Attachment 1 April 8 PC ReportTOWN OF LOS GATOS
PLANNING COMMISSION STAFF REPORT
Meeting Date: April 8, 2015
PREPARED BY: Laurel Prevetti, Assistant Town Manager/
Community Development Director
1prevetti @losgatosca.gov
APPLICATION NO: General Plan Amendment Application GP -14 -002
ITEM NO: 2
SUMMARY: Public Hearing to review and provide a recommendation to the Town
Council regarding the 2015 -2023 Housing Element.
RECOMMENDATION: Recommend to the Town Council that it adopt the Housing Element,
associated General Plan Amendment Application GP -14 -002, and
Addendum to the General Plan Final EIR; and consider the other
recommendations of the Housing Element Advisory Board.
CEQA:
ACTION:
EXHIBITS:
BACKGROUND:
Addendum to the 2020 General Plan Final Environmental Impact Report
(EIR)
Recommend to the Town Council that it:
Adopt the Housing Element, associated General Plan Amendment
Application GP -14 -002, and Addendum to the General Plan Final
EIR; and
2. Consider the other recommendations from the Housing Element
Advisory Board.
1. Draft 2015 -2023 Housing Element
2 Addendum to the General Plan Final EIR
What is the Housing Element?
Under California law, the Housing Element is one of the required elements of the General Plan.
Unlike other elements, the Housing Element is updated on a specific schedule set by legislation.
State law requires that all Bay Area communities adopt an update Housing Element by May 31,
2015. If a community fails to do so, it is required to update its Housing Element every four years
instead of the typical eight year cycle.
After adoption, the California Department of Housing and Community Development (HCD)
determines if each city and county has prepared their Housing Element in conformance with State
law. If HCD determines that the Housing Element is in compliance, then it is "certified" by HCD,
ATTACHMENT;1
Planning Commission Staff Report - Page 2
2015 -2023 Housing Element
April 8, 2015
enabling the community to be eligible for grants and /or infrastructure funding. The public hearing
draft of the 2015 -2023 Housing Element is contained in Exhibit 1.
All cities and counties in California are given housing targets for the planning period of the Housing
Element known as the Regional Housing Need Allocation (RHNA) numbers. Through a
methodology that is adopted by the Association of Bay Area Governments (ABAG), each city and
county in the Bay region received its fair share allocation for very low, low, moderate, and above
moderate income housing. Table 1 below provides the income ranges for each category and sample
occupations for Santa Clara County.
Table 1: Income Categories and Sample Occupations, Santa Clara County
< 50% Area i Bank Teller, Preschool Teacher,
Very Low Median Income $53,030 Nome Health Aide, Restaurant
(AMI) Cook
Low 51 -80 %AMI $84,900
Moderate 81- 120 %AMI $126,600
Above >120'YoAMI Over $126,600
Moderate
Real Estate Agent, Social Worker,
Fire Dispatcher
Optometrist, Police Officer,
Electrical Engineer
Physician, Aerospace Engineer
The Town's Regional Housing Need Allocation for the 2015 — 2023 planning period is 619 housing
units distributed across the income categories as shown in Table 2.
Table 2: Town of Los Gatos Regional Housing Need Allocation for 2015 — 2023
Very Low, Yw '- 201
112
Low
Moderate
1
174
Above Moderate
The Housing Element is required to identify specific properties that are planned to accommodate
the RHNA during the planning period. The Housing Element must also contain an assessment of
Planning Commission Staff Report - Page 3
2015 -2023 Housing Element
April 8, 2015
the housing needs of a community, identify potential barriers to housing production, and describe
specific goals, policies, and programs to eliminate barriers and facilitate housing production on the
planned sites.
DISCUSSION:
Public Process for Preparing the Housing Element
The Town Council appointed a Housing Element Advisory Board (HEAB) to assist in the
preparation of the Housing Element. The Board consisted of the General Plan Committee (GPC)
and four members of the community. Former Planning Commissioner and current Council Member
Sayoc served as chair and Mayor Jensen as Vice Chair. Because its work overlapped Town Council
and Planning Commission terms and their respective membership to the GPC, the Board had some
membership changes early in 2015 with Commissioner Talesfore being added and Vice Mayor
Spector leaving the HEAB.
All other members were the same even though their affiliation changed. For example, Council
Member Sayoc replaced Vice Mayor Spector on the GPC; Commissioner Hanssen was appointed to
the GPC (freeing up a community member seat); and former Chair Smith switched to serving as one
of the community members. Commissioner Erekson remained on the General Plan Committee and
served the entire time on the HEAB. The other community members were Maria Ristow, Jeff
Loughridge, and John Bourgeois.
The HEAB provided an important opportunity for the public to participate in the Housing Element
process. All meetings were held in the evening and the public was provided opportunities to present
information and viewpoints to the HEAB for its consideration.
Adequate Sites to Meet the Housing Need
The HEAB worked with staff to identify sites to meet the RHNA as well as review drafts of the
Housing Element. In June 2014, the HEAB decided to satisfy the RHNA primarily with existing
Affordable Housing Overlay Zone (AHOZ) sites (see Table 3). These sites formed the basis of the
draft Housing Element that was provided to the Planning Commission in late August 2014 and
Council in early September, and was formally submitted to the California Department of Housing
and Community Development (HCD) in September for its review.
After receiving comments from HCD in November, the HEAB had extensive discussions regarding
density bonuses, by right development, and other technical issues, resulting in the selection of a
different set of sites to accommodate the RHNA with the North 40 Specific Plan playing a larger
role (see Table 4). On March 5, 2015, a majority of the HEAB voted to recommend adoption of the
Housing Element, with some additional changes, to the Planning Commission and Town Council
(Smith and Hudes opposed).
Planning Commission Staff Report - Page 4
2015 -2023 Housing Element
April 8, 2015
Table 3: Housing Element Advisory Board Initial Options to Meet RHNA (June 2014)
Table 4: Housing Element Advisory Board Final Options to Meet RHNA (March 2015)
Very
Low
Low
Mod.
Above
Total
RHNA — Total Units Needed (2015 -2023)
Low
112
132
174
619
RHNA —Total Units Needed (2015 -2023)
201
112
132
174
619
Approved Units
0
0
2
14
16
Existing Affordable Housing Overlay
144
86
112
86
428
Zoning Sites (AHOZ)
0
27
0
0
27
Second Units Under the Town's Existing
0
0
28
0
28
Program
0
0
0
99
99
Proposed Enhanced Second Unit Program:
0
27
0
0
27
Non - Conforming Lots & Hillside Lots
+1
+1
0
0
+2
Proposed North 40 Specific Plan
57
0
0
0
57
Vacant Housing Element Sites
0
0
0
74
74
Oka Road Sites
Total Units
201
113
142
174
630
Units Above RHNA
0
+1
+10
0
+11
Table 4: Housing Element Advisory Board Final Options to Meet RHNA (March 2015)
Very
Low
Low
Mod.
Mode
Total
RHNA — Total Units Needed (2015 -2023)
201
112
132
174
619
Approved Units
0
2
6
49
57
Oak Rim/N. Blossom Hill (AHOZ)
46
0
0
0
46
Second Units under the Town's Existing
Program
0
0
28
0
28
Proposed Enhanced Second Unit Program:
Non - Conforming Lots & Hillside Lots
0
27
0
0
27
Proposed North 40 Specific Plan
156
84
98
26
364
Vacant Housing Element Sites (based on
existing zoning): Oka Road Sites
0
0
0
99
99
Total Units
202
113
132
174
621
Units Above RHNA
+1
+1
0
0
+2
Planning Commission Staff Report - Page 5
2015 -2023 Housing Element
April 8, 2015
Proposed Pro2rams to Reduce or Eliminate Barriers
The Housing Element is required to identify specific programs to reduce or eliminate barriers to the
construction of housing. Based on the comments from HCD, the Housing Element includes several
programs to meet State law and to facilitate housing on the RHNA sites. Among the programs are:
• Modify the Town Code to change the affordability requirements for the Oak Rim/N.
Blossom Hill AHOZ site to a minimum of 40 percent low and very low income units.
• Amend the Town Code to add findings for by -right development.
• Adopt the North 40 Specific Plan and rezone 18.2 acres at a minimum density of 20 units
per acre to yield 364 units.
• Amend the Town Code to provide for an enhanced second unit program.
Additional Information
As discussed at the Planning Commission Study Session regarding the Housing Element on March
25, 2015, the HEAB considered a wide range of information as it formulated its decisions regarding
adequate sites and programs. All HEAB materials, including redlined versions of the draft Housing
Element, are posted to the Town's website:
http://ca-losgatos2.civicylus.com/DocumentCenter/Index/412
Other HEAB Recommendations
In addition to the recommendation on the Housing Element, the HEAB identified four topics for
future Town Council consideration (perhaps during the annual Strategic Goals discussion or future
General Plan Update):
• Complete an assessment of the needs for housing for households earning between 120 and
200% of County median income (i.e., "workforce" or entry level housing) and determine
policies, potential Code changes, and programs to meet this need.
• Evaluate the Town's requirements under State law to provide housing near planned transit
stations, even if the stations are not expected for 35 years.
• Examine the jobs/housing balance in the Town and identify actions to address any concerns.
• Expand the AHOZ design guidelines to include multi - family residential or be designated as
multi - family residential guidelines so that they may apply to other appropriate buildings
sites.
The HEAB also discussed the possibility of retaining a community forum to discuss housing issues,
and acknowledged that the existing General Plan Committee serves this function. The HEAB also
considered identifying potential replacement sites if one of the RHNA sites does not yield the
Planning Commission Staff Report - Page 6
2015 -2023 Housing Element
April 8, 2015
planned level of housing. After much discussion, the HEAB decided that the Town would address
this situation if and when it occurs.
ENVIRONMENTAL REVIEW:
An Addendum to the General Plan Final EIR has been prepared that describes the 2015 -2023
Housing Element and evaluates the changes to the project that have occurred since the General Plan
Final EIR was certified in September 2010 (see Exhibit 2). There are no significant impacts
associated with the proposed Housing Element.
SUMMARY AND RECOMMENDATION:
Given the work completed by the HEAB to consider a variety of complex issues associated with the
Housing Element, staff recommends that the Planning Commission recommend that the Town
Council adopt the Housing Element, associated General Plan Amendment Application GP -14 -002,
and Addendum to the General Plan Final EIR. Staff also recommends forwarding the HEAB's
other recommendations to the Town Council. The Planning Commission may have additional
recommendations for Council consideration.
Prepared and Approved by:
Laurel R. Prevetti,
Assistant Town Manager/
Director of Community Development
LRP:cg
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