On Wednesday, July 18th, the Morgan Hill City Council took action to approve an Inclusionary Housing Ordinance that requires that all residential development in downtown include 10% affordability and residential development throughout the rest of the city include 15% affordability.  The ordinance allows for alternative compliance options, including: inclusion of rental units in for-sale projects, off-site construction, land dedication, and an in-lieu housing fee (in specified circumstances).

Morgan Hill has traditionally done well in addressing its regional housing needs, and recently updated its General Plan to ensure that the number of units planned exceeds State housing goals.  However, with the loss of the tool of redevelopment, it has been more challenging for the city to reach its affordable housing targets.  In the FY 2015-2023 RHNA cycle, Morgan Hill has already met 168% of its housing goal, but only 29.3% of its goal for very low-income households.

With the adoption of the Inclusionary Ordinance, Morgan Hill will have a strong tool available to ensure that it can meet its targeted numbers and address the housing needs of its lower-income families.