Developers behind the controversial North 40 in Los Gatos have submitted their application for the second phase of the project, which would bring in 451 housing units, 90 of which will be affordable housing.
The project, located at the intersection of highways 17 and 85, will be made up of both rental and market-rate multifamily housing and a stand-alone affordable housing project to be developed by Eden Housing.
“We’re really aligned with the town in trying to provide as much affordable housing as we can, so we have elected to donate 1.5 acres to … Eden Housing, to build a 100% affordable project on site,” said Steve Buster, senior vice president of Grosvenor Property Americas, the North 40’s developers.
All cities in California must create a Housing Element to plan for housing growth in eight-year cycles. Los Gatos has been tasked with building 1,993 housing units in the next eight years, 310 of which must be priced for low-income housing.
Phase 2 of the North 40 project calls for 90 affordable housing units for lower-income residents earning 60% of the area’s median income. While the exact price of the affordable units won’t be announced for some time, Eden Housing President Linda Mandolini said the range could land near $1,000-$2,500 a month for rental units.
The average home value in Los Gatos is $2.5 million, according to Zillow, which is 3.5% lower than last year.
There are also 119 townhomes and 250 multi-family units proposed, as well as commercial spaces and a two-acre public park.
If approved, the project would bring the total number of housing units from both phases of the North 40 development to more than 800, with 139 of those being affordable units.
Eden Housing worked on the Walnut Grove affordable senior community in the first phase of the North 40 project.
“For Eden, we can’t work in Los Gatos without a partner like Grosvenor,” Mandolini said. “We can’t afford to compete for land in those geographies. It is obviously one of the most desirable communities in the region, if not in the state.”
Residents started moving into Walnut Grove earlier this year. More than 340 people were on the waiting list for the 49 units, and residents were selected through a random lottery. Ten units rented for $948 a month, and 39 units were listed at $1,580 a month.
“When we did the opening, I think one of the things that really was most moving was hearing from the residents,” Mandolini said, “and just the story of the woman who had lived in Los Gatos for her whole life but couldn’t afford to live there anymore, but moved back and moved in with us at the North 40.”
Grosvenor invoked Senate Bill 330 in its preliminary application to the town earlier this year. The state housing law prevents cities from changing zoning laws after an application has been made in order to halt construction of high-density apartment buildings.
Phase 1 of the North 40, at the northwest corner of Los Gatos Boulevard and Lark Avenue, is under construction and includes 253 market-rate units at Bellaterra, 49 affordable units for seniors at Walnut Grove, and a market hall with restaurant and retail space.
Around half of the units at Bellaterra have already been purchased, developers said. Construction is forecasted to be complete by the summer of 2024, and prices range from $900,000 to $2.3 million for the 23 different styles of units, including townhouses, flats, detached units, bungalows and houses.
The North 40 has been decades in the making, and a controversial development for residents who don’t want to see an influx of high-density housing.
Grosvenor proposed a development plan for the land that the town council initially rejected, saying the housing density was too high and did not include enough affordable units.
The developers sued the town and won, pushing the development forward.
Plans for Phase 2 of the North 40 will head to the planning commission and town council for consideration in the coming months.