $o o U �•,` -, v c • te e c.� o «,os 0 o 7 i. 01 O 6 G C Z .0 • .p C6 V_ rt O V d c a 6 0 .E 'o E g •u a o` •y " ;° c V c p - zv o a .. 2 E ac _ L A F L L V .E Y N Y C O . u o C C• E Y R z 4 U- u c A E p o• o B e= a> 'o u v ,� u 'E = c u u '� 0 V Q Y .oc - E Y L R" d C a •� m N M a in x x x x x n �!1 TOWN O F LOS G A T O S 3030 GENERAL PLAN 3 0 0 7 3 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X REVIEW Of 2003 HOUSING ELEMENT to 2007 and the progress that was achieved in addressing the 2003 Housing Element's goals and policies. B. Progress in Implementation To assess the Town's progress in implementing the 1997 Housing Element, the following key areas were reviewed: 1. Production of Housing The 2003 Housing Element identified a need for new construction of 234 housing units in Los Gatos between 2002 and 2007. This new construction need specifically identified the following affordable units: ♦ 45 units affordable to very-low- income households • 44 units affordable to low- income households ♦ 55 units affordable to moderate- income households Table 5 -2 compares the new construction need by affordability to actual housing units produced in 2002 to 2007 in Los Gatos. From January 1, 2002 to January 1, 2007, there were 443 housing units added to the Town's housing stock. Although it appears that the Town exceeded its total new construction need by almost twice the number of housing units identified for 2002 -2007, a majority of the housing produced is affordable to above - moderate income households, which are not included in the new construction need, as shown in Table 5-2. The Town did not meet its very low- income and moderate income housing needs. As shown in Table 5-2, no very-low- income units and only four moderate - income units were produced in the Town. The Town exceeded its new construction need of 44 low - income units, producing 54 total low - income units in the 2002 -2007 time period. 5 -8 TOWN OF LOS G A T O S 2030 GENERAL PLAN 2 0 0 7 . 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X REVIEW OF 2003 HOUSING ELEMENT TABLE 5 -2 NEW CONSTRUCTION NEED VS. HOUSING UNITS PRODUCED, 2002 -2007 New Construction Housing Units Percent Very Low 45 0 0.0% Low 44 54 100% Moderate 55 4 7.3% Above Moderate - 385 _ Total 234 443 2. Preservation of "At Risk" Units The Villa Vasona development was identified in the 2003 Housing Element as a development at risk of conversion to market rate. Villa Vasona was subsidized by the HUD Section 8 program, which was scheduled to expire in November 2004. The Section 8 subsidy was renewed during the 2002 -2007 time period. The Villa Vasona development included rental units for seniors and disabled persons. No other developments in Los Gatos were identified as at -risk units in the 2003 Housing Element. 3. Rehabilitation of Existing Units The Town had established a goal of rehabilitating 10 to 20 total housing units between 2002 and 2007. The number of units actually rehabilitated during this time period was 11 units total. Therefore, the program achieved its objective. C. Appropriateness in Goals, Objectives and Policies The majority of the goals identified in the 2003 Housing Element are appropriate for the 2007 -2014 time frame. Objectives for each of the goals 5 -9 TOWN OF LOS G A T O S 2 0 2 0 GENERAL PLAN 2007-20 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X REVIEW OF 2003 HOUSING ELEMENT will be modified as appropriate to more specifically respond to the housing environment in Los Gatos in 2009. D. Summary The Town achieved 100 percent of its total quantified objective for new residential construction between 2002 and 2007 and exceeded its objective for new construction of units affordable to low- income households. However, the Town did not achieve its new construction objectives for units affordable to very low- and moderate - income households. Costs of housing continue to be high in Los Gatos, making affordable housing difficult to develop in the Los Gatos market. Quantified objectives were achieved with regard to preservation of affordable, at -risk units and rehabilitation of the existing housing stock. The Villa Vasona property was at risk of conversion during the last housing cycle; the property's Section 8 contract was subsequently renewed in 2004. Eleven housing units have been rehabilitated between 2002 and 2007. F1[7 HousING SITES INVENTORY State law requires that all housing elements identify a list of housing sites that can accommodate the jurisdiction's RHNA. This chapter identifies potential sites and provides an analysis of their ability to accommodate the Town's RHNA numbers. A. Sites Inventory To determine the availability of land for housing development in Los Gatos, Town staff identified as wide of a range as possible of vacant sites and sites with residential development potential in Los Gatos for initial consideration in the inventory of available housing sites. These sites were identified using available GLS data as of July 2008, current Assessor's data, and a review of the Town's General Plan land use designations and the Town Code Zoning Regulations. Town staff then conducted a site suitability analysis for each site that evaluated potential development constraints including infrastructure capacity and environmental constraints. Based on direction from the General Plan Committee, Town staff then identified a subset of these potential housing sites, which based on this sites analysis is most likely to be realistically developed within the Housing Element planning period to meet the Town's RHNA. This final set of potential housing sites is further described below. Figure 61 provides a map of the potential housing opportunity sites and in- dudes site names that correspond to Table 6-1. Table 61 presents the sites inventory, by individual parcel, of the locations that are appropriate and suit- able for development in Los Gatos. This table includes the Assessor Parcel Numbers (APNs), General Plan land use designation, zoning designation, acreage, and existing use for each site. Also included in the table are the al- lowable density and realistic development capacity of each site as well as an indication of any potential development constraints that reduce realistic de- velopment capacity. GPI TOWN OF LOS GATOS 2020 GENERAL PLAN 2007-2014 HOUSING ELEMENT: TECHNICAL APPENDIX HOUSING SITES INVENTORY Figure 6.1 Housing Opportunity Sites 6 -2 u z ' 'i I i I I i I f ` 1 i. la= j � E C W > U E � - a � U G a� D a c.G> a IZ "c I? 8` x gY y €el€ } I h O Y a 6 O X ' i 1 I f _ I o L � $ Y i _ 2 Ds n ^ O_ ry - 6 ,6 E _ _ I I� Y t ( o• E 8 ?[3 ! r< � • NY E�, 4 s s DES 3� o a E c 3� 3zg�� 3 a�� iIr I I: e E 9 a � I I a a W V. i J �:..•� J i d x ^ O_ ry - 6 ,6 E _ _ I I� Y t ( o• E 8 ?[3 ! r< � • NY E�, 4 s s DES 3� o a E c 3� 3zg�� 3 I �a •z. o.. o::o TOWN OF LOS G A T O S 2 0 3 0 GENERAL PLAN 2 0 0 7 - 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING SITES INVENTORY B. Analysis of Sites with Residential Development Potential A majority of the parcels in this analysis are non- vacant sites with residential development potential. The realistic development capacity has been determined based on the status and/or existing condition of existing uses for each of the sites, identified in Figure 6-1 and Table 6.1, and is discussed in more detail below. Sites that are less than one acre are typically more difficult to develop and lot consolidation can often increase the feasibility of development. The Town would facilitate and encourage landowners with sites less than one acre to consider lot consolidation within each site area as appropriate for residential development. 1. Los Gatos Courthouse The Los Gatos Courthouse, which is currently vacant, is located on the southeast end of this site. Another vacant structure, formerly a mental health clinic, sits on the southwest end of the site. The remainder of the site is va- cant land. The property is currently owned by Santa Clara County, which has plans to relocate the courthouse to Downtown San Jose. Santa Clara County has declared this site as surplus property. Given the vacant structures and vacant land as well as relocation of the courthouse, the entire site would be considered for redevelopment. The realistic development capacity would not be reduced by existing structures on the property. As County-owned 6 -5 - r,.___- a 6_....'..- „_ the c_.-_,.en Ferri Site The -__t __ [_ Fe site is - -aiffi d L' L pfepes use pr _J ill pntg —i33c3 ...L._ its leas P for this sife in fine4 units fhe a B. Analysis of Sites with Residential Development Potential A majority of the parcels in this analysis are non- vacant sites with residential development potential. The realistic development capacity has been determined based on the status and/or existing condition of existing uses for each of the sites, identified in Figure 6-1 and Table 6.1, and is discussed in more detail below. Sites that are less than one acre are typically more difficult to develop and lot consolidation can often increase the feasibility of development. The Town would facilitate and encourage landowners with sites less than one acre to consider lot consolidation within each site area as appropriate for residential development. 1. Los Gatos Courthouse The Los Gatos Courthouse, which is currently vacant, is located on the southeast end of this site. Another vacant structure, formerly a mental health clinic, sits on the southwest end of the site. The remainder of the site is va- cant land. The property is currently owned by Santa Clara County, which has plans to relocate the courthouse to Downtown San Jose. Santa Clara County has declared this site as surplus property. Given the vacant structures and vacant land as well as relocation of the courthouse, the entire site would be considered for redevelopment. The realistic development capacity would not be reduced by existing structures on the property. As County-owned 6 -5 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007-2014 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING SITES INVENTORY property, any residential development on the site must include a minimum of 20 percent affordable units. If the property were sold to a private developer, this 20 percent minimum affordability requirement would still apply. The Town has expressed interest in purchasing the property or partnering with other entities to develop affordable housing on the site. 2. Southbay Development The convenient location of the Southbay Development site, near Highway 17, Highway 85, and the future Vasona Light Rail Station, as well as its large size with over seven developable acres, makes it optimal for residential devel- opment. An aging office building is located on the site. The property has a current vacancy rate of dose to 20 percent. Conceptual development applica- tions have recently been submitted to the Town proposing residential uses on the site. Projects for which conceptual development applications are submit- ted are not considered pending, entitled, or approved since they are submitted prior to initiation of the development review process. Conceptual develop- ment applications are submitted to the Town's Conceptual Development Advisory Committee, whose purpose is to advise prospective applicants on the consistency of a potential proiect with Town policv prior to the appli- cant's initiation of the development review process. The realistic development capacity would be slightly reduced on this site be- cause of a private ingress /egress easement and private storm drain easement on the site. 3. Oka Road /Lark Avenue The Oka Road/Lark Avenue sites are primarily orchard property. Therefore, the realistic development capacity of the sites would not be reduced. A CA C -..aL= Bay P seed L B - 5 - HaEI - e� 4e4' - C9 E �° laea= 4- d£—t� C �. :_'_4t , a ree__ - r:' i- s -i ee - adz Gaecep� --' Dewlap!nen lr TOWN OF LOS G A T O S 1010 GENERAL PLAN ] 0 0 7 3 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N I D I X HOUSING SITES INVENTORY 4. Dittos Lane The Dittos Lane site currently has an aging duplex and two single-family homes on the property. The site is also located in the Central Los Gatos Redevelopment Project Area. Because the Town has acquired this entire property for affordable housing development, the realistic development capacity for this site would not be reduced. C. Additional Sites Planned for Housing Town staff are working closely with a developer to build housing and mixed use in the North Forty area, shown in Figure 6.1. The 2020 General Plan designates this area as the North Forty Specific Plan Overlay and includes guiding principles for both residential and non - residential development within the Overlay. These guiding principles require that a minimum of 20 percent of units developed within the Overlay be affordable to households at the moderate income level or below. D. Zoning Appropriate to Accommodate Housing for Lower - Income Households Higher density developments often have lower construction costs and are more likely to be able to provide affordable housing opportunities. This site analysis focuses on developing housing that targets a density of 20 dwelling units per acre. According to California Government Code Section 6-7 aft site, the rea d ew l epEnenE .. _J . J b by 25 _ eltis 4. Dittos Lane The Dittos Lane site currently has an aging duplex and two single-family homes on the property. The site is also located in the Central Los Gatos Redevelopment Project Area. Because the Town has acquired this entire property for affordable housing development, the realistic development capacity for this site would not be reduced. C. Additional Sites Planned for Housing Town staff are working closely with a developer to build housing and mixed use in the North Forty area, shown in Figure 6.1. The 2020 General Plan designates this area as the North Forty Specific Plan Overlay and includes guiding principles for both residential and non - residential development within the Overlay. These guiding principles require that a minimum of 20 percent of units developed within the Overlay be affordable to households at the moderate income level or below. D. Zoning Appropriate to Accommodate Housing for Lower - Income Households Higher density developments often have lower construction costs and are more likely to be able to provide affordable housing opportunities. This site analysis focuses on developing housing that targets a density of 20 dwelling units per acre. According to California Government Code Section 6-7 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2007.2014 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING SITES INVENTORY 65583.2(c)(3)(B), this is the density standard appropriate to accommodate affordable housing in Santa Clara County.' Under existing land use controls and site improvement requirements, affordable residential projects have been successfully built at or above 20 dwelling units per acre within the last five to ten years in Los Gatos. For example, the Aventino Apartments, located near the Southbay Development site in Los Gatos, includes 290 units built on a 12.3 -acre site with a density of approximately 24 dwelling units per acre. Aventino was built utilizing a density bonus. More recently, an affordable housing development was built at 31 Miles Avenue and includes 12 units on a site that is less than a one -half acre at a density of about 26 dwelling units per acre. On the 1.6 -acre Dittos Lane site recently acquired by the Town, 32 units have been proposed, which is a density of 20 dwelling units per acre. Los Gatos's existing zoning allows for a density of up to 20 dwelling units per acre within the Multi - Family Residential (R -M) zone. Development standards for the R -M zone in Los Gatos do not hinder development at 20 dwelling units per acre. In the R -M zone, a maximum allowable lot coverage of 40 percent and a maximum height of 35 feet (approximately three building stories) for a development would be equivalent to a maximum floor - to-area ratio (FAR) of 1.2. Assuming an average size of 1,200 square feet per residential unit, a density of 20 dwelling units per acre is achievable on a one - acre site. Additionally, more multi - family properties in Los Gatos and the surrounding areas are being developed with underground parking. The recently - developed Aventino Apartments offers underground parking and a density of 24 dwelling units per acre. Some of the sites identified in the sites inventory have an underlying zoning of Restricted Highway Commercial (CH). This zoning district allows multi- family uses with a conditional use permit. The CH zone allows a maximum ' Under California Government Code, Santa Clara County is identified as a Suburban Jurisdiction, which sets a default density standard of at least 20 dwelling units per acre to appropriately accommodate housing for lower- income households. 1E TOWN OF LOS G A T O S 1 0 1 0 GENERAL PLAN 1 0 0 1 20 14 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING SITES INVENTORY building lot coverage of 50 percent and a maximum height of 35 feet, or three building stories, so that the maximum FAR in this zone is 1.5. Sites with an underlying zoning of CH are primarily located along Los Gatos Boulevard and would be ideal sites for mixed use. This sites inventory analysis assumes 75 percent residential uses and 25 percent commercial uses on these sites, as shown in Table 6.1. With a maximum FAR of 1.5, a density of 20 dwelling units per acre would be feasible and achievable on all of the sites designated CH in Table 6-1. The Southbay Development site's underlying zoning is Controlled Manufacturing (CM), which currently prohibits multi- family residential uses. However, like the CH zone, the CM zone has a maximum allowable lot coverage of 50 percent and a maximum allowable height of 35 feet, or three building stories, so that the maximum FAR in this zone is 1.5. Similar to the CH zone, a density of 20 dwelling units per acre would be feasible and achievable on the Southbay Development site. The South Bay Honda site is designated Mixed Use Commercial, which has a maximum allowable lot coverage of 50 percent and allowable height of 35 feet, so that the maximum FAR would be 1.5. Under this land use designation, and even assuming 50 percent of a development to be commercial uses and 50 percent to be residential, a density of 20 dwelling units per acre would be feasible and achievable on the 1.5 -acre South Bay Honda site. This Housing Element proposes an Affordable Housing Overlay Zone (AHOZ) to facilitate the development of affordable housing on the housing sites. Action HOU -2.1 outlines incentives and requirements under consideration for the AHOZ. E. Secondary Dwelling Units The Town allows secondary units and has streamlined the process for review and approval of these units. Between 2003 and 2006, the Town revised the W TOWN OF LOS G A T O E 2020 GENERAL PLAN 2 0 0 2 - 2 0 1 4 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING SITES INVENTORY ( , secondary unit program to allow applications to be considered ministerially. The Town also reduced the parking requirements under this program. There are currently 416 secondary dwelling units in Los Gatos. No applications for secondary units have been submitted since 2002. F. Potential Development Constraints This section describes the infrastructure capacity and potential environmental issues that could impact realistic development capacity of each housing site. Based on this analysis, there are no environmental constraints or infrastructure capacity issues that could potentially reduce the realistic development capacity of each identified housing site. 1. Infrastructure Capacity The following sections describe the current infrastructure and service available for water and wastewater systems in Los Gatos. There are no major infrastructure capacity or service distribution issues for housing development in Los Gatos that could reduce the realistic development capacity of the proposed housing sites. a. Water The San Jose Water Company (SJWC) supplies the majority of water service for Los Gatos. The water quality and supply for the Town is managed by the Santa Clara Valley Water District (SCVWD). Although some areas of the Town have aging water infrastructure, the Town and the SJWC collaborate to annually upgrade and replace pipelines as needed! According to the SJWC, the realistic development capacity of 614-526 units on the identified housing sites would increase the demand for water by rppreaim�Eely 1 _53; 131.500 ons of water per day at 250 gallon of water per housing unit per day. The Los Gatos Draft 2020 General Plan Environmental Impact Report (EIR) includes this estimated water use over existing conditions in its water 2 Nicole Dunbar, Planning Supervisor, San Jose Water Company, personal communication with DC &E, August 6, 2008. 6 -10 i TOWN OF LOS G A T O S 2020 G E N E R A L PLAN 200] -1011 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING SITES INVENTORY supply impact analysis and determined that the SJWC would have sufficient capacity to meet water service demands? Therefore, water capacity does not constitute a significant constraint that would reduce realistic development capacity of the identified housing sites. b. Sanitary Sewer The West Valley Sanitation District (WVSD) manages the sanitary sewer system in Los Gatos. Similar to the water infrastructure, portions of the sanitary sewer infrastructure are old and need to be upgraded or replaced. The W VSD regularly monitors, upgrades, and replaces sanitary sewer lines .4 Some areas of the Town that have been incorporated through annexation have pre - existing on -site septic systems. The Sweesep Fefd si te nei.l. potential hoax n¢ sites are located where on -site septic systems are used - - p a L r The realistic development capacity of 6526 housing units on the identified housing sites would generate approximately 71,ee ^ a -64400 gallons of wastewater per day at 121 gallons per housing unit per day. The $ 64400 e allons of wastewater per day represents less than 1 percent of the total WVSD wastewater allocation and would be within the current capacity of 12.1 million gallons per day, as determined by the Los Gatos Draft 2020 General Plan EM Therefore, sanitary sewer capacity would not constitute a constraint that would reduce the realistic development capacity of the identified housing sites. t Los Gatos Draft 2020 General Plan Environment Impact Report, 2010, Town of Los Gatos, page 4.14 -23. 4 West Valley Sanitation District, http: / /www.wesmalleysm.org/ hea thmdenvironment/, accessed March 19, 2009. s Los Gatos Draft 2020 General Plan Environment Impact Report, 2010, Town of Los Gatos, page 4.1428. MI TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 - 2 0 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING SITES INVENTORY 2. Environmental Constraints This section analyzes environmental constraints, including geology and soils, biological resources, hazards and hazardous materials, noise, and cultural resources. There are no potential environmental constraints on any of the identified sites that could reduce realistic development capacity. a. Geology and Soils This section analyzes the potential environmental constraints associated with seismic shaking, landslides, and slope instability in Los Gatos. i Seismic Shaking The San Andreas, Shannon, and Monte Vista faults are most likely to produce strong seismic shaking in Los Gatos.' The Shannon and Monte Vista faults run through a portion of Los Gatos. Housing developed on the proposed sites would be regulated by the Safety Element of the General Plan and the Town's adopted Building Code and would therefore incorporate mitigation measures that reduce the impact of seismic shaking. ii Landslides and Slope Instability A small portion at the south end of the Dittos Lane site is located in a hillside area considered to have the potential for landslides. Hillside areas are often prone to having steep slopes and a higher risk for landslides. The General Plan Safety Element regulates hillside development and mitigates any potential impacts associated with developing housing on slopes in Los Gatos. The Town of Los Gatos also requires geotechnical reports.by a registered geologist for hillside development on slopes greater than a 30 percent gradient, as noted in the Town's Hillside Development Standards and Guidelines. b. Biological Resources This section analyzes the presence of potential jurisdictional wetlands, special - status species, and sensitive natural communities on the identified housing Town of Los Gatos, 2000, General Plan 2000 Draft Environmental Impact Report, page 4.1 -10. 6 -12 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2 0 0 2 . 2 0 1 4 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING SITES INVENTORY sites. Most of the sites considered in this inventory are already developed with other urban uses and thus have low habitat value. i Wetlands According to the U.S. Department of Fish and Wildlife Service National Wetlands Inventory, there are no potential jurisdictional wetlands in Los Gatos. Therefore, wetlands would not impact the realistic development capacity of the housing sites. ii. Special- Status Species According to the California Natural Diversity Database (CNDDB), which lists occurrences of special- status plants and animals, there are no known records of federal or State - listed plants in Los Gatos. There are federally listed wildlife species that are known to occur in the Town. Development on all sites would be regulated by the Environment and Sustainability Element of the General Plan and related State and federal agencies, such as the Department of Fish and Game, which would mitigate any impacts associated with the presence of special- status species. iii Sensitive Natural Communities Development on all sites would adhere to policies in both the Environment and Sustainability and Open Space Elements of the General Plan, which would mitigate any impacts associated with sensitive natural communities. c. Hazards and Hazardous Materials This section describes the potential development constraints associated with wildfires, flooding, and hazardous facilities and materials. i Fire Hazards State regulations require that all municipalities address Very High Fire Severity Zone hazards, as defined by the State of California, if they are located within the jurisdiction of that municipality. There are some Very High Fire Severity Zones located in the hillside areas of Los Gatos. The Los Gatos General Plan addresses areas that are susceptible to potential wildfire hazards. The General Plan provides goals and policies in the Safety Element 6 -13 TOWN Of LOS G A T O S 2070 GENERAL PLAN 2 0 0 7 - 1 0 1 0 HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X HOVSING SITES INVENTORY that regulate housing development so that wildfire hazards would not impact the realistic development capacity of the housing sites. The Hillside Development Standards and Guidelines specifically provide policies that promote fire safety and minimiz wildfire hazards. ii. Flood Hazards Of the Oka Road/Lark Avenue parcels, Site A, 60 percent of Site B (the western portion of the parcel) and a small portion of Site C (the western tip of the parcel) are located in the 100 -year floodplain zone designated by the Federal Emergency Management Agency (FEMA). Housing on these sites would be regulated by the Safety Element of the General Plan and would therefore be designed to mitigate these hazards. Therefore, realistic development capacity would not be reduced by flood hazards. iii. Hazardous Facilities and Materials According to the California Department of Toxic Substances Control, there are currently no hazardous sites or facilities, including federal Superfund sites, State response sites, voluntary cleanup sites, or school cleanup sites in Los Gatos. Therefore, the realistic development capacity of the identified housing sites would not be reduced by the presence of any hazardous facilities or materials in Los Gatos. If hazardous facilities or materials are found to be present in Los Gatos, adhering to policies in the General Plan Safety Element and federal and State regulations would reduce any impacts associated with such sites and facilities. Additionally, the Town has a hazardous waste and substances statement supplement for all development applications, which contains a list of sites obtained from the State of California and U.S. Environmental Protection Agency (EPA) Hazardous Waste and Substances Sites Lin.' ' Town of Los Gatos website, hap: / /www.town.los- gatos.ca.us/ document s / Community% 20Development /Plmning/DevRevAppPak.PDF, accessed April 20, 2009. 6 -19 TOWN O F LOS G A T O S 2020 GENERAL PLAN 2 0 0 7 - 2 0 14 H O U S I N G E L E M E N T : T E C H N I C A L A P P E N D I X HOUSING SITES INVENTORY d. Noise Noise from Highway 17 could potentially affect development on the Oka Road/Lark Avenue and Dittos Lane sites. The Oka Road/Lark Avenue, Los Gatos Courthouse, and Southbay Development sites could also be potentially affected by noise from the active railroad line parallel to and south of Highway 85. The Noise Element of the General Plan regulates noise levels and design standards for development that mitigate such noise impacts. Therefore, realistic development capacity would not be affected. e. Cultural Resources According to the 1999 Los Gatos General Plan Update Initial Study, potential Native American archaeological sites are typically located near creeks in Los Gatos. An archaeological evaluation would be required for development on the Oka Road/Lark Avenue sites near Los Gatos Creek. G. Comparison of Regional Growtb Need and Residential Sites To determine the Town's ability to meet its RHNA, the Town's adjusted RHNA, which was determined in Chapter 3 Projected Housing Needs, is compared to the realistic development capacity of the identified housing op- portunity sites. Table 6.2 below presents the Town's RHNA as provided by the Association of Bay Area Governments (ABAG) and the Town's adjusted RHNA after subtracting housing units that have been built, approved pro- Dosed. or were under construction between January 1, 2007 and June 30, 2009. Table 6-3 shows that the realistic development capacity of the identified hous- ing sites exceeds the Town's adjusted RHNA. The realistic development ca- pacity of housing sites is based on the Town's default density of 20 dwelling units per acre as described under Section E of this chapter, Zoning Appropri- ate to Accommodate Housing for Lower - Income Households, and as consis- tent with recent construction and proposed projects in Los Gatos. All sites in Table 61 assume development at the default density_ -�: r3: -�_ ta--- c_..____ .,J s ka , _.t[_L 1.-_ _ Y ._J __ dewl_Y - Y 3� sh-Er 6-15 TOWN OF LOS G A T O S 2020 GENERAL PLAN 2002 -2014 HOUSING ELEMENT:TECHNICAL APPENDIX HOUSING SITES INVENTORY MM. INMPPP MM. TOWN OF LOS GATOS 2 0 2 0 GENERAL PLAN 2 0 0 7 - 2 0 1 / HOUSING E L E M E N T : T E C H N I C A L A P P E N D I X H O U 5 1 N G SITES INVENTORY TABLE 6 -2 ADJUSTED RHNA CALCULATION A B (A minus B) Very Low Units Built, 0 Under New Construction Construction and /or Income Need Approved Since Adjusted Category (RHNA) January 1 2007 RHNA EXtremelyLow 77 0 77 Very Low 77 0 77 Lo w 100 04 400 96 Moderate 122 36 "Z 116 Abo Moderate 186 49 4-7:86 T Units 56 2 44110 53144 =2 TABLE 6 -3 ADJUSTED RHNA AND DEVELOPMENT CAPACITY OF HOUSING OPPORTUNITY SITES A B (A -B) Income Level Adjusted RHNA' Development Capacity of Housing Opportunity Sites Surplus Capacity Extremely Low 77 9980 4: 3 Very Low 77 9985 42-9 Low 4r" 96 414 113 � 19 Moderate 4 24116 44T 120 4r 4 Above Moderate 44r 86 473126 -2940 Total 631452 64526 9074 ' The Adjwted RHNA is calculated as showo in Table 6-2 M- w This Page Intentionally Left Blank cw " °F 1 I � visa COUNCIL AGENDA REPORT DATE: SEPTEMBER 19, 2011 MEETING DATE: 09/19/11 ITEM NO: DESK ITEM TO: MAYOR AND TOWN COUNCIL �J FROM: GREG LARSON, TOWN MANAGER- 2 1f SUBJECT: REQUESTING TOWN COUNCIL RATIFICATION OF THE NOVEMBER.] 2010, APPROVAL OF THE 2007 TO 2014 HOUSING ELEMENT STAFF REMARKS Attachment 3 contains communications from the public that was submitted following the distribution of the staff report. Additionally, a map that illustrates the six affordable housing omitted from the redline version of the Technical Appendix. should be inserted on Page 6 -2, Figure 6 -1. Attachments Received with the September 19, 2011, Staff Report overlay sites was inadvertently Attachment 4 is the map, and it 1. HCD Comment Response Matrix 2. Final Draft of the 2007 — 2014 Los Gatos Housing Element and Technical Appendix (red- line tracked changes) Received with the Desk Item 3. Communication from the public (two pages) 4. Figure 6 -1 (Housing Opportunity Sites) WRR:cgt . PREPARED BY : `. endie R. Rooney, Director of Community Development Reviewed by: N Assistant Town Manager Town Attorney Finance NADEVUC REPORTSVOI Mousing Element 9 -19 -11 Desk Item No. I.docx ATTACHMM 3 This Page Intentionally Left Blank From: Dick Allen [rallen @garlic.com] Sent: Monday, September 19, 20119:43 AM To: BSpector; Steve Leonardis Subject: Consent Agenda Item 3 Dear Councilmember Spector and Councilmember Leonardis, I read the staff report on tonight's Agenda Item 3 and was shocked at the scope of the changes being proposed for adoption without the possibility for public comment because it is a Consent agenda item. I realize that the Town must adopt an ordinance to comply with State laws regarding affordable housing; but this agenda item seems to go far beyond what is required. Furthermore the proposal is confusing in defining the impact on residential developments NOT in the AHOZ areas. The impact of the density bonus on both BMP and non -BMP housing needs to be clarified. Since the public has not had an opportunity to understand and comment on these drastic changes to the Town's regulations, I ask that you attempt to have this referred to GP Committee and the Planning Commission first to provide the essential "sunshine" to illuminate this dramatic proposal. Respectfully, Richard Allen rallen@garlic.com Attachment 3 This Page Intentionally Left Blank From: Janice Fok ogdfok @gmail.com] Sent: Sunday, September 18, 20119:50 PM To: BSpector; Steve Leonardis Subject: Consent Agenda Item 3 Dear Councilmember Spector and Councilmember Leonardis, I am writing to request removal of Item #3, Ratification of the Housing Element of the General Plan, from the Consent Agenda. I believe the changes outlined in the staff report merit a separate Agenda Item, and that the matter be continued to allow for a wider public discussion. Many matters before the Council recently have related specifically to the rezoning of commercial parcels to residential ones, and the density of new housing being built. The staff report for this item outlines the creation of a new designation, AHOZ, to allow for affordable housing to be applied "by right and without discretionary review ". This could remove the public, as well as future all future town council members, from any input, beyond A &S, to projects granted this AHOZ designation. Thank you for your consideration, Janice Fok This Page Intentionally Left Blank TOWN OF LOS GATOS Site with Residential Development Potential FIGURE 6 -1 HOUSING OPPORTUNITY SITES Attachment A 2007 -2014 HOUSING ELEMENT: TECHNICAL APPENDIX This Page Intentionally Left Blank t we of MEETING DATE: 10/18/10 - ITEM NO: SOS � " t0S COUNCIL AGENDA REPORT DATE: October 13, 2010 TO: MAYOR AND TOWN COUNCIL AND PLANNING COMMISSION FROM: GREG LARSON, TOWN MANAGER e� SUBJECT: REVIEW OF THE DRAFT 2007 — 2014 HOUSING ELEMENT RECOMMENDATION 1. Review and Discussion of the Draft 2007 —2014 Housing Element. 2. Consider any public comments. BACKGROUND AND SUMMARY: Since late 2008, the General Plan Committee (GPC) has been working with the General Plan consultants and staff on the 2007 — 2014 Housing Element. The first draft of the Housing Element was released for public review in December 2009, and the second draft was released in late September 2010. The Department of Housing and Community Development (HCD), the state agency responsible for reviewing and certifying Housing Elements, is currently conducting the second review of the Element. Staff anticipates that HCD will certify the Town's Housing Element. HCD's comments are due October 25, 2010. The GPC completed a thorough review of the second draft on September 29, 2010, and recommended that the Planning Commission and Town Council review and approve the Housing Element. In addition to the joint Town Council and Planning Commission Housing Element study session on October 18, 2010, the Planning Conunission and Town Council will each bold public hearings on October 27 and November 1, 2010, respectively. This report summarizes the state requirements for Housing Elements, local housing needs, and the proposed housing programs and policies for the remaining four years of the program period. i PREPARED BY : �J Wendie R. Rooney, Director of Community Development Revie , ed by: Assistant Town Manager own Attorney_ Clerk Finance ,/ Community Development Reformatted: 5130102 \:,DEV \C I OHousin 18 2010.doc ATTACMCM PAGE MAYOR AND TOWN COUNCIL SUBJECT: 2007 — 2014 HOUSING ELEMENT Ociober 13, 2010 ANALYSIS Required Contents of the Housing Element and State Housing Law The Housing Element is one of seven state - mandated elements of a General Plan. The Housing Element assesses housing needs for all income groups and establishes a program to meet those needs. The goals of a Housing Element are to: • Increase the housing supply and the mix of housing types in an equitable manner. • Promote infill development, socioeconomic equity, and protect environmental resources. • Promote an improved intraregional relationship between jobs and housing. Unlike the other state - mandated General Plan elements, the Housing Element is subject to detailed statutory requirements regarding its content and is subject to mandatory HCD review and certification. The Housing Element must also be updated approximately every five years, unlike other General Plan elements, which are typically updated every 10 to 20 years. State law requires that the Housing Element contain the following information: • A review of the goals, objectives, and policies of the currentHousing Element. • Current demographic, economic, and housing information for the Town. • A quantified housing needs assessment. • Analysis of the constraints to providing housing for all income levels. • A discussion of opportunities fbr energy conservation in new housing developments. • An inventory of assisted "units at risk of conversion to market rate. • An inventory of residential land resources, including suitable sites for housing, homeless shelters, and transitional housing. • A set of housing goals, policies, and programs. Quantified objectives for housing over the next five -year period. • A description of diligent efforts towards participation by all economic groups in the update process. Pursuant to state law, the Housing Tlement must specify potential housing sites and identify policies and programs that Nvill help meet the Regional Housing Need Allocation (RH1VA), which is the "fair share' of housing for each jurisdiction in a particular region. The RHNA quantifies the need for housing within each jurisdiction during a specified planning period. Comnunities use the RHNIA in land use planning, prioritizing local resource allocation, and in deciding how to address identified existing and future housing needs resulting from population, employment, and household growth. The RHNA does not necessarily encourage or promote growth, but rather allows communities to anticipate growth, so that collectively the region and subregion can grow in ways that enhance quality of life, improve access to jobs, promote transportation mobility, and address social equity and fair share housing needs. The Association of Bay Area Governments (ABAG) determines the RHNA for Santa Clara County and Los Gatos. ABAG has determined that the total RHNA for the 2007 - 2014 period PAGE MAYOR AND TOWN COUNCIL SUBJECT: 2007 — 2014 HOUSING ELEMENT October 13, 2010 for the Town of Los Gatos is 562 housing units. The draft 2007 — 2014 Housing Element is designed to meet the Town's Regional Housing Needs Allocation and to foster the availability of housing affordable to all income levels to the extent possible given the Town's constraints. The number of units by income categories are contained on page 15 of the draft Housing Element. An important distinction to note is that the state mandates that communities must plan for these housing units, allocate resources and remove constraints, but does not require that the jurisdictions actually construct the units. Communities, with Redevelopment Agencies like Los Gatos, typically partner in the acquisition or construction of affordable housing; however, the development is generally a private sector enterprise. As noted above, the state requires that communities plan for their "fair share" of affordable housing by identifying available sites and demonstrating in the Housing Element that the projected residential development capacities of the sites can realistically be achieved. The state allows local governments to utilize "default" density standards that are deemed adequate to meet the "appropriate zoning" test for affordable housing. For Santa Clara County, the state has set a minimum default residential density of 20 units per acre (ata), which is consistent with the Town's high density residential zoning district. Growing communities can generally accommodate the RHNA within their existing inventory of undeveloped or underdeveloped higher density residential zones. In predominately built -out communities, such as Los Gatos, the RHNA is generally demonstrated through a commitment to rezone either lower density residential (less than 20 u/a) or appropriate commercial or industrial lands to high density residential. An alternative to large scale rezoning is an affordable housing overlay zone (AHOZ), which is a relatively new concept that is gaining attractiveness, particularly in built -out communities. An AHOZ is applied to sites on which residential densities could be increased if a given level of affordability is achieved. A map showing these sites is "overlaid" on the existing zoning map. An overlay can apply to all sites within particular zone districts or only selected sites. Within the overlay zone, affordable housing developments should be eligible for (a) by right residential development, (b) multifamily development on commercial sites, (c) waivers or reductions of building and planning fees, (d) relaxation of certain development standards (e.o, parking, setbacks, height), and subject to overall design review. All of these benefits reduce the uncertainty and costs faced by developers of affordable housing. Staff conducted an analysis on how to achieve the RH'_ TA under existing zoning (Low and Medium Density Residential, Commercial and Industrial) and determined that between 70 and 100 acres would need to be developed with affordable housing to meet the RHNA. By using the AHOZ, staff was able to identify approximately 34 acres where the overlay could be applied. In the case of these 34 acres, the property owners could develop under the existing zoning or the AHOZ. The AHOZ could allow increased densities, fee reductions or waivers, residential uses by right, and relaxation of certain development standards. The AHOZ projects would also be subject to Town architectural and site review. The realistic development capacity for the 34 acres is 611 units, which is 49 more units than the 562 units allocated by the RHNA. This additional capacity would allow for the some of the sites to develop at a lower density if needed. PAGE MAYOR AND TO'.', N COUNCIL SUBJECT: 2007 — 2014 HOUSLNG ELEMENT October 13, 2010 Moreover if the six AHOZ sites are developed with other uses, the Town would be required to identify additional AHOZ sites. During the early analysis of potential sites, staff identified additional properties throughout the Town where the AHOZ could be applied if necessary. The recommended AHOZ sites are listed in the following table. Residential Sites Analysis Site Existing Zoning Parcel A creage Development Potential Los Gatos Courthouse Capri Drive and Knowles Drive Open Space 5.2 AC 104 Southbay Development Winchester Blvd CM 7.1 142 Oka Road and Lark Avenue. Mix of RM & R -I 13.7 248 Swanson Ford — Los Gatos Boulevard CH 4.5 57 South Bay Honda— Los Gatos Boulevard CH 1.5 28 Dittos Lane R -1:D 1.6 3� T otal 34.3 611 New Applicable Legislation and Statutory Requirements The following are key legislative changes affecting this Housing Element program period: • SB 2: This legislation requires local jurisdictions to strengthen provisions for addressing the housing needs of the homeless, including the identification of a zone or zones where emergenCV shelters are allowed as a use by right without a conditional use permit. • AB 2634: Requires that communities assess the housing needs of extremely low income households. • AB 2348 and AB 2158: These Housing Element law amendments clarify the required contents of a Housing Element, including more detailed land inventory and site identification program requirements, and snake significant reforms to the process and standards for determination of the RHNA to each community for very low, low, moderate, and above moderate income housing. • SB 520: Requires that the analysis and program sections of the Element contain an assessment of constraints on housing for persons with disabilities and an action program addressing those constraints. PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: 2007 — 2014 HOUSING ELEMENT October 13, 2010 SB 375: Attempts to integrate allocation of RHATA planning with the preparation of the regional transportation plans (RTP) by requiring consistency between the RHNA and the "sustainable communities strategy" that must be included in the RTP. Document Format The Housing Element is contained in pages 1 through 35 of the document, and the Technical Appendix is attached to the draft Housing Element and is numbered pages i to 6 -16. The Housing Element contains red -line changes that respond to both HCD and GPC comments from their respective reviews of the first draft as well as GPC questions and remarks from the September 29, 2010, final review. There were very few changes made to the Technical Appendix (pages i to 6 -16) from HCD's first review; consequently, all of the red -line changes are from the September 29, 2010, GPC final review. The Housing Element has three primary functions: (1) to establish Town's housing goals and policies; (2) to quantify the maximum number of housing units that can be constructed, rehabilitated, and conserved over the seven year period between June 2007 and June 2014; and (3) to present Town's housing programs, which represent a seven -year schedule of actions to be implemented by the Town to achieve goals, policies, and quantified objectives of the Housing Element. The Technical Appendix presents the most currently available information at the release of the first draft of the Housing Element in 2009 pertaining to the following nine subsections: (1) background; (2) housing need's assessment, including a projection of population and employment, household size and tenure; (3) special population groups; (4) housing stock and characteristics, including over - paying and overcrolvding; (5) housing needs, including regional needs allocation; (6) housing resources; (7) governmental and non - governmental constraints to housing production; (8) evaluation of the effectiveness of the previous Housing Element; and (9) an inventory of land suitable for residential development. Housine Needs The draft Housing Element identifies the following housing needs: • Extremely Low Income: Approximately= 900 Households or 7.5% of the Town's 2008 population are classified as Extremely Low Income, which is defined as a four person household with an income level of 30 percent or less of the Area Median Income (AMI) or 531 per year. High rental and for -sale occupied housing costs results in this population spending more than 30 percent of their annual income on housing. • Homeless: Pursuant to the 2007 Santa Clara County Homeless Census and Survey, approximately 30 homeless indiAduals reside in Los Gatos. • Single Parent: Approximately 611 Households or 5% or the 2008 population are considered single parent households. Generally single parent households have more difficulty affording appropriate family housing. • Senior: Los Gatos's senior population is growing. In 1970, 11 percent of the population was consider senior (age 65 or greater), and in 2008 the senior population has increased to 17 %. Seniors often have limited income and a range of accessibility and health care needs that necessitate specific types of housing. PAGE 6 MAYOR AND TOWNI COUTICIL SUBJECT: 2007 — 2014 HOUSING ELEMENT October 13, 2010 • Persons with Disabilities: Approximately 1,776 persons or 6.7% of the population have disabilities that affect their mobility or self -care. The cost of local housing is prohibitively expensive for those on Supplemental Security Income, which averages 5800 to 5900 per person per month in 2007/08. • Job to Housing Balance: The Town's current Job to Housing ratio is 1.5 jobs per household, which is within the targeted range. With the projected increase in jobs in Los Gatos over the next 10 years, this ratio is expected to grow to 1.6 jobs per household, resulting in an increase in housing demand. • Housing Affordability: Housing costs have continued to increase faster in Los Gatos than the county average. In 2008, 34 percent of all Los Gatos renters were paying more than 30 percent of their monthly income for housing. Thirty percent of a household income spent on housing is the conventional public policy indicator of housing affordability in the United States. The affordability gap for for -sale housing is approximately $600,000 for single - family home and $198,000 for multi- family. Housing Constraints The draft Housing Element identifies a number of potential govemmental and non - governmental constraints to the construction of housing for all income levels. The Element indicates that there are three potential governmental land use constraints, including the required conditional use permit process for multi - family housing in multi - family residential zones, and the lack of provisions and definitions for transitional and supportive housing in the Town Code. Actions HOU 6 -8 and 6 -9 have been included in the Housing Element to address these constraints. Land cost is the greatest non - governmental or market constraint to housing development in Los, Gatos. As previously noted, housing costs have steadily increased in Los Gatos over the past 10 years and generally outpaced most communities witlnn Santa Clara County. With average residential land at S3 to S4 million dollars per acre, housing development is becoming too cost prohibited for most economic sectors in the community. Housing Program Focus Following are the housing programs that Los Gatos believes will be the most effective in meeting the Town's housing goals. These programs will be the focus of the Town's housing efforts during the remaining four year period of this Housing Element. 1. Actively encourage the development of affordable housing on the Affordable Housing Overlay Sites. 2. Remove Royermnental land use constraints. 3. Offer incentives to developers of affordable housing, including density bonuses, fee deferrals or waivers expedited permit processing, and the use of the in -lieu fee fund. Specifically, the Housing Element recommends the following Actions: Continue the following programs: • Below Market Price • Second Unit Program • Preserving At -Risk Housing Units PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: 2007 — 2014 HOUSING ELEMENT October 13, 2010 • Rental Conservation • Housing Conservation • Horne Access Programs • Supporting non - profits that serve homeless populations • Supporting the County Continuum of Care Program • Providing Senior Housing Resources Proposed new housing programs: • Work with the Redevelopment Agency (RDA) to develop housing for extremely low income households. • Create the AHOZs for Oka Road, Vasona Junction Area, and Los Gatos Boulevard. • Earmark RDA and BNIP Funds for the AHOZs. • Encourage mixed use developments with affordable housing. • Create development standards and amend the code to allow emergency shelters in the Controlled Manufacturing Zone. • Adopt a Reasonable Accommodation Ordinance to ensure Fair Access. • Add Transitional Housing and Group Homes to the Code. • Evaluate whether the Town should amend the Code to allow multi- family residential uses in the 1%4F Zone by right. • Encourage green building and energy conservation in housing. Follow -Up From September 29, 2010, GPC Meeting As noted in Housing Element transmittal memo.. on September 29, 2010, the GPC conducted a page by page review of the Housing Element section (pages 1 through 35). The majority of the GPC recommended changes to the document were incorporated into the draft transmitted to the Council and Planning Commission on October 7, 2010. However, the following is a list of items that the GPC requested clarification on or required further input from the consultant. The updated information is contained in italics. • Page 7, First complete paragraph: Provide a definition of "rehabilitation" and clearly state whether the facts regarding the number of units requiring rehabilitation are estimates. Staff will add a definition for "rehabilitation." P,ousing rehabilitation requires making improvements to the safety and habitability of a house andror making improvements that bring a house into cornplimnce with the Building Code. The number of Units requiring rehabilitation are estimates. Staff can revise the last sentence in the first complete paragraph on page 7 to clarify this and say, "Overall, approximately 4.5 percent, or about 580 Units, of the total housing stock, is estimated to be currently in need of rehabilitation. • Page 7, 3a.: Verify number of homes sold in Los Gatos between December of 2007 and December 2008. DCE was not able to verify the number of homes sold in this period. Staff will work with local real estate companies to verify and update this information prior to the printing the final Element. PAGE 1\1AYOR AND TORN COUNCIL SUBJECT: 2007 — 2014 HOUSING ELEMENT October 13, 2010 • Page 9, 4a.: Verify whether the facts stated in this paragraph and relative to the housing conditions for the Extremely Low- Income Households are specific to Los Gatos or are more general statements reflective of Extremely Low - Income Households nationally These facts are specific to Los Gatos. • Page 24, Action HOU -3.1: Verify if the five -year Section 8 assistance contract for Villa Vasona has been renewed. Staff will have this verified prior to the planning Commission public hearing. • Page 24, Action HOU -33: Housing Conservation Program: Continue to provide Housing Conservation Program assistance to property owners to improve their housing units. Improve at least 15 housing units through this program. Redesign marketing materials and aggressively market program to potential applicants. Verify how the number of units was derived. The number of units estimated to be improved through the Housing Conservation program is based on the previous 2002 -2007 Housing Element's goal to rehabilitate 10 to 20 units. There is not a state standard regarding the number of units that should be preserved. • Page 30, Action HOU -6.7: Verify how and why a conditional use permit process was originally implemented for multi- family uses in MF Zone Districts. This will take more time to track the history; however; this information will be obtained for the stud that the Action requires. Next Steps In order to secure final Housing Element review and approval xvith the currently seated Plating Commission and Town Council, the following review and adoption schedule has been established: • Planning Commission Public Hearing: October 27, 2010 • Town Council Public Heating: November], 2010 CONCLUSION ,AUND RECOMMENDATION Staff believes that the Planting Conunission and Town Council will find that the second draft of the Housing Element meets state Housing Law while maintaining the types of affordable programs that the Town has historically encouraged and implemented. The draft Housing Element also addresses the Town's "fair share" of affordable housing as articulated it the Regional Housing Needs Assessment through the unique AHOZ concept that does not require a "broad brush" rezoning of properties, but rather considers pre - identified parcels that could accommodate higher densities if developed in a manner consistent with the Town policy and practice. The draft Housing Element contains many new programs and Town Code revisions that will need to be implemented over the remaining four -year period of this housing allocation cycle. However, only one key program, the AHOZ, and some minor code amendments will need to be completed within one year of the adoption of the Housing Element. Following the Town PAGE 9 MAYOR AND TOWN COUNCIL SUBJECT: 2007 — 2014 HOUSING ELEMENT October 13, 2010 Council's approval of the Housing Element, staff, the Town's consultants, and the GPC will commence work on drafting the specific details for each of the Affordable Housing Overlay Zones. Design Community & the Environment (DCE), the Town's General Plan consultants, are confident that the revised second draft adequately addresses all of HCD's first review comments and are anticipating that the state will certify the Element as meeting all requirements. Final HCD comments are due to the Town on or before October 25, 2010. The Draft 2007 — 2014 Housing Element is a result of the extensive review with the General Plan Committee and two separate reviews with the State Department of Housing and Committee Development. Public hearings with the Planning Commission and Town Council are scheduled for October 27 and November 1, 2010. Staff recommends that the Town Council and Planning Commission review the red -line draft of the Housing Element and forward any questions to staff prior to the October 18, 2010, study session and the October 27 and November 1, 2010, Public Hearings. ENVIRONMENTAL ASSESSMENT The 2007 — 2014 Housing Element is a component of the 2020 General Plan. The General Plan is a project as defined under CEQA and accordingly an Environmental Impact Report (EIR) was prepared for the project. On September 20, 2010, the Town Council adopted Findings of Fact and a Statement of Overriding Considerations to certify the Final Environmental hnpact Report prepared for the General Plan. FISCAL IMPACT None. Attachments Previously submitted to the Town Council: Memorandum dated October 6. 2010, which included a copy of the Second Draft of the 2007 — 2014 Housing Element (Distributed on October 7, 2010) W R: ah T ms PAGE INTENTIONALLY LEFT BLANK ".�°`� MEMORANDUM ` °S ° S COMMUNITY DEVELOPMENT DEPARTMENT To: Town Council and Planning Commission From: Wendie Rooney, Director of Community Development Subject: Transmittal of the Second Draft of the Housing Element Date: October 6, 2010 Enclosed please find the second draft of the Housing Element. The Element is contained in pages 1 through 40 of the document, and the Technical Appendix is attached to the draft Element and is numbered Pages i to 6 -16. The draft Housing Element (pages I through 40) is in red -line format that is based on changes from the General Plan Committee (GPC) and State Housing and Community Development (HCD) comments. The majority of changes were made to this portion of the document. Minimal edits were made to the background data in the Technical Appendix. This red- line draft will be the document that is reviewed during the upcoming joint Town Council and Planning Commission study session on October 18, 2010. The GP C met on September 29, 2010, and following a page by page review of the Housing Element section (pages 1 through 40), forwarded the document to the Planning Commission and the Town Council with a recommendation to approve the Element. The majority of the GPC - recommended changes to the document have been incorporated into this draft. However, the following list of items that the GPC requested clarification on require further input from the consultant. These will be addressed over the next week and incorporated into the staff report for the study session. • Page 7, First complete paragraph: Provide a definition of "rehabilitation" and clearly state whether the facts regarding the number of units requiring rehabilitation are estimates. • Page. 7, 3a.: Verify number of homes sold in Los Gatos between December of 2007 and December 2008. • Page 9, 4a.: Verify whether the facts stated in this paragraph and relative to the housing conditions for the Extremely Low- hicome Households are specific to Los Gatos or are more general statements reflective of Extremely Low- Income Households nationally. • Page 24, Action HOU -3.1: Verify if the Section 8 assistance contract for Villa Vasonahas been renewed. Attachment 1 GPC Memo October 6, 2010 Page 2 Page 24, Action HOU -3.3: Verify how the number of units was derived. Page 30, Action HOU -6.7: Verify how and why a conditional use permit process was originally implemented for multi- family developments in RM Zone Districts. The Town's consultants have been closely working with state HCD to ensure that the second draft Housing Element contains all the state required analysis and programs. Based on recent conversations with the state, DC &E is confident that the draft Element meets state requirements and will be certified. Final HCD comments are due on or before October 25, 2010. Recommended Housing Element review schedule: The GPC has spent considerable time and effort reviewing the draft Housing Element as well as developing an understanding of the state housing element laws and how the various provisions affect the Town's affordable housing programs. Consequently, staff believes it is important to secure approval of the Housing Element with the presently seated Council and Planning Commission. Accordingly, staff is proposing a compressed review and adoption schedule that completes the process prior to the seating of a new Council in December. Staff is proposing the following schedule: GPC: September 29, 2010 (completed) • Joint Town Council and Planning Commission study session: October 18, 2010 • Planning Commission Public Hearing: October 27, 2010 Town Council Public Hearlpg: November 1 2010 While the schedule is compressed, it allows the GPC special meeting on September 29, 2010; a study session with the Town Council and Planning Commission, in which staff will provide an educational presentation of state housing element laws and the key provisions of the Town's Housing Element; and a public hearing with the Planning Commission and the Town Council. Finally, staff requests that Town Council Members and Planting Commissioners contact staff in advance of the study session for clarification or to provide a list of concerns or issues. Please contact either Joel Paulson at jpaulson @losgatosca.gov or Wendie Rooney at wrooney @losgatosc.gov. ENCLOSURE Second draft of the Town of Los Gatos Housing Element and Technical Appendix WR:ah K:DEVAV die,Housine ElemnlTransmittal Memo -dx RESOLUTION 2012- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RATIFYING THE 2007 TO 2014 HOUSING ELEMENT (DATED NOVEMBER 1, 2010) WHEREAS, the Town of Los adopted the 2020 General Plan along with the certification of the Environmental Impact Report (EIR) on September 20, 2010; and WHEREAS, the Town Council and Planning Commission further discussed the Housing Element of the General Plan in a study session, duly noticed to the public, on October 18, 2010; and WHEREAS, the Town duly noticed a public hearing for consideration and approval of the Housing Element at a regularly scheduled Town Council meeting on November 1, 2010; and WHEREAS, Town Council conducted a public hearing on November 1, 2010, pursuant to published notification, at a regularly scheduled meeting and approved the Housing Element dated November 1, 2010; and WHEREAS, the State Department of Housing and Community Development (HCD) reviewed and certified the Town of Los Gatos Housing Element on April 2011; and WHEREAS, on September 19, 2011, Town Council considered the revisions to the Housing Element and requested staff to develop density and land use standards regarding the Affordable Housing Overlay Zone (AHOZ) sites discussed in the Housing Element; and WHEREAS, the General Plan Committee (GPC) has been convened to review and consider the density and standards for the AHOZ sites; and WHEREAS, the GPC considered new methods to control density and the Town Code contains existing development standards that when used in combination will ensure compatibility of the AHOZ sites with the surrounding neighborhoods; WHEREAS, in consideration of the State law requirement to adopt a valid Housing Element and the work that the GPC has accomplished to date, the Town Council finds it is in the best interest of the community to have a certified Housing Element; and, WHEREAS, the Town has the ability to make amendments to the Housing Element at a later date to refine the AHOZ standards and densities; NOW, THEREFORE, BE IT RESOLVED, that the Town Council hereby ratifies and approves the 2007 to 2014 Housing Element (dated November 1, 2010 as revised). r-Ma kl i PASSED AND ADOPTED at a meeting of the Town Council of the Town of Los Gatos held on the 5th day of March, 2012 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: 016MIN13 MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA