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 16, 2025

The Grand Nexus: A Shared Foundation for Stronger Housing Policies

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A multi-jurisdictional study is helping cities across Santa Clara County lay the groundwork for stronger affordable housing policies. The Grand Nexus Study will support cities as they implement Housing Element commitments—offering the data and analysis needed to justify new or expanded fees and inclusionary requirements.

As cities across Santa Clara County move to implement their Housing Element commitments, many are turning to a shared resource to help lay the groundwork. The Grand Nexus Study—a regional effort launched in late 2024—is providing the legal and economic analysis needed to support stronger, more equitable housing policies. By measuring how new development drives demand for affordable housing and assessing what contributions are financially feasible, the study equips cities to adopt impactful reforms. These include residential impact fees, commercial linkage fees, and updated inclusionary housing requirements—all key tools identified in local Housing Elements that can generate new resources and expand access to affordable homes.

Community Planning Collaborative presentation on Grand Nexus Study

What makes this effort especially powerful is its collaborative approach. Multiple cities—including Mountain View, Sunnyvale, Gilroy, Los Altos Hills, and Los Gatos—are working from a shared methodology while tailoring the study to local needs. This kind of alignment helps make policies more defensible, more consistent, and more responsive to today’s market conditions. Cities studying new fees for the first time will gain the groundwork to adopt them; those looking to revise their Inclusionary Housing Ordinance will get updated data to support deeper affordability requirements or higher percentages. The study also helps identify the “sweet spot” where policies are meaningful but still feasible—minimizing the risk of stalling new development.

With draft reports expected this summer and final recommendations coming in the fall, we are entering a key phase. Cities will review the findings in September, and there will be opportunities for stakeholders and community members to weigh in along the way. But the real impact will come after the study wraps up—when cities take up the work of translating these findings into policy. SV@Home will be tracking that next chapter closely, and we will continue to support our partners in using this data to build stronger, more equitable housing policies.

Call to Action: Stay tuned as cities begin to act on the study’s findings—and be ready to show up when it’s time to turn these recommendations into tangible policy changes.