Developer pitches 44-unit affordable complex with eight units reserved for district staff

Narayan, the developer, presented a proposal to the Los Gatos‑Saratoga Union High School District to build 44 fully affordable rental units on Douglas Lane and asked the board to review a memorandum of understanding that would reserve eight units for the district workforce.

"I'm not asking for funds," Narayan said. "This is a project that I am going to do. I will be building 44 units. But what is it that I can do to help ... the teachers, the workforce staff of the school district?" He described a unit mix of 20 one‑bedroom and 24 two‑bedroom apartments, roughly 670 square feet for one‑bedrooms and about 870 square feet for two‑bedrooms, with rents set at 80% of area median income (AMI) at entitlements. Narayan said the development is expected to be occupied by late 2028, pending city entitlements and California Environmental Quality Act (CEQA) review.

Peter Hertan, an online public commenter, urged caution, noting the item was listed for information even though an MOU appeared ready for signature. He said legal review is appropriate before any district commitment. "It would be inappropriate for [an MOU] to be signed until there's a legal review with a legal opinion about the obligations that may be implied for the school district," Hertan said. He also raised concerns about coordination with the City of Saratoga and Fair Housing implications of employee‑only housing.

Board members pressed for specifics. One trustee asked whether the district's priority would be ongoing or only for initial occupancy; Narayan replied that the district would receive a 60‑day notice when a reserved unit becomes vacant and would have first opportunity to fill it, and that this priority would recur "perpetually" as vacancies arise. Trustees also asked about unit size, affordability calculations and whether West Valley College or other public agencies would share allocations; Narayan said conversations on distribution were ongoing and that the school district and West Valley could both be included in allocations.

District staff noted that, under state law, entitlements and AMI levels will be set by the state housing authority and that CEQA traffic, biological and environmental analyses remain pending as part of the entitlement process.

No vote or formal commitment was taken on the MOU or letter of support during the meeting; the item was presented as information and board members asked staff to follow up with legal counsel and to coordinate with the City of Saratoga as part of further due diligence.

Next steps: staff said it would review the MOU language, consult legal counsel about potential obligations, and report back to the board as the project moves through city entitlements and CEQA.