complaint·April 6, 2026

On February 25, 2026, the Continuing Care Contracts Bureau received a complaint alleging that Terraces of Los Gatos is overcharging residents. It was further alleged that the community participates in the Below Market Price (BMP) Housing Program established by the Town of Los Gatos through Ordinance 2313, adopting Chapter 29 of the Town Code, and that the provider denied participation in the program. The Department conducted interviews with both the Witness and the Executive Director. Based on the information obtained, the Department determined that the allegation does not constitute a violation of laws or regulations within the Department’s jurisdiction. Rent control provisions and local BMP housing requirements do not apply to Continuing Care Retirement Communities (CCRCs), and rental agreements are not considered continuing care contracts subject to Continuing Care Contracts Bureau (CCCB) oversight. Accordingly, the Department has determined that the allegation is unfounded meaning that the allegation is false, could not have happened and/or is without a reasonable basis. No citations noted at today’s compliant investigation visit. Exit interview conducted with WD. This report was provided to review and for signature. A copy of this report was provided to WD. Page 2 of 2.