Los Altos Housing Element
The Los Altos Housing Element is one of the required elements (chapters) of the City’s General Plan, and it is intended to provide a comprehensive strategy for promoting the production of safe, decent, and affordable housing within the community. Every eight years, cities must update their housing element and have it approved by the State.
Providing housing to meet the needs of all income levels is important to the social and economic health of a city. For Bay Area communities like Los Altos, it can be challenging to meet the housing needs of teachers, nurses, and other workers who struggle to secure quality housing close to their workplace. Having an approved housing element makes Los Altos eligible for a variety of State grants, including funds for affordable housing, parks, and infrastructure.
Helpful Links
- Let's Talk Housing webpage
HCD Prohousing Designation Program Application
The City is leveraging the Housing Element promoting some of the programs in its application to the California Department of Housing and Community Development (“HCD”) to receive a Prohousing Designation for the City. This will allow the City to be more competitive for Federal and State funding opportunities to support affordable housing developments. The HCD Prohousing Designation Program Application is available for public review and comment for a 30-day period commencing on Friday, April 12, 2024, through Monday, May 13, 2024. Below is a link to the HCD Prohousing Designation Program Application. Please submit all comments to the City Housing Manager, Monica Gallardo-Melkesian, at mgallardo@losaltoca.gov.
Frequently Asked Questions
- The Housing Element is a key part of a city’s General Plan and must be updated every 8 years, per state law
- This project updated the Housing Element for the period of 2023 to 2031
- The Housing Element will set forth the City’s goals, policies, and actions to address the need for all housing types
The Housing Element will provide:
- An analysis of housing needs in Los Altos
- Policies that address those needs based on the collective vision and values of our communities
- Programs that would help implement those policies
- Programs that are necessary to comply with state law
The Housing Element is part of the City’s General Plan, which sets forth guiding policies for future development. The requirement for each city to adopt a General Plan is contained in state law which also lays out specific requirements for each element. The Housing Element provides an overarching statement of City policies and programs to maintain and improve existing housing, and also accommodate the City’s fair share of population growth needs. The requirements in state law for Housing Elements include the following:
- Ensure adequate sites for new housing for persons of all income levels;
- Encourage and facilitate the development of affordable housing;
- Conserve and improve the existing affordable housing stock;
- Analyze and remove governmental constraints on new housing development;
- Promote equal housing opportunities; and
- Preserve assisted housing.
After a two-year process, the City’s Housing Element (HE) update was adopted by the City Council on January 24, 2023. After revisions, the state of California certified the HE on September 6, 2023.
California’s State Department of Housing and Community Development (HCD) gave final approval of the document on September 6, 2023. This approval—or certification—of the Housing Element allows for the city of Los Altos to maintain control over the development process while implementing all the programs that are included within the Adopted 6th Cycle Housing Element. A city’s Housing Element is commonly referred to as a “contract with the state of California” in that it legally obligates a city to implement all programs as contained within the document.
If the city of Los Altos does not implement all programs contained within the Adopted Housing Element within the specified deadlines, the City will be in violation of California housing law and the Housing Element can be de-certified. If the Housing Element were to be de-certified, the City will be immediately susceptible to Builder’s Remedy, commonly referred to as “Zoning Vacation,” where the City is left with no land use regulations other than the density limits contained within the General Plan. Furthermore, if the housing element were to be de-certified, the City is vulnerable to legal suits, and proactive enforcement from the Housing Accountability Unit (which is a part of the State Department of Housing and Community Development).
Additionally, rezoning of all mixed-use sites included within the adopted and certified document, such as Rancho Shopping Center, must be implemented by January 31, 2024. Any loss of sites from the adopted inventory will result in the rezoning of single-family zoning districts, as the city of Los Altos does not have additional land area to support the selection of potential additional alternative sites.
Lastly, the City could lose permitting authority for not having a legally compliant Housing Element and General Plan which then would put the City into court receivership until a legal Housing Element is re-established.
The Adopted Housing Element, which comes under the housing element of Los Altos’ General Plan, requires rezoning of mixed-use areas. State law requires cities and counties to rezone parts of their communities to allow for more housing which, in general, includes more dense housing such as multi-family development of apartments and condominiums. Rezoning explicitly removes the Floor Area Ratio (FAR) limitation from such properties.
Very early in the 6th Cycle Housing Element update process in 2021, city of Los Altos residents overwhelmingly expressed the desire to maintain the quiet and serene character of our city; the community valued maintaining the single-family residence zoning of our neighborhoods above all else. That meant, to comply with state law and reach our allotted goal of 1958 units, the city had to allow for the development of housing in all of our mixed-use zones, such as the Rancho Shopping Center.
Public participation has been crucial in shaping Los Altos’ housing strategy. Understanding the community's needs and desires enabled the development of the Housing Element strategies that are most appropriate and effective for the community as a whole. As part of the development of this Housing Element, the City’s public participation program included a wide range of focus group meetings, community workshops, and meetings with the Planning Commission and City Council, as well as a variety of online resources and comment forms, and printed and online advertisements within the local newspaper.
The following events were completed during the housing element process:
Pop-Up Events:
- Tree Lighting/First Friday in Downtown Los Altos: December 3, 2021
- Grant Park Community Center: December 8, 2021
- Los Altos Library: December 10, 2021
- Mini Holiday Market at State Street Market: December 20, 2021
- Woodland Library: January 5, 2022
- Draegers: February 25, 2022
- Los Altos Library: March 10, 2022
- Grant Park Community Center: March 23, 2022
Focus Group Meetings:
- Housing Advocates: December 8, 2021
- For- and Non-Profit Housing Developers: December 15, 2021
- The City also conducted a meeting with the business community on April 7, 2022
Small Group Meetings:
- A series of over 25 small group meetings occurred from January to March 2022 which included over 120 participants and interested parties including Los Altos Village Association, Los Altos for Neighborly Development, property owners, residents, Friends of Los Altos, the Los Altos Women’s Caucus, Los Altos Affordable Housing Alliance, and others. These meetings allowed individuals and groups to ask questions, learn more about the Housing Element update process, and provide input.
Community Workshops:
- Community Workshop #1: January 13, 2022 (presentation materials were translated into both Spanish and simplified Chinese)
- Community Workshop #2: March 1, 2022 (a Spanish interpreter provided interpretation services)
City Council and Planning Commission Study Sessions
- Planning Commission and City Council Study Session #1: December 14, 2021
- Planning Commission and City Council Study Session #2: April 26, 2022
Draft Housing Element Public Review Period and Meetings
- Planning Commission: July 7, 2022
- City Council: July 12, 2022
Draft Housing Element Study Session Post 90-day HCD Review:
- Based on the input received from HCD in its November 10, 2022, findings letter, the Los Altos City Council conducted a Study Session on November 29, 2022, to discuss the necessary revisions to the Draft Housing Element.
Community Engagement Efforts Post 90-day HCD Review:
- November 18, 2022 – Small Group Meeting with the Los Altos Affordable Housing Alliance
- November 30, 2022 – Small Group Meeting with Nonprofit Dignity Moves a Bay Area Transitional and Supportive Housing Developer
- December 7, 2022 – Presentation and Q&A to Los Altos Chamber of Commerce
- December 12, 2022 – Small Group Meeting with Los Altos Seniors
- December 16, 2022 – Presentation and Q&A to Los Altos Community Coalition
- December 16, 2022 – Small Group Meeting with Los Altos Residents
- December 16, 2022 – Presentation and Q&A to League of Women Voters
Before the Housing Element can be updated, a regional planning agency called the Association of Bay Area Governments (ABAG) produces the Regional Housing Needs Allocation (RHNA or re-nah) in partnership with the California Department of Housing and Community Development (HCD). HCD starts the housing element revision process by determining how many additional housing units each region in California will need over the next housing element revision period. HCD considers the projected population increase to determine the anticipated household growth rate, household sizes, household formation, vacancy rates and jobs-housing balance to determine an allocation of housing need for each region. HCD determined that the Bay Area region must plan for 441,176 new housing units from 2023 to 2031, approximately 2.35 times more units than were included in the previous housing element cycle.
Next, ABAG assigns each jurisdiction within the region with its “fair share” of the RHNA for the housing element planning period, based on an allocation methodology developed as part of the process and approved by HCD. The assigned need is broken down by four income categories: very low, low, moderate, and above moderate. Draft allocations are issued, followed by an appeals period. After the appeal hearings, ABAG will issue final allocations by the end of 2021. ABAG’s final distribution of housing needs numbers must account for the region’s total RHNA.
The City of Los Altos’ RHNA is 1,958 units:
- Very Low Income (Less than 50% of Area Median Income): 501 units
- Low Income (50-80% of Area Median Income): 288 units
- Moderate Income (80-120% of Area Median Income): 326 units
- Above Moderate Income (More than 120% of Area Median Income): 843 units
The City’s RHNA represents a planning target and is not a building quota. The Housing Element Update must show how Los Altos will accommodate the RHNA on sites that are realistic for housing development within the eight-year housing element period (2023-2031) consistent with State law and guidance.
The sites inventory (also called the available land inventory or sites map) is a crucial part of the Housing Element. In the sites inventory, a jurisdiction identifies where it has capacity to meet the housing production quotas assigned by the State through ABAG for all income categories (i.e., RHNA). It is typically in the form of a map and table listing features and characteristics of the properties. State law and guidance include certain requirements for sites to be sufficient for inclusion in the sites inventory (e.g., size of parcels identified for lower income, allowed density for lower income sites, etc.).
Specifically, new state laws require that the sites inventory include:
- Adequacy of infrastructure to support the site;
- Adequacy of the site size to accommodate housing for lower-income households as such projects typically require 50-150 units (a minimum site size of 0.5-acre is required for lower-income sites).
- The RHNA income category the site is expected to serve (if the site is later developed for a different income category the City must then identify a new site or sites for a similar amount of the targeted development type);
- A discussion of whether the site was included in previous inventories and, if so, why it has not yet been developed;
- A description of how the sites affirmatively further fair housing (defined as taking meaningful actions that, collectively, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.)
- For sites that are not vacant, an explanation of why it is reasonable to expect that the site will be redeveloped with housing before 2031 (e.g., underutilized property, condition/age of structure, not precluded by existing leases, development trends, market conditions, etc.).
State and Federal definitions of housing affordability are generally based on the standard of spending no greater than 30% of household income on housing costs, including utility payments, taxes, insurance, homeowner association fees, etc. Affordable housing is relative to the amount households of different income levels and sizes can afford to pay for housing. Affordable income categories (i.e., very low, low, moderate, and above moderate) are based on percentages of the Area Median Income (AMI) for Santa Clara County.
The city of Los Altos appealed its draft RHNA allocation requesting at least a 50% reduction in its RHNA. ABAG received 28 appeals from Bay Area jurisdictions, which included 6 appeals from Santa Clara County. These were submitted by Saratoga, Los Altos, Los Altos Hills, Monte Sereno, Palo Alto, and Unincorporated Santa Clara County.
The ABAG Executive Board held the appeal hearing for Los Altos' draft RHNA on October 22, 2021 where the appeal was denied. All ABAG RHNA appeals were denied except for a partial approval of Contra Costa County's appeal for a reduction of 35 units, which were transferred to the City of Pittsburg. In December 2021, the ABAG Executive Board adopted the final RHNA for all ABAG cities, including Los Altos. Los Altos' final RHNA remained unchanged compared to its draft RHNA.
Because the RHNA projection period for the 2023-2031 Housing Element begins on June 30, 2022, housing developments that are approved or under review and are not expected to be issued a certificate of occupancy by June 30, 2022, but are expected to be completed before the end of the planning period (October 15, 2031), can be credited toward RHNA. These projects are often referred to as “pipeline projects”. Properties where pipeline projects are located are not considered for the sites inventory to avoid double counting.
Yes, ADUs can be credited toward RHNA. An ADU is an accessory dwelling unit can either be part of or attached to an existing residence, or it can be freestanding (detached) from an existing residence. Given their smaller size, ADUs tend to offer a more affordable housing option. The City’s website has additional information on ADUs HERE.
The State-recommended approach for crediting ADUs toward RHNA is to use an annual average of ADU building permits and project that average over the 8-year planning period (2023-2031). ABAG provides additional guidance on how to utilize ADUs to satisfy RHNA, including recommendations on how to project ADUs and estimate affordability levels. ABAG’s technical guidance memo is available HERE.
The zoning for lower income sites must be deemed appropriate to accommodate low and very low-income RHNA. State law allows jurisdictions to use higher density as a proxy for lower income affordability. In March 2022, the density threshold for lower income sites in Los Altos was updated to 30 units per acre based on the 2020 Census. In mixed-use zones where there are no maximum density standards, development trends are anticipated to be applied to determine whether those zones could be considered appropriate for accommodating the lower income density threshold.
State law requires that parcel size and density are used as a proxy measure for the affordability level associated with each site in a Housing Element. Potential sites that allow at least 30 units per acre are designated as lower income provided they are at least 0.5 acre and less than 10 acres in size.
As established by AB 686, the City is required to identify sites throughout the community, consistent with its duty to affirmatively further fair housing (AFFH). Sites must be identified and evaluated relative to the full scope of the assessment of fair housing including segregation and integration, racially and ethnically concentrated areas of poverty and affluence, and access to opportunity. The Housing Element needs to undertake affirmative actions that do not reinforce historic patterns of housing discrimination and improve access to access to opportunities though its siting of lower income housing sites. The site inventory must consider the location of lower income housing sites relative to the following factors: (1) segregation and integration, (2) racially and ethnically concentrated areas of poverty (R/ECAPs), (3) access to opportunity, and (4) disproportionate housing needs, including displacement. Depending on where lower income housing sites are concentrated, the City may need to include programs to improve the conditions in those areas.
According to State guidance, the analysis for determining if the lower income density threshold is met should not reflect potential increases in density due to a density bonus. A density bonus, even if the result of an inclusionary housing requirement, is not a substitute for addressing whether the underlying zoning density is appropriate for accommodate lower income RHNA. Inclusionary housing requirements applicable to rental housing must provide options, other than building on-site affordable units, for the developer to comply with. However, sites identified as lower income may be projected to have higher unit capacities than sites identified for moderate or above moderate income based on densities of lower income developments locally or regionally. Lower income housing development trends may show densities higher than the maximum allowed density resulting from density bonuses.
SB 9, signed by the Governor in September 2021, is aimed at promotion of housing development (no more than two residential units) and urban lot splits (creation of two new lots) in single-family residential zones. SB 9 projects are exempt from discretionary review if the project is consistent with objective standards. Please see the City’s website for more information on SB 9 project application process and standards.
SB 9 became effective on January 1, 2022; therefore, there is limited data demonstrating trends related to SB 9 projects. HCD released a fact sheet memo on March 25, 2022, which includes an overview of SB 9 and its potential relationship to the sites inventory. HCD’s SB 9 fact sheet memo is available HERE. Like ADUs, any assumptions of additional units to be built as a result of SB 9 should be based on analysis determining the likelihood of redevelopment on certain sites. While the City may consider programs or policies to help facilitate the use of SB 9 provisions, a conservative approach to ensuring adequate capacity for new housing would not overly rely on new single-family development to meet the City’s affordable housing goals.
SB 166 enacted by the California Legislature and signed by the Governor in 2017 created a requirement for “no net loss” of housing capacity during the entire planning period covered by the Housing Element Update. This means that Los Altos must maintain adequate sites to accommodate its remaining unmet RHNA for each income category at all times throughout the entire eight-year planning period covered by the Housing Element Update (through 2031). This requirement is the source of the “buffer” as State law anticipates that not all of the sites that are identified will develop at the planned income level. In order to meet the requirement to maintain adequate sites at all income levels, the State of California Department of Housing and Community Development (HCD) is recommending that communities include excess housing unit capacity in their plans. While the excess capacity over RHNA is not required, HCD recommends that communities plan for a buffer of between 15 and 30% of their RHNA capacity in order to assist with compliance with the “no net loss” requirement. Communities are able to address this need for a buffer based on their specific circumstances. In Los Altos’ case the buffer will be established as part of the site inventory identification process; no specific buffer percentage has been determined at this time.
Property owners do not need to opt in or approve of their inclusion in the sites inventory. It’s important to remember that the sites inventory is an identification of sites in the City where future residential development could occur. In many instances this is already allowed by the existing zoning. In instances the zoning may be changed to allow for residential development where none is currently permitted. In other cases, the standards for residential development may change. Being included on the sites inventory does not obligate the owner to do anything with their property.
The sites inventory identifies where capacity for housing exists based on zoning regulations, site conditions, and other factors. Sites included in the inventory are not required to build the projected number or affordability of units identified. The programs in the Housing Element describe actions the City will take to facilitate and encourage the production of housing at all income levels. Those programs may include modifications to zoning standards, financial assistance (e.g., waivers or reductions of development fees for affordable projects), or other methods of incentivizing the production of below market rate housing.