For decades, development in Los Gatos was a collaborative, if sometimes slow, process of checks and balances. But as we move into the spring of 2026, that has changed.
We are navigating a landscape dominated by Senate Bill 330, the “Builder’s Remedy,” and a recent Superior Court ruling that has significantly shifted the leverage toward developers.
The Town recently received a “reality check” in court regarding how we determine when an application is “vested.”
We can continue to react to each new high-density proposal with litigation and resistance, or we can choose a more sophisticated, proactive path.
I am proposing that the Town Council immediately appoint a Housing & Developer Interaction Task Force.
The January “vesting” ruling: A wake-up call
The urgency for this task force is amplified by the January Superior Court ruling regarding vesting rights.
The Town attempted to argue for a more restrictive 180-day limit on completing applications to prevent projects from sitting in limbo.
The court, however, sided with developers, ruling that “vesting” remains in place if a developer resubmits within 90 days of an incompletion notice, regardless of how many times the cycle repeats.
The judge essentially rejected the Town’s concerns about a “parade of horribles” where developers might “game the system.”
But just because the court didn’t find evidence of “gaming” doesn’t mean the current process is efficient.
We are currently caught in a loop of “incomplete” notices and legal filings that drains Town resources without improving project outcomes.
Lessons from the North 40 and Santa Cruz Avenue
We need only look at the recent split vote on Phase 2 of the North 40 to see the cost of a reactive posture. While the Council eventually approved the 450-unit project, the process was a “countdown” under state rules.
We were warned by legal counsel that a denial would likely trigger the Builder’s Remedy, potentially resulting in an even larger project with fewer community concessions.
Similarly, projects on Santa Cruz Avenue and Los Gatos Boulevard have highlighted a dangerous communication gap.
When developers invoke the Builder’s Remedy, they often argue that local design standards do not apply.
Without a task force to negotiate before these applications are solidified, we lose our chance to advocate for the transitions, materials, and “small-town” aesthetics that define Los Gatos.
A path to progress together
This task force is a benefit for the Town. It also offers a lifeline for developers who are currently mired in the same uncertainty we face. For a builder, the “limbo” of repeated incompletion notices is a significant financial drain.
By engaging with a task force, developers gain predictability. Early collaboration allows them to understand the community’s “hot buttons” and adjust designs before investing millions in formal architectural plans that might otherwise be litigated.
A project that moves swiftly because it has addressed local concerns is far more profitable than one that languishes in a courtroom for years. Proactive engagement turns a hostile “us versus them” battle into a streamlined path to project approval.
Mission of strategic engagement
This proposed task force would act as a strategic unit to:
- Early intervention on design: Under state law, our ability to deny housing projects is limited, but our ability to negotiate for objective design standards remains. A task force can work on height and scale transitions, like the 100-foot waivers sought near Los Gatos Boulevard, before plans are locked in.
- Clarifying compliance: By acting as a technical liaison, the task force can ensure applications meet objective standards quickly, avoiding the perpetual “incomplete” cycle and the litigation that inevitably follows.
- Maximizing community benefit: We must ensure that infrastructure and affordable housing components, such as those intended for residents with developmental disabilities in the North 40, are prioritized and integrated thoughtfully rather than treated as afterthoughts.
Beyond the courtroom
We have spent enough time in contested hearings and legal motions. The January court decision reminds us that the state’s patience is thin and “substantial compliance” is a high bar.
By appointing a task force composed of town council members and residents with legal, architectural, and strategic expertise, the Town Council can regain a seat at the table. We cannot stop the tide of state-mandated housing, but we can, and must, proactively guide how that housing is integrated into our community.
It is time to stop reacting to the law and start working within it to protect the town we call home.
