Getting Inclusionary Housing Right

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Cities across Santa Clara County are considering this powerful tool to build more new affordable homes without subsidy.

But done wrong it can fall short, or even stop the development of new homes in its tracks. Learn how it works, and how to get it right!

Many of our local cities are joining forces right now in a shared nexus study, the wonky and in-depth analysis that assesses the feasibility of local residential development and the potential for developers of market-rate housing to add a share of affordable homes to their buildings.

If cities require too few affordable homes or affordability that’s too shallow, they leave public benefits on the table. Too much, and developers can’t build any housing at all.

Come hear about local cities that are getting it right: successfully using inclusionary housing policies to achieve mixed-income communities, generate funding to subsidize deeper levels of affordability, and gain valuable land for affordable homes!

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July 18, 2024

Housing Element Update 7/18/24

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State law requires each city and county to make a specific, actionable, and measurable plan, called a Housing Element, that complies with state law and addresses housing needs. It must identify enough sites to hold the Regional Housing Needs Allocation (RHNA) at every income level, create programs that remove barriers to housing production, and protect residents vulnerable to displacement. Local jurisdictions must also take significant steps to affirmatively further fair housing (AFFH), addressing racial and economic segregation and disparities in access to resources, and meeting the unique housing needs of residents in protected groups. The California Department of Housing and Community Development (HCD) is responsible for certifying Housing Element compliance with state law.

Local jurisdictions behind in complying with state law are missing out on important sources of state and regional funding that require a compliant housing element, and remain vulnerable to builder’s remedy project projects.

Housing Elements on the Move

SV@Home congratulates the Cities of Monte Sereno (July 5th) and Saratoga (July 9th) for receiving HCD certification for their Housing Elements! 

The City of Cupertino and the Town of Los Gatos each have an adopted Housing Element currently under review by HCD. Both jurisdictions have previously received conditional approval pending adoption of their Elements by their respective Councils, and we expect the State’s certification to follow shortly.

Santa Clara County (for unincorporated land) submitted a Draft Housing Element to HCD for review on June 28th, and August 27, 2024. The most recent Draft is a substantial improvement over previous iterations, and County staff has indicated that they have been meeting with HCD and incorporating their guidance in the revision. 

SV@Home supports HCD’s timely certification of the County’s Housing Element. We believe it is an effective and compliant plan that encourages infill development and protects the county’s agricultural lands and open space resources. Certification is necessary to protect these sensitive lands from sprawl development, a threat that has emerged with a recent rash of low-density Builder’s Remedy proposals on unincorporated land.

On July 9th, HCD rejected Palo Alto’s third draft Housing Element as noncompliant and provided a letter with further guidance on revisions necessary to comply with state law. The City immediately submitted a fourth draft Housing Element. While this draft of Palo Alto’s Housing Element contains strong tenant protection policies, many local advocates continue to feel it does not go far enough to remove barriers to the development of new housing. Both SV@Home and local grassroots partner organizations continue to engage with city staff to support a compliant housing element and program implementation that addresses the diverse housing needs of the city’s residents and workforce.