Los Gatos planning commission recommends North 40 Phase 2 to council, adds conditions to secure affordable units and landscaping

The Los Gatos Planning Commission voted 5–2 on Oct. 29 to recommend that the Town Council approve the North 40 Phase 2 mixed‑use housing development, while attaching conditions intended to guarantee the delivery of below‑market housing and to tighten landscaping and construction‑activity requirements.

The recommendation covers Grosvenor’s proposal for 450 total homes — 127 townhomes, 255 multifamily rental units (including 10 permanently affordable units in the mixed‑income building), and a separate 100% affordable building with 68 units — plus about 7,800 square feet of commercial space and extensive site infrastructure. The motion accepted staff findings and included a condition that at least 17% of residential units permitted and occupied at any time be BMP (below‑market) units until the project reaches specified milestones; it also asked the applicant to record deed restrictions and to include a 25% preference within the 100% affordable building for people with intellectual and developmental disabilities.

Why it matters: The project is one of the town’s largest housing investments and directly relates to Los Gatos’s certified housing element obligations and the state’s RHNA allocations. That makes the outcome significant for the town’s ability to meet regional housing obligations and for local families seeking long‑term affordable options, especially those with developmental disabilities who advocates said would benefit from on‑site supportive services.

What the commission heard: Town staff and legal counsel framed the basic legal contours for tonight’s deliberations, flagging four laws relevant to the proposal:…