Are Local Housing Plans Making a Difference in Santa Clara County? This series of articles examines how well cities and towns across Santa Clara County are doing at meeting the housing needs of all their residents, at all income levels. Our policy team will share about the programs cities are working on to try to increase new homes, improve fair housing and access to opportunity for lower-income residents, and protect tenants from displacement and homelessness. The series includes analysis of progress toward the goals of local Housing Elements, highlighting best practices and opportunities to do better.

Learn how cities across Santa Clara County are beginning to implement place-based strategies in their 6th Cycle Housing Elements to meet California’s Affirmatively Furthering Fair Housing (AFFH) requirements. From capital projects in Northern Sunnyvale to park and infrastructure upgrades in Milpitas and Gilroy, these efforts aim to reinvest in historically underserved neighborhoods. While early progress is visible, inconsistent reporting and funding challenges remain. Stay tuned for upcoming articles focused on affordable housing preservation and special needs housing.

In Part I of this series, we explored how jurisdictions across Santa Clara County are working to meet housing production goals, especially for people with lower incomes. But meeting housing needs is about more than just production—it’s also about advancing equity.

This article highlights how cities are responding to California’s Affirmatively Furthering Fair Housing (AFFH) mandate through place-based investment strategies in the 6th cycle Housing Element, which involve targeted investments in historically under-resourced neighborhoods. These efforts are critical to reversing patterns of segregation and decades of systemic disinvestment.

What is AFFH, and What Does It Require?

California’s Assembly Bill 686 (2018) requires all jurisdictions to take meaningful actions to overcome segregation and foster inclusive communities, going beyond simply preventing discrimination. Since 2021, cities and counties have been required to integrate fair housing goals into their Housing Elements, which are part of their General Plans, and ensure that all housing and community development activities affirmatively further fair housing and do not conflict with this mandate. Specifically, AFFH means taking meaningful actions that, taken together: 

• address significant disparities in housing needs and access to opportunity, 
• replace segregated living patterns with truly integrated and balanced living patterns, 
• transform racially and ethnically concentrated areas of poverty into areas of opportunity, 
• and foster and maintain compliance with civil rights and fair housing laws.

The California Department of Housing and Community Development provides guidance on how Housing Elements must include measurable, actionable programs that advance these goals. Cities must annually report on their progress in implementing these measures through Annual Progress Reports (APRs).

Place-Based Investment Strategies in Housing Element 

Place-based investment strategies focus on neighborhoods that have been historically excluded from public resources and infrastructure investments— often communities of color, immigrants, and low-income households. These strategies can encompass a range of initiatives, such as improving community amenities like libraries, youth centers, park improvements, sidewalk upgrades, accessible infrastructure, and economic development, all of which are implemented to address the existing community’s needs. Crucially, these investments should be guided by the priorities of current residents, and not driven by the interests of growth or affluent populations moving in. Building for the people already living in the neighborhood helps foster equity, belonging, and long-term stability.

Some cities in Santa Clara County have identified meaningful place-based investment strategies programs in their 6th cycle Housing Element. Below are case studies from seven jurisdictions showing how AFFH is taking shape on the ground, two years into the planning cycle. 

Sunnyvale: $35M+ in Capital Projects in Northern Sunnyvale

Sunnyvale’s Program H39 prioritizes capital improvement investments in Northern Sunnyvale, a moderate-resource area that has historically received fewer public resources.

Key Highlights from 2024 APR:

• $35 million+ in investment in Northern Sunnyvale
• Construction began on a new 20,000 sq. ft. Lakewood Branch Library
• Improvements include:
  • Maude Avenue water line replacement
  • Corn Palace Park development
  • Peery Park transportation upgrades 

These improvements provide infrastructure and community amenities that support long-term neighborhood stabilization in Northern Sunnyvale, aligning with the AFFH mandate.

San José: Equity-Centered Community Investment Strategy

San José’s Program N-1 commits to neighborhood-based investment in racially and ethnically concentrated areas with high proportions of extremely low-income residents. The goals include co-creating priorities with residents and securing $5 million in additional funding for anti-displacement and place-based development by 2031.

Key Highlights from 2024 APR:

• Community Development Block Grant Program (CDBG) Notice of Funding Availability (NOFA) prioritizes infrastructure in racially concentrated areas
• Planned investments include accessible traffic signals and tot lot upgrades
• Launched neighborhood engagement strategy for East San José and redlined communities

This is a significantly smaller investment, but the comprehensive approach aligns infrastructure, equity, and anti-displacement in a data-driven manner that embodies the intent of AB 686, while also partnering with community members to address the community’s needs.

Gilroy: Curb Ramps, Clean California Funds, and Downtown Revitalization

Gilroy’s F-3 Program invests in public infrastructure in its downtown and other low-resource areas, with multiple projects in progress:

Key Highlights from 2024 APR:

• $3.9M Clean California Grant funded new downtown parking and community event space
• Completed Gourmet Alley upgrades to support local small businesses and curb ramp improvements to improve accessibility for people with disabilities citywide
• Allocated nearly $180K in CDBG funds for accessibility upgrades in pedestrian infrastructure

Through the G-4 program, the city is also engaging downtown community leaders as part of its Environmental Justice Element to inform future investments and updates to the Downtown Specific Plan.

Milpitas: Parks, Trails, and Bicycle Safety in Underserved Areas

Milpitas’ Program 10 supports infrastructure rehabilitation and accessibility upgrades in older and under-resourced neighborhoods.

Key Highlights from 2024 APR:

• ADA ramp upgrades on major corridors like Great Mall Parkway and Temple Ave to improve accessibility for people with disabilities
• Trail improvements at Sandalwood Park and Strickroth Park
• Ongoing park upgrades at 15+ locations using previously allocated American Rescue Plan Act (ARPA) funds
• The Dempsey Road water line project and bike lane enhancements are underway

These improvements support a more inclusive and safer built environment, particularly for residents in lower-income neighborhoods with aging infrastructure and limited access to green spaces.

Morgan Hill: Economic Opportunity in the Downtown 

Morgan Hill’s Action HE-3.I focuses on creating jobs in its Downtown Priority Development Area, with an equity lens. This is part of Morgan Hill’s larger Elevate Morgan Hill economic mobility program, which also includes affordable housing.

Key Highlights from 2024 APR:

• Aims to create accessible jobs for low- and very low-income residents
• The program is tied to downtown-specific plan updates between 2023–2025
• Will include workforce development strategies to align with housing affordability goals

Although still in its early stages, this strategy is a strong example of using economic development as a tool for AFFH.

Santa Clara: Community Events in an Isolated Neighborhood

Santa Clara’s Action 21 to host community events is a smaller but targeted initiative focused on Montague Park, a neighborhood with a high concentration of foreign-born renters and limited public amenities.

Key Highlights from 2024 APR:

• Applied for California State Library funding to host two pop-up events at Montague Park in Spring 2024. The events planned to bring in:
  • The City’s bookmobile
  • Mission College, Second Harvest, and nonprofit partners
  • Live performances and workshops

This strategy emphasizes cultural and civic inclusion by connecting isolated (underserved) residents with city services and local organizations. It is important to note that this is a non-infrastructure investment and will create community engagement. For this to be meaningful, it requires further investment commitments by the city to have a lasting impact on the community.

Progress and Gaps

Across Santa Clara County, cities are starting to implement place-based strategies that reflect a growing awareness of AFFH and work towards spatial and housing justice. However, the degree of implementation and transparency varies.

What’s working:

• Several cities are integrating infrastructure, engagement, and economic development in low-resource areas with significant resources.
• There are numerous examples of multi-benefit projects that align with AFFH, climate resilience, transportation equity, and addressing community needs to foster a sense of belonging.

What’s missing:

• The implementation of some programs has been delayed.
• Equity metrics are often missing or underdeveloped—few cities report on who is benefiting demographically from these improvements.
• Opportunities exist to think beyond housing funding and integrate larger sources of funding, such as Capital Improvement Programs (CIP). Working across a range of city departments (transportation, public works, parks, etc.) can open up more strategies to increase the scope and impact of investment.
• Long-term funding is still a barrier. While federal grants such as ARPA funds help, many programs rely on access to one-time federal or state resources.

Up Next in the Series

Place-based investment is just one component of truly advancing housing justice in our region. In our following newsletters, we will explore:

• Building Community Power Through Preservation – How cities are preserving affordable homes and planning to incubate partnerships with BIPOC-led and community-based developers.
• Meeting Growing Special Needs Housing – A look at how jurisdictions are addressing the housing needs of older adults, people with disabilities, and extremely low-income residents.

As implementation of Housing Elements continues, our collective advocacy will be essential to ensure these plans deliver on their promise to Affirmatively Furthering Fair Housing for all