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
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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
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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
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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.
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TOWN OF LOS G A T O S
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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.
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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
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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.
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TOWN OF LOS G A T O s
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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.
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TOWN OF LOS G A T O S
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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.
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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
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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.
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TOWN O F LOS G A T O S
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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
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TOWN OF LOS G A T O S
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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.
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TOWN O F LOS G A T O s
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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
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TOWN OF LOS G A T O S
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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.
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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
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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
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Town of Los Gatos 2007 -2014 Housing Element
Technical Appendix
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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
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()
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
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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
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�!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
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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
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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�
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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
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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
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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
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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
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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
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TOWN OF LOS GATOS
Site with Residential Development Potential
FIGURE 6 -1
HOUSING OPPORTUNITY SITES
Attachment A
2007 -2014 HOUSING ELEMENT: TECHNICAL APPENDIX
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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
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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.
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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