The Los Gatos Town Council voted unanimously on October 7th to cut transportation impact fees by 50% for affordable housing developments serving extremely low- and very low-income households. This targeted policy change will help make deeply affordable projects more financially feasible and demonstrates Los Gatos’s commitment to advancing inclusive, sustainable housing.
Last week on October 7th, the Los Gatos Town Council unanimously approved an update to its Transportation Impact Policy, reducing transportation impact fees by 50% for deed-restricted affordable housing developments serving extremely low- and very low-income households. After thoughtful discussion, the Council recognized that this focused change will make it easier for deeply affordable projects to move forward in an increasingly challenging development climate.
Transportation impact fees are one-time charges that help cities fund essential public infrastructure—such as roads, bike lanes, and intersections—needed to serve new development. While these fees play an important role in maintaining safe and connected communities, they can also add substantial costs to housing construction. For affordable housing projects, where financing is already complex and margins are thin, even modest fee reductions can make the difference between a project moving forward or stalling. By cutting these fees in half for deeply affordable developments, Los Gatos has taken a smart, targeted step to improve project feasibility and demonstrate regional leadership on housing affordability.
SV@Home applauds Town staff for their thoughtful work in crafting this policy and the Council for their leadership in adopting it. The update directly advances Program O of Los Gatos’s Housing Element, which commits the Town to reducing fees for extremely low- and very low-income housing, and it supports progress toward meeting local Regional Housing Needs Allocation (RHNA) goals. This decision reflects a clear commitment to inclusive growth and a more balanced housing future. We commend Los Gatos for taking this meaningful step and encourage continued action to support the creation of safe, sustainable, affordable homes.
Keep an eye out for more opportunities to support housing advocacy in Los Gatos as the Town continues to advance policies that make affordable homes possible for all.