Los Gatos council approves North 40 Phase 2, clearing way for 450 homes including 77 deed‑restricted units

The Los Gatos Town Council voted 3–2 Wednesday evening to approve entitlements for North 40 Phase 2, a 450‑unit mixed‑use development on the town’s last large undeveloped parcel, clearing the way for a mix of market‑rate townhomes and apartment units and a 100% affordable building to be developed by Eden Housing.

The council’s decision adopted planning staff’s recommendation and a set of conditions of approval, after more than five hours of staff briefings, lawyerly explanations of state housing law and CEQA rules, an applicant presentation and hours of public comment for and against the project. The approval allows construction under Senate Bill 330 rules and uses CEQA Guidelines section 15183 to tier from the town’s certified 2040 general plan EIR.

Why it mattered: The project — proposed on roughly 15.65 acres of the North 40 specific plan area — includes a mixed‑use building, a five‑story 100% affordable building with 67 restricted apartments plus one manager unit, 127 townhomes, roughly 7,800 square feet of ground‑floor commercial space and a centralized 3.5‑acre open space known as the “meadow.” The application seeks concessions and waivers allowed by state density bonus law. Supporters told the council the development would deliver 77 deed‑restricted homes the town otherwise would not realize, including about 16 units specifically reserved for adults with intellectual and developmental disabilities (ID/DD). Opponents urged more deeply affordable units and…