Los Gatos is unusual in saying plainly that its SB 9 ordinance doesn't comply with state law and that it defers to the state. That's useful. But watch the historic rule: the Town treats primary structures built before 1941 as historic, which can take a lot out of SB 9 entirely. Check the year built first.
Adding an ADU
In Los Gatos
The Town is updating its ADU ordinance. The Planning Commission recommended approval on June 10, 2026, and the Town Council was scheduled to review it on August 4, 2026.[1]
ADU rules are in Division 7 of Chapter 29 of the Town Code. The Town offers a single application and plan review for an ADU or JADU building permit.[1]
State law, everywhere in California
A city has 60 days to approve or deny a complete ADU or junior ADU (JADU) permit application.[2]
Lot coverage, floor area ratio, and front setback rules can't be used to block an ADU of at least 800 square feet with four-foot side and rear setbacks.[2]
A city can't set a height limit below 16 feet for a detached ADU, or below 18 feet within a half mile of a major transit stop or high-quality transit corridor. Attached ADUs can go to 25 feet or the main home's zoning height, whichever is lower.[2]
A JADU is up to 500 square feet of interior space inside the main home. Owner occupancy can't be required for an ADU, but it is required for a JADU that shares a bathroom with the main home.[2]
No impact fees on an ADU of 750 square feet or less. Above that, fees have to be proportional to the main home.[2]
On a lot with an existing apartment building, state law allows up to eight detached ADUs (never more than the number of existing units), plus conversions of non-living space.[2]
Lot splits and second homes
In Los Gatos
The Town says its current SB 9 ordinance does not comply with state law and that it defers to state law for SB 9 eligibility and processing.[3]
SB 9 is allowed in the R-1, R-1D, and HR zones.[3]
Parcels with a historic structure are excluded, and the Town considers primary structures built before 1941 to be historic structures.[3]
The Very High Fire Hazard Severity Zone exclusion doesn't apply within Town limits, because the Town has adopted fire hazard mitigation measures.[3]
State law (SB 9)
SB 9 applies to lots zoned single-family. It allows two primary homes on one lot, a split into two lots, or both, with staff-level approval and no public hearing.[4]
Local rules can't stop two homes of at least 800 square feet each, or a split into two lots of at least 1,200 square feet. Side and rear setbacks are capped at four feet.[4]
Parking is capped at one space per unit, and none can be required within a half mile walk of a high-quality transit corridor or major transit stop, or within a block of a car-share vehicle.[4]
To split a lot, you sign an affidavit that you intend to live in one of the units as your main home for at least three years. Any rental has to be for more than 30 days.[4]
SB 9 doesn't apply if the project would demolish or alter rent-restricted housing, rent-controlled housing, or housing a tenant has lived in during the last three years. It also excludes historic properties, lots with an Ellis Act withdrawal in the last 15 years, lots already created by an SB 9 split, and lots next to one the same owner split.[4]
The ceiling is four units total. After a split, the city has to allow two units on each new lot. The city must decide on a complete application within 60 days.[4]
Rent control and AB 1482
In Los Gatos
The Town's rent limits apply only to properties with three or more rental units and protect current tenants.[5]
An annual increase of 5%, or 70% of the applicable CPI, is presumed valid and can't be disputed. Rent for existing tenants can't be raised more than once a year unless the tenants agree.[5]
State law (AB 1482)
Under the Tenant Protection Act (AB 1482), rent can't go up more than 5% plus the change in the cost of living, or 10%, whichever is lower, in a 12-month period.[6]
After a tenant has lived in a unit for 12 months, the landlord needs a listed reason to end the tenancy, either at-fault (like nonpayment) or no-fault (like owner move-in or a substantial remodel).[6]
Exempt: units with a certificate of occupancy issued in the last 15 years (a rolling date), single-family homes not owned by a corporation or REIT, a duplex where the owner lives in the other unit, and units already under a stricter local rent control law.[6]
What is your Los Gatos home worth, and what could it become?
I spent my career on the investment side, helping operate more than 7,000 units. I'll give you a valuation built from recent sales, and a straight read on what your lot allows: an ADU, a split, or neither.
Los Gatos questions, answered
Does Los Gatos follow its own SB 9 ordinance?+
The Town says its current SB 9 ordinance does not comply with state law and that it defers to state law for eligibility and processing.[3]
Is a pre-1941 home in Los Gatos eligible for SB 9?+
The Town considers primary structures built before 1941 to be historic structures, and parcels with a historic structure are excluded from SB 9.[3]
Does Los Gatos have rent control?+
For properties with three or more rental units, yes. An annual increase of 5%, or 70% of the applicable CPI, is presumed valid, and existing tenants' rent can't be raised more than once a year without agreement.[5]
- [1]Town of Los Gatos, “Accessory Dwelling Unit Information”
- [2]California Department of Housing and Community Development (HCD), “ADU Handbook (March 2026 update)”
- [3]Town of Los Gatos, “Senate Bill (SB) 9”
- [4]California Department of Housing and Community Development (HCD), “Housing Law Fact Sheet: Duplexes and Lot Splits (SB 9), April 2026”
- [5]Town of Los Gatos, “Rental Dispute Resolution FAQs”
- [6]California Attorney General, “Landlord-Tenant Issues: Tenant Protection Act”
Official Los Gatos pages
This page is general information, not legal or tax advice. Rules change, and cities amend their codes after state reviews. Confirm current requirements with the city and a qualified professional before you buy, build, or change a tenancy. Erica Walters, REALTOR®, CalDRE# 02239622, Compass.