Los Altos

To accommodate the remaining above moderate-income RHNA of 19 units, the City will identify and rezone sufficient vacant land or land with redevelopment potential to provide capacity for this shortfall. Appendix B (Sites Inventory and Methodology) identifies potential parcels for rezoning to address this shortfall and provide excess capacity throughout the planning period. Separate programs detail specifics of various rezoning actions that would provide additional capacity for all income levels.

The City will amend the Zoning Map and/or Zoning Code to create the opportunity for at least 19 above moderate-income housing units; proposed rezoning would accommodate an assumed capacity of 64 above-moderate income housing units Targetting: Create additional opportunities for housing capacity throughout the city, which is identified as high and highest resource by TCAC opportunity maps.Target: Create additional opportunities for housing capacity throughout the city, which is identified as high and highest resource by TCAC opportunity maps.

The Office Administrative (OA) District, primarily located along South San Antonio Road (east of Downtown), does not currently allow residential uses. However, given the high demand for housing in Los Altos and the opportunity to provide for housing in a mixed-use environment with access to transit, the sites identified in the OA District (Appendix B, Table B-11) will be amended to allow multi-family development. Residential uses will be allowed at a minimum density of 20 dwelling units per acre and a maximum density of 30 dwelling units per acre.

Permit housing on OA District parcels during the planning period comprising at least 40 total housing units with at least eight low-income units in the highest resource areas of the city. Targetting: Create additional opportunities for housing capacity in a highest resource area located adjacent to Downtown, transit (bus line along San Antonio Road), and single-family neighborhoods.Target: Create additional opportunities for housing capacity in a highest resource area located adjacent to Downtown, transit (bus line along San Antonio Road), and single-family neighborhoods.

The Loyola Corners Specific Plan will be rescinded and revert to underlying zoning (CN District) to facilitate housing production. Regardless of whether the Specific Plan is updated or rescinded, this program includes removal of all standards that are more restrictive than those applicable within the CN District. Standards to be eliminated include the 20-unit density cap (enforcement of this limitation is currently precluded by the Housing Crisis Act), the dwelling unit size requirement of between 1,500 and 8,000 square feet, the two-story height limitation in addition to a 30-foot maximum height (Resolution 2017-41), and any subjective design standards applicable to residential. The eliminated standards will provide regulations that allow development at greater densities than what is presently allowed today, increased building heights and greater flexibility in unit sizes. The Loyola Corners Specific Plan is considered a highest resource area with the most positive educational outcomes (see Appendix F, Section F.2.5 (Access to Opportunity)).

Eliminate restrictive development standards within Loyola Corners Specific Plan for density, height, and unit size no later than December 2024. Also eliminate any subjective design standards applicable to residential no later than December 2024. Permit housing units in the Loyola Corners Specific Plan above the current 20-unit cap and with a mixture of unit sizes during the planning period. Target approval of at least 40 total housing units with at least eight low-income units. Targetting: Remove barriers to increase housing opportunity in Loyola Corners neighborhood, a highest resource area with commercial, transit (bus line along Foothill Expressway), and single-family homes.Target: Remove barriers to increase housing opportunity in Loyola Corners neighborhood, a highest resource area with commercial, transit (bus line along Foothill Expressway), and single-family homes.

Under AB 1397, certain rezoning requirements apply if a lower income housing site identified in the sites inventory (Appendix B) was identified as a housing site (for any income level) in a previous housing element’s site inventory. The following vacant and nonvacant lower income sites are subject to the rezoning requirements: • Vacant lower income sites that have been included in at least two consecutive housing element sites inventories. • Nonvacant lower income sites that have been included in a prior housing element sites inventory. The City will make necessary zoning amendments to allow development by right pursuant to Government Code §65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified in Table IV-1. These identified sites meet the density requirements for lower-income households and allow at least 30 units per acre. Table

Under AB 1397, certain rezoning requirements apply if a lower income housing site identified in the sites inventory (Appendix B) was identified as a housing site (for any income level) in a previous housing element’s site inventory. The following vacant and nonvacant lower income sites are subject to the rezoning requirements: • Vacant lower income sites that have been included in at least two consecutive housing element sites inventories. • Nonvacant lower income sites that have been included in a prior housing element sites inventory. The City will make necessary zoning amendments to allow development by right pursuant to Government Code §65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified in Table IV-1. These identified sites meet the density requirements for lower-income households and allow at least 30 units per acre.

In certain portions of Downtown, particularly along Main Street and State Street, the presence of small lots, fragmented ownership pattern, and lack of ability to provide on-site parking may constrain future development. Considering other programs addressing governmental constraints (see programs under Goal 3), the City will evaluate and adopt (through the Zoning Code or by resolution, as appropriate) complementary incentives to further encourage lot consolidation in Downtown. This will include expedited application processing, reduction in application fees, reduction in permit fees, or other incentives. The City will promote the lot consolidation incentives on the City’s website, through regular updates at the Planning Commission and City Council 23 | City of Los Altos 2023-2031 Housing Element public meetings, and at the developers roundtable (see Program 2.C). Additionally, Policy 3.7 in the Community Design & Historic Resources Element of the General Plan will be modified for consistency with this Program.

Facilitate at least two Downtown lot consolidations by January 2031. If by January 2027, this objective is not on track to be met (i.e., 50 percent of objective), the City will offer additional and increased incentives no later than July 2027.

The City will actively participate in the Association of Bay Area Governments (ABAG) Regional Housing Needs Determination and other regional discussions about meeting housing needs. The City will meet with ABAG staff to provide land use, housing, employment, and other information related to the RHNA formula to ensure that the allocation accurately represents Los Altos’ fair share of the region’s housing needs.

The City will actively participate in the Association of Bay Area Governments (ABAG) Regional Housing Needs Determination and other regional discussions about meeting housing needs. The City will meet with ABAG staff to provide land use, housing, employment, and other information related to the RHNA formula to ensure that the allocation accurately represents Los Altos’ fair share of the region’s housing needs.

In December 2021, the City established objective standards to implement Chapter 162, Statutes of 2021 (SB 9), effective January 1, 2022. Consistent with these objective standards, the City will continue implement SB 9 in compliance with State law. The City will continue to annually monitor the effectiveness and appropriateness of existing adopted policies and update the ordinance as needed and will ensure that its local ordinance remains consistent with State law, but will apply current State law even before local amendments are adopted.

Approve at least four SB 9 applications by January 31, 2031. Targetting: Single-family zoned areas citywide.Target: Single-family zoned areas citywide.

The City will continue to implement inclusionary housing requirements. The City will also evaluate these requirements to assess their effectiveness in meeting the City’s goals and objectives in the Housing Element. Specifically, the City will assess the following: • Inclusionary housing rates (e.g., 15 and 20 percent). • Affordability levels, including proportions of extremely low, very low-, low-, and moderate-income units, with the potential for an alternative mix of affordability allowed if it would better meet housing policy objectives. For example, if a project provided deeper affordability, and/or resulted in the production of units suitable for special needs groups such as seniors or persons with disabilities, including those with developmental disabilities. • Affordability terms, including requiring the longest term allowable for both rental and ownership inclusionary units. The evaluation will result in strategies and amendments to support the production of affordable housing more effectively through inclusionary housing. Although the City does not currently accept in-lieu inclusionary housing fees, under Program 2.B below, the City will establish in-lieu fees to offer options to housing developers.

Inclusionary housing unit production of at least 50 moderate-income units, 40 low-income units, and 10 very low-income units. Targetting: Achieve low and moderate-income housing units throughout the highest resource areas and neighborhoods in Los Altos. 2023-2031 Housing Element City of Los Altos | 26Target: Achieve low and moderate-income housing units throughout the highest resource areas and neighborhoods in Los Altos. 2023-2031 Housing Element City of Los Altos | 26

To promote the development of affordable housing projects, and when requested by the project sponsor, the City will continue to assist in securing funding for low- and moderate-income housing developments through the following actions (all of the incentives below are currently in place except for providing funding for multi-jurisdictional housing finance programs and partnering with nonprofit housing developers): • Apply for State and federal funding on behalf of a nonprofit, under a specific program to construct affordable housing including persons with physical disabilities or developmental disabilities. • Provide financial incentive waiving City fees for 100 percent affordable housing projects. • Provide a dedicated project planner for 100 percent affordable housing projects. • Transfer the City’s annual CDBG allocation to the County for projects that serve the Los Altos community. • Allocate a portion of CDBG funds toward affordable housing development. • Provide funding to participate in a multi-jurisdictional housing finance program (such as a Mortgage Revenue Bond or Mortgage Credit Certification Program). The City will continue to coordinate with Santa Clara County and other agencies on multi-jurisdictional housing finance programs. • Partner with nonprofit housing developers to facilitate the development of affordable housing. • Impact fees associated with the development of Below Market Rate Units shall be set at a proportional rate in line with the level of affordability of each unit. This will 27 | City of Los Altos 2023-2031 Housing Element result in a reduction in impact fees collected in association with the development of Below Market Rate Units. The City will also promote incentives through outreach to developers, specifically by hosting a developers roundtable annually to inform developers of available incentives and encourage affordable housing development.

Using these incentives, facilitate the development of at least 80 below-marketrate units in Los Altos by January 2031. If by January 2027, this objective is not on track to be met (i.e., 50 percent of objective), the City will establish and offer additional incentives no later than July 2027.

The City will conduct annual ADU rental income surveys whereby each property owner may voluntarily share the rental income for the unit for the City to use in its annual progress reports consistent with Zoning Code Section 14.14.090. The City will provide additional staff support by the onboarding of a Housing Manager or look to consultant services to provide this support at the appropriate capacity needed.

The City will conduct annual ADU rental income surveys whereby each property owner may voluntarily share the rental income for the unit for the City to use in its annual progress reports consistent with Zoning Code Section 14.14.090. The City will provide additional staff support by the onboarding of a Housing Manager or look to consultant services to provide this support at the appropriate capacity needed.