Los Gatos planners debate whether to count below‑grade square footage toward FAR; no immediate code change

The Los Gatos Planning Commission spent much of its Oct. 12 meeting reviewing the town’s approach to below‑grade square footage — sometimes called "cellars" or "sellers" in older documents — and whether the current rules are producing unintended increases in house size and cost.

Planner Mullen reviewed the policy history: a seller policy adopted in 2002 was rescinded and its language incorporated into the town code in 2017. Mullen explained the town’s current approach allows below‑grade square footage to be exempt from FAR when it is located within the building footprint and meets specific criteria; a separate draft provision that would have counted an entire cellar if any portion exceeded 4 feet of exposure was not incorporated into the adopted ordinance after community feedback.

Architects and building‑industry speakers told the commission the ordinance has generally worked well. "It’s very well crafted," architect Noel Cross said, urging the commission not to "mess with it" and recommending improved plain‑language outreach so the public understands the rules. Gary Kolstad, speaking for the local architectural/real‑estate/construction community, echoed support for the existing policy and asked staff to clarify the reason the item came back onto the agenda.

Lee Quintana, who said she served on the ad hoc committee that helped draft language in the general plan, said the original intent was to treat below‑grade living space as counted in lieu of above‑ground space so that livable square footage would not lead to added visible mass. "Because no matter how you look at it, it's livable space and if it's livable space, it should be counted," Quintana said.

Several commissioners signaled concern about the ambiguity of the phrase "in lieu of" and how it has been applied. Commissioner Burnett argued the current approach can increase home sizes, reduce naturally affordable smaller homes and change neighborhood character by allowing large basements plus full FAR above ground; he offered possible remedies including counting some or all below‑grade area as FAR in selected zones or tightening deviation procedures. "Homes have become more expensive because now they're larger," Burnett said.

Other commissioners defended exemptions for fully enclosed basements on flat lots and highlighted the special challenge of hillside lots where grades expose lower levels. Commissioner Sordi said he was "totally okay" with exemptions for basements wrapped on four sides and said hillside conditions may warrant different treatment. Staff showed a diagram illustrating the town’s 4‑foot exposure threshold — portions of below‑grade areas that are exposed more than four feet become countable floor area.

Town attorney Gabrielle advised that policy language that "encourage[s]" basements or below‑grade use cannot override black‑and‑white regulatory limits in the code; commissioners discussed whether to reframe the policy language as a purpose statement separate from enforceable code provisions. Staff said any formal amendments would follow standard public processes and likely require council direction; the commission did not take a vote to change the code but discussed referring the topic to council or requesting staff return with proposed language for future consideration.

The commission asked staff to consider ways to clarify the code or policy language and to package options for council consideration; staff estimated the topic would not likely proceed to council before the end of the year and emphasized that any change would follow the normal public review process.