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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Morgan Hill
August 2, 2018

Morgan Hill City Council Approves Inclusionary Housing Ordinance

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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.