Los Gatos had a chance to make affordable housing easier to build by removing costly commercial requirements—but the Council chose to delay. SV@Home remains committed to supporting policies that expand housing opportunities and hopes the Council will revisit this important decision soon.
On May 6th, SV@Home attended a Los Gatos Town Council meeting to express our support for a proposed ordinance that would have made it easier to build 100% affordable housing within the community. The proposal—recommended by staff and advanced by the Planning Commission—sought to amend the General Plan and Zoning Code to allow 100% affordable housing as a by-right use in the Mixed Use Commercial land use designation and as a permitted use in the Restricted Commercial Highway (CH) zone.
This change would have opened up key corridors to more affordable housing opportunities by removing a major barrier for affordable developers: the required inclusion of commercial in residential projects. For affordable housing developers operating on thin margins, ground-floor commercial space is often financially infeasible—adding significant costs and long-term risk, particularly in areas where retail demand is low or already struggling.
Beyond its practical implications, the proposed policy was also fully aligned with the Town’s adopted Housing Element. It fulfilled Implementation Program AB and supported Policy HE-3.1, which calls for removing regulatory barriers to affordable housing production. All told, this was a clear, strategic action that would have helped Los Gatos meet its state-mandated housing goals and would have advanced the Town’s broader vision for a more inclusive community.
Unfortunately, despite clear benefits, the Council voted not to adopt the ordinance. We are deeply disappointed by this decision as it delays progress at a time when bold action is needed to address the region’s housing crisis.
Still, we remain hopeful. The path laid out by staff and the Planning Commission was sound, and we urge the Council to revisit this item in the near future. SV@Home will continue working with our partners to ensure Los Gatos can become a place where affordable homes are not just feasible—but also welcomed.