Planning commission to study below-grade exemptions and ADU counting after 5-1 vote

On Sept. 24, 2025 the Town of Los Gatos Planning Commission voted 5 to 1 to add a future agenda item to examine a possible code amendment regarding below-grade square footage (basements) and how uncounted accessory dwelling units (ADUs) affect the towns floor area ratio (FAR) accounting.

Commissioner Bernett said the current practice of excluding certain below-grade areas and not counting ADUs toward FAR can result in larger overall homes, potentially undermining the towns housing-element goals to encourage smaller, more-affordable units. "With the ADUs now we we don't consider the ADUs...it almost becomes part of the house," Bernett said, urging the commission to reexamine the rules in historic neighborhoods and townwide.

Planning staff (Mr. Mullen) summarized the relevant code background and identified the exact code section staff would bring to the commission: section 29.40.072. He explained the below-grade exemption evolved from earlier policy and typically applies when buried square footage does not daylight more than four feet. Staff said they would provide the full code language and prepare a staff report if the commission wanted to proceed.

Commissioners asked whether the review would be townwide; staff and commissioners clarified it could be townwide, might require multiple meetings, and that staff would prioritize materials and provide the code section text in advance. After discussion the commission voted to place the matter on a future agenda so that commissioners can review staff materials and decide whether to forward a formal recommendation to Town Council.

Earlier in the meeting the commission had also voted to reserve the Sept. 10 draft minutes for further discussion (4-2) after a public commenter said the minutes did not fully capture past remarks. The add-to-agenda motion on below-grade rules passed 5-1, with Commissioner Barnett recorded in dissent.