Desk Item. N OR
�S GAS
COUNCIL AGENDA REPORT
DATE: MARCH 5, 2012
MEETING DATE: 3/5/12
ITEM NO:
DESK ITEM
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER /U c
SUBJECT: RECOMMEND RATIFICATION OF THE 2007 TO 2014 HOUSING
ELEMENT (Dated November 1, 2010).
REMARKS:
Staff has received a number of Council inquiries and an e -mail from Cameron Tulee (Attachment
6) regarding this item. Responses to these inquiries and comments are contained in the Analysis
Section of this report.
RECOMMENDATION
Town staff recommends that the Town Council ratify the November 1, 2010, approval of the
2007 -2014 Housing Element with the revisions incorporated and the following additional
modifications:
1. Deletion of the Dittos Lane property from the Affordable Housing Overlay Zone sites.
This includes removing the Dittos Lane property from Table 6.1, Available Land
Inventory Summary, and all references to the property pertaining to Affordable Housing
Overlay Zones.
2. Deletion of Action HOU -2.2, since this is a place holder for the AHOZ standards, which
are currently being developed.
PREPARED BY : V W� endie R. Rooney, Director of Community Development
Reviewed by: Assistant Town
Attorney Finance
NADEWC REPORTS\2012 \11ousing Element 3- 5- 12DeskTtem.doex Reformatted: 5/30/02
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: 2007 to 2014 Housing Element
March S, 2012
ANALYSIS:
Council's concerns from September have not been resolved, so why is it OK now to
approve?
The chief concern that predicated the Town Council's decision not to affirm the previously
approved Housing Element is the State's insistence that the Town make residential a use by right
on the six Affordable Housing Overlay Zone (AHOZ) Sites. While it is true that the Town has
not completely resolved these concerns, progress has been made with the GPC in identifying
development standards, densities, affordability ratios and architectural and site standards to
ensure compatibility with the four neighborhoods that surround the six properties. Moreover, the
Town's standard Architecture and Site application process will be required for each of the six
sites if a development is proposed, and the Town will have the discretion to apply conditions to
further ensure compatibility. The public General Plan Committee has already had three
meetings focusing on AHOZ and will be continuing to work on these issues through June.
Further, as staff has mentioned previously, there is significant legal and financial risk resulting
from not having a valid Housing Element. First, the Town will have less discretion when
reviewing residential development applications anywhere in the Town jurisdiction; other
jurisdictions without State certified housing elements have faced the imposition of higher density
residential projects than they would have otherwise approved. Second, the Town world likely
lose most transportation funding and all funding for affordable housing.
Affirming the Housing Element at this time does not in any way constrain future Council action.
However, it does eliminate the cuurent risks faced by the Town from not having a valid Housing
Element. If the Council does not approve the State- required AHOZ at a later time, then the State
would likely de- certify the Town's Housing Element, returning the Town to the current status
and risks.
Won't approval give developers an open door for high density, 3+ story projects by right ?:
No. The State required changes to the Town's Housing Element only require the creation of
Affordable Housing Overlay Zones (AHOZ) to demonstrate that the Town can fulfill its
Regional Housing Needs Allocation as required by State law. The AHOZ, once reviewed and
approved by the Planning Commission and Town Council, will permit property owners to use
their property through the underlying zoning or through the AHOZ, subject either way to the
standards and conditions existing for the underlying zoning or to be established for the AHOZ.
The public General Plan Cormnittee is currently reviewing appropriate standards for the AHOZ,
which should be completed by Jume as previously reported to Council. The AHOZ must then go
through the normal zoning review process through the Planning Commission prior to Town
Council consideration and action.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: 2007 to 2014 Housing Element
March S, 2012
Any application for development on any of the AHOZ would require a General Plan
Amendment, Town Code Text and Zoning Map Amendment, and a specific development
application, all subject to discretionary review by the Town Council.
H.O.U. 2.2 does provide an accelerated and more limited review prior to adoption of the AHOZ.
However, given that the Town is already developing the AHOZ and it is anticipated that those
standards will be developed prior to consideration of any specific land use applications not yet
submitted, staff is now reconunending the elimination of Section 2.2. Staff is optimistic this
deletion will be acceptable to the State given our progress on the AHOZ and likely consideration
and action during the months ahead.
Dittos Lane
Given the Town's ownership of the Dittos Lane property, the Town is not planning consideration
of any further development proposals for or disposition of the Dittos Lane site until 2013 or later,
following legislative interpretations, potential policy changes, and possible litigation resulting
from the recent dissolution of Redevelopment Agencies state wide. Any further action would
certainly have occurred after consideration of the potential Dittos Lane AHOZ. Nonetheless,
staff was anticipating that the Dittos Lane AHOZ would be at a density substantially less than 20
units to the acre to be compatible with the surrounding properties. However, given the Council
and public concerns raised to date, staff is now recormnending the deletion of Dittos Lane as one
of the AHOZ. Pursuant to Housing Element Action HOU 2.3, up to 32 affordable units
previously assigned to Dittos Lane would now need to be transferred to another AHOZ or
elsewhere in Town to maintain a certified State Housing Element. These transfers will be
considered during the further development of the AI-IOZ.
Specific responses to questions raised by Cameron Tulee and supported by several others:
P. 44 speaks of the Affordable Housing Overlay Zone. See comments on this section
(Referring to Housing Element Page 26):
1. As the Council is aware, State Housing Law prohibits a jurisdiction from requiring
discretionary review of nnilti- family uses in multi- family zone districts. In compliance with
State Law, the Housing Element proposes to remove the conditional use permit requirement
for the AHOZ sites, and Action HOU -6.6 calls for the Town to conduct a study to evaluate
whether the conditional use permit for multi - family uses in mrilti- family zone districts is a
constraint on housing development.
2. State planning densities for a suburban community in Santa Clara County is 20 units per acre.
The General Plan Committee is evaluating each of the AHOZ sites and determining the
appropriate densities to meet Housing Element objectives, while ensuring compatibility with
the surrounding neighborhood.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: 2007 to 2014 Housing Element
March 5, 2012
3. The Housing Element action item does not change the zoning of any properties. Any
potential rezones of the properties would be processed in accordance with State requirements
for noticing and public hearings.
4. The General Plan Committee is considering heights for each of the AHOZ sites, which may
or may not allow three stories. The height will be determined based on neighborhood
compatibility.
Mr. Tulee continents that on P. 149 (Page 6.3 of the Housing Element Technical Analysis),
Table 6 -1 "Available Land Inventory SLmunary" contains a chart with several potential
development sites with a Realistic Development Capacity column (in number of Units), and that
units projected for Dittos Lane project are too high. The Housing Element was drafted and first
approved in 2010, prior to the Dittos Lane affordable housing project that was terminated by
Council in mid- 2011.
Mr. Tulee's final points on the outdated language regarding the Dittos Lane property is
acknowledged and will be updated if the Town Council determines to leave the Dittos Lane
property in the Housing Element. He references Pages, 165, 159, 161 (e), 45 and 44. These are
pages 6.6, 6.13, and 6.15 (e) of the Housing Element Technical Appendix; and pages 27 and 28
of the Housing Element.
Finally, Mr. Tulee conmients on an apparent conflict between Action I- IOU -2.2 and Item No. 5
on the March 5 Town Council agenda. Staff concurs and would recommend modifying the
language from "as well as" to "or" to follow the new policy intent of Item 5 on the agenda.
However, this matter is moot if the Coturcil adopts staffs recommendation to delete Action
HOU -2.2 as previously discussed.
PAGES
MAYOR AND TOWN COUNCIL
SUBJECT: 2007 to 2014 Housing Element
March 5, 2012
Attachments
Received under separate cover
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
(rod -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
Received with this report
6. E -mail received from Cameron Tulee
From: Cameron Tulee < cameron @tulee.com
Date: Mon, 5 Mar 2012 01:37:11 -0800
To: "Stephen M. Rice" < srice@losgatosca.goy >, < bspector @losgatosca.gov >, < sleonardis @losgatosca.gov >,
< dmcnutt @losgatosca.gov >, < Ipirzynsl<i @losgatosca.gov
Subject: Town Council Meeting 5 March 2012 - Comments on consent Item #4 - Town Housing Element
Dear Council Members of the Town of Los Gatos,
The Housing Element as modified and presented for Consent is missing some key edits and I'm asking you to please remove it
from Consent and not approve it (sending it back to Staff for more edits). All page numbers listed below are based on the Staff
report.
1. P. 44 speaks of the Affordable Housing Overlay Zone. Some comments on this section:
1. The redlines appear to take away additional town or public reviews by adding the phrase "by right, without
discretionary review'. Please remove or modify these words so the town and the public can retain review of all town
projects (AHOZ or not).
2. The redlines also add the density of 20 units per acre as a minimum Please remove the minimum as arbitrary
minimums don't take into account a specific lands viability. Each project should be evaluated individually in order to
determine that property's development capacity.
3. The paragraph also appears to automatically change the zoning of lots identified later in the document in the
Available Land Inventory Summary to add the AHOZ— without review. Please remove this sentence and allow the
public and council to review whether to add the overlay zone on each property individually.
4. It also adds that the height be allowed to be at least 3 stories. Similar to 20 units /acre minimum — not all projects are
well suited for that height so please remove this modification. Again each project should be evaluated individually.
1. P. 149, Table 6 -1 "Available Land Inventory Summary' contains a chart with several potential development sites with
a Realistic Development Capacity column (in number of Units). The number of units listed for Dittos Lane is too high
as evidenced by the plans that were rejected by the Planning Commission last year which were too high a density for
that property. I'm asking you to either reduce this number for Dittos Lane to a more realistic value for this
constrained property AND /OR amend the text to explain where the numbers came from. The problem we
encountered with the prior Dittos project was that the Housing Element density number was used as a basis for the
proposed density so it is important that this number be as realistic as possible. Please take into account the history of
this property and reduce the number listed for Dittos Lane to a more realistic number. Another possibility — if the
AHOZ minimum constraints (P.44) aren't modified (for whatever reason) then Dittos Lane should no longer be listed
in this Available Land Inventory Summery and thus wouldn't be added as an AHOZ. This would prevent a future
project on this site from being forced into a density that the land cannot support. In addition P. 177 has a similar chart
& P. 154 mentions the number 32 for Dittos Lane units.
2. On P. 153, the description of the Dittos Lane project is out -dated as it still says buildings exist on the property. Also,
the statement that the realistic development capacity would NOT be reduced is inaccurate given the history of the
prior failed project and the recommendation of the Planning Commission. This history is critical for any potential
future development on the site.
3. P. 165 -F. - Development constraints sentence is incorrect— Dittos Lane has access / egress issues.
4. P. 159 (bottom) —Add Special Fire zone for Dittos Lane — Wild Land Urban Interface Fire Threat Area.
S. P. 161 e. —This section needs to mention the Cultural resource at Dittos Land (Historic Wall)
6. P. 45 Action HOU -2.2 is in conflict with Staff recommendations for consent item #5
7. P. 44 bottom of page— It should say the new Successor agency (The agency listed no longer exists)
In summary, I urge you to not approve the Housing Element in its current state and send it back to Staff for additional
edits.
Thank You,
Cameron Tulee ATTAcMcM 6
120 College Terrace Unit L