Losaltos Hii (endorsed) Sep 2 0 2018 Clerk of the Court Superior Court of Ca County of Santa Clara September 20, 2018*

R7

- A task force to communicate the value and importance of each city meeting its RHNA objectives for BMR housing should be created and funded by the County and all 15 cities, by June 30, 2019. This recommendation has not been implemented but will be implemented by June 30, 2019. The Town of Los Altos Hills supports educating the public and elected/appointed officials on the benefits of affordable housing and the production of BMR units.

R8

- All 15 cities and the County should annually publish the number of constructed BMR units, starting in April 2019. Honorable Patricia Lucas September 20, 2018 This recommendation can be implemented by April 2019.

R9a

- ADU creation should be encouraged by decreasing minimum lot size requirements and increasing the allowed unit maximum square footage to that prescribed by state law, Cities to respond are Los Altos, Los Altos Hills, Los Gatos, Monte Sereno and Saratoga. This recommendation has not been implemented, however, the Town of Los Altos Hills does recognize that more can be done to encourage the creation of second units. The Town's certified Housing Element includes multiple policies and programs to encourage the production of ADUs. These programs include reduction of fees, evaluating existing nonconforming structures and parking for new units, an amnesty program for illegally constructed units, allowing attached ADUs on substandard lots, and allowing for ADUs up to 1,200 square feet. These potential zoning code changes are scheduled to be reviewed by the Town as recommended in the Final Report.

R9b

- Increasing BMR unit creation by incentivizing long-term affordability through deed restrictions for ADUs should be adopted, Cities to respond are Los Altos, Los Altos Hills, Los Gatos, Monte Sereno and Saratoga. This recommendation has not been implemented, however, the Town of Los Altos Hills does recognize that deed restrictions are an effective tool that can be utilized to preserve affordability of ADUs. Several cities with similar land use patterns to Los Altos Hills currently use deed restrictions and the Town would be open to implementing a deed restriction process. The timeframe for reviewing and potentially implementing deed restrictions for ADUs could be completed within the recommended timeframe (end of 2019).

R10a

- Residential development impact fees to fund BMR developments should be enacted by the cities of Los Altos Hills, Monte Sereno and Saratoga, This recommendation will not be implemented because it is not reasonable in the Town of Los Altos Hills. Most of the single-family homes being constructed in the Town are replacement dwellings and on average, only nine (9) new moderate and above moderate-income residences are constructed in the Town every year. Based on the limited amount of money that would be collected and the cost of construction in the county, the impact fees would not be sufficient to produce any BMR units within a reasonable time span. Additionally, on November 8, 2016, Santa Clara County voters approved Measure A, a $950,000,000 affordable housing bond to create and preserve over 5,000 BMR units. The measure added a $12.66 surcharge to residential and commercial properties for every $100,000 of assessed value. Based on the generally higher per parcel assessed value of property in Los Altos Hills, the property owners in Town are already paying additional taxes dedicated toward affordable housing than property owners residing in other jurisdictions with lower assessed property values.

R10b

- Parcel taxes to fund BMR developments should be brought as a ballot measure to the voters of the cities of Los Altos Hills, Monte Sereno and Saratoga, by the 2020 elections. This recommendation will not be implemented because it is not reasonable in the Town of Los Altos Hills. The Town's residential land uses and historical development do not result in the creation of employment centers or a jobs/housing imbalance that are more prevalent in the larger cities in the county. The Town currently produces affordable housing units through ADUs and believes that it can successfully meet its RHNA goals for affordable units with additional minor modifications to Town regulations. Additionally, on November 8, 2016, Santa Clara County voters approved Measure A, a $950,000,000 affordable housing bond to create and preserve over 5,000 BMR units. The measure added a $12.66 surcharge to residential and commercial properties for every $100,000 of assessed value. Based on the generally higher per parcel assessed value of property in Los Altos Hills, the property owners in Town are already paying additional taxes dedicated toward affordable housing than property owners residing in other jurisdictions with lower assessed property values. Honorable Patricia Lucas September 20, 2018 This concludes the Town's responses to the findings and recommendations in the Final Report. Please contact me or the Planning Director at (650) 941-7222 if you have any questions or need any additional information related to this response. Sincerely, Carl Cahill City Manager [email protected] Los Altos Hills City Council cc: Suzanne Avila, Planning Director . . - . .