A small downtown street with an old-fashioned movie theater
Los Gatos is considering budget cuts to address a $2 million shortfall in the upcoming fiscal year. File photo.

Pricey downtown Los Gatos is being primed to become more affordable to live near.

The Los Gatos Planning Commission voted 4-1 April 8 to recommend the Town Council adopt zoning changes to allow developers to build 100% affordable housing near downtown along Los Gatos Boulevard, without requiring retail space in their plans. Commissioner Susan Burnett voted no, citing concern over waivers developers could be granted under the change. The recommendation aims to incentivize developers to build affordable housing in a town that hasn’t had a standalone 100% affordable housing development in decades. It could alter the town’s look heading into downtown, which primarily has small, local businesses on the ground floor and homes on higher levels.

The change is also part of the town’s state-mandated housing plan, which requires Los Gatos to build nearly 2,000 new homes by 2031. About 847 must be deemed affordable to low-income residents. The town council will consider whether to adopt the zoning change at a later date.

Planning Commission Chair Emily Thomas supports the initiative because if it doesn’t pass, the state could deem Los Gatos’ housing plan noncompliant. That would open the town up to more builder’s remedy projects. The controversial state law allows developers to bypass local zoning laws.

“I think we would be doing the town a disservice by not forwarding this recommendation, because we are going to be in a terrible place as a town if our housing (plan) gets decertified because that’s gonna give us a lot less power locally,” Thomas said at the meeting.

Burnett said the town shouldn’t have to go above and beyond the state’s housing requirements, adding the change could lead to taller buildings across Los Gatos and cause traffic issues. Future affordable projects near downtown could qualify for California’s density bonus law, which grants one or more concessions to reduce development costs, unlimited waivers from local development standards and higher density.

“I look at my role as a planning commissioner to look after the best interests of our residents, not add additional incentives to offer for 100% affordable housing builds,” Burnett said at the meeting.

Linda Mandolini, CEO of affordable housing developer Eden Housing, said affordable housing near downtown Los Gatos is perfect because it’s close to shops, restaurants and grocery stores. She said there’s a demonstrated need for more affordable housing in town. About 229 older adults are waiting for an opening in the 50 affordable homes Eden Housing developed in the North 40 project, with only two openings in two years.

Mandolini said Eden Housing would be interested in developing an affordable housing project in downtown if it becomes feasible.

“It’s the folks who work in the retail sector,” she told San José Spotlight. “It’s people who are low-income seniors who really need this housing. It’s just a wide array of need. If they were to do this, it could be super successful.”

Some affordable housing is in the town’s pipeline, but the homes are a fraction of the whole project. The Los Gatos Lodge is slated to transform into 155 townhomes, with 26 affordable.

Jeff Suzuki, president of the Los Gatos Anti-Racism Coalition, said housing should be accessible in all parts of town, including near downtown. He said the town’s history of housing segregation has contributed to its costly homes, and this could be a step in the right direction.

“The last generation’s outcomes are effectively this generation’s opportunities, and we are denying people the right to have those sorts of opportunities as long as it’s just financially impossible for many people to live here,” Suzuki told San José Spotlight.

Contact Annalise Freimarck at [email protected] or follow @annalise_ellen on X.

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