Attachment 1 - March 30, 2016_Exhibits 17- 21GOVERNMENT CODE
SECTION 65915-65918
65915. (a) When an applicant seeks a density bonus for a housing
development within, or for the donation of land for housing within,
the jurisdiction of a city, county, or city and county, that local
government shall provide the applicant with incentives or concessions
for the production of housing units and child care facilities as
prescribed in this section. All cities, counties, or cities and
counties shall adopt an ordinance that specifies how compliance with
this section will be implemented. Failure to adopt an ordinance shall
not relieve a city, county, or city and county from complying with
this section.
(b) (1) A city, county, or city and county shall grant one density
bonus, the amount of which shall be as specified in subdivision (f),
and incentives or concessions, as described in subdivision (d), when
an applicant for a housing development seeks and agrees to construct
a housing development, excluding any units permitted by the density
bonus awarded pursuant to this section, that will contain at least
any one of the following:
(A) Ten percent of the total units of a housing development for
lower income households, as defined in Section 50079.5 of the Health
and Safety Code.
(B) Five percent of the total units of a housing development for
very low income households, as defined in Section 50105 of the Health
and Safety Code.
(C) A senior citizen housing development, as defined in Sections
51.3 and 51.12 of the Civil Code, or a mobilehome park that limits
residency based on age requirements for housing for older persons
pursuant to Section 798.76 or 799.5 of the Civil Code.
(D) Ten percent of the total dwelling units in a common interest
development, as defined in Section 4100 of the Civil Code, for
persons and families of moderate income, as defined in Section 50093
of the Health and Safety Code, provided that all units in the
development are offered to the public for purchase.
(2) For purposes of calculating the amount of the density bonus
pursuant to subdivision (f), an applicant who requests a density
bonus pursuant to this subdivision shall elect whether the bonus
shall be awarded on the basis of subparagraph (A), (B), (C), or (D)
of paragraph (1).
(3) For the purposes of this section, "total units" or "total
dwelling units" does not include units added by a density bonus
awarded pursuant to this section or any local law granting a greater
density bonus.
(c) (1) An applicant shall agree to, and the city, county, or city
and county shall ensure, the continued affordability of all very low
and low-income rental units that qualified the applicant for the
award of the density bonus for 55 years or a longer period of time if
required by the construction or mortgage financing assistance
program, mortgage insurance program, or rental subsidy program. Rents
for the lower income density bonus units shall be set at an
affordable rent as defined in Section 50053 of the Health and Safety
Code.
(2) An applicant shall agree to, and the city, county, or city and
county shall ensure that, the initial occupant of all for-sale units
that qualified the applicant for the award of the density bonus are
persons and families of very low, low, or moderate income, as
required, and that the units are offered at an affordable housing
cost, as that cost is defined in Section 50052.5 of the Health and
Safety Code. The local government shall enforce an equity sharing
agreement, unless it is in conflict with the requirements of another
public funding source or law. The following apply to the equity
sharing agreement:
(A) Upon resale, the seller of the unit shall retain the value of
any improvements, the downpayment, and the seller's proportionate
share of appreciation. The local government shall recapture any
initial subsidy, as defined in subparagraph (B), and its
proportionate share of appreciation, as defined in subparagraph (C),
which amount shall be used within five years for any of the purposes
described in subdivision (e) of Section 33334.2 of the Health and
Safety Code that promote home ownership.
(B) For purposes of this subdivision, the local government's
initial subsidy shall be equal to the fair market value of the home
at the time of initial sale minus the initial sale price to the
moderate-income household, plus the amount of any downpayment
assistance or mortgage assistance. If upon resale the market value is
lower than the initial market value, then the value at the time of
the resale shall be used as the initial market value.
(C) For purposes of this subdivision, the local government's
proportionate share of appreciation shall be equal to the ratio of
the local government's initial subsidy to the fair market value of
the home at the time of initial sale.
(3) (A) An applicant shall be ineligible for a density bonus or
any other incentives or concessions under this section if the housing
development is proposed on any property that includes a parcel or
parcels on which rental dwelling units are or, if the dwelling units
have been vacated or demolished in the five-year period preceding the
application, have been subject to a recorded covenant, ordinance, or
law that restricts rents to levels affordable to persons and
families of lower or very low income; subject to any other form of
rent or price control through a public entity's valid exercise of its
police power; or occupied by lower or very low income households,
unless the proposed housing development replaces those units, and
either of the following applies:
(i) The proposed housing development, inclusive of the units
replaced pursuant to this paragraph, contains affordable units at the
percentages set forth in subdivision (b).
(ii) Each unit in the development, exclusive of a manager's unit
or units, is affordable to, and occupied by, either a lower or very
low income household.
(B) For the purposes of this paragraph, "replace" shall mean
either of the following:
(i) If any dwelling units described in subparagraph (A) are
occupied on the date of application, the proposed housing development
shall provide at least the same number of units of equivalent size
or type, or both, to be made available at affordable rent or
affordable housing cost to, and occupied by, persons and families in
the same or lower income category as those households in occupancy.
For unoccupied dwelling units described in subparagraph (A) in a
development with occupied units, the proposed housing development
shall provide units of equivalent size or type, or both, to be made
available at affordable rent or affordable housing cost to, and
occupied by, persons and families in the same or lower income
category in the same proportion of affordability as the occupied
units. All replacement calculations resulting in fractional units
shall be rounded up to the next whole number. If the replacement
units will be rental dwelling units, these units shall be subject to
a recorded affordability restriction for at least 55 years. If the
proposed development is for-sale units, the units replaced shall be
subject to paragraph (2).
(ii) If all dwelling units described in subparagraph (A) have been
vacated or demolished within the five-year period preceding the
application, the proposed housing development shall provide at least
the same number of units of equivalent size or type, or both, as
existed at the highpoint of those units in the five-year period
preceding the application to be made available at affordable rent or
affordable housing cost to, and occupied by, persons and families in
the same or lower income category as those persons and families in
occupancy at that time, if known. If the incomes of the persons and
families in occupancy at the highpoint is not known, then one-half of
the required units shall be made available at affordable rent or
affordable housing cost to, and occupied by, very low income persons
and families and one-half of the required units shall be made
available for rent at affordable housing costs to, and occupied by,
low-income persons and families. All replacement calculations
resulting in fractional units shall be rounded up to the next whole
number. If the replacement units will be rental dwelling units, these
units shall be subject to a recorded affordability restriction for
at least 55 years. If the proposed development is for-sale units, the
units replaced shall be subject to paragraph (2).
(C) Paragraph (3) of subdivision (c) does not apply to an
applicant seeking a density bonus for a proposed housing development
if his or her application was submitted to, or processed by, a city,
county, or city and county before January 1, 2015.
(d) (1) An applicant for a density bonus pursuant to subdivision
(b) may submit to a city, county, or city and county a proposal for
the specific incentives or concessions that the applicant requests
pursuant to this section, and may request a meeting with the city,
county, or city and county. The city, county, or city and county
shall grant the concession or incentive requested by the applicant
unless the city, county, or city and county makes a written finding,
based upon substantial evidence, of any of the following:
(A) The concession or incentive is not required in order to
provide for affordable housing costs, as defined in Section 50052.5
of the Health and Safety Code, or for rents for the targeted units to
be set as specified in subdivision (c).
(B) The concession or incentive would have a specific adverse
impact, as defined in paragraph (2) of subdivision (d) of Section
65589.5, upon public health and safety or the physical environment or
on any real property that is listed in the California Register of
Historical Resources and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact without
rendering the development unaffordable to low- and moderate-income
households.
(C) The concession or incentive would be contrary to state or
federal law.
(2) The applicant shall receive the following number of incentives
or concessions:
(A) One incentive or concession for projects that include at least
10 percent of the total units for lower income households, at least
5 percent for very low income households, or at least 10 percent for
persons and families of moderate income in a common interest
development.
(B) Two incentives or concessions for projects that include at
least 20 percent of the total units for lower income households, at
least 10 percent for very low income households, or at least 20
percent for persons and families of moderate income in a common
interest development.
(C) Three incentives or concessions for projects that include at
least 30 percent of the total units for lower income households, at
least 15 percent for very low income households, or at least 30
percent for persons and families of moderate income in a common
interest development.
(3) The applicant may initiate judicial proceedings if the city,
county, or city and county refuses to grant a requested density
bonus, incentive, or concession. If a court finds that the refusal to
grant a requested density bonus, incentive, or concession is in
violation of this section, the court shall award the plaintiff
reasonable attorney's fees and costs of suit. Nothing in this
subdivision shall be interpreted to require a local government to
grant an incentive or concession that has a specific, adverse impact,
as defined in paragraph (2) of subdivision (d) of Section 65589.5,
upon health, safety, or the physical environment, and for which there
is no feasible method to satisfactorily mitigate or avoid the
specific adverse impact. Nothing in this subdivision shall be
interpreted to require a local government to grant an incentive or
concession that would have an adverse impact on any real property
that is listed in the California Register of Historical Resources.
The city, county, or city and county shall establish procedures for
carrying out this section, that shall include legislative body
approval of the means of compliance with this section.
(e) (1) In no case may a city, county, or city and county apply
any development standard that will have the effect of physically
precluding the construction of a development meeting the criteria of
subdivision (b) at the densities or with the concessions or
incentives permitted by this section. An applicant may submit to a
city, county, or city and county a proposal for the waiver or
reduction of development standards that will have the effect of
physically precluding the construction of a development meeting the
criteria of subdivision (b) at the densities or with the concessions
or incentives permitted under this section, and may request a meeting
with the city, county, or city and county. If a court finds that the
refusal to grant a waiver or reduction of development standards is
in violation of this section, the court shall award the plaintiff
reasonable attorney's fees and costs of suit. Nothing in this
subdivision shall be interpreted to require a local government to
waive or reduce development standards if the waiver or reduction
would have a specific, adverse impact, as defined in paragraph (2) of
subdivision (d) of Section 65589.5, upon health, safety, or the
physical environment, and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact. Nothing
in this subdivision shall be interpreted to require a local
government to waive or reduce development standards that would have
an adverse impact on any real property that is listed in the
California Register of Historical Resources, or to grant any waiver
or reduction that would be contrary to state or federal law.
(2) A proposal for the waiver or reduction of development
standards pursuant to this subdivision shall neither reduce nor
increase the number of incentives or concessions to which the
applicant is entitled pursuant to subdivision (d).
(f) For the purposes of this chapter, "density bonus" means a
density increase over the otherwise maximum allowable residential
density as of the date of application by the applicant to the city,
county, or city and county. The applicant may elect to accept a
lesser percentage of density bonus. The amount of density bonus to
which the applicant is entitled shall vary according to the amount by
which the percentage of affordable housing units exceeds the
percentage established in subdivision (b).
(1) For housing developments meeting the criteria of subparagraph
(A) of paragraph (1) of subdivision (b), the density bonus shall be
calculated as follows:
Percentage Low-Income Units Percentage
Density Bonus
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
17 30.5
18 32
19 33.5
20 35
(2) For housing developments meeting the criteria of subparagraph
(B) of paragraph (1) of subdivision (b), the density bonus shall be
calculated as follows:
Percentage Very Low Percentage Density Bonus
Income Units
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
(3) For housing developments meeting the criteria of subparagraph
(C) of paragraph (1) of subdivision (b), the density bonus shall be
20 percent of the number of senior housing units.
(4) For housing developments meeting the criteria of subparagraph
(D) of paragraph (1) of subdivision (b), the density bonus shall be
calculated as follows:
Percentage Moderate- Percentage Density Bonus
Income Units
10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
(5) All density calculations resulting in fractional units shall
be rounded up to the next whole number. The granting of a density
bonus shall not be interpreted, in and of itself, to require a
general plan amendment, local coastal plan amendment, zoning change,
or other discretionary approval.
(g) (1) When an applicant for a tentative subdivision map, parcel
map, or other residential development approval donates land to a
city, county, or city and county in accordance with this subdivision,
the applicant shall be entitled to a 15-percent increase above the
otherwise maximum allowable residential density for the entire
development, as follows:
Percentage Very Low Percentage
Income Density Bonus
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
28 33
29 34
30 35
(2) This increase shall be in addition to any increase in density
mandated by subdivision (b), up to a maximum combined mandated
density increase of 35 percent if an applicant seeks an increase
pursuant to both this subdivision and subdivision (b). All density
calculations resulting in fractional units shall be rounded up to the
next whole number. Nothing in this subdivision shall be construed to
enlarge or diminish the authority of a city, county, or city and
county to require a developer to donate land as a condition of
development. An applicant shall be eligible for the increased density
bonus described in this subdivision if all of the following
conditions are met:
(A) The applicant donates and transfers the land no later than the
date of approval of the final subdivision map, parcel map, or
residential development application.
(B) The developable acreage and zoning classification of the land
being transferred are sufficient to permit construction of units
affordable to very low income households in an amount not less than
10 percent of the number of residential units of the proposed
development.
(C) The transferred land is at least one acre in size or of
sufficient size to permit development of at least 40 units, has the
appropriate general plan designation, is appropriately zoned with
appropriate development standards for development at the density
described in paragraph (3) of subdivision (c) of Section 65583.2, and
is or will be served by adequate public facilities and
infrastructure.
(D) The transferred land shall have all of the permits and
approvals, other than building permits, necessary for the development
of the very low income housing units on the transferred land, not
later than the date of approval of the final subdivision map, parcel
map, or residential development application, except that the local
government may subject the proposed development to subsequent design
review to the extent authorized by subdivision (i) of Section 65583.2
if the design is not reviewed by the local government prior to the
time of transfer.
(E) The transferred land and the affordable units shall be subject
to a deed restriction ensuring continued affordability of the units
consistent with paragraphs (1) and (2) of subdivision (c), which
shall be recorded on the property at the time of the transfer.
(F) The land is transferred to the local agency or to a housing
developer approved by the local agency. The local agency may require
the applicant to identify and transfer the land to the developer.
(G) The transferred land shall be within the boundary of the
proposed development or, if the local agency agrees, within
one-quarter mile of the boundary of the proposed development.
(H) A proposed source of funding for the very low income units
shall be identified not later than the date of approval of the final
subdivision map, parcel map, or residential development application.
(h) (1) When an applicant proposes to construct a housing
development that conforms to the requirements of subdivision (b) and
includes a child care facility that will be located on the premises
of, as part of, or adjacent to, the project, the city, county, or
city and county shall grant either of the following:
(A) An additional density bonus that is an amount of square feet
of residential space that is equal to or greater than the amount of
square feet in the child care facility.
(B) An additional concession or incentive that contributes
significantly to the economic feasibility of the construction of the
child care facility.
(2) The city, county, or city and county shall require, as a
condition of approving the housing development, that the following
occur:
(A) The child care facility shall remain in operation for a period
of time that is as long as or longer than the period of time during
which the density bonus units are required to remain affordable
pursuant to subdivision (c).
(B) Of the children who attend the child care facility, the
children of very low income households, lower income households, or
families of moderate income shall equal a percentage that is equal to
or greater than the percentage of dwelling units that are required
for very low income households, lower income households, or families
of moderate income pursuant to subdivision (b).
(3) Notwithstanding any requirement of this subdivision, a city,
county, or city and county shall not be required to provide a density
bonus or concession for a child care facility if it finds, based
upon substantial evidence, that the community has adequate child care
facilities.
(4) "Child care facility," as used in this section, means a child
day care facility other than a family day care home, including, but
not limited to, infant centers, preschools, extended day care
facilities, and schoolage child care centers.
(i) "Housing development," as used in this section, means a
development project for five or more residential units. For the
purposes of this section, "housing development" also includes a
subdivision or common interest development, as defined in Section
4100 of the Civil Code, approved by a city, county, or city and
county and consists of residential units or unimproved residential
lots and either a project to substantially rehabilitate and convert
an existing commercial building to residential use or the substantial
rehabilitation of an existing multifamily dwelling, as defined in
subdivision (d) of Section 65863.4, where the result of the
rehabilitation would be a net increase in available residential
units. For the purpose of calculating a density bonus, the
residential units shall be on contiguous sites that are the subject
of one development application, but do not have to be based upon
individual subdivision maps or parcels. The density bonus shall be
permitted in geographic areas of the housing development other than
the areas where the units for the lower income households are
located.
(j) (1) The granting of a concession or incentive shall not be
interpreted, in and of itself, to require a general plan amendment,
local coastal plan amendment, zoning change, or other discretionary
approval. This provision is declaratory of existing law.
(2) Except as provided in subdivisions (d) and (e), the granting
of a density bonus shall not be interpreted to require the waiver of
a local ordinance or provisions of a local ordinance unrelated to
development standards.
(k) For the purposes of this chapter, concession or incentive
means any of the following:
(1) A reduction in site development standards or a modification of
zoning code requirements or architectural design requirements that
exceed the minimum building standards approved by the California
Building Standards Commission as provided in Part 2.5 (commencing
with Section 18901) of Division 13 of the Health and Safety Code,
including, but not limited to, a reduction in setback and square
footage requirements and in the ratio of vehicular parking spaces
that would otherwise
be required that results in identifiable, financially
sufficient, and actual cost reductions.
(2) Approval of mixed-use zoning in conjunction with the housing
project if commercial, office, industrial, or other land uses will
reduce the cost of the housing development and if the commercial,
office, industrial, or other land uses are compatible with the
housing project and the existing or planned development in the area
where the proposed housing project will be located.
(3) Other regulatory incentives or concessions proposed by the
developer or the city, county, or city and county that result in
identifiable, financially sufficient, and actual cost reductions.
(l) Subdivision (k) does not limit or require the provision of
direct financial incentives for the housing development, including
the provision of publicly owned land, by the city, county, or city
and county, or the waiver of fees or dedication requirements.
(m) This section does not supersede or in any way alter or lessen
the effect or application of the California Coastal Act of 1976
(Division 20 (commencing with Section 30000) of the Public Resources
Code).
(n) If permitted by local ordinance, nothing in this section shall
be construed to prohibit a city, county, or city and county from
granting a density bonus greater than what is described in this
section for a development that meets the requirements of this section
or from granting a proportionately lower density bonus than what is
required by this section for developments that do not meet the
requirements of this section.
(o) For purposes of this section, the following definitions shall
apply:
(1) "Development standard" includes a site or construction
condition, including, but not limited to, a height limitation, a
setback requirement, a floor area ratio, an onsite open-space
requirement, or a parking ratio that applies to a residential
development pursuant to any ordinance, general plan element, specific
plan, charter, or other local condition, law, policy, resolution, or
regulation.
(2) "Maximum allowable residential density" means the density
allowed under the zoning ordinance and land use element of the
general plan, or if a range of density is permitted, means the
maximum allowable density for the specific zoning range and land use
element of the general plan applicable to the project. Where the
density allowed under the zoning ordinance is inconsistent with the
density allowed under the land use element of the general plan, the
general plan density shall prevail.
(p) (1) Except as provided in paragraphs (2) and (3), upon the
request of the developer, a city, county, or city and county shall
not require a vehicular parking ratio, inclusive of handicapped and
guest parking, of a development meeting the criteria of subdivisions
(b) and (c), that exceeds the following ratios:
(A) Zero to one bedroom: one onsite parking space.
(B) Two to three bedrooms: two onsite parking spaces.
(C) Four and more bedrooms: two and one-half parking spaces.
(2) Notwithstanding paragraph (1), if a development includes the
maximum percentage of low- or very low income units provided for in
paragraphs (1) and (2) of subdivision (f) and is located within
one-half mile of a major transit stop, as defined in subdivision (b)
of Section 21155 of the Public Resources Code, and there is
unobstructed access to the major transit stop from the development,
then, upon the request of the developer, a city, county, or city and
county shall not impose a vehicular parking ratio, inclusive of
handicapped and guest parking, that exceeds 0.5 spaces per bedroom.
For purposes of this subdivision, a development shall have
unobstructed access to a major transit stop if a resident is able to
access the major transit stop without encountering natural or
constructed impediments.
(3) Notwithstanding paragraph (1), if a development consists
solely of rental units, exclusive of a manager's unit or units, with
an affordable housing cost to lower income families, as provided in
Section 50052.5 of the Health and Safety Code, then, upon the request
of the developer, a city, county, or city and county shall not
impose a vehicular parking ratio, inclusive of handicapped and guest
parking, that exceeds the following ratios:
(A) If the development is located within one-half mile of a major
transit stop, as defined in subdivision (b) of Section 21155 of the
Public Resources Code, and there is unobstructed access to the major
transit stop from the development, the ratio shall not exceed 0.5
spaces per unit.
(B) If the development is a for-rent housing development for
individuals who are 62 years of age or older that complies with
Sections 51.2 and 51.3 of the Civil Code, the ratio shall not exceed
0.5 spaces per unit. The development shall have either paratransit
service or unobstructed access, within one-half mile, to fixed bus
route service that operates at least eight times per day.
(C) If the development is a special needs housing development, as
defined in Section 51312 of the Health and Safety Code, the ratio
shall not exceed 0.3 spaces per unit. The development shall have
either paratransit service or unobstructed access, within one-half
mile, to fixed bus route service that operates at least eight times
per day.
(4) If the total number of parking spaces required for a
development is other than a whole number, the number shall be rounded
up to the next whole number. For purposes of this subdivision, a
development may provide on-site parking through tandem parking or
uncovered parking, but not through on-street parking.
(5) This subdivision shall apply to a development that meets the
requirements of subdivisions (b) and (c), but only at the request of
the applicant. An applicant may request parking incentives or
concessions beyond those provided in this subdivision pursuant to
subdivision (d).
(6) This subdivision does not preclude a city, county, or city and
county from reducing or eliminating a parking requirement for
development projects of any type in any location.
(7) Notwithstanding paragraphs (2) and (3), if a city, county,
city and county, or an independent consultant has conducted an
areawide or jurisdictionwide parking study in the last seven years,
then the city, county, or city and county may impose a higher
vehicular parking ratio not to exceed the ratio described in
paragraph (1), based upon substantial evidence found in the parking
study, that includes, but is not limited to, an analysis of parking
availability, differing levels of transit access, walkability access
to transit services, the potential for shared parking, the effect of
parking requirements on the cost of market-rate and subsidized
developments, and the lower rates of car ownership for low- and very
low income individuals, including seniors and special needs
individuals. The city, county, or city and county shall pay the costs
of any new study. The city, county, or city and county shall make
findings, based on a parking study completed in conformity with this
paragraph, supporting the need for the higher parking ratio.
65915.5. (a) When an applicant for approval to convert apartments
to a condominium project agrees to provide at least 33 percent of the
total units of the proposed condominium project to persons and
families of low or moderate income as defined in Section 50093 of the
Health and Safety Code, or 15 percent of the total units of the
proposed condominium project to lower income households as defined in
Section 50079.5 of the Health and Safety Code, and agrees to pay for
the reasonably necessary administrative costs incurred by a city,
county, or city and county pursuant to this section, the city,
county, or city and county shall either (1) grant a density bonus or
(2) provide other incentives of equivalent financial value. A city,
county, or city and county may place such reasonable conditions on
the granting of a density bonus or other incentives of equivalent
financial value as it finds appropriate, including, but not limited
to, conditions which assure continued affordability of units to
subsequent purchasers who are persons and families of low and
moderate income or lower income households.
(b) For purposes of this section, "density bonus" means an
increase in units of 25 percent over the number of apartments, to be
provided within the existing structure or structures proposed for
conversion.
(c) For purposes of this section, "other incentives of equivalent
financial value" shall not be construed to require a city, county, or
city and county to provide cash transfer payments or other monetary
compensation but may include the reduction or waiver of requirements
which the city, county, or city and county might otherwise apply as
conditions of conversion approval.
(d) An applicant for approval to convert apartments to a
condominium project may submit to a city, county, or city and county
a preliminary proposal pursuant to this section prior to the
submittal of any formal requests for subdivision map approvals. The
city, county, or city and county shall, within 90 days of receipt of
a written proposal, notify the applicant in writing of the manner in
which it will comply with this section. The city, county, or city and
county shall establish procedures for carrying out this section,
which shall include legislative body approval of the means of
compliance with this section.
(e) Nothing in this section shall be construed to require a city,
county, or city and county to approve a proposal to convert
apartments to condominiums.
(f) An applicant shall be ineligible for a density bonus or other
incentives under this section if the apartments proposed for
conversion constitute a housing development for which a density bonus
or other incentives were provided under Section 65915.
(g) An applicant shall be ineligible for a density bonus or any
other incentives or concessions under this section if the condominium
project is proposed on any property that includes a parcel or
parcels on which rental dwelling units are or, if the dwelling units
have been vacated or demolished in the five-year period preceding the
application, have been subject to a recorded covenant, ordinance, or
law that restricts rents to levels affordable to persons and
families of lower or very low income; subject to any other form of
rent or price control through a public entity's valid exercise of its
police power; or occupied by lower or very low income households,
unless the proposed condominium project replaces those units, as
defined in subparagraph (B) of paragraph (3) of subdivision (c) of
Section 65915, and either of the following applies:
(1) The proposed condominium project, inclusive of the units
replaced pursuant to subparagraph (B) of paragraph (3) of subdivision
(c) of Section 65915, contains affordable units at the percentages
set forth in subdivision (a).
(2) Each unit in the development, exclusive of a manager's unit or
units, is affordable to, and occupied by, either a lower or very low
income household.
(h) Subdivision (g) does not apply to an applicant seeking a
density bonus for a proposed housing development if their application
was submitted to, or processed by, a city, county, or city and
county before January 1, 2015.
65916. Where there is a direct financial contribution to a housing
development pursuant to Section 65915 through participation in cost
of infrastructure, write-down of land costs, or subsidizing the cost
of construction, the city, county, or city and county shall assure
continued availability for low- and moderate-income units for 30
years. When appropriate, the agreement provided for in Section 65915
shall specify the mechanisms and procedures necessary to carry out
this section.
65917. In enacting this chapter it is the intent of the Legislature
that the density bonus or other incentives offered by the city,
county, or city and county pursuant to this chapter shall contribute
significantly to the economic feasibility of lower income housing in
proposed housing developments. In the absence of an agreement by a
developer in accordance with Section 65915, a locality shall not
offer a density bonus or any other incentive that would undermine the
intent of this chapter.
65917.5. (a) As used in this section, the following terms shall
have the following meanings:
(1) "Child care facility" means a facility installed, operated,
and maintained under this section for the nonresidential care of
children as defined under applicable state licensing requirements for
the facility.
(2) "Density bonus" means a floor area ratio bonus over the
otherwise maximum allowable density permitted under the applicable
zoning ordinance and land use elements of the general plan of a city,
including a charter city, city and county, or county of:
(A) A maximum of five square feet of floor area for each one
square foot of floor area contained in the child care facility for
existing structures.
(B) A maximum of 10 square feet of floor area for each one square
foot of floor area contained in the child care facility for new
structures.
For purposes of calculating the density bonus under this section,
both indoor and outdoor square footage requirements for the child
care facility as set forth in applicable state child care licensing
requirements shall be included in the floor area of the child care
facility.
(3) "Developer" means the owner or other person, including a
lessee, having the right under the applicable zoning ordinance of a
city council, including a charter city council, city and county board
of supervisors, or county board of supervisors to make an
application for development approvals for the development or
redevelopment of a commercial or industrial project.
(4) "Floor area" means as to a commercial or industrial project,
the floor area as calculated under the applicable zoning ordinance of
a city council, including a charter city council, city and county
board of supervisors, or county board of supervisors and as to a
child care facility, the total area contained within the exterior
walls of the facility and all outdoor areas devoted to the use of the
facility in accordance with applicable state child care licensing
requirements.
(b) A city council, including a charter city council, city and
county board of supervisors, or county board of supervisors may
establish a procedure by ordinance to grant a developer of a
commercial or industrial project, containing at least 50,000 square
feet of floor area, a density bonus when that developer has set aside
at least 2,000 square feet of floor area and 3,000 outdoor square
feet to be used for a child care facility. The granting of a bonus
shall not preclude a city council, including a charter city council,
city and county board of supervisors, or county board of supervisors
from imposing necessary conditions on the project or on the
additional square footage. Projects constructed under this section
shall conform to height, setback, lot coverage, architectural review,
site plan review, fees, charges, and other health, safety, and
zoning requirements generally applicable to construction in the zone
in which the property is located. A consortium with more than one
developer may be permitted to achieve the threshold amount for the
available density bonus with each developer's density bonus equal to
the percentage participation of the developer. This facility may be
located on the project site or may be located offsite as agreed upon
by the developer and local agency. If the child care facility is not
located on the site of the project, the local agency shall determine
whether the location of the child care facility is appropriate and
whether it conforms with the intent of this section. The child care
facility shall be of a size to comply with all state licensing
requirements in order to accommodate at least 40 children.
(c) The developer may operate the child care facility itself or
may contract with a licensed child care provider to operate the
facility. In all cases, the developer shall show ongoing coordination
with a local child care resource and referral network or local
governmental child care coordinator in order to qualify for the
density bonus.
(d) If the developer uses space allocated for child care facility
purposes, in accordance with subdivision (b), for purposes other than
for a child care facility, an assessment based on the square footage
of the project may be levied and collected by the city council,
including a charter city council, city and county board of
supervisors, or county board of supervisors. The assessment shall be
consistent with the market value of the space. If the developer fails
to have the space allocated for the child care facility within three
years, from the date upon which the first temporary certificate of
occupancy is granted, an assessment based on the square footage of
the project may be levied and collected by the city council,
including a charter city council, city and county board of
supervisors, or county board of supervisors in accordance with
procedures to be developed by the legislative body of the city
council, including a charter city council, city and county board of
supervisors, or county board of supervisors. The assessment shall be
consistent with the market value of the space. A penalty levied
against a consortium of developers shall be charged to each developer
in an amount equal to the developer's percentage square feet
participation. Funds collected pursuant to this subdivision shall be
deposited by the city council, including a charter city council, city
and county board of supervisors, or county board of supervisors into
a special account to be used for child care services or child care
facilities.
(e) Once the child care facility has been established, prior to
the closure, change in use, or reduction in the physical size of, the
facility, the city, city council, including a charter city council,
city and county board of supervisors, or county board of supervisors
shall be required to make a finding that the need for child care is
no longer present, or is not present to the same degree as it was at
the time the facility was established.
(f) The requirements of Chapter 5 (commencing with Section 66000)
and of the amendments made to Sections 53077, 54997, and 54998 by
Chapter 1002 of the Statutes of 1987 shall not apply to actions taken
in accordance with this section.
(g) This section shall not apply to a voter-approved ordinance
adopted by referendum or initiative.
65918. The provisions of this chapter shall apply to charter
cities.
ORDINANCE 2209
ORDINANCE OF THE TOWN OF LOS GATOS
ADDING A NEW DIVISION 8 TO CHAPTER 29, ARTICLE I OF THE LOS GATOS
TOWN CODE ENTITLED "DENSITY BONUS (ST A TE MANDATED)"
WHEREAS, pursuant to California Government Code Section 65915, the Town 1s
required to adopt a density bonus ordinance that applies to housing developments that provide a
specified percentage of housing dedicated to and affordable to very low income, low income,
senior housing, and moderate income housing; and
WHEREAS, the Density Bonus Program provides incentives and concess10ns for
affordable housing projects to meet State mandated housing goals; and
WHEREAS, the Town of Los Gatos Density Bonus Ordinance will meet the
requirements under State law.
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS:
SECTION I
Chapter 29, Article I, Division 8, entitled "Density Bonus (State Mandated)" is hereby
added to the Los Gatos Town Code, and shall read as follows:
CHAPTER29
ARTICLE I. In General
Division 8. State Mandated Density Bonus
29.10.405 Intent and Authority.
The density bonus ordinance in this chapter is intended to comply with the State
Density Bonus Law codified in California Government Code Section 65915 et
seq., which provides that a local government shall grant a density bonus and an
additional concession, or financially equivalent incentive(s), to a qualified
housing development agreeing tel construct a specific percentage of housing for
lower income households, very low income households, or senior housing as
defined by state law.
1
29.10.410 Applicability of Regulations.
(a) In addition to providing a density bonus and additional concession or
equivalent incentives to a qualified housing development for lower income
and very low income households or senior housing, it is the intent to apply
the state law density bonus to qualified physically handicapped persons.
The term "physically handicapped" shall be defined pursuant to California
Health and Safety Code Section 50070 and the Density Bonus Program
Guidelines initially adopted by Town Council in 2012 and amended from
time to time thereafter.
(b) Applicant who elects to proceed with a housing development using the state
law density bonus shall not be eligible for any density increases under the
Town's General Plan Density Bonus Policy or the General Plan Below
Market Price (BMP) Program as set forth in the Town's Housing Element
portion of the General Plan.
29.10.415 General Requirements.
Applicants who voluntarily agree to develop a housing development project that
complies with the affordability requirements referenced in Government Code
65915 et seq. shall conform to the Density Bonus Program Guidelines adopted by
Town Council (initial adopted in 2012) and as may be amended from time to
time.
29.10.420 Grounds for Denial of a Project.
(a) Nothing in Division 8 of this Chapter 29 limits the Town's right to deny an
affordable housing project electing to proceed under the state law density
bonus provisions, if the Council makes written findings, based on
substantial evidence, any of the following:
I. The Town has adopted a Housing Element as part of the General Plan,
and the Town has met or exceeded its share of the regional housing needs for the
income category proposed for the development project;
2. The project as proposed would have a specific, adverse impact upon
the public health or safety which cannot be satisfactorily mitigated without
rendering it unaffordable to lower-income households;
3. The denial of the project or imposition of conditions is required in
order to comply with State or Federal law and there is no feasible method to
comply without rendering the development unaffordable to lower-income
households;
2
4. The development project is proposed on land zoned for agriculture or
resource preservation which is surrounded on at least two sides by land being
used for agricultural or resource preservation purposes, and which does not have
adequate water or wastewater facilities to serve the project.
5. The development project is inconsistent with the Town's General
Plan land use designation as it existed on the date the application was deemed
complete, and the Town has adopted a housing element pursuant to state law.
(b) Nothing in this chapter limits the Town's right to deny a senior housing
project if the Town finds, based on substantial evidence, that the project
would have a specific, adverse impact upon the public health or safety; and
there is no feasible method to satisfactorily mitigate or avoid the adverse
impact identified.
29.10.425 Housing Agreement
Applicant requesting a state law density bonus on any rental or for sale project
shall agree to enter into a density bonus housing agreement with the Town as
required under the Density Bonus Program Guidelines. This housing agreement
shall be made a condition of the planning permits for all residential developments
pursuant to this Division and shall be recorded as a restriction on any parcels on
which the density bonus units will be constructed.
29.10.430 Requirements to Maintain the Affordable Units.
(a) All affordable units shall be occupied by the household type specified in
the written housing agreement required under this Division. The
applicant's obligation to maintain these units as affordable housing shall
be evidenced by the housing agreement which shall be recorded as a deed
restriction running with the land.
(b) The Town may establish fees associated with the setting up and
monitoring of affordable units.
(c) The owner shall submit an annual report to the Town, on a form provided
by the Town. The report shall include for each affordable unit the rent,
income, and family size of the household occupying the unit.
(d) The owner shall provide to the Town any additional information required
by the Town to insure the long-term affordability of the affordable units
by eligible households.
3
29.10.435 Administrative Fee.
An administrative fee shall be charged to the applicant for the review of all
materials submitted in accordance with this Division and for future monitoring of
the affordability of the project. The fee amount shall be established and will be
included in the Town's Master Fee Schedule. Fees will be charged for staff and
consultant time associated with the development review process, project
marketing and leasing, and compliance with the affordability requirements of the
project.
29.10.440 Appeals.
Any person aggrieved by the denial, conditioning, suspension, or revocation of a
density bonus housing development in compliance with the provisions of this
Division may appeal such action or determination to the Council in compliance
with Chapter 29, Article II (Administration and Enforcement) of the Town Code.
SECTION II
In the event that any part of this ordinance is held to be invalid, the invalid part or parts
shall be severed from the remaining portions which shall remain in full force and effect.
SECTION III
This Ordinance was introduced at a regular meeting of the Town Council of the Town of
Los Gatos on June 4, 2012, and adopted by the following vote as an ordinance of the Town of
Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on June 18, 2012.
This ordinance takes effect 3 0 days after it is adopted.
4
COUNCIL MEMBERS:
A YES: Steven Leonardis, Diane McNutt, Joe Pirzynski, Barbara Spector, and Mayor Steve Rice
NAYS:
ABSENT:
ABSTAIN:
SIGNED: V///f/v-.__~
MAYOR OFT E TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
5
Exhibit A
TOWN OF LOS GATOS
DENSITY BONUS PROGRAM GUIDELINES
I. PURPOSE, AUTHORITY, AND DEFINITION
A. Purpose: The density bonus regulations in these Guidelines are intended to comply with
the State Density Bonus Law codified in California Government Code Section 65915 et
seq., which provides that a local government shall grant a density bonus and an additional
concession, or financially equivalent incentive(s), to a qualified housing development
agreeing to construct a specific percentage of affordable housing and senior housing as
defined by state law. In enacting these guidelines, it is the intent of the Town of Los
Gatos to implement the goals, objectives, and policies of Town of Los Gatos 2020
General Plan and further to implement and be subject to California Government Code
Section 65915. In the event that any provision in these Guidelines conflicts with State
law, State law shall control.
B. Enabling Legislation: The Density Bonus Program is governed by Chapter 29, Article I,
Division 8 (Section 29.10.400 et seq.) of the Town Code. The Density Bonus Program is
administered under these Program Guidelines.
C. 1. General Plan Density Bonus Policy Action HOU-1.3: Applicant who elects to
proceed with a housing development using the state law density bonus shall not be
eligible for any density increases under the Town's General Plan Density Bonus Policy
Action HOU-1.3.
2. General Plan Below Market Price (BMP) Program Policy Action HOU-1.1:
Applicant who elects to proceed with a housing development using the state law density
bonus shall not be eligible for any density increases under the Town's General Plan
Below Market Price (BMP) Program Policy Action HOU-1.1.
D. Definitions: The following terms used in these Guidelines shall be defined as follows:
1. Affordable Housing/Affordable Housing Unit. A housing unit which is
available for sale to moderate income households or for rent to low and/or very
low income households, as those terms are defined in this Section.
2. Affordable Rent. Monthly rent charged to low and very low income households
for housing units as calculated in accordance with Section 50053 of the Health
and Safety Code.
3. Child Care Facility. A child day care facility other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care
facilities, and school age child care centers as defined in California Government
Code Section 65915(h)(4).
1
4. Density Bonus. A density increase for residential units over the otherwise
allowed residential density under the applicable zoning and land use designation
on the date an application is deemed complete.
5. Density Bonus Housing Agreement. A legally binding agreement between a
developer and the Town that ensures the continued affordability of the affordable
housing units required by these Guidelines and to ensure the units are maintained
in accordance with these Guidelines.
6. Density Bonus Units. Those additional residential units granted pursuant to the
provisions of these Guidelines.
7. Housing Development. A development project for five or more residential units.
Within these Guidelines, it shall also include a subdivision or common interest
development, a project which substantially rehabilitates and conve1is a commercial
building to a residential use and a condominium conversion of an existing
apartment building as more fully defined in California Government Code Section
65915(i).
8. Incentives or Concessions. Regulatory concessions which include, but are not
limited to, the reduction of site development standards or zoning code
requirements, approval of mixed-use zoning in conjunction with the housing
development, or any other regulatory incentive which would result in identifiable,
financially sufficient, and actual cost reductions that are offered in addition to a
density bonus.
9. Initial Subsidy. The fair market value of the home at the time of initial sale minus
the initial sale price to the moderate income household, plus the amount of any
down payment assistance or mortgage assistance. If upon resale the market value is
lower than the initial market value, then the value at the time of the resale shall be
used as the initial market value. (e.g., X (fair market value of the home to be
purchased) - Y (the price the moderate income family paid for the home) + Z
(amount of any down payment assistance)= Initial Subsidy).
10. Low Income Household. A household whose income does not exceed 80 percent
of the area median income for Santa Clara County, as published and periodically
updated by the State Department of Housing and Community Development
pursuant to Section 50079.5 of the California Health and Safety Code.
11. Moderate Income Household. A household whose gross income does not exceed
120 percent of the area median income for Santa Clara County, as published and
periodically updated by the State Department of Housing and Community
Development pursuant to Sections 50079.5 and 50052.5 of the California Health
and Safety Code.
12. Physically Handicapped Housing. A residential development developed,
substantially rehabilitated or renovated, and having at least 3 5 dwelling units
designed specifically for a family in which the head of the household suffers from
an orthopedic disability impairing personal mobility or has a physical disability
that substantially limits one or more major life activities; has a record of such
impairment; or is regarded as having such fill impairment or a single person with
such a disability, where the family or person requires special care or facilities in
the home
13. Proportionate Share of Appreciation. The ratio of the local government's initial
subsidy as defined above to the fair market value of the home at the time of initial
2
sale. (e.g., X (initial subsidy) /Y (fair market value) = Proportionate Share of
Appreciation).
14. Senior Citizen Housing Development. A residential development developed,
substantially rehabilitated or renovated, and having at least 35 dwelling units for
senior citizens in compliance with the requirements of Section 51.3 and 51.12 of
the California Civil Code, or a mobile home park that limits residency based on
age requirements for housing for older persons pursuant to Section 798.76 or 799.5
of the Civil Code.
15. Very Low Income Household. A household whose income does not exceed 50
percent of the area median income for Santa Clara County, as published and
periodically updated by the State Department of Housing and Community
Development pursuant to Section 50 I 05 of the California Health and Safety Code.
II. DENSITY BONUS HOUSING REQUIREMENTS
A. Eligibility Criteria for Density Bonus: The Town of Los Gatos shall consider a density
bonus and incentives or concessions as described in these Guidelines when a developer of
a housing development seeks and agrees to construct a housing development that will
contain at least one of the following:
I. Five percent of the total units of a housing development strictly for very low
income households as defined herein;
2. Ten percent of the total units of a housing development strictly for low income
households as defined herein;
3. A senior citizen housing development, as defined herein;
4. Physically handicap housing development, as defined herein; or
5. Ten percent of the total dwelling units in a condominium or planned unit
development for persons and families of moderate income households as defined
herein, provided that all units in the development are offered to the public for
purchase.
III. IMPLEMENTATION
A. Project Specific Densitv Bonus: The Town of Los Gatos will allow a housing
development a density bonus and concessions or incentives meeting all the applicable
eligibility requirements of these Guidelines according to the following density bonus
options. In the event that the minimum requirements for granting density bonus units or
number of applicable concessions or incentives as set forth in California Government
Code Section 65915 is amended or modified after the adoption of these Guidelines by the
Town, then the lowest minimum requirements shall apply.
All density bonus calculations resulting in fractional units shall be rounded up to the next
whole number. The granting of a density bonus shall not be interpreted, in and of itself, to
require a General Plan amendment, zoning change, or other discretionary approval.
3
1. Density bonus for very low income households. If a housing developer elects to
construct units for very low income households, the development shall be entitled
to the following density bonus calculations:
Table A -Provision of Very Low Income Units
Percentage of V cry Low Density Bonus Number of Incentives or
Income Units Affordable Available Concessions
5% 20% 1
6% 22.5% 1
7% 25% 1
8% 27.5% 1
9% 30% 1
10% 32.5% 2
11% 35% 2
15% 35% 3
2. Density bonus for low income households. If a housing developer elects to
construct units for low income households, the housing development shall be
entitled to the following density bonus calculation:
Table B -Provision of Low Income Units
Percentage of Low Income Density Bonus Number of Incentives or
Units Affordable Available Concessions
10% 20% I
11% 21.5% 1
12% 23% 1
13% 24.5% 1
14% 26% 1
15% 27.5% 1
16% 29% 1
4
17% 30.5% 1
18% 32% 1
19% 33.5 1
20% 35% 2
30% 35% 3
3. Senior Citizen Housing Development. If a housing developer elects to construct a
senior citizen housing development, the density bonus shall be 20 percent of the
total number of allowed housing units without the density bonus.
4. Physically Handicap Housing Development. If a housing developer elects to
constmct a housing development design for and restricted to physically handicap
citizens, the density bonus shall be 20 percent of the total number of allowed
housing units without the density bonus.
5. Moderate income units in condominiums and planned developments. If a housing
developer elects to construct units for sale to moderate income households, the
development shall be entitled to the following density bonus calculation:
5
Table C -Provision of Moderate Income Units
Percentage of Moderate Density Bonus Number of Incentives or
Income Units Affordable Available Concessions
10% 5% 1
11% 6% 1
12% 7% 1
13% 8% 1
14% 9% 1
15% 10% 1
16% 11% 1
17% 12% 1
18% 13% 1
19% 14% 1
20% 15% 2
21% 16% 2
22% 17% 2
23% 18% 2
24% 19% 2
25% 20% 2
26% 21% 2
27% 22% 2
28% 23% 2
29% 24% 2
30% 25% 3
31% 26% 3
32% 27% 3
33% 28% 3
34% 29% 3
35% 30% 3
36% 31% 3
37% 32% 3
38% 33% 3
39% 34% 3
40% 35% 3
6
6. Density bonus for land donation. When an applicant for a tentative map, parcel
map, or other residential development approval donates at least one acre of land
or enough land to develop 40 units, then the applicant shall be entitled to a 15
percent increase above the otherwise maximum allowable residential density for
the entire housing development as follows:
Table D -Land Donation
Percentage of Very Low Income Units Percentage
Density Bonus
10% 15%
11% 16%
12% 17%
13% 18%
14% 19%
15% 20%
16% 21%
17% 22%
18% 23%
19% 24%
20% 25%
21% 26%
22% 27%
23% 28%
24% 29%
25% 30%
26% 31%
27% 32%
28% 33%
29% 34%
30% 35%
a) Nothing in this subsection shall be construed to enlarge or diminish the
authority of the Town to require a developer to donate land as a condition
of development.
b) The density bonus for land dedication shall be in addition to any density
bonus earned pursuant to these Guidelines and up to a maximum
combined increase of 35 percent if an applicant seeks an increase pursuant
to both this section and Section III.A 1.
7
c) An applicant with a land donation shall be eligible for the increased
density bonus if all of the following conditions are met:
(i). The applicant donates and transfers the land to the Town no later
than the date of approval of the Town of the final subdivision map,
parcel map, or housing development application, whichever occurs
first, for the proposed housing development seeking the density
bonus.
(ii) The developable acreage and zoning classification of the land
being transferred are sufficient to permit constrnction of units
affordable to very low income households in an amount not less
than 10 percent of the number of residential units of the proposed
housing development seeking the density bonus.
(iii). The land proposed to be donated to the Town meets the following:
1. The transferred land is at least 1 acre in size or of sufficient
size to permit development of at least 40 units, has the
appropriate General Plan designation and is appropriately
zoned for development at the density described m
paragraph (3) of subsection (c) of Section 65583.2; and
2. Is or will be served by adequate public facilities and
infrastrnctures; and
3. Is donated no later than the date of approval of the final
subdivision map, parcel map or housing development
application, seeking a density bonus and has all of the
permits and approvals, other than building permits,
necessary for the development of the very low income
housing units on the transferred land; and
4. Is transferred to the Town or a housing developer approved
by the Town by the date established in Section III.A.6
(c)(i); and
5. Shall be within the Town and within the boundary of the
proposed development or within one-quarter mile of the
boundary of the proposed development; and
6. Must have a proposed source of funding for the very low
income units not later than the approval of the final
subdivision map, parcel map or housing development
application seeking the density bonus.
8
d) The transferred land and the affordable housing units shall be subject to a
deed restriction, which shall be recorded on the property at the time of the
transfer, ensuring continued affordability of units for at least 30 years or
longer term under another regulatory agreement from the date of initial
occupancy. A longer period of time may be specified if required by any
construction or mortgage financing assistance program, mortgage
insurance program, or rental subsidy program applicable to the housing
development.
7. Condominium conversions. When an Applicant's residential development project
is the conversion of an existing apartment complex to a condominium complex
and the Applicant agrees to make at least thirty-three percent (33%) of the total
units of the proposed condominium residential development project affordable to
Low or Moderate Income households for thirty years (30), or fifteen percent
(15%) of the total units of the proposed condominium residential development
project to Lower Income households for thirty years (30), and agrees to pay for
the administrative costs incurred by the Town related to process the application
and monitor the future status of the Affordable Housing Units, the Town shall
either (i) grant a condominium conversion Density Bonus or (ii) provide other
incentives of equivalent financial value to be determined by the Town.
B. Density Bonus for Development of Child Care Facility: A housing development meeting
the requirements of Section II.A. and including a child care facility that will be located on
the premises of, as part of, or adjacent to, such a housing development shall receive either
of the following:
1. An additional density bonus that is an amount of square feet of residential space
that is equal to or greater than the amount of square feet in the child care facility.
2. An additional incentive or concession that contributes significantly to the
economic feasibility of the construction of the child care facility.
When a housing development is providing a child care facility consistent with the
Guidelines, then the conditions of approval shall require that:
1. The child care facility shall remain in operation for a period of time that is as long
as or longer than the period of time during which the affordable units are required
to remain affordable; and
2. Of the children who attend the child care facility, the children of very low income
households, lower income households, or persons or families of moderate income
shall equal a percentage that is equal to or greater than the percentage of
affordable units that are required pursuant to Section II.A.
The Town shall not be required to provide a density bonus or incentive or concession for
a child care facility if it makes a written finding, based upon substantial evidence, that the
Town has adequate child care facilities.
9
C. Nothing in these Guidelines limits the Town's right to deny an affordable, senior or
physically handicap housing project electing to proceed under the state law density bonus
provisions, ifthe Council finds, based on substantial evidence, any of the following:
1. The Town has adopted a housing element, and the Town has met or exceeded its
share of the regional housing needs for the income category proposed for the
development project;
2. The project as proposed would have a specific, adverse impact upon the public
health or safety which cannot be satisfactorily mitigated without rendering it
nnaffordable to lower-income households;
3. The denial of the project or imposition of conditions is required in order to
comply with State or Federal law and there is no feasible method to comply
without rendering the development unaffordable to lower-income households;
4. The development project is proposed on land zoned for agriculture or resource
preservation which is surrounded on at least two sides by land being used for
agricultural or resource preservation purposes, and which does not have adequate
water or wastewater facilities to serve the project.
5. The development project is inconsistent with the Town's General Plan land use
designation as it existed on the date the application was deemed complete, and the
Town has adopted a housing element pursuant to state law.
D. Incentives or Concessions: Applicants who request a density bonus and voluntarily
agree to develop a housing development project that complies with the affordability
requirements referenced in Government Code 65915 may submit to the Town a proposal
for the specific incentive(s) or concession(s) provided by applicable state law. A
proposal shall be submitted concurrently with the application for the development and a
density bonus. In accordance with Government Code Section 65915(d)(2), the applicant
shall receive the number of incentives or concessions that correspond to the percentage of
density bonus as outlined in Section III (A) Tables A through C. The Town shall award
the incentive(s) or concession(s) requested by the applicant in compliance with state law
requirements unless the Town Council adopts a written finding that the incentive or
concession is not required to make the units affordable.
The deciding body may deny a request for an incentive or concession if it makes a written
finding, based upon substantial evidence, of either of the following:
1. The incentive or concession is not required to provide for affordable rents or
affordable ownership costs; or
2. The incentive or concession would have a specific adverse impact upon public
health or safety, or the physical environment, or on any real property that is listed
in the California Register of Historic Resources, and there is no feasible method
to satisfactorily mitigate or avoid the specific adverse impact without rendering
the development unaffordable to low, very low and moderate income households.
For the purpose of this subsection, "specific adverse impact" means a significant,
quantifiable, direct, and unavoidable impact, based on objective, identified,
10
written public health or safety standards, policies, or conditions, as they existed
on the date that the application was deemed complete.
E. Reduction or Waivers of Development Standards: The Town shall not apply any
development standard that would have the effect of precluding the construction of a
proposed housing development meeting the requirements of these Guidelines at the
densities or with the incentives permitted by these Guidelines. An applicant may submit
with its application to the Town a proposal for the waiver or reduction of development
standards. A reduction or waiver of development standards, the application of which
would physically preclude the development, shall not reduce nor increase the number of
incentives or concessions being requested.
Nothing in this subsection, however, shall be interpreted to require the Town to waive or
reduce development standards if the waiver or reduction would have a specific adverse
impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the
California Government Code, upon public health and safety or the physical environment
or on any real property that is listed in the California Register ofI-Iistorical Resources and
for which the Town determines there is no feasible method to satisfactorily mitigate or
avoid the specific adverse impact. Furthermore, the applicant shall be required to prove
that the waiver or modification is necessary to make the affordable units economically
feasible. The deciding body may deny a request for waiver if it makes a written finding,
based upon substantial evidence, of either of the following:
I. The modification would have a specific adverse impact upon health, safety, or the
physical environment, and there is no feasible method to satisfactorily mitigate or
avoid specific adverse impact without rendering the development unaffordable to
low, very low, and moderate income households. For the purpose of this
subsection, "specific adverse impact" means a significant, quantifiable, direct, and
unavoidable impact, based on objective, identified, written public health or safety
standards, policies, or conditions as they existed on the date that the application
was deemed complete; or
2. The modification would have an adverse impact on any real property that is listed
in the California Register of Historic Resources; or
3. The incentive or concession would be contrary to State or Federal law
F. Parking Standard: Upon request by the applicant, the Town shall not require the
proposed housing development eligible for a density bonus pursuant to these Guidelines
to provide a parking ratio, including physically handicapped and guest parking, which
exceeds the following:
a. Zero to one bedrooms: one onsite parking space.
b. Two to three bedrooms: two onsite parking spaces.
c. Four and more bedrooms: two and one-half onsite parking spaces.
If the total number of parking spaces required for the proposed housing development is
other than a whole number, the number shall be rounded up to the next whole number.
11
For purposes of this subsection, a development may provide onsite parking through
tandem parking or uncovered parking, but not through on-street parking.
G. Design. Distribution. and Timing of Affordable Housing Units: Affordable Housing
Units must be constructed concurrently with market-rate units. The Affordable Housing
Units shall be integrated into the Housing Development Project; be similar in size; and
have comparable infrastructure (including sewer, water, and other utilities), construction
quality and exterior design to the market-rate units. The applicant may have the option of
reducing the interior amenity level, provided that all of the units conform to the
requirements of the Town's Building and Housing Codes and the Community
Development Director finds that the reduction in the interior amenity level will provide a
quality and healthy living environment. The Town strongly encourages the use of green
building principles, such as the use of environmentally preferable interior finishes and
flooring, as well as the installation of water and energy efficient hardware, wherever
feasible.
The Affordable Housing Units must also comply with the following criteria:
1. Rental Residential Development Projects: When Affordable Housing Units are
required in rental Residential Development Projects, the units should be
integrated with the project as a whole. All Affordable Housing Units shall reflect
the range and numbers of bedrooms provided in the project as a whole, and shall
not be distinguished by exterior design, construction, or materials. All Affordable
Housing Units shall be reasonably dispersed throughout the project.
2. Owner-occupied Residential Development Projects: When Affordable Housing
Units are required in owner-occupied Housing Development Projects, the units
should be integrated with the project as a whole. Affordable Housing Units may
have different interior finishes and features than market-rate units so long as the
interior features are durable, of good quality, and consistent with contemporary
standards for new housing. All Affordable Housing Units shall reflect the range
and numbers of bedrooms provided in the project as a whole, except that if the
market-rate units provide more than four bedrooms, the Affordable Housing Units
need not provide more than four bedrooms.
No building permits will be issued for market-rate units until permits for all Affordable
Housing Units have been obtained, unless Affordable Housing Units are to be
constructed in phases pursuant to a plan approved by the Town.
Market-rate units will not be granted final occupancy until all Affordable Housing Units
have been granted final occupancy, unless Affordable Housing Units are to be
constructed in phases pursuant to a plan approved by the Town.
IV. APPLICATION REQUIREMENTS, REVIEW PROCEDURES, AND FINDINGS
A. Application Requirements: At the time the applicant of a proposed housing development,
seeking a density bonus and concessions or incentives under these Guidelines files a
12
formal application for approval of the proposed development with the Community
Development Department, the following information shall be submitted with the fees and
required application( s):
I. Identification of the location, acreage, and the maximum number of base units
allowed under the zoning and the land use designated under the General Plan
without the Density Bonus.
2. Identification of the total number of units proposed, specifically identifying the
Density Bonus units and the Affordable Units which will demonstrate eligibility
under these guidelines.
3. Identification of the requested concessions or incentives or a list of any alternative
concessions or incentives which would provide, in the developer's opinion, an
equivalent financial value to the concession or incentive requested. This
requirement does not impair the applicant from substituting a new incentive or
concession from what is initially proposed; however, the identified incentives or
concessions may not be changed once the environmental review for the proposed
housing development has commenced. Any change subsequent to the
environmental review process may require additional environmental review.
4. For waivers of development standards, evidence demonstrating that the
development standard for which the waivers are requested would have the effect
of physically precluding the construction of the residential development project at
the density.
5. A proforma demonstrating that any requested incentives and concessions result in
identifiable, financially sufficient and actual cost reductions. The pro forma shall
include: (a) the actual cost reduction achieved through incentive or concession;
and (b) evidence that the cost reduction allows the developer to provide affordable
rents or affordable sales prices that could not otherwise be provided. The
information shall be sufficiently detailed to enable Town staff to examine the
conclusions reached by the developer. The Town may require that any pro forma
submitted pursuant to this section include infmmation regarding capital costs,
equity investment, debt service, projected revenues, operating expenses, and such
other information as is required to evaluate the pro forma, including but not
limited to the cost to the Town of hiring a consultant to review the pro forma.
6. Any additional information and materials required with a Plarmed Development
and Architecture and Site Application.
7. Technical studies required by the Town to evaluate the applications.
8. If a density bonus is requested for land donation, the application shall show the
location of the land to be dedicated and provide evidence that each of the findings
in Government Code Section 659 l 5(h) can be made. If a density bonus or
concession is requested for a child care facility, the application shall provide
evidence that the findings in Governmental Code Section 69515 (i) can be made.
9. Other pertinent information as the Director of Community Development may
require enabling the Town to adequately analyze the identifiable, financially
sufficient and actual cost reductions of the proposed housing development with
respect to the requested additional concession or incentive and other concessions
or incentives which may be made available.
13
B. Review Procedures: Any request for a density bonus, incentive, concession, parking
reduction, or waiver pursuant to these Guidelines shall be submitted as part of the first
approval of any residential development project and shall be processed, reviewed, and
approved or denied concurrently with the discretionary applications required for the
project.
I. Planning Commission/Town Council. When a proposed housing development
needs only Architecture and Site approval, then the Planning Commission will
consider and act on the density bonus request when the Architecture and Site
application is considered. If the project requires additional entitlements such as a
planned development application review, then the Town Council will consider
and act on the density bonus request concurrent with the applicable project
entitlement/environmental clearance. Following Planning Commission
consideration of the application, the Community Development Director and/or the
Planning Commission may refer the application for a density bonus and any other
entitlements to the Town Council for final consideration and action.
C. Required Findings: The Town shall grant a request for a density bonus, incentive,
concession, parking reduction, or waiver, unless the deciding body can make the
following written findings based on substantial evidence, as applicable:
1. The Town has adopted a housing element, and the Town has met or exceeded its
share of the regional housing needs for the income category proposed for the
development project;
2. The project as proposed would have a specific, adverse impact upon the public
health or safety which cannot be satisfactorily mitigated without rendering it
unaffordable to lower-income households;
3. The denial of the project or imposition of conditions is required in order to
comply with State or Federal law and there is no feasible method to comply
without rendering the development unaffordable to lower-income households;
4. The development project is proposed on land zoned for agriculture or resource
preservation which is surrounded on at least two sides by land being used for
agricultural or resource preservation purposes, and which does not have adequate
water or wastewater facilities to serve the project.
5. The development project is inconsistent with the Town's General Plan land use
designation as it existed on the date the application was deemed complete, and the
Town has adopted a housing element pursuant to state law.
D. Aoolication and Administrative Fees: Application and administrative fees shall be
charged to the applicant for the review of all materials submitted in accordance with these
Guidelines and for future monitoring of the affordability of the project. The fee amount
shall be established by Town Council resolution and will be included in the Town's
Comprehensive Fee Schedule. Fees will be charged for staff and consultant time
associated with the development review process, analysis of all pro formas and financial
feasibility documents related to the request for the density bonus, project marketing, and
compliance with the affordability requirements of the project.
14
V. DENSITY BONUS HOUSING AGREEMENT
A. Required Density Bonus Agreement and Terms of Agreement: Once the proposed
Housing Development has received its approval for the development application and the
Density Bonus, as described above, the developer shall file an application, including the
payment of any processing fees with the Community Development Department for
approval and finalization of the Density Bonus Housing Agreement in compliance with
the following requirements:
I. A Density Bonus Housing Agreement must be executed prior to recording any
final map for the underlying property or prior to the issuance of any building
permit for the housing development, whichever comes first, unless the
Community Development Director approves an alternative phasing plan. The
Density Bonus Housing Agreement shall be binding on all future owners and
successors of interests of the housing development.
2. The Density Bonus Housing Agreement shall:
a) Identify the type, size and location of each Affordable Housing Unit
required hereunder;
b) Identify the term of the agreement, which would define the term of
affordability of the required units;
c) Require that the Affordable Housing Units be constructed and completed
by the developer as specified in these Guidelines and in accordance with
state law;
d) Require that each Affordable Housing Unit be kept available only to
members of the identified income group at the maximum affordable rent
during the term of the agreement.
e) Identify the means by which such continued availability shall be secured
and enforced and the procedures under which the Affordable Housing
Units shall be leased and shall contain such other terms and provisions, the
Town may require. The agreement, in its form and manner of execution,
shall be in a form able to be recorded with the Santa Clara County
Recorder.
f) The Density Bonus Housing Agreement shall be reviewed and approved
by the Director of Community Development and Town Attorney. The
agreement shall also include the procedures for annual submission of
information, including any applicable review fees, sufficient to determine
continued compliance with the agreement to the Director of Community
Development.
3. Required Terms for the Continued Availability of Affordable Units:
a) Low and Very Low Income Households. A housing developer providing
Low and Very Low income units in accordance with these Guidelines
must continue to restrict those units to Low or Very Low Income
households for a minimum of 3 0 years or longer term under another
15
regulatory agreement from the date of initial occupancy. A longer period
of time may be specified if required by any construction or mortgage
financing assistance program, mortgage insurance program, or rental
subsidy program applicable to the housing development.
b) Moderate Income Households. In the case of a Housing Development
providing Moderate Income units, the initial occupant of the unit must be
a person or family of Moderate Income.
(i). Upon resale, the seller of the unit shall retain the value of any
improvements, the down payment, and the seller's proportionate
share of appreciation. The Town shall recapture any Initial Subsidy
and its Proportionate Share of Appreciation; which shall be used
within five years for any of the purposes described in subdivision
(e) of Section 33334.2 of the Health and Safety Code that promote
home ownership.
N:\DEV\ORDS\Density Bonus Ordinance Exhibit A (Guidelincs).docx
16
g 0 Id far b 1300 Clay Street, Eleventh Floor
I i pm a n Oakland, California 94612
a t to r n e y s 51 o 836 -6336
M David Kroot March 10, 2016
Lynn Hutchins Hand-delivered
Karen M. Tiedemann
Thomas H. Webber
Dianne Jackson Mclean
Michelle D. Brewer
Jennifer K. Bell
Robert C. Mills
Laurel Prevetti , Town Manager
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
Isabel L. Brown Re: Revised Density Bonus Program Application -North Forty
James T. Diamond, Jr.
Margaret F. Jung
Heather J. Gould
William F. DiComillo
Amy DeVoudreuil
Barbaro E. Kautz
Erica Williams Orchorton
Luis A. Rodriguez
Rafael Yoqui6n
Celia W. Lee
Dear Town Manager Prevetti:
This letter is written on behalf of the application of Grosvenor Americas for a density
bonus and other waivers of development standards as required by California Government
Code Section 65915; Sections 29.10.405 -440 of the Town Code; and the Town of Los
Gatos Density Bonus Program Guidelines. The modifications being requested are as
follows:
1. A density bonus of 35 percent, increasing the permitted density from 2 37
units to 320 units.
Dolores Bastian Dalton 2. Waivers of the development standards listed below that would physically
Joshua J. Mason preclude construction of the development with the density bonus:
Vincent L. Brown
Hano A. Hardy
Caroline Nosello
Eric S. Phillips
Elizabeth Klueck
Doniel S. Maroon
Justin D. Bigelow
San Francisco
415 788-6336
Los Angeles
213 627-6336
Son Diego
619 239-6336
Goldfarb & Lipman LLP
a.
existing grade; and
Measurement of building height from finished grade rather than
b. Increase in permitted height of the affordable units from 45 feet to
48'8" at the top of the roofridge and to 53 feet at the elevator enclosure over the stair to
the roof.
A description of the development's eligibility for each of these incentives is provided
below and summarized in Exhibit A.
This revised application removes the request for reduced on-site parking allowed under
Government Code Section 65915(p).
Additionally, a waiver of development standards is not needed to provide all of the
affordable units within the proposed senior housing building because the Town's BMP
Guidelines allow the BMP units to be clustered in one building where it is not feasible to
disperse the housing. As described in detail in our October 14 , 2 015 letter, federal and
state requirements applicable to senior housing do not allow housing intended for seniors
1588\03\ 1858179.2
March 10, 2016
Page 2
to be dispersed throughout a development or to be integrated into other buildings in the
development. In a development that includes both senior and non-senior housing, as is proposed
here, the senior units must be clearly separated from non-senior housing in a separate building
designed for seniors with separate entrances and facilities. Clearly it is infeasible to disperse senior
units throughout the development, and the BMP Guidelines allow the units to be contained in one
building where they cannot be feasibly dispersed.
I. Proposed Density Bonus.
A Specific Plan-compliant development on the portion of the North Forty being developed would
contain a total of 237 dwelling units. Nineteen existing units would remain on properties in the
North Forty not included in this application.
Of the total 237 units permitted under the Specific Plan, 49 units (20%) contained in the senior
housing development to be built by Eden Housing would be affordable to very low income
households, as defined in Section 50105 of the Health & Safety Code. Affordable rent would be
as defined in Section 50053 of the Health & Safety Code, and the units would remain affordable
for a 55-year period.
Under Government Code Sections 65915(b) and (f)(2) and Section III.A.1 of the Town's
Guidelines, any development with at least 11 percent very low income housing is entitled to a 35
percent density bonus. Because the proposed development contains 20 percent very low income
housing, it is entitled to a 35 percent bonus, as follows:
Base density: 237 units
35% bonus: 83 units (82.95 units; must be rounded up 1)
Total 320 units
The plans submitted to the Town contain the 320 units permitted by state density bonus law and
the Town's Guidelines.
II. Proposed Waivers of Development Standards.
Government Code Section 65915(e)(l) and Town Guidelines Section III.E provide that no Town
development standard shall be applied that will have the effect of physically precluding the
construction of a project at the density permitted. The following two development standards will
have the effect of physically precluding the construction of the development with 320 units unless
modified as requested.
1 Gov't Code Section 6591 S(t)(S).
1588\03\ 1858179.2
March 10, 2016
Page 3
a. Measurement of' Building Height t!om Finished Grade Rather Than Existing
Grade.
The attached Preliminary Finish Grade Exhibit (Exhibit B) shows that the North Forty site will
require both cut (red) and fill (green). While there is a ten-foot grade change from Los Gatos
Boulevard to the western portion of the property, the interior grade of the site itself is relatively
flat, and to achieve proper engineered surface drainage and the following objectives and
requirements, the project proposes cuts along the southern portion and fill in the northern portion
of Phase I:
1. ADA Accessibility. The grading minimizes steep streets and avoids the need for
hand rails and landings where feasible to meet ADA requirements and to make the site more
accessible.
2. Stormwater Quality. Slopes are required to be designed to drain into landscape-
based improvements spread throughout the site to meet Low Impact Development requirements
per the Town's stormwater permit.
3. Stormwater Hydromodification. Slopes are also required to be designed to route
the drainage through a hydromodification storage vault to ensure that post-development runoff
rates match pre-development conditions per the Town's stormwater permit.
4. Storm Drain Flood Control. The finish elevations must provide flood protection
from a 100-year storm event by routing drainage to the existing storm drain pipe located at the
northeasterly portion of the site, with emergency overland flow release toward the northerly end
of the site. This requires that the southern part of the site, where fill is proposed, be higher than the
northern part of the site.
5. Existing Boundary Conditions. The existing site is substantially lower than Los
Gatos Blvd., and existing uses on other properties abutting the site have a variety of grades to
account for this. The grading has been designed to conform to permanent existing boundary
conditions while minimizing the need for retaining walls and steep slopes, to improve overall site
circulation, accessibility, and appearance.
6. Construction Related Environmental Impacts. The grading has been designed
to minimize the off-haul of dirt and to balance cuts and fills to the extent feasible to minimize
construction-related environmental impacts associated with offsite truck trips.
The approximate depth of cut and fill is shown in the spot grades on the Finish Grade Exhibit,
ranging from 0.1 foot to nearly five feet of fill, with most residences in the southern part of the site
constructed over two to five feet of fill. The proposed design successfully achieves a 20 unit per
acre density (required by the Housing Element) and 320 units when measured from finished grade.
I 588\03\ I 858 I 79.2
March 10, 2016
Page 4
However, measuring from existing grade would physically preclude the project from achieving
this density. Approximately 75 percent of the proposed residential buildings include a third story.
Requiring the height of these buildings to be measured above existing grade would effectively
eliminate this third story in all of the fill areas. Three stories, even with lower than usual floor to
ceiling heights, can barely be achieved ifthe Specific Plan's 35-foot height limit is measured above
finished grade, as shown on the attached diagram (Exhibit C), and cannot be achieved if the
building height must be reduced further. We estimate that 97 units would be lost.
Since measurement from existing grade would physically preclude development of the 320 units
allowed with a density bonus, the project is entitled to a waiver of this requirement.
b. Height o{the Affordable Units.
The attached Height Exhibit (Exhibit D) reflects the heights of the affordable building. While this
building's parapet is lower than 45 feet from finished grade, to add variety, an overall maximum
roof height of 48'8" is proposed which includes 8: 12 roof pitches. One elevator/staircase enclosure
in a limited area of the building is 53 feet above finished grade. Because of building code
requirements related to elevator enclosures and the need for an enclosed stairway access to the
roof of the building, the additional height for this equipment must be higher than the highest point
of the roof. (Note that for buildings outside the Specific Plan area, the Town Code exempts these
appurtenant structures from the Town's height limits.)
III. Consistency of Town Code and Density Bonus Guidelines with State Law.
Portions of the Town Code and Density Bonus Guidelines are not consistent with State law. In
particular, Town Code Section 29.10.420 and Guidelines Sections 111.C and IV.C state that the
Town may deny a density bonus or waiver if it makes certain findings.
None of these findings are consistent with State law. Government Code Section 65915(b) states
that the Town "shall" provide a density bonus for an eligible project, and Section 65915 contains
no findings that may be made to deny a density bonus to an eligible project. If a development
standard physically precludes the density allowed, a waiver may be denied only if the Town can
make one of the findings contained in Section 65915(e)(l) related to environmental impacts and
violations of state and federal law. 2 The Environmental Impact Report prepared for the North
Forty showed no impacts that would justify denial under those standards, and none of the requested
waivers violate state or federal law.
Under State law, the density bonus and reduced parking are mandatory, and waivers must be
granted if the Town's development standards would physically preclude development of the project
2 Guidelines Section III.E states that an applicant may be required to prove that a waiver is needed to make a
development economically feasible. The statute was modified some years ago to remove the economic feasibility
requirement. A waiver must be granted if it would physically preclude development of the project with the density
bonus to which the project is entitled.
l 588\03\1858179.2
March 10 , 2016
Page 5
with the density bonus. Any provisions of the Los Gatos Town Code and Guidelines to the contrary
are not valid and cannot be used to deny the bonus , reduced parking, or waivers.
****
The proposed Phase I development on the North Forty would provide the Town with much needed
affordable housing and w a s identified as a site suitable for lower income housing in the Town's
Housing Element. The development provides more than enough affordable housing to qualify for
the density bonus and waivers requested . Therefore , on behalf of Grosvenor Americas , we
respectfully request that the Town approve the above requests.
If you have any questions regarding these requests or if you would like any additional information ,
please feel free to contact me.
Barbara E. Kautz
Partner
bkautz@ goldfarblipman.com
Exhibits :
A. S ummary -Density Bonus Program Reque sts.
B. Preliminary Finish Grade Exhibit -Cut and Fill Map.
C . Diagram Demonstrating Height of Three-Story Buildings above Finished Grade.
D . Height Exhibit -Affordable Housing.
158 8\03 \18 58179.2
Exhibit C:
Diagram Demonstrating Height of Three-Story Buildings above
Finished Grade
North 40 – Proposed BMP Plan
The Town’s Below Market Price (BMP) Program promotes the development of affordable
housing units by providing standards and guidelines that require the creation of a certain number
of affordable units development project.
For the proposed North 40 Development application, the developers have proposed the following
development program:
• Ownership townhomes/garden cluster/courtyard condominiums.: 253 (SummerHill)
• Ownership garden cluster: 7 (Hirschman)
• Live/Work Condominiums: 2 (Grosvenor)
• Rental Apartments: 8 (Grosvenor)
• Affordable rental apartments for seniors: 50 (Eden)
Due to qualifying for the California State Density Bonus, the above numbers include the baseline
number of units (237) plus the additional 35% density bonus units (82) for a total proposed
program of 320 residential units. The Town’s BMP program requirements are calculated using
the baseline count (237).
The affordable rental senior apartments are being proposed to satisfy the Town’s BMP program,
and will offer amenity-rich, high-quality apartment homes for seniors making up to 50% of the
Area Median Income. The development team feels that our proposal meets the intent of the
Town’s BMP program, and helps achieve the following goal from the Town’s 2003 Housing
Element:
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.
However, the affordable product as proposed does not meet the exact requirements of the BMP
program as written. The following details what is required under the BMP, what the team is
proposing, what waivers under the BMP program are required and a justification of this
approach.
• Requirements of the BMP
• Number of Units
Per the Town’s BMP, developments of 101 units or more are required to provide BMP units
equal to twenty percent of the number of market rate units, with smaller projects requiring
gradually fewer units based on a formula. The number of BMP units required under the
Program would be slightly different depending on whether the Town chooses to define the
combined application as one project or three:
1) Three separate projects
BMP /du
required
Grosvenor 10 10% 1
SummerHill (baseline) 220 20% 36.6 (37)
Hirschman 7
10% 1
TOTAL 237 36.8 (37)
BMP units 39
2) One project
Grosvenor +
SummerHill +
Hirschman 237 20% 39.4 (40)
TOTAL 237 39.4 (40)
BMP units 40
The development team views this proposal as a coordinated approach to create a truly
integrated and holistic neighborhood. Therefore we are assuming that for the purposes of
BMP calculation, the “project” includes the Phase I North 40 development as a whole. As
shown above, this approach also provides the benefit of one additional BMP unit above the
number that would be required if the units were calculated separately for the Grosvenor,
Hirschman, and SummerHill components.
• Affordability of BMP Units
In addition to the number of units, the BMP Program further requires that the units must be
affordable to both Median Income households (those earning between 80% and 100% of the
Area Median Income (AMI) and Low Income households (those earning between 50% and
80% AMI). Half of the BMP units are required to be targeted to Low Income households
and the other half Median Income households. Given these requirements, the 40 proposed
BMP units would roughly be distributed as follows:
• BMP affordability as Required
Very Low
Income
Low Income Median Income Total
Unit Distribution 0 20 20 40
However, under the model that the development team is proposing, where Eden’s
development will be able to leverage additional financing for a stand-alone affordable
housing building, the distribution of BMP affordab36ility will be as follows:
• BMP affordability as Proposed
Very Low
Income
Low
Income
Median
Income
Moderate
Income
Total
Unit
Distribution
49 0 0 1 50
• What is Being Proposed
The development team is proposing a 50 unit project consisting of forty-nine (49) one-
bedroom units for very low income seniors and one (1) two-bedroom managers unit. While
the final targeted income targeting will depend on the financing secured, the unit mix of a 9%
tax credit execution would be roughly as follows:
Extremely Low Income Units @ 30% AMI
10
Very Low Income Units @ 45% AMI
9
Very Low Income Units @ 50% AMI
30
Moderate Income Unit @ 80% AMI
(Manager’s Unit)
1
The affordable housing program will be most successful if fifty units are built, due to
economies of scale and more successful management of a building of this size. Because
Phase I is not proposing to construct all of the 270 baseline units but is proposing this surplus
of BMP units, we request that these additional 10 units count towards any future residential
development’s BMP requirements on the remainder of the North 40 properties.
The affordable component will help meet the needs of low income seniors in Los Gatos with
safe, attractive, and affordable homes and on-site services that will help these individuals
thrive.
The project will include high quality amenities available in all Eden developments including
a community room, a computer center and library, and landscaped courtyards and furnished
lobbies for casual social interaction. The architecture and interiors will be designed in such a
way to provide a stimulating, spacious, and inviting environment for the seniors as they age
in place. Eden’s service provider and affiliate, Eden Housing Resident Services, Inc., will
offer resident activities and programs specifically designed for seniors.
• Waivers Required Under the Current BMP Program
The Development team is requesting waivers on the following specific requirements:
• Type of Units, Rental vs For Sale: The Program requires that the “BMP units
within a project of owner-occupied units shall also be designated as units for
purchase.” In this case, the development team is proposing rental housing to meet
the requirements of the market-rate for sale product.
• Location of units: The Program requires that the “BMP units shall be dispersed
throughout the development, to the extent feasible; in all buildings, on each floor,
and in each project phase.” In this case, the development team is proposing a
singular affordable senior housing component which is located on the air rights
above the Market Hall element. This centralized location for these units, as
discussed below, is key to the financing, ability to serve Very Low Income
seniors and ability to provide on-site supportive services.
• Size of units: The Program requires that the “size and design of BMP dwelling
units shall be reasonably consistent with the market rate units in the project.”
• Building Exterior: The Program requires that the “external appearance of BMP
units should be indiscernible to that of the market rate units in the project.” The
Eden affordable component will be a part of the Market Hall and will be high
quality architecture consistent with the rest of the development. Eden and
Grosvenor are using the same architect and contractor to design and build this
building. The affordable housing will not be distinguishable as affordable housing
merely by architectural treatments, however as part of a separate building it will
have its own style in order to create visual interest and texture to the
neighborhood.
• Interior Finishes: The Program requires that the “ internal finish of BMP units
should be identical to that of the market rate units in the project, except that the
developer may request Town approval of substitutions for luxury interior finishes,
appliances, or fixtures, if such substitutions do not violate any Town code
requirement.” Eden will have its own interior finish schedule based on its
preferred specifications. These materials and appliances will meet all local, state
and funding requirements.
• Project Facilities: The Program requires that “all project facilities and amenities,
including parking, must be available on the same basis to the BMP units as to the
market rate units in the project, to the extent feasible.” As proposed, the
affordable component will have its own facilities and amenities – many of which
will be above and beyond what is provided in the market-rate components. For
example, the affordable senior community will include the following amenities: a
community room, a computer center and a library or exercise room. However, the
parking ratio assumed for the senior affordable is lower (.5 per unit) based on data
which shows that low income seniors own fewer cars.
• Justification for Waivers Requested
• Deeper affordability.
Proceeding with the development as proposed will allow the development team to
provide up to 49 units targeted to Very Low Income seniors, and will help the
Town show production of these units in the Regional Housing Needs Allocation
(RHNA) process.
As shown in the Town’s recent history of affordable housing development, these
Very Low Income units are the hardest to produce. The Eden affordable senior
component will provide 49 units targeted to Very Low Income and Extremely
Low Income Seniors, along with one Moderate Income managers unit.
• Amenity-rich and service-enhanced housing for Low Income Seniors
In addition to making deeper affordability financially feasible, providing all of the
affordable units in one central building allows Eden to provide supportive
services on-site. These services provide wrap-around services that help lower
income residents thrive – and are not available in a typical disbursed BMP
implementation.
For this development, Eden Housing Resident Services, Inc. (EHRSI) will
provide resident services programming ranging from information and referrals via
regularly updated resident services guides to comprehensive programming.
EHRSI’s Resident Services staff is available to offer important information and
referral services and to develop key partnerships in our communities. We work
one-on-one with residents, coordinate and facilitate group educational
programming, develop community building activities and bring in outside
speakers to present on topics of relevance and interest to our residents.
Eden has extensive experience working with a senior population. The primary
goal of our senior resident services is to allow our seniors to ‘age in place’ and
live independently in a dignified, healthy and productive way. To meet this goal,
we provide a range of programming tailored to each individual resident. The
overall intention of services programming for our senior and special needs
residents is to:
• Reduce isolation by providing on-site programs and encouraging resident-
led programs
• Provide residents with access to resources via information and referral
• Provide programming designed to enhance the quality of life of our
residents
• Address health and wellness issues faced by our diverse communities
including depression, physical fitness, assistive technology, nutrition/diet
and personal safety
• Monitor the ability of our residents to continue to live independently and
safely in our housing community
• Build strong communities by facilitating community events, collaborating
with resident associations and encouraging volunteerism in the community
(internally/externally)
As a testament to our ability to provide housing and services allowing our
residents to age in place successfully, nearly one quarter of our residents in senior
developments are over the age of 80 – with three residents over 100.
• High quality design
Eden is recognized in the industry for its creative development approach that
includes collaborating with local governments and development partners to create
well-designed properties that meet the needs of the residents and tailoring projects
to suit the locale. In the recent past, Eden has completed entitlements for projects
in Palo Alto, Lafayette, Dublin, Novato, Orinda, and Fremont -- all of which
required excellent design as well as the development and execution of thoughtful
and comprehensive community outreach strategies.
In addition, Eden places a high value on design through the work of talented
designers, builders and other professionals and is committed to crafting high-
quality developments that give careful attention to the needs of residents and the
surrounding neighborhood. Indeed, Eden has won more than 60 awards for its
work, including the recent recognition of Foss Creek Court in Healdsburg, which
in 2011 has received the prestigious national Charles L. Edson Award for Tax
Credit Excellence, a Gold Nugget Award of Merit from the Pacific Coast
Builders’ Conference, and won the Affordable Housing Finance Magazine
Readers’ Choice Award for the best Rural project in the country.
Eden will bring this same commitment to excellence, along with the rest of the
development team to deliver a high-quality, vibrant neighborhood that offers a
variety of housing types and sizes for a range of incomes – all of which will be
places that people are excited and proud to call home.
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ORDINANCE 2181
AN ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING DI VISON 6 OF THE ZONING ORDINANCE OF THE T OWN CODE
T I TLED H OUSING ASSISTANCE (BELOW MARKET PRICE) PROGRAM
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS
FOLLOWS :
SECTION I
Town Code Chapter 29, Division 6 (Sections 29.10.3000 through 29.10.3040,
Housing Assistance Program) is deleted in its entirety.
SECTION II
Town Code Chapter 29, is hereby amended to read as follows :
ZONING REGULATI ONS
Article I. In General
DIVISION 6 . HOUSING ASSISTANCE PROGRAM
Sec . 29.10.3000. Intent.
Sec . 29 .10.3005. Below market price program -Established.
Sec. 29.10.3010 . Same -Intent.
Sec. 29.10.3015. Application.
Sec. 29.10 .3020. Definitions.
Sec. 29.10.3025 Scope.
Sec. 29.10.3030 . Price.
Sec. 29.10.3035. Project denial.
Sec. 29.10.3040. Administration.
SECTION III
Town Code Chapter 29, Division 6 is replaced as follo ws:
Page 1of 5
EXHIBIT 2 0 /
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HOUSING ASSISTANCE PROGRAM
Sec. 29.10.3000. Intent.
This division is adopted to meet housing needs shown in the housing element of the general
plan.
(Ord. No. 1316, § 3.90.010, 6-7-76; Ord. No. 1430, 6-4-79)
Sec. 29.10.3005. Below market price program--Established. ·
This division establishes the below market price program (BMP).
(Ord. No. 1316, § 3.90.100; 6-7-76; Ord. No. 1430, 6-4-79)
Sec. 29.10.3010. Same--Intent.
The below market price (BMP) program requires the provision of dwellings that persons and
families of moderate income can afford to buy or rent, and assures to the extent wssible that the
resale prices of those dwellings, and rents if they are rented, will be within the means of persons
and families of moderate income.
(Ord. No. 1316, § 3 .90.105, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685, 6-2-86)
Sec. 29.10.3015. Application.
) This division shall apply to all multiple-family dwelling projects, residential condominium
projects, condominium conversions, and to all residential planned development projects (division
2 of article VIII of this chapter) either approved after July 4, 1979, or whose approval includes a
condition requiring the provision ofBMP dwellings . Projects in the R-1 and HR zones are
excepted from BMP participation. The exception does not apply if the project is built under the
rules of an overlay zone unless the rules of the overlay zone provide otherwise.
(Ord. No. 1316, § 3 .90.110, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685, 6-2-86)
Sec. 29.10.3020. Definitions.
For the purposes of this division. the following definitions shall apply:
BMP dwelling means any residential dwelling unit designated for very low, low, and
moderate income under the rules of this section.
Person of moderate income means one whose income falls within the range specified by the ·
Town Council in the resolution authorized by section 29.10.3040.
(Ord. No. 1316, § 3.90.115, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685 , 6-2-86; Ord. No.
2115, §II, 9-15-03)
Sec. 29.10.3025. Scope.
Page 2of5
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The Below Market Price Program requirements shall 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 development, 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.
The residential developments consisting of five or more units are required to provide the
following number of BMP units:
(1) Projects containing five (5) or more but less than twenty (20) market rate units
must provide a number ofBMP units equal to ten (10) percent of the number of market
rate units.
(2) Projects with from twenty (20) to one hundred (100) market rate units must
provide BMP units as determined by the following formula :
Number ofBMP units= .225 (total# of market rate units) -2.5
(3) All projects in excess of one hundred (100) market rate units must provide a
number of BMP units equal to twenty (20) percent of the market rate units.
(4) Whenever the calculations ofBMP units result in a fraction of one-half or more,
the number of units to be reserved is increased to the next whole number.
(5) The Town, at its sole discretion, may consider an in-lieu payment alternative to
the required BMP unit in the case of Planned Unit development with an underlying zone
of HR. The required in-lieu fee is as established by a separate resolution and is to be paid
to the Town prior to issuance of the certificate of occupancy for the market rate
residential unit that triggered the BMP requirement. The pr~vision for a BMP unit applies
if the project is built under the rules of an overlay zone unless the rules of the overlay
zone provide otherwise.
BMP units shall be constructed and Certificate of Occupancies secured concurrently with
or prior to the construction of the market-rate units. The BMP requirement will be
calculated on the basis of the whole development. The Town Council may grant a1'l.
exception to the phasing requirements during the project approval process.
(Ord. No. 1316, § 3 .90.120, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685, 6-2-86; Ord. No.
1687 , 8-4-86; Ord. No. 1838, §I, 11-5-90)
Page 3of5
,----.-,.1 Sec. 29.10.3030. Price.
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The price ofBMP units is controlled for the first buyer and for future buyers by the BMP
Guidelines as adopted and amended from time to time by Council resolution and as follows :
(1) The initial price is limited to direct construction cost and a proportionate share of the
costs of preparing working drawings and specifications and providing on-site and off-
site improvements, determined according to rules set by the Council.
(2) The initial price does not include the cost of land, profit, or marketing costs.
(3) Each BMP unit will be subjected to recorded title restrictions concerning manner of
future sales, occupancy and leasing .
( 4) Each buyer of a BMP unit must agree to sell the unit to a moderate income buyer
designated by the Town. The Town will designate moderate income persons according
to rules adopted by the Council in effect at the time the seller purchased the unit.
(5) The resale price cannot exceed the original selling price plus the value at the time of
sale of improvements added by the owner, and plus an amount equal to the increase in
cost of living or housing during the owner's tenure . The index or method to be used in
calculating the increase is established by the Council.
(6) · If a BMP unit to be resold has not been properly maintained or for any other reason is
in poor condition and in need of cleaning or repair, the Town may elect to do the work
or have it done and recover the cost from the sale price limited as provided in
subsection (5).
(7) The regulations will specify the period for controlled resales. The time period will be in
perpetuity or for as long as is practical.
(Ord. No. 1316, § 3 .90.125, 6-7-76; Ord. No. 1430, 6-4-79)
Sec. 29.10.3035. Project denial.
If an applicant for zoning approval declines to provide BMP units required by ordinance, the
zoning approval shall be denied.
(Ord. No. 1316, § 3.90.130, 6-7-76; Ord. No. 1430, 6-4-79)
Sec. 29.10.3040. Administration.
The Council shall adopt by resolution regulations concerning all aspects of the BMP
program, including the elements of location of the units , price, buyer eligibility standards, rent,
the length of the period during which a unit will be subject to BMP restrictions, the form of
recorded instruments and any other matter consistent with the provisions of this section.
; (Ord. No. 1316, § 3.90.135, 6-7-76; Ord. No. 1430, 6-4-79; Ord. No. 1685, 6-2-86)
Page 4of5
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SECTION IV
If any of the provisions of this ordinance or the application thereof to any person or
property is held invalid, such invalidity shall not affect the other provisions of this ordinance
which can be given effect without the invalid provision or application, and to this end the
provisions of this ordinance are declared to be severable.
SECTIONV
Any judicial review of this ordinance shall be by writ of mandate, under Code of Civil
Procedure 1085. Any action or proceedings seeking to attack, review, set aside, void or annul
this ordinance shall be commenced within 90 days after adoption of this ordinance.
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on October 5, 2009, and adopted by the following vote as~ ordinance of the Town of Los
Gatos at a meeting of the Town Council of the Town of Los Gatos on October 19, 2009. This
ordinance takes effect 30 days after it is adopted.
COUN~IL MEMBERS:
AYES:
NAYS :
ABSENT:
ABSTAIN :
ATTEST:
Joe Pirzynski, Steve Rice, and Mayor Mike Wasserman
Diane McNutt and Barbara Spector
None
None
SIGNED :
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK ADMIONISTRA TOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Page 5 of 5
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RESOLUTION 2009 -108
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ADOPTING REVISED BELOW MARKET PRICE HOUSING GUIDELINES AND
REPEALING RESOLUTION 2008-121
WHEREAS, the Town of Los Gatos Zoning Ordinance Sections 29.10.3000 through
29.10.2040 establishes a B~low Market Price (BMP) Housing Program to assist low and moderate
income Los Gatos citizens purchase homes at prices below market value; and
WHEREAS, the Program requires construction of dwellings that persons and fainilies oflow
and moderate income can afford to rent or buy, and assures to the extent possible that the resale
prices of those dwellings units and rents , if they are rented, will be within the means of persons and
families of low and moderate income; and
WHEREAS, the Program helps the Town meet State mandated housing goals; and
WHEREAS, this resolution revises the Town of Los Gatos Below Market Price Housing
Program Guidelines.
NOW, THEREFORE, BE IT RESOLVED, that Town Council of the Town of Los Gatos
(1) repeals Resolution 2008-121; and (2) adopts the Town of Los Gatos Below Market Price Housing
Program Guidelines attached as Exhibit A.
.!
PASSED AND ADOPTED at a regular meeting of the Town Council held on the 5th day of
October, 2009, by the following vote :
COUNCIL MEMBERS:
A YES : Joe Pirzynski, Steve Rice, Mayor Mike Wasserman
NAYS : Diane McNutt and Barbara Spector
ABSENT: None
ABSTAIN : None
SIGNED:
ATTEST: Is l Jackie Rose
Isl Mike Wasserman
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS , CALIFORNIA
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
I.
Exhibit A
TOWN OF LOS GATOS
BELOW MARKET PRICE HOUSING PROGRAM GUIDELINES
Purpose
A. Puroose : The overall purpose of the Below Market Price (BMP) Housing
Program is to provide the Town of Los Gatos with a supply of affordable housing.
While the program is available to all qualified applicants, the general intent of the
program is to provide affordable housing for households who work or currently
live in Los Gatos. The main goal is to increase the housing supply for households
that have median and low incomes compared to the median income for Santa
Clara County and meet the housing needs identified in the Town's General Plan
Housing Element. The Program further intends to ensure, to the greatest extent
possible, that rent and re-sale of these housing units will remain affordable to
median and low income levels in perpetuity. Although the Town has a fee-in-
lieu of constructing actual units option for defined circumstances, the primary
objective of the BMP Program is to obtain actual "rental" or "for sale" housing
units rather than equivalent funds. All off-site BMP units shall be constructed
within the Town of Los Gatos. The construction and occupancy of the BMP unit
is determined according to these Town Council established guidelines and
Ordinance No. 2009----
B. Enabling Legislation: The Below Market Price Program is governed by Division
6 of the Town Code. The BMP Program is administered under these Below
Market Price Housing Program Guidelines.
II. Below Market Price Housing Requirements -General
A. Applicability : The BMP Program requirements shall 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 development,
or
3. Conversion of rental apartments to condominiums or other common
interest ownership, or
4. Conversion of non-residential use to residential use .
B . Number of BMP Units: All residential developments consisting of five (5) or
more units are required to participate in the BMP Program. The requirements for
participation increase by development size as shown below:
BMP Guidelines Page 1
1. Five (5) to Nineteen 19 market rate units: The developer shall provide a
minimum number ofBMP units equal to ten (10) percent of the number of
market rate units .
2. Twenty (20) to one hundred (100) market rates units: The developer shall
provide a minimum of BMP units as determined by the following formula:
Number ofBMP units= (.225 x total# of market rate units) -2.5
This formula acts to increase the number of BMP units required, as a
percentage of market-rate units, from 10% to 20% over the range of 20 to
100 market rate units.
3. One hundred and one (101) units or more: The developer shall provide a
minimum number of BMP units equal to twenty (20) percent of the
number of market rate units.
BMP dwellings within a project of rental units shall also be rental units. BMP
units within a project of owner-occupied units shall also be designated as units for
purchase. BMP units within a project that contains both rental and owner-
occupied units shall also be designated as both rental and as units for purchase, in
a ratio similar to that of the market rate units.
The Town and developer may negotiate to provide.more BMP units than required
by the rules li sted in these guidelines to fulfill a development's Community
Benefit requirements .
C. Fraction of a BMP Housing Units: In determining the number of BMP units
required, any decimal fraction of .5 or above shall be rounded up to the nearest
whole number.
D. Residential In-Lieu Payments : The general intent of the BMP Program is to
provide the Town of Los Gatos with a supply of affordable housing for
households who work or currently live in Los Gatos. However, there may be
circumstances when the construction of the BMP unit is impractical or there are
unusual circumstances that make the construction of the unit inconsistent with
Town policy. The Town, at its sole discretion, may consider an in-lieu payment
alternative to the required BMP unit in the case of Planned Unit development with
an underlying zone of HR or a residential developments with five (5) to nine (9)
units. Prior to approving the in -lieu fee alternative, the applicant must
demonstrate to the satisfaction of the Town why a BMP unit cannot be (1)
developed on the same site as the market rate units, and if it cannot be provided
on the same site then, (2) develop at an appropriate off-site location within the
Town limits. If the developer provides sufficient justification that both of these
alternatives are not viable, then a fee in-lieu · option may be considered . The
required in-lieu fee is as established by a separate resolution and is to be paid to
the Town prior to issuance of the certificate of occupancy for the market rate
BMP Guidelines Page 2
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residential unit that triggered the BMP requirement. The provision for a BMP unit
applies if the project is built under the rules of an overlay zone unless the rules of
the overlay zone provide otherwise.
The in-lieu fee shall be equal to the amount of six (6) percent of the building
permit valuation for the entire project. The total building pennit valuation shall
be determined by the Town Building Official.
Fees shall be paid prior to or at time of final occupancy as follows:
1. Multi-Family Owner Occupied Developments : Prior to occupancy of each
phase, a proportional amount of fees shall be paid, as determined during
the Planning approval process .
2. Multi-Family Renter Occupied Developments: Prior to occupancy of each
phase, a proportional amount of fees shall be paid, as determined during
the Planning approval process.
3. Single-Family Planned Developments: At time of final occupancy for
each unit.
E. Housing Fund: In-lieu fees will be deposited into the Town's Affordable Housing
Fund. Applications and or recommendations for use of remaining funds will be
reviewed as received. Possible use of the funds include, but is not limited to, the
following :
1. Subsidizing the cost of owner occupied units to make them affordable to
low/moderate income households
2 . Purchasing rental units to make them affordable to low/moderate income
households
3. Purchasing land for the future development of affordable housing
4. Developing affordable housing
5. Supplementing of affordable housing projects developed through the Los
Gatos Redevelopment Agency
6. Funding administration of the program, as approved by the Town Council
in its annual budget process
F. Off-Site Construction: The Town Council may consider off-site construction of
BMP units for continuum care facilities and for Hillside Residential (HR) Zone
District and residential developments with five (5) to nine (9) units projects that
have provided sufficient justification to the Town that an on-site BMP unit is not
viable.
G . Phasing of the Construction of On-and Off-Site BMP Units: On-and off-site
BMP units shall be constructed and Certificate of Occupancies secured
concurrently with or prior to the construction of the market-rate units . The BMP
requirement will be calculated on the basis of the whole development. The Town
Council may grant an exception to these phasing requirements during the Planned
BMP Guidelines Page 3
Development project approval process for condominium convers10n
developments.
H . Affordability Agreement: The developer of "for sale" BMP units shall enter into
an affordability agreement with the Town. The agreement will ensure that the
BMP units are sold to qualified buyers and will be released by the Town through
the escrow process once the BMP is sold to a qualified buyer.
III . Characteristics of BMP Units
A . Size of units : The size and design of BMP dwelling units shall be reasonably
consistent with the market rate units in the project. The Town and developer may
negotiate regarding the size of units if more units than required are to be provided
under the Community Benefit requirements . BMP units should be provided
proportionately in the same unit type mix (number of bedrooms) as the market
rate units. In consideration of the household size of the households on the current
program interest list, the Town and developer may negotiate to provide a greater
proportion of a particular unit type. There shall not be significant identifiable
difference between the BMP and market-rate units visible from the exterior. The
size and design of the BMP units must be reasonably cpnsistent with the market-
rate units in the development.
B Location of units: BMP units shall be dispersed tluoughout the development, to
the extent feasible; in all buildings, on each floor , and in each project phase. A
concentration of BMP units in one location is not desirable and will generally not
be allowed.
C . Finish of units: The external appearance of BMP units should be indiscernible to
that of the market rate units in the project. The internal finish of BMP units
should be identical to that of the market rate units in the project, except that the
developer may request Town approval of substitutions for luxury interior finishes,
appliances, or fixtures, if such substitutions do not violate any Town code
requirement.
D. Project Facilities: All project facilities and amenities, including parking, must be
available on the same basis to the BMP units as to the market rate units in the
project, to the extent feasible .
IV. The BMP Unit Purchase Process; Buyer Selection, and BMP Unit Sale and Resale
Procedures.
A. Owner Occupied Units
1. Applicant Eligibility
BMP Guidelines Pag e 4
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a. Household Income: In order to be eligible to purchase an owner-
occupied BMP unit, an applicant's annual household income must
be no greater than 100% of the Median Family Income (MFI),
adjusted for household size, as defined by the United States
Department of Housing and Urban Development (HUD) for the
San Jose, CA Primary Metropolitan Statistical Area (PMSA).
Household assets, such as real property, may also be considered in
determining eligibility.
b. Housing Costs: In order to be eligible to purchase an owner-
occupied BMP unit, an applicant must also demonstrate the ability
to pay monthly housing costs. The monthly housing cost shall
include the following factors:
c.
1. unit price
2 . current lending rates
3. estimated property taxes
4. estimated homeowner's insurance costs
homeowners ' association fees, if applicable
5. other expenses as determined necessary by the lender
All persons must qualify for their own mortgage without assistance
from the Town. Qualifications must include the ability to pay
taxes, insurance, closing costs and any homeowner association fees
in addition to the mortgage.
2. First Time Home Buyers: The Below Market Price (BMP) Program is for
First Time Home Buyers. A First Time Home Buyer, by definition, is an
applicant whose name has not appeared on a residential title in the
counties covered by the Association of Bay Area Governments (ABAG)
or Association of Monterey Bay Governments (AMBAG) which are
Alameda, Contra Costa, Marin, Monterey, Napa, San Benito, San
Francisco, San Mateo, Santa Clara, Santa Cruz, Solano and Sonoma for at
least three (3) years prior to application. Exception is made for people who
were homeowners prior to a divorce settlement and tenants residing in a
rental apartment proposed to be converted to a condominium or other
common interest ownership prior to a Notice of Intent to Convert the
development to an oWn.ership residential unit.
B. Buyer Selection: A point system is used to establish a ranking of applicants for
the purchase of an available unit. Applicants will be ranked according to total
points and must have at least one point to be eligible to purchase a unit. In
addition, applicant households must contain at least the same number of persons
as the number of bedrooms in a unit , at the time of application, in order to be
eligible to purchase that unit, if the unit contains three bedrooms or more.
BMP Guidelines Page 5
All points are calculated per household, not for each individual within the
household. For example, a household in which two members are senior citizens
would receive six points for senior citizen status, not twelve points for two
members having senior citizen status. Points are awarded as follows:
1. Six points:
a. Senior citizens who reside in the Town at the time of application
and have lived in the Town for at least the prior two years. A
senior citizen is defined as any person 62 ye~s of age or older at
time of application or married couples living together when at least
one spouse is 62 years of age or older at time of application.
b . Senior Citizens who have lived in the Town for at least two years
and have moved out of the Town within the last five years prior to
the time of application.
c . Disabled persons who reside in the Town at the time of application
and who have lived in the Town for at least the prior two years.
The definition of "disabled" for the purpose of assigning points
under this section shall be that used by the U.S . Social Security
Administration for the purpose of determining eligibility for Social
Security disability benefits.
d . Households required to relocate their residence as a result of
Council action or mobile home park closure.
e . Regular Full-Time and Regular Part-Time Town employees as
defined in the Town's Personnel Rules, who have been employed
by the Town for a period of no less than 12 months prior to the
time of application.
f . Single heads of household with dependent children who reside in
the Town at the time of application and have lived in the Town for
at least the prior two years.
2. Four points:
a . Persons who live in the Town of Los Gatos at time of application
and who have lived in the Town at least the prior two years .
b . Persons who work in the Town of Los Gatos at time of application
and have worked in the Town for at least the prior two years.
3. Two points:
BMP Guidelines Page 6
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a. Households who have lived in the Town for at least 10 years and
have moved out within the last ten years prior to the time of
application.
b. Household size is worth two points per person.
4. One point:
a. Households who live or work within Santa Clara County at the
time of application.
b . Households with an annual household income at or below 60% of
the Median Family Income (MFI), adjusted for household size, as
defmed by the United States Department of Housing and Urban
Development (HUD) for the San Jose, CA Primary Metropolitan
Statistical Area (PMSA).
5. A lottery will be used to rank each qualified applicant in the case of a tie.
6. Applicants are provided the opportunity to purchase available units in
order of point ranking, from most points to least points. An applicant has
two opportunities to refuse to purchase a unit before being removed from
the current applicant pool.
7. Applicants who do not qualify for a particular project or who are not
provided the opportunity to purchase a unit in a particular project shall
retain their eligibility to apply for future projects.
8 . An applicant must obtain pre-approval for a mortgage loan within one
week after notification of eligibility to purchase a unit. The applicant
must submit documentation of loan approval within three weeks of
notification of eligibility to purchase a unit.
9. Exception to the Buyer Selection Process: An exception to the Buyer
Selection Process may be granted to a resident of a rental apartment that is
proposed to be converted to an "owner occupied" condominium or other
common interest ownership development. In order to qualify for the
exception, the resident must have resided in the rental apartment prior to
the issuance of the Notice of Intent to Convert the development to an
ownership project and shall meet the financial eligibility requirements to
qualify for a BMP unit. The resident shall be provided first right of
refusal, regardless of point ranking, for units in the following order:
a. The unit they reside in if it is designated as a BMP unit.
b. Any other available BMP unit.
BMP Guidelines Page 7
)
C. Determination of Initial Selling Price: BMP units shall be priced to be affordable
to households in two income categories : Median Income Households (those
whose income is above 80%, but no greater than 100%, of the County Median
Income); and Low Income Households (thqse whose income is above 50%, but no
greater than 80%, of the County Median Income).
1. Fifty percent (50%) of the units in a project shall be priced to be
affordable to Median Income Households; fifty percent (50%) shall be
priced to be affordable to Low Income Households. Whenever the
calculations result in fractional units, then the number of units priced to be
affordable to Low Income Households shall be rounded up to the next
whole number, and the number of units priced to be affordable to Median
Income Households shall be rounded down to the next whole number,
including zero '(O). The following table applies this formula to projects
with 1, 2, and 3 units:
Total Number of Units Priced for Units Priced for Median
BMP Units in Project Low Income Households Income Households
1 1 0
2 1 1
3 2 1
The Town and developer may negotiate regarding the affordability mix of
units, to fulfill a development's Community Benefit requirements.
The affordability level of a unit shall be for the purpose of setting the
initial selling price only, and do not prevent its sale to any household
eligible to purchase an owner-occupied BMP unit, as set forth in these
Guidelines.
2 . Annually, the Town shall set the initial unit sales price for each unit type
(number of bedrooms), for each of the two income categories. These
initial sales prices shall be set using the most recent Median Family
Income (MFI) figures from the United States Department of Housing and
Urban Development (HUD) for the San Jose, CA Primary Metropolitan
Statistical Area (PMSA), and through the following calculations :
a .
BMP Guidelines
For units to be priced to be affordable to Median Income
Households : the average of the 100% MFI annual income and the
80% MFI annual income (assuming household size appropriate to
size of unit) x Multiplier= Initial Sales Price.
Page 8
BMP Guidelines
1. Assumptions of household size by size of unit are as
follows:
Household Size
Studio 1
1 Bedroom 1
2 Bedroom 2
3 Bedroom 3
4 Bedroom 4
These assumptions of household size by size of unit shall
be for the purpose of setting the initial sales price only, and
do not prevent the sale of any unit to any household eligible
to purchase an owner-occupied BMP unit, as set forth in
these Guidelines.
b. ·For units to be priced to be affordable to Low Income Households :
the average of the 80% MFI annual income and the 50% annual
income (assuming household size appropriate to size of unit) x
Multiplier = Initial Sales Price.
c. Calculation of Multiplier. A Multiplier shall be calculated, based ·
on reasonable assumptions about unit sales prices, based on the
most recent comparable sales of BMP units; current lending rates,
as determined by the most recent Primary Mortgage Market
Survey (PMMS) conducted by the Federal Home Lqan Mortgage
Corporation (Freddie Mac); and related costs; and using the
following formula:
1.
2.
3 .
Determination of Total Housing Cost: Sample sales price -
10% down payment = mortgage. Annual debt service on
mortgage + annual property taxes + annual homeowners .
fees + annual private mortgage insurance (PMI) = Total
Annual Housing Cost.
Determination of Minimum Household Income: Assuming
one-third of household income goes for housing expenses,
.Total Annual Housing Cost x 3 = M inimum Annual
Household Income.
Determination of Multiplier: Sample Sales Price/Minimum
Annual Household Income= Multiplier.
Page 9
' -.
)
D.
E.
Copies of the initial sales prices, and the calculations made, shall
be available on request from the Town's Community Development
Department.
Deed Restrictions : Council approved Deed Restrictions shall be recorded with
each Below Market Price dwelling unit.
Resale of Units:
1. If the owner elects to sell his/her unit , the Town must be notified in
writing by the owner.
2 When. a Below Market Price dwelling unit becomes available for resale,
the Town shall set the resale price and make the unit available for
purchase through the BMP process . ·
3 The Town determines the resale price in accordance with the deed
restriction recorded on the property.
F. Occupancy of Units:
Consistent with the deed restriction that will be recorded on the subject property,
the household purchasing a BMP unit must occupy the unit as his or her primary
residence during his or her ownership of said unit.
V . Requirements for BMP Rental Development
A. Administration : The program shall be administered by the To\vn or its designee.
B . Applicant Eligibility
1. Household Income: In order to be eligible to rent a BMP rental unit, a ·
household 's annual income must be no greater than 80% of the Median
Family Income (MFI), adjusted for household size , as defined by the
United States Department of Housing and Urban Development (HUD) for
the San Jose, CA Primary Metropolitan Statistical Area (PMSA). Priority
will be given to those households whose income is less than 50% of the
MFI. Household assets may also be considered in determining eligibility.
2. Ability to Pay Rent: A tenant's ability to pay monthly rent will also be
considered in determining tenant eligibility.
C . Tenant Selection: The property owner or manager of the development shall
market the BMP unit(s), and solic it rental applications . Applications from tenants
selected by property owner or manager will be forwarded to Town or designee for
verification of income eligibility.
BMP Guid eline s Page 10
( . " D. Management
1. BMP rental units shall be managed by the property owner or manager in
the same manner as other units in the development.
2. Tenants of BMP rental units are eligible to receive conciliation and
mediation services provided through the Town's Rental Dispute
Resolution Program except as they regard rent increases.
E. Unit Rents : Rents may not exceed 80% of the most current Fair Market Rents as
determined by the Santa Clara County Housing Authority.
F. Annual Review: If a tenant's income increases so that it falls between 80 and 100
percent of MFI, then the rent may be increased in accordance with the Town's
Rental Dispute Ordinance; and the unit shall still be considered a BMP Rental
Unit. However, if a tenant's income exceeds 100 percent ofMFI, the rent may be
increased to the average rent of similar units in the complex; in this latter case, the
unit will no longer be a BMP unit and the next available unit that is comparable in
size shall be designated as a BMP unit in its place, and must be rented to an
eligible household so that the number of BMP units within the project remains the
same.
G. Deed Restrictions: Council approved Deed Restrictions shall be recorded for each
Below Market Price rental dwelling unit.
Vl . RENTAL UNITS-NEW SECOND DWELLING UNITS
A. Administration: The program shall be administered by the Town or its designee .
B. Second Unit Incentive Program: 29 .10.310 of the Town Code, may choose to
participate in the Second Unit Incentive Program (SUIP) as referenced in Section
29.10.320(a) of the Town Code and as set forth below.
1. The SUIP consists of a no interest construction loan to a property owner
who intends to develop a new second unit. The loan amount shall be
determined based on the square foot construction cost as set forth in the
current version Uniform Building Code as adopted by the Town for new
construction and remodels. The loan amount will be calculated at 100%
of the construction cost if the unit is income and rent restricted to serve
households with incomes below 50% of the Median Family Income
(MFI), adjusted for household size, as defined by the United States
Department of Housing and Urban Development (HUD) for the San Jose,
CA Primary Metropolitan Statistical Area (PMSA), or 80% of the
construction cost if the unit is income and rent restricted to serve
) households with incomes below 80% of MFI.
BMP Guidelines Page 11
r~
(
i
I
\
2. When a property owner participates in the SUIP, a deed restriction shall be
recorded on the property. The deed restriction shall stipulate the rental
rate, tenant income level, duration of affordability and loan repayment
requirement as well as any other criteria as determined appropriate by the
Town .
3. A SUIP loan to construct a second unit within the Central Los Gatos
Redevelopment Project area shall be funded using Redevelopment
Affordable Housing Funds and shall remain affordable for 55 years. A
SUIP loan to construct a second unit outside the Central Los Gatos
Redevelopment Project area shall be funded using BMP Program Funds
and shall remain affordable for 30 years. The SUIP affordability
restrictions as set forth in this section may only be amended by action of
the Town Council.
4. A tenant's ability to pay monthly rent will also be considered in
determining tenant eligibility. Applications from tenants selected by the
property owner or manager will be forwarded to the Town or its agent for
verification of income eligibility. Rental agreements shall be submitted to
the Town or its agent to verify compliance with the provisions of this
section. Tenants are eligible to receive conciliation and mediation
services provided through the Town's Rental Dispute Resolution Program
except as they regard rent increases.
5. Units targeted to households with incomes up to 80% of the Median
Family Income (MFI) shall have rents restricted to 80% of Fair Market
Rents as determined by the Santa Clara County Housing Authority. Units
targeted to households with incomes up to 50% of CMI shall have rents
restricted to 50% of Fair Market Rents as determined by the Santa Clara
County Housing Authority. Tenant rents and incomes will be monitored
annually.
(Adopted by Resolution 2009-September , 2009)
N:\DEV\JOEL\ORDINANCE AMENDMENTS\BMP Program Guidelines Final.doc
BMP Guidelines Page 12
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From: Angelia Doerner [mailto:saveourhood@yahoo.com]
Sent: Wednesday, March 02, 2016 12:52 PM
To: Council; BSpector; Marico Sayoc; Marcia Jensen; Steven Leonardis; Rob Rennie
Cc: Laurel Prevetti; Matt Morley; Planning
Subject: Last Night -Agenda Item 11 -Rule 20A Credits
Just a quick thank-you to Marcia for clarifying the expected timeline and process
associated with this project. I had researched Rule 20A Credits a while back when I
kept seeing the unused credit amount in the financials growing. My understanding
of the process and potential timeline (many, many moons forward) was consistent
with Marcia's comments. However, the timeline expressed by Staff was 1.5 years
"admin" + 2 years design -then the project taking 3 years . Thinking linear
continuity of the process, it sounded to me like the project would commence 3.5
years from now . Hence, my question .
Notwithstanding this, with our thinking-caps on for three years from now, its likely
some level of construction will have commenced at the North 40 by then -and that
the first steps will be to place the utility infrastructure. Are there any preliminary
utility plans for the project indicating how/where they will be "connecting to" the
existing PGE network. Would they be "feeding into or out of'' the
transformers referred to at Chirco? Maybe there as well as others? Given that the
developers will be working with mostly "virgin land", I would imagine they would be
undergrounding all utilities.
Maybe this is already in process -but just some thoughts. Is it possible, if the Town
is a driving factor and .active participant, that the objectives of the Rule 20A District
could be achieved (and possibly accelerated) by piggy-backing the developers'
initiatives and not having to utilize some (or any) of our existing credits? Might it
be worthwhile to gain a thorough understanding of North 40 utility plans as to
where they "cross the borders" into the Town's existing utility network and
conceptualize how we may integrate utility upgrades, etc., to coincide with such
efforts -thereby piggy-backing developers' costs and benefiting the Town at lower
cost, if any?
The Town/Planning Commission addresses traffic mitigation efforts -do they do the
same with other "infrastructure" matters, e.g . utilities, sewers, storm drains?
Maybe not in the past (?) -but this is not just a new animal for the Town -its a
Beast! How do we, or to what extent CAN we, ensure that developers'
responsibilities include upgrades/mitigati ons/etc., addressing capacity issues of
the Town's existing infrastructure "just down the road" from wherever the North 40
"hooks in"?
Thanks for reading/listening. Also, please include this communication in Public
Comments for the March 23 '16 PC meeting. Th.anks!
Angelia Doerner
Live Simply, Laugh Often EXHIBIT 2 l
March 17, 2016
Los Gatos Town Planning Commission
110 E. Main Street
Los Gatos, CA 95030
Re: March 23, 2016 Agenda Item -North 40 Project
RECEI VED
~.: ·~' ~ 1 ° 2~1 ~0"' IY , '" 0 . U I
TOWN OF LOS GATOS
PLANNING DIVISION
I am writing to voice my concern about the proposed Phase I North 40 project. The introduction on the
Town's web page says the town is "dedicated to providing an exceptional quality of life and preserving
the character of the town." The 320 homes proposed are way too dense to fulfill that promise.
We all know the North 40 development will go forward. We also know the negative impact it is going to
have on traffic, schools, and quality of life. I applaud the inclusion of 50 residences for seniors.
However, our only hope for maintaining any "town character" is to reduce the density and include more
open space around the other 270 homes.
I would also like to hear an update on what the developers have done to help the school district. This
was something that was included in the Council's approval of the specific plan.
I have been a resident of Los Gatos for a long time and in my current home for 25 years. I have twice
viewed the Phase I model on display. It is frightening. In recent meetings the Commission has denied
applications for residential development citing, i n part, concerns over the density of the projects.
Please consider that perspective when deciding on this application.
Thank you,
/Jat diMj°
Pat Sharp
320 Harding Avenue
Los Gatos, CA 95030
From: Pat Blair [mailto :patrblair@msn .com]
Sent: Saturday, March 19, 2016 8:15 AM
To: Joel Paulson
Subject: North 40
Look at the fight down in Morgan Hill to save PRECIOUS farmland and green space. I am
appalled at what we are doing here in Los Gatos . We do NOT need more business. We do NOT
need more traffic We DO need some truly affordable housing and we DO need to have thought
outside the box (Yes I did write in early on in this process) to preserve MUCH more green space
and orchards. I was truly heartsick to view he plan. Shame on us!!
Pat Blair
101 Lorain Pl.
Los Gatos
Marni Moseley
From:
Sent:
To:
Subject:
Jennifer Ri ano <jennifer.riano@gmail.com >
Monday, March 21, 2016 7:29 PM
Marni Moseley
Deny North 40
I'm writing regarding the proposed North 40 plans. Please deny them ALL. My family and I have lived here for 6 years
and love the town & the small population that comes with the town. We have negatively been impacted by the growing
medical facilities that we encounter on our daily commutes (National/Carlton/Lark/Los Gatos Blvd).
Adding more homes and stores to that area will further clog the traffic arteries, especially during beach traffic (Friday's
through Sunday's March-November). We are still suffering from the current challenges.
Listen to your tax paying constituents & keep Los Gatos a town; don't turn it into a city. No on North 40.
Jennifer Riano
100 Escobar Ave
1
Marni Mosel ey
From:
Sent:
To:
Cc :
Subject:
Marni,
TRICIA L. CAPRI <tricia_capri@yahoo.com >
Tuesday, March 22, 2016 4 :41 PM
Marni Moseley
TRICIA L. CAPRI
Opposi tion to North 40
I'm writing to voice my opposition to the North 40 plan that is currently in
place. I'm not sure if I can attend the meeting on Weds, March 30th therefore I
want to be sure my sentiments are documented and recorded.
I saw the model downtown and I was appalled to see how many units are crammed
together, with very little open space. I also don't see any "charm" to this model --
this is not representative of the TOWN of Los Gatos.
This is crazy .... we need more infrastructure for that many new homes ---there will be
too many kids and way too many cars!!
Why not make it all low income SENIOR housing ?? NO KIDS, no additional burden on
already crowded schools?
I'm very concerned at the number of homes and the fact that MANY will have
children which will add to. the crowding of our schools.
When our school system starts to erode, that is a direct link to the value of my
home. I have huge concerns that the TOWN is not looking out for the interest
of the taxpayers it is paid to represent .
Where is the open space? Where are the trees? Each development seems to
take away from the aesthetics of a beautiful town --one that we all moved
here for. We are quickly losing the quaint, rustic feel of our town .
Where is the adherence to the PLAN that was approved for our town?
This plan seems awfully greedy to me. There seems to be no valid reason for the
development to be so crowded.
Also, for a TOWN the size of Los Gatos, it seems to me that an $8.5 million police station
with no parking was too much. I still don't understand why we don't have combined
services to reduce overhead costs . Again -INFRASTRUCTURE (traffic, schools, police,
fire, etc.) will all be negatively impacted and I haven't seen any plans to reduce these
burdens. What is being done to offset these issues?
1
We cannot let this happen .
Tricia Capri
Homeowner and resident of Los Gatos since January 1989
255 Los Gatos Blvd.
Los Gatos, CA 95030
2
March 21, 2016
To: Marni Moseley
Community Development Department
110 E. Main Street
Los Gatos, CA 95030
h:\R 2 .'1 2016
-:-··' .~ 1 D F LOS G ATOS
;:v~l ~:.._,,,;G DIVISIO N
Regarding: North 40 Plan, traffic revision regarding Bennett Way left tum
•
Dear Ms. Moseley:
We are the owners for the individual condominium units for the buildings
15055 and 15075 Los Gatos Boulevard. We and our Condominium Association
collectively oppose the Town's proposal to revise traffic flow to and from Bennett
Way and Los Gatos Boulevard. The remedy we seek is for a finding or
determination to be made to allow left turning vehicles into and out of Bennett
Way. In short, the Town should make no restrictions to the existing traffic pattern
on Los Gatos Boulevard at Bennett.
It has come to our attention that a traffic revision is under consideration by
the Town of Los Gatos, the effect of which is to not allow a left tum from Los
Gatos Boulevard onto Bennett Way, and to not allow a left tum from Bennett V.lay
onto Los Gatos Boulevard. Both would be changes to the existing pattern. We
believe that such a revision would unnecessarily restrict traffic flow to and from
our buildings with no demonstrable benefit.
Bennet Way is an access road running northwest from Los Gatos Boulevard.
It currently serves our two buildings and several private residences . Traffic can
currently turn left or right from Los Gatos Boulevard onto Bennett Way, and traffic
from Bennett vVay can turn left 6r right onto Los Gatos Boulevard. The North t'.J.O
plan does not link our parking lot or Bennett to any new development. In fact less
traffic would take Bennett Way after the North 40 completion, because all the
private residences are proposed to be cordoned off from Bennett Way and obtain
access through the main development.
If restrictions are implemented, left-tumil1g traffic coming to our bus inesses
wou ld have to go to intersect ions that are already congested. Traffic coming north
(either from Los Gatos or having come off Highway 17 at the Lark Avenue ramp)
wi ll need to bypass our building and travel .4 miles t o the next legal U-tum at
Samaritan Drive, past the proposed entrance to the North 40 development. Then
22 March 2016
Marni Moseley, Associate Planner
Community Development Department
110 East Main Street
Los Gatos, CA 95030
Re: North 40, Phase I
RECEIVED
MAR 2 3 2016
TOWN OF LOS GATOS
PLANNING DIVISION
Dear Ms. Moseley, Town Planning Commission and Town Council,
I expect each of you has seen the North 40 Phase I "story poles" as viewed from
southbound Highway 17. Never has the requirement for "story poles" been more
soundly vindicated ; and never has the use of "story poles" presented a more graphic
portrayal of appalling and unacceptable density .
Cramming 320 residential units into the Southern Section of this development must be
rejected on multiple grounds:
• It has been reasonably expected that many of these units would be placed in the
Middle Section and especially the Northern Section of the North 40.
• The sheer density and mass of the current proposal is completely out of step with
the stated goal of preserving the rural character of the Town.
• This over-weighted Southern Section would create intolerable traffic no matter
what alleged mitigation measures are planned.
• The number of residential units will put an unfair and unequal burden on the Los
Gatos schools .
Let us not forget that, during the lengthy process of developing the North 40 Specific
Plan, there was a debate as to whether any housing ought to be included. It was decided
that , rather than create a commercial-only, nocturnal "ghost town", limited housing
would be appropriate, to wit, only housing to meet the Town's "unmet needs". The
"unmet needs" were define d a s : senior housing, housing for millennials, and housing for
"empty-nesters". These categories were chosen specifically so as to limit the impact on
Los Gatos schools.
We now learn that of the 320 residential units proposed in Phase 1, there are to be 135
with 2 bedrooms and 54 with 3 bedrooms. (I do not know the bedroom count of the I 0
rental units). I submit that to some extent 2 bedroom condos, and positively 3 bedroom
units , violate the intent of the Council in approving housing and will , in fact, act as
magnets for families with children. The developer 's rationale for 2 and 3 bedroom units,
to wit, that, based upon focus group comments, 1 bedroom units may be harder to sell is
hard to credit, especially in this market and is, in all honesty, irrele vant.
After years of hard work by residents, governing bodies and the current Town staff to
"get this right" it fe e ls as though we have slipped back to 2012 when the developer
presented to a joint meeting of the Planning Commission and Town Council a bloated
proposal that bore scant resemblance to the character of our town. While that plan was
summarily rejected and followed by years of honing a vision, the current proposal also
needs critical analysis and corrective surgery so that it will conform to that vision.
Respectfully submitted,
\~ l\--\,._J~ ~l-~
Woody Ned°&n
16280 Azalea Way
Los Gatos, CA 95032
Bronco60@comcast.net
408 356-7956
Marni Moseley
From:
Sent:
To:
Subject:
Dear Ms. Moseley,
Judy Rucker <ljudyrucker@gmail.com>
Wednesday, March 23, 2016 11:49 AM
Marni Moseley
North 40 development
I wish to go on record as opposing the North 40 development as proposed at thls time. My objection is mainly
due to the increased traffic that this development will cause, especially on Lark A venue, which is currently
practically unnavigable at certain times of the day. As a resident on Arroyo Grande Way, I have no outlet
EXCEPT Lark A venue and I've seen traffic increase exponentially due to other development in the area. I
would hate to see Lark A venue turned into an El Camino Real-type road, with multiple lanes and stop lights at
every comer.
I know the downtown area residents are concerned about the traffic from the freeway driving through their
neighborhoods when Highway 17 is crowded. Our neighborhood is just as concerned about the impact of traffic
in our area due to the high density nightmare that would be the North 40 .
Sincerely,
(Mrs.) Judy Rucker
Sent from Gmail Mobile
1
Marni. Moseley
From:
Sent:
To:
Subject:
Lael .Sigal@ch2m.com
Wednesday, March 23, 2016 6:12 PM
Marni Moseley
Open Space, Height Restrictions and More trees -Developer Application
The proposed application does not keep with the feel of Los Gatos. There is not enough open space. 360 housing units
in that amount of space without an open area .
Also I feel very strongly that the height restrictions are not low enough and there are not enough trees. Just blocks up
we have wonderful sight lines of parks and green trees. This plan does not meeting these needs.
Los Gatos property owner.
Lael Sigal
1
Marni Moseley
From:
Sent:
To:
Subject:
Carmen Villanueva <carmenv356@gmail.com>
Wednesday, March 23, 2016 7:59 PM
Marni Moseley
Town not a City
I have been a resident in Los Gatos for nearly 20 years. The development that is proposed for the North 40 is
going to destroy the quality oflife in our town and destroy our public schools. Why are council members hell
bent on developing every square inch ofland in Los Gatos? The answer is simple ... greed. Isn't is interesting
that most of the homes will be built in Los Gatos School District? I wonder what kind of back-room deals
happened to make this come about. The town council should be ashamed of itself.
Sincerely,
Carmen Villanueva
1
Marni Moseley
From:
Sent:
To:
Cc:
Subject:
Cathleen Bannon <cath leenbannon@gmai l.com >
Wednesday, March 23, 2016 8:33 PM
Marni Moseley
Grant Bannon
North 40 prop.osal
Dear Ms Moseley and Town Council -As a resident of Los Gatos, I want to voice our family's concerns regarding the
current proposal for phase 1 of the North 40 development.
The current proposal does not meet the approved specific plan in several areas.
1-The plan does not look and feel like Los Gatos. Any proposed development needs to focus on charm, green space,
walkable neighborhoods, be set back from street, include dense large trees . The proposed plan is modeled after urban
developments with dense housing, tall buildings, narrow walkways, mass amount of retail. This intense number of
homes will generate so many cars that no one will feel safe to walk with their families in this area. The homes along Los
Gatos Blvd should be low larger homes, set back from the road Oust as with the south side of the Blvd) to keep the
town's charm and look. There should be green belts surrounding all perimeters so when driving on 17 or down Lark you
see trees not concrete from a massive development that is do out of character for the town.
2-the proposed plan does not meet the specific plan's requirement of not impacting traffic and schools. Densely packed
320 homes on the south side next to the Lark 17 entrance will create a tremendous traffic bottle neck that the town will
not recover from. These homes could account for another 640 cars on our town streets. Unthinkable, especially onLG
Blvd which already sees tremendous traffic-can take 30 mins to get kids to school in the morning ... such traffic quickly
changes a town to an urban city. This is NOT in keeping with the look and feel of LG. Secondly, LG schools are already
over impact by upwards of 500 kids. We do not have the infrastructure to bring in another 300-900 kids from a new
development. Let's not kid ourselves, parents are so desperate to get into our district, they will put a family of 4 in a 1
bedroom. This is TOO many homes, the school system can not handle it and our top ratings will fall. Additionally, there
should be NO reason that ALL homes in the development be placed on the land in the LG school district. That is the
greed of the developers to sell the homes with that distinction. If the Campbell district is not impacted then the homes
should be on that land. At the bare minimum, it should be shared with only 1/2 the homes in LG district.
Recommendations
-less homes ... reduce by 1/2 to 160 homes in total with no more than 80 of those in LG school district.
-change the look from urban, dense, vertical living to small town vintage and varied homes, set back from street, wide,
child friendly walkways, less cars .
-more green space, green be lt around perimeters so you see trees not stucco .
Thank you for listening to your town, we are counting on you to stand up for us to keep the look and feel of LG, and save
our schools.
Cathleen & Grant Bannon
16828 Kennedy Rd
Los a Gatos, Ca 95032
1
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M arni M ose ley
From:
Sent:
To:
Subject:
Hi there,
Linda Frolich <lindafrolich@gmail.com >
Wednesday, March 23 , 2016 11:05 PM
Marni Moseley
North 40 Resident comments
I'm a resident and homeowner in the neighborhood off of Garden Hill/Lark Ave . I'm hoping to attend the meeting on
March 30th, but I wanted to submit some comments and concerns directly.
1) I'm concerned about the major traffic impact this project will have in our part of town . I'm sure you are well aware of
the daily, heavy traffic congestion that occurs along Lark Ave . I can barely leave my home without dreading which way
will be bad or worse . I missed half of my son 's first baseball game because I got stuck on Lark in ridiculous ly
slow/standstill traffic. And now, with the new Netflix buildings (and the new traffic coming with them), traffic is already
starting to grow worse on that end of Lark. I know there has been money set as ide for traffic mitigation, but the problem
is already bad . It should be fixed to handle current traffic issues before drawing in additional traffic to be sure their plan
can truly work.
2) The story poles -I'm sick to my stomach when I realize that we'll be looking at walls of buildings instead of trees. I
can't believe that something more sensible can't be put in on Lark . I get it that we need to address a housing issue, but
there is more than one way to do it. Perhaps the high density housing should go over next to hwy 85 so that existing
residents don't have to look at it. How about single family homes (single story with basements) at the south end of the
North 40, commercial property located more centrally (so those of us who live nearby can walk to and enjoy the
offerings (which we thought could be pretty neat until we found out that they'll be the furthest away from us), and then
higher density housing at the north end of the property? Or, maybe just not 300+ homes in a tiny area .
3) I'm also concerned that all of the high density housing has been placed in the LGUSD boundaries. Really ? I can't begin
to understand this decision. Couldn't it be split between us and Union or Cambrian districts? We have to take it all? And
I know this is supposed to be millennial housing, but I think we all know that is simply not how this will really shake out.
We work so hard to raise money in an effort to maintain our school services and now this extra burden will be placed on
top of that? It seems terribly short sighted. And the children in this town will suffer because of it.
Who is really supposed to benefit from this project? I believe in the rights of property owners, but the t r ansformation of
one piece of property, no matter how big or small, doesn't have the right to change the existing culture of the
surrounding community, does it?
I'm positive that I'm not the only tax paying resident of this town that feels this way . And, did you know there are still
many residents of Los Gatos that are not aware of th is project or the scope of it? I don't believe due diligence has been
done to educate the greater community about this project. In fact, the only place I have seen anything publicly listed has
been on Facebook. Not everyone uses Facebook, and even those who do, still might not see these posts. I consider this
laziness on the part of those who are supporting this project. And them offering to meet for coffee at Starbucks during
hours when many of us wo r k is simply not enough .
These are my honest feelings and I feel powerless to make a difference. Please know that the residents that are aware of
the project really don't feel there is anything that can be done . Is there? Thank you for your consideration of my
comments and concerns, and I hope to be at the meeting next Wednesday .
Linda Frolich
1
173 Ivy Hill Way
Los Gatos, CA 95032
(408) 655-9675
Sent from my iPad
2
March 24, 2016
Planning Commission
110 E. Main Street
Lo s Gatos, CA 95030
SUBJECT : CONCERNS ABOUT PHASE 1 OF THE NORTH 40 DEVELOPMENT
Dear Members of the Planning Commission:
I have a number of concerns about the proposal for Phase 1 of the North 40 development. I hope you
will take these commen t s into consideration and ask the developer for major modifications to its
proposed development.
Residences should be spread throughout the 44 acres of the North 40 and not concentrated in the first
20 acres. Th e Specific Plan permits a maximum of 270 residential units plus 50 senior units and allows
for residential building through the 44 acres of the North 40. The developer has chosen to build ALL the
residential units on the first 20 acres of Phase 1. This has resulted in excessive density and an
environment that does not loo k and feel like Los Gatos (thus violating Guiding Principle 1 from the
Specific Plan : "The North 40 will look and feel li ke Los Gatos .") The number of residences in Phase 1
should be reduced at least by half so that residences can be spread throughout the development.
At least half the residences should be moved to later phases (and across the school boundary line) to
avoid impacting the schools. Although the developer claims that the residential units are aimed at
millennials and seniors, there are likely to be many families with children that will move into them. As a
result, the developer is vi olating guiding principle 4 from the Specific Plan : "The North 40 will minimize
or mitigate impacts on town infrastructure, schools, and other community services."
In general, the buildings in Phase 1 should be more spread out. The view of the story poles from
Highway 17 and the model indicate a too-heavy concentration of structures. In addition, the Specific
Plan, on p. 2-3 calls for "lower intensity residential" in this area. I believe that the original idea for the
North 40 was to have lower intensity building in the Lark area, with increasing intensity as the
development headed toward the 85 interchange. The idea here, I believe, was to discourage traffic in
the Lark area, with more of the traffic impact resulting from building in the northern area .
Senior housing should be integrated through the development and not just put all together over the
Marketplace. This may be a minority view, but I'm a senio r and I would not like to live in a tight cluster
with other seniors over a market. I don't feel the rooftop open space "Senior Court" compensates for
the lack of green space for these units.
Buildings should mesh with structures in the surrounding areas. The developer appears to be
maximizing its use of the space by making almost all the residences 35 feet high . This conforms to the
Specific Plan , but it creates housing that does not fit in with the buildings in nearby neighborhoods. The
Highland Oaks neighborhood, for example, consists of one-story ranch homes that are less than half the
height of the projected residences . The developer should reduce the height of the residences to better
conform to the neighborhood; a height of no more than 25 feet seems more appropriate than 35 feet.
Buildings make it impossible to see the hills. Following up on the previous note, the massing of the 35 -
ft-tall un its m akes it impossible to see the hills from inside the development. This is another r eas on why
the height and massing of the buildings should be reduced . Furthermore, the height and ma ssin g of the
buildings violates guiding principle 3 from the Specific Plan : "The North 40 will embrace hillsid e views ,
t r ees, and open space ."
The buildings should "celebrate our history" and "agricultural heritage," but many fail to do so. Many
buildings are massive and boxy. The architect seem s to have aimed at an urban loft look rather than an
"agricultural heritage" look. See the illustrations of residences on pp. 72, 73, 133, and 170 as examples .
The residences on p. 73 loo k like they belong in an office complex. The flat fa cade s and window
treatments lack charm . Housing that "celebrates our history" should loo k more welcom ing and might
include porches and more interesting window, roof, and surface treatments. I know this is subjective,
but I find the general architectural approa ch very uninspired .
The "Garden Cluster" residences were promoted as "cottage clusters." The term "cottage" suggests
charm and coziness. The "Garden Cluster'' residences, far from being charming and cozy, are heavy
looking, 2-and 3-story structures. I feel I was sold a bill of goods here . The Garden Clusters look nothing
like the idyllic homes shown in Table 2-7 (page 2-27) as "Cottage Cluster (D etached Product/Gard en
Clu ster (Atta ched Product) Lark District" in the Specific Plan. Furthermore, the Specific Plan on p. 2-3
describes cottage cluster housing as being "characterized by detached cottages oriented onto common
greens." This is not what we see in the "Garden Clusters." Is it possible to have the developer come back
with true "cottages" -residences that are lower, cozie r, and more charming and that are actually
"clustered around a commo n green "?
There are inadequate setbacks for the residences. The garden cluster homes, rowhomes, and
condominium cluster seem to have inadequate setbacks, much like we saw with the "II Vicinato"
proposal. The front doors appear very close to the sidewalk with very little green space separating the
buildings from the sidewalk . Thi s gives the development a more city-like feeling than seem s appropriate.
The community park seems too small. When I looked at the model, the community park did not feel
adequate in relation to the many re sidences in the area . The view on page 191 confirms to me that this
park is insuffic ient. In addition, it is almost all hardscape . The park should be larger and conta in more
green areas .
The community garden also seems too small. There are supposedly 38 plots in this garden, but it does
not seem like community members could plant much of anything in the proposed garden. The
commun ity garden should occ upy a larger space .
The amount of green space does not seem adequate. I'm guessing that the developer has somehow
met the 30% open space , 20% green space requirement, but the model shows little green space at all.
I'm gues sing that the 20% green spa ce requirement is met through bits and pieces of green added
together to reach the 20%. Instead of this, we need actual concentrated swaths of green spa ce within
this Phase 1 area .
There should be more of a setback for the buildings along Lark . As I looked at the story poles while
driving along Lark before the Highway 85 entrance, I felt that the building s were excessively clos e to the
roadway.
Is it necessary to design on a grid pattern? The design of streets on a grid gives the development a ci ty-
like feeling . Is it possible to ask for streets/alleys that curve or loop in some pla ces?
Can we move forward without knowing if the school will need 2.5 acres of the site for a new school?
Can we move forward without knowing what the historical preservation element will be?
Thank you for your hard work on this very difficult decision . After so many years of working on a
solution to the North 40, I hope that you will take the time and continue your efforts to get the
development right.
Sincerely,
Barbara Dodson
239 Marchmo nt Drive, Los Gatos
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