04/14/2021 Housing and Neighborhood Revitalization Committee Regular Agenda Packet
C i t y o f G i l r o y
H o u s i n g & C o m m u n i t y
D e v e l o p m e n t
7 3 5 1 R o s a n n a S t r e e t
G i l r o y , C A 9 5 0 2 0
Housing & Neighborhood Revitalization Committee (HNRC) Meeting Agenda
Wednesday, April 14, 2021 – 6:00 p.m.
HOUSING & NEIGHBORHOOD REVITALIZATION COMMITTEE MEMBERS:
Vanessa Ashford, Chair Greg Bozzo Janel Valenzuela
Jasmine Ledesma, Vice-Chair Makhan (Mak) Gupta Danny Van
Laraine Spencer
PUBLIC PARTICIPATION IN THIS MEETING WILL BE LIMITED.
THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S
EXECUTIVE ORDER N-29-20
MEETING MATERIAL IS AVAILABLE ON THE CITY WEBSITE www.cityofgilroy.org.
In order to minimize the spread of the COVID 19 virus, the City will be offering telephone and email
options for public comments at this meeting. The public is encouraged to participate in th is meeting as
follows:
VIEW THE MEETING LIVE ON FACEBOOK
https://www.facebook.com/GilroyCityHallMeetings
PUBLIC COMMENTS WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE HOUSING
AND NEIGHBORHOOD REVITALIZATION COMMITTEE. COMMENTS MAY BE EMAILED PRIOR TO OR
DURING THE MEETING TO HCD TECHNICIAN SANDRA NAVA AT sandra.nava@cityofgilroy.org AND MUST
BE RECEIVED BEFORE THE CHAIRPERSON OPENS PUBLIC COMMENT FOR THE ITEM. ADDITIONALLY,
COMMENTS MAY BE MADE BY LEAVING A VOICE MESSAGE AT (408) 846-0290, PRIOR TO 5:00 P.M. April
14, 2021. IMPORTANT: in the subject line of your email, identify the Agenda Item Number and type in “PUBLIC
COMMENT”. The HCD Technician will read the first three minutes of each email into the public record.
In compliance with the Americans with Disabilities Act, and Governors Order N-29-20, the City will make reasonable
arrangements to ensure accessibility to this meeting. If you need special assistance to participa te in this meeting,
please contact the City a minimum of 2 hours prior to the meeting at (408) 846-0290.
I. Call to Order - Welcome
a. Roll Call
b. Introductions
II. Report on Posting of the Agenda
III. Public Comments on Items Not on the Agenda: PUBLIC COMMENTS MAY BE SUBMITTED BY
EMAIL TO: sandra.nava@cityofgilroy.org , (Three-minute time limit). This portion of the meeting is
reserved for persons desiring to address the Housing and Neighborhood Revitalization Committee on
matters not on this agenda. The law does not permit the Housing and Neighborhood Revitalization
Committee action or extended discussion of any item not on the agenda except under special
circumstances. If Housing and Neighborhood Revitalization Committee action is requested, the Housing
and Neighborhood Revitalization Committee may place the matter on a future agenda. Written material
C i t y o f G i l r o y
H o u s i n g & C o m m u n i t y
D e v e l o p m e n t
7 3 5 1 R o s a n n a S t r e e t
G i l r o y , C A 9 5 0 2 0
provided by public members for Housing and Neighborhood Revitalization Committee agenda item “public
comments” will be limited to 10 pages in hard copy.
IV. Approval of Meeting Minutes (report attached)
a. Minutes from March 10, 2021
b. Public comment
c. Possible Action: Motion to approve minutes
V. Housing Update (report attached)
a. Staff report by Cindy McCormick, Senior Planner
b. Public comment
c. Possible Action: Receive informational report
VI. Review Approved Committee Work Plan (report attached)
a. Staff report by Maria De Leon, Program Administrator
b. Public comment
c. Possible Action: Maintain or motion to amend work plan
VII. Preparation for June 21, 2021 Annual Council Presentation
a. Staff report by Maria De Leon, Program Administrator
b. Public comment
c. Possible Action: Identify members to develop June 21 City Council Presentation
VIII. Staff Updates
HNRC public service grant funding allocation recommendations (report attached)
April 2 to May 2, 2021, 30-Day Public Comment Period for the Draft FY 2021-2022 Annual Action Plan
(AAP) http://www.cityofgilroy.org/284/Block-Grant-Funds
May 3, 2021-City Council Public Hearing to consider approval of the Draft FY 2021-2022 AAP Visit
http://gilroyca.iqm2.com/Citizens/default.aspx to view agenda instructions on how to view the City
Council meeting and how public comments will be taken.
IX. Informational Items
X. Future Agenda Items
- May 12, 2021 Preparation for Annual Council Presentation
XI. Adjournment- The next regular meeting is May 12, 2021
The City of Gilroy does not discriminate on the basis of race, color, religion, national origin, sex, disability, sexual orientation, gender
identity, or familial status in the administration of its programs or activities. Pursuant to the Americans with Disabilitie s Act, and Governor’s
Order N-29-20, the City of Gilroy will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance
to participate in this meeting, please contact the HCD Technician (408) 846-0290 a minimum of 2 hours prior to the meeting. The hearing
impaired may reach the HCD Technician through the California Relay System at 711 or (800) 735-2929.
C i t y o f G i l r o y
H o u s i n g & C o m m u n i t y
D e v e l o p m e n t
7 3 5 1 R o s a n n a S t r e e t
G i l r o y , C A 9 5 0 2 0
KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE.
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and
other agencies of the City exist to conduct the people’s business. This ordinance assures that deliberations are conducted before
the people and that City operations are open to the people’s view.
FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE
COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN
GOVERNMENT COMMISSION STAFF AT (408) 846-0204 or shawna.freels@cityofgilroy.org .
C i t y o f G i l r o y
H o u s i n g & C o m m u n i t y
D e v e l o p m e n t
7 3 5 1 R o s a n n a S t r e e t
G i l r o y , C A 9 5 0 2 0
Housing & Neighborhood Revitalization Committee (HNRC) Meeting Agenda
Wednesday, April 14, 2021 – 6:00 p.m.
HOUSING & NEIGHBORHOOD REVITALIZATION COMMITTEE MEMBERS:
Vanessa Ashford, Chair Greg Bozzo Janel Valenzuela
Jasmine Ledesma, Vice-Chair Makhan (Mak) Gupta Danny Van
Laraine Spencer
PUBLIC PARTICIPATION IN THIS MEETING WILL BE LIMITED.
THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S
EXECUTIVE ORDER N-29-20
MEETING MATERIAL IS AVAILABLE ON THE CITY WEBSITE www.cityofgilroy.org.
In order to minimize the spread of the COVID 19 virus, the City will be offering telephone and email
options for public comments at this meeting. The public is encouraged to participate in th is meeting as
follows:
VIEW THE MEETING LIVE ON FACEBOOK
https://www.facebook.com/GilroyCityHallMeetings
PUBLIC COMMENTS WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE HOUSING
AND NEIGHBORHOOD REVITALIZATION COMMITTEE. COMMENTS MAY BE EMAILED PRIOR TO OR
DURING THE MEETING TO HCD TECHNICIAN SANDRA NAVA AT sandra.nava@cityofgilroy.org AND MUST
BE RECEIVED BEFORE THE CHAIRPERSON OPENS PUBLIC COMMENT FOR THE ITEM. ADDITIONALLY,
COMMENTS MAY BE MADE BY LEAVING A VOICE MESSAGE AT (408) 846-0290, PRIOR TO 5:00 P.M. April
14, 2021. IMPORTANT: in the subject line of your email, identify the Agenda Item Number and type in “PUBLIC
COMMENT”. The HCD Technician will read the first three minutes of each email into the public record.
In compliance with the Americans with Disabilities Act, and Governors Order N-29-20, the City will make reasonable
arrangements to ensure accessibility to this meeting. If you need special assistance to participa te in this meeting,
please contact the City a minimum of 2 hours prior to the meeting at (408) 846-0290.
I. Call to Order - Welcome
a. Roll Call
b. Introductions
II. Report on Posting of the Agenda
III. Public Comments on Items Not on the Agenda: PUBLIC COMMENTS MAY BE SUBMITTED BY
EMAIL TO: sandra.nava@cityofgilroy.org , (Three-minute time limit). This portion of the meeting is
reserved for persons desiring to address the Housing and Neighborhood Revitalization Committee on
matters not on this agenda. The law does not permit the Housing and Neighborhood Revitalization
Committee action or extended discussion of any item not on the agenda except under special
circumstances. If Housing and Neighborhood Revitalization Committee action is requested, the Housing
and Neighborhood Revitalization Committee may place the matter on a future agenda. Written material
C i t y o f G i l r o y
H o u s i n g & C o m m u n i t y
D e v e l o p m e n t
7 3 5 1 R o s a n n a S t r e e t
G i l r o y , C A 9 5 0 2 0
provided by public members for Housing and Neighborhood Revitalization Committee agenda item “public
comments” will be limited to 10 pages in hard copy.
IV. Approval of Meeting Minutes (report attached)
a. Minutes from March 10, 2021
b. Public comment
c. Possible Action: Motion to approve minutes
V. Housing Update (report attached)
a. Staff report by Cindy McCormick, Senior Planner
b. Public comment
c. Possible Action: Receive informational report
VI. Review Approved Committee Work Plan (report attached)
a. Staff report by Maria De Leon, Program Administrator
b. Public comment
c. Possible Action: Maintain or motion to amend work plan
VII. Preparation for June 21, 2021 Annual Council Presentation
a. Staff report by Maria De Leon, Program Administrator
b. Public comment
c. Possible Action: Identify members to develop June 21 City Council Presentation
VIII. Staff Updates
HNRC public service grant funding allocation recommendations (report attached)
April 2 to May 2, 2021, 30-Day Public Comment Period for the Draft FY 2021-2022 Annual Action Plan
(AAP) http://www.cityofgilroy.org/284/Block-Grant-Funds
May 3, 2021-City Council Public Hearing to consider approval of the Draft FY 2021-2022 AAP Visit
http://gilroyca.iqm2.com/Citizens/default.aspx to view agenda instructions on how to view the City
Council meeting and how public comments will be taken.
IX. Informational Items
X. Future Agenda Items
- May 12, 2021 Preparation for Annual Council Presentation
XI. Adjournment- The next regular meeting is May 12, 2021
The City of Gilroy does not discriminate on the basis of race, color, religion, national origin, sex, disability, sexual orientation, gender
identity, or familial status in the administration of its programs or activities. Pursuant to the Americans with Disabilitie s Act, and Governor’s
Order N-29-20, the City of Gilroy will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance
to participate in this meeting, please contact the HCD Technician (408) 846-0290 a minimum of 2 hours prior to the meeting. The hearing
impaired may reach the HCD Technician through the California Relay System at 711 or (800) 735-2929.
C i t y o f G i l r o y
H o u s i n g & C o m m u n i t y
D e v e l o p m e n t
7 3 5 1 R o s a n n a S t r e e t
G i l r o y , C A 9 5 0 2 0
KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE.
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and
other agencies of the City exist to conduct the people’s business. This ordinance assures that deliberations are conducted before
the people and that City operations are open to the people’s view.
FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE
COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN
GOVERNMENT COMMISSION STAFF AT (408) 846-0204 or shawna.freels@cityofgilroy.org .
C i t y o f G i l r o y
H o u s i n g D i v i s i o n
7 3 5 1 R o s a n n a S t r e e t
G i l r o y , C A 9 5 0 2 0
Housing & Neighborhood Revitalization Committee (HNRC) Meeting Minutes
Wednesday, March 10, 2021 – 6:00 p.m.
I. Call to Order - Welcome
The meeting was called to order by Chair Vanessa Ashford at 6:01 p.m.
Roll call: Chair Vanessa Ashford, Greg Bozzo, Makhan (Mak) Gupta, Vice-Chair Jasmine Ledesma,
Laraine Spencer, Danny Van
Absent: Janel Valenzuela
City staff participating: Maria De Leon, Program Administrator, Karen Garner, Community Development
Director, Sandra Nava, HCD Technician II, Robert Carrera, Management Analyst
II. Report on Posting of the Agenda
Liaison Nava announced that the agenda was posted on March 5, 2021 at 5:58 p.m.
III. Public Comments on Items Not on the Agenda:
There were no public comments.
IV. Approval of Meeting Minutes
There were no public comments.
Motion to approve the minutes from the February 17, 2021 Meeting and February 26, 2021 Special Meeting
was made by Chair Ashford, seconded by Member Van and carried 6-0.
V. Approval of FY 2021-2022 Community Development Block Grant (CDBG) and Housing Trust Fund
(HTF) Grant Funding Recommendations (report attached)
Maria De Leon, Program Administrator, reported on staff’s FY 2021-2022 CDBG and HTF public service
grant funding recommendations, Options A and B, the option to make a modified funding recommendation,
and the CDBG non-public service grant funding recommendations for FY 2021-2022.
The public comment period was opened.
Public Comments:
Deanne Everton, Executive Director, Rebuilding Together Silicon Valley, thanked members and staff for
Rebuilding Together’s Home Repair, Rehabilitation and Accessibility Modification Program’s funding
recommendation and asked members to consider funding at the original request of $159,246.
Angelica Holguin, Director of Programs, Silicon Valley Independent Living Center, expressed the agency’s
support for the $15,530 funding recommendation in Option A, which will help support comprehensive
housing education, case management services, and assist in leveraging other funding sources.
Ann Marquart, Executive Director, Project Sentinel, shared that Project Sentinel can leverage Gilroy funds to
bring additional money to the city and requested that members vote against not allocating any funds for
these highly needed services.
The public comment period was closed.
C i t y o f G i l r o y
H o u s i n g D i v i s i o n
7 3 5 1 R o s a n n a S t r e e t
G i l r o y , C A 9 5 0 2 0
Motion to adopt Option C, a modification to Option A that will remove $15,530 in funding for Silicon Valley
Independent Living Center and evenly reallocate that money to the other Option A applicants, was made by
Chair Ashford, seconded by Member Gupta and carried 6:0.
Motion to approve the staff recommended non-public service funding recommendations was made by Chair
Ashford, seconded by Member Gupta and carried 6-0
VI. Advisory Body Input for Budget Process FY22 and FY23 (Continued from February 17, 2021)
Maria De Leon, Program Administrator, requested members’ input to provide a collective recommendation
to Council on the FY 22 and FY23 two-year budget.
Motion was made by Member Bozzo to recommend putting $100,000 toward sidewalk improvements
downtown, $150,000 toward safety and beautification efforts for the city, and $250,000 toward supporting
tiny homes and extremely low income housing efforts, seconded by Chair Ashford and carried 5:0:1
(Member Van absent).
There were no public comments.
VII. Staff Updates
There were no updates.
VIII. Informational Items
Maria De Leon, Program Administrator asked members to share information on a Spanish Empower
Homebuyers Down Payment Assistance Webinar to be held April 6, 2021 at 3:00 p.m.
IX. Future Agenda Items
- April 14, 2021 Review Committee Work Plan and Preparation for Annual Council Presentation
- May 12, 2021 Preparation for Annual Council Presentation
X. Adjournment
Chair Ashford adjourned the meeting at 7:47 p.m.
The next Regular Meeting is April 14, 2021.
Community Development
Department
7351 Rosanna Street, Gilroy, California 95020-6197
Telephone: (408) 846-0451 Fax: (408) 846-0429
http://www.cityofgilroy.org
Karen L. Garner
DIRECTOR
TO: Housing and Neighborhood Revitalization Committee
FROM: Cindy McCormick, Senior Planner
VIA: Karen Garner, Community Development Director
DATE: April 14, 2021
SUBJECT: Housing Update
BACKGROUND
On March 15, 2021, staff presented the City Council with the General Plan 2020 Annual
Report and Housing Element Annual Progress Report (APR), which includes the City’s
progress toward meeting its 2015-2023 Regional Housing Needs Allocation (RHNA) and
progress in implementing Housing Element programs and other activities. The City
Council report also included a brief discussion on future workplan items including an
Affordable Housing Ordinance and the City’s 2023-2031 Housing Element Update
(Attachment 1).
SUMMARY
The first part of the General Plan 2020 Annual Report, General Plan 2020, highlights
notable activities in 2020 including adoption of the 2040 General Plan and community
development activity including the St. Joseph’s Family Center Rent Relief Program and
the Housing Trust Fund.
The second section of the General Plan Annual Report includes a table illustrating the
City’s progress towards permitting its Regional Housing Needs Allocation (RHNA) of
affordable and market rate units. Since 1969, the State of California has required that all
local governments (cities, towns and counties) adequately plan to meet the housing
needs of everyone in our communities. The Regional Housing Need Allocation (RHNA)
process is used to determine how many new homes, and the affordability of those homes,
each local government must plan for in its Housing Element. The RHNA program
establishes an eight-year cycle within which the city must work to achieve the allocated
amounts of new housing in each income category.
The current RHNA cycle is for the period from January 31, 2015 – January 31, 2023
(2015-2023). As illustrated in the following table, the remaining Very Low Income target
is 97 units and the remaining moderate income RHNA target is 178 units. The City has
exceeded the RHNA for Low Income and Above-Moderate (market rate) housing units.
2
Regional Housing Needs Allocation Progress (2015 – 2023)
Income Level Unit
Allocation
2015 – 2019
Units
2020
Units
Total Units
Permitted
Units
Remaining
*Very Low
(31 – 50% AMI) 236 63 76 139 97
Low
(51 – 80% AMI) 160 487 80 567 0
Moderate
(81 – 120% AMI) 217 24 15 39 178
Above Moderate
(Above 120% AMI) 475 1,124 172 1,196 0
Total Units: 1,088 1,698 243 1,941 Remaining
Need = 275
*The category “extremely low-income households” is a subset of “very low-income households,” and is
defined as 30 percent or less (0 – 30%) of the area median income.
Additional information on affordable housing has been prepared by the Santa Clara
County Planning Collaborative and is provided in Attachment 2. The Collaborative is a
shared effort among the county's jurisdictions to help address the region's housing
challenges. The jurisdictions, by working together collaboratively, save money, time and
resources by sharing information and capacity; maintain & facilitate relation ships with
non-profits, affordable housing advocates, and key governmental organizations; and
receive additional staffing support from Baird + Driskell Community Planning.
Affordable Housing Ordinance: Members of the City Council are interested in the
preparation and implementation of an Affordable Housing Ordinance. This could take the
form of an Inclusionary Housing Ordinance or an Affordable Housing Incentives
Ordinance. The exact form of the Ordinance will be determined through community
outreach, as part of the Housing Element update. An Inclusionary Ordinance would
require all residential developments over a certain size to restrict a certain number of units
as affordable and would be in line with what many other jurisdictions throughout California
have implemented to satisfy RHNA. An Inclusionary Ordinance would also allow for more
controls over rental and owner-occupied affordable units. Alternatively, the City could
adopt an Affordable Housing Incentives Ordinance that takes a “carrot versus stick”
approach to meeting the City’s RHNA. A Housing Incentives Ordinance could include
incentives such as streamlined review and/or regulatory incentives that go beyond the
Density Bonus Ordinance. These incentives could also target specific areas identified for
more affordable housing, including the Downtown Gilroy Specific Plan area and the City’s
Neighborhood Districts or specific housing types such as micro-units. The City could also
prioritize specific needs identified in the Housing Element, including but not limited to
extremely-low income households, large households, and senior households.
3
This Ordinance would be adopted as part of the City’s 2023 -2031 Housing Element
Update, following community outreach and the potential creation of a Housing Element
Update Advisory Committee. Additional information regarding next steps in the 2023 -
2031 Housing Element Update will be presented to the City Council in the near future.
The HNRC will continue to be updated and involved moving forward.
CONCLUSION:
For additional information, please review the attachments to this staff report. This report
and the attachments have been provided as an informational item, and no further action
is needed from the Housing and Neighborhood Revitalization Committee.
City of Gilroy
STAFF REPORT
Agenda Item Title: 2020 General Plan and Housing Element Annual Report
Meeting Date: March 15, 2021
From: Jimmy Forbis, City Administrator
Department: Community Development Department
Submitted By: Karen Garner
Prepared By: Karen Garner
Cindy McCormick
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Accept the 2020 General Plan and Housing Element Annual Report and direct staff to
transmit the report to the appropriate State agencies.
EXECUTIVE SUMMARY
The General Plan Annual Report fulfills the requirements of California Section 65400 of
the California Government Code, which requires all jurisdictions to prepare an annual
report addressing two primary topics: 1) the status of the General Plan and activities in
2020 that show progress towards its implementation; and 2) a Housing Element Annual
Progress Report (APR) which includes a summary of Gilroy’s progress towards meeting
its 2015-2023 Regional Housing Needs Allocation (RHNA). Following presentation to
the City Council, the General Plan Annual Report and APR will be forwarded to the
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Governor’s Office of Planning and Research (OPR) and the State Department of
Housing and Community Development (HCD), prior to its April 1st due date.
DISCUSSION
The first section of the General Plan Annual Report describes notable activities in 2020
that made progress towards implementing 2020 General Plan policies and action items.
The summarized activities are not a comprehensive list, as the majority of the 2020
General Plan policies and related action items have been implemented throughout the
18 years since its adoption in June 2002. Moreover, many of the implementation
actions, such as design review of development applications, code enforcement, and
building inspections are ongoing, and are not listed in the report. The previous
implementation of other more specific General Plan policies and action items can be
viewed in prior Annual General Plan Reports. A review of the Housing Element
implementation status, and progress toward meeting the City’s 2015-2023 Regional
Housing Needs Allocation (RHNA), is provided in section 2 of the General Plan Annual
Report, beginning on page 13 (Attachment 1).
In addition to the discussion on the General Plan Annual Report and APR, this staff
report includes a discussion on the status of the ADU Ordinance, the City’s SB330
compliance, status of creating objective design standards for the City, and future work
plan items including an Affordable Housing Ordinance, the City’s 2023-2031 Housing
Element Update, and an update to the City’s Downtown Gilroy Specific Plan.
General Plan 2020 Annual Report. The attached Report highlights the following
notable activities:
; Adoption of the 2040 General Plan
; The City’s public safety response to COVID-19
; Completion of the Sewer Local Limits Study and Evaluation, Sewer Use
Ordinance update, and Sewer Enforcement Response Plan
; Various economic development activities including:
Progress towards implementing a new Land Management System for
processing permits
Small Business Relief Program funding through the CARES Act
Outdoor dining streamlined registration program
Downtown Improvement Incentive Program
Unreinforced Masonry (URM) building retrofit progress
; Historic preservation efforts including an update to the City’s Historic Resource
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Inventory and approval of two (2) Mills Act Agreements
; St. Joseph’s Family Center Rent Relief Program funding through the CARES Act
; City Council approval of $267,500 in General Fund monies to help local community-
based agencies
; Accessory Dwelling Unit Ordinance Update
; Development activity that took place in 2020, including completion, or near
completion, of several neighborhoods in the Glen Loma Ranch area.
Housing Element Annual Progress Report (APR). The second section of the General
Plan Annual Report includes a table illustrating the City’s progress towards permitting its
Regional Housing Needs Allocation (RHNA) of affordable and market rate units. The
Report also includes a written summary of the City’s progress in implementing Housing
Element programs and other activities intended to remove governmental constraints to
the maintenance, improvement and development of housing. The APR will be submitted
electronically to HCD and OPR, following staff’s presentation to the City Council.
What is RHNA? Since 1969, the State of California has required that all local
governments (cities, towns and counties) adequately plan to meet the housing needs of
everyone in our communities. The Regional Housing Need Allocation (RHNA) process
is used to determine how many new homes, and the affordability of those homes, each
local government must plan for in its Housing Element. The RHNA program establishes
an eight-year cycle within which the city must work to achieve the allocated amounts of
new housing in each income category. The current RHNA cycle is for the period from
January 31, 2015 – January 31, 2023 (2015-2023).
In 2020, the City of Gilroy issued building permits for the Glen Loma Ranch, Below
Market Rate (BMR) Apartments. That complex included 129 very-low income units and
42 low income units, as well as two (2) manager’s units that can be counted towards the
moderate-income RHNA category.
Additionally, 13 Accessory Dwelling Units (ADUs) that were issued building permits in
2020 can be counted towards the City’s moderate-income RHNA category.
As illustrated in the following table, the remaining Very Low Income target is 97 units
and the remaining moderate income RHNA target is 178 units. The City has exceeded
the RHNA for Low Income and Above-Moderate (market rate) housing units.
Regional Housing Needs Allocation Progress (2015 – 2020)
10.B
Packet Pg. 84
Income Level Unit
Allocation
2015 – 2019
Units
2020
Units
Total Units
Permitted
Units
Remaining
*Very Low
(31 – 50% AMI)
236 63 76 129 97
Low
(51 – 80% AMI)
160 487 80 567 0
Moderate
(81 – 120% AMI)
217 24 15 39 178
Above Moderate
(Above 120% AMI)
475 1,124 172 1,196 0
Total Units: 1,088 1,698 243 1,941 Remaining
Need = 275
*The category “extremely low-income households” is a subset of “very low-income households,” and is
defined as 30 percent or less (0 – 30%) of the area median income.
Status of Specified Housing Activities
As a follow-up to questions raised by various members of the City Council during
previous Council meetings, staff has provided some additional information below
regarding status of the ADU Ordinance, SB330 compliance, status of creating objective
design standards for the City, and future workplan items including an Affordable
Housing Ordinance, the City’s 2023-2031 Housing Element Update, and an update to
the City’s Downtown Gilroy Specific Plan.
ADU Ordinance: On January 1, 2020, new state laws became effective which require
local approval for various types of accessory dwelling units (ADUs) on single-family and
multi-family zoned parcels. On February 10, 2020, following a report by staff state
housing legislation including revised ADU standards, Council directed staff to update
the City’s ADU ordinance to implement the mandates of state law. Although the City had
the option of simply rescinding the existing ADU ordinance and complying with state
law, the new ADU requirements were spread across multiple bills and were difficult to
interpret. Staff recommended and the Council agreed that adopting a new Gilroy
ordinance best served our citizens and development community by making it easier to
find and understand ADU requirements.
Consultation with the California Department of Housing and Community Development
(HCD) staff was initiated early to confirm staff understanding of the law and help assure
the final ordinance would be accepted by the State. During this review, HCD staff
advised the City that it must not impose a limit on the number of bedrooms, must allow
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attached ADU’s with only 4-foot side and rear yard setbacks (including exterior side
yards), and must permit internal conversions up to 50% of the primary residence size.
The Ordinance was then revised to include these allowances. On May 14, 2020, the
Planning Commission recommended approval of the draft Ordinance. The ADU
Ordinance 2020-03 (Z20-01) was adopted by City Council on July 6, 2020 and sent to
HCD on July 22, 2020 for its review and final approval. There is no formal “approval”
from HCD of the city’s ADU ordinance, rather, HCD continues to provide clarifications
and direction to cities. City staff has been in direct contact with HCD and received
acknowledgement that the city’s ADU ordinance is in substantial compliance with only
minor, non-substantive suggested changes.
SB330 Compliance: SB 330, the Housing Crisis Act of 2019, amended the Housing
Accountability Act to require, with certain exceptions, that a housing development
project only be subject to the ordinances, policies, and standards adopted and in effect
when a preliminary application is submitted. Furthermore, in 2020, SB 1030 clarified
that SB 330 is applicable to the submission of a “complete” application, pursuant to
the Permit Streamlining Act, even if the applicant has not submitted a preliminary
application. The City of Gilroy has long provided applicants with comprehensive
application submittal checklists, both in person and on the City’s website. The City’s 28
page long Submittal Checklist Details Document continues to be thoroughly reviewed by
the City’s Community Development and Engineering Departments to ensure that the
City receives “complete” application submittals in line with the City’s expectations. Staff
spends time with each applicant, as needed, to go through the checklist and streamline
the submittal process where appropriate. Additionally, staff is drafting a comprehensive
preliminary application checklist, in consultation with the City Attorney’s office.
Additional information on SB 330, the Housing Accountability Act, the Permit
Streamlining Act, and other noteworthy housing laws are included in Attachment 2.
Objective Design Standards: As provided in the March 8, 2021 City Council Study
Session memo, the City of Gilroy was awarded a $160,000 grant to create objective
design standards for multi-family residential projects in Gilroy, The City hired a
consultant to complete this work with oversight from city staff. In addition to ensuring
that the new Zoning Ordinance (to be completed by the end of 2021) is objective, this
project will result in a final report outlining a menu of recommended objective design
standards that will be used to amend the City’s policies, standards, and conditions to
ensure that the City is compliant with the Housing Accountability Act and SB330.
Following feedback from the City Council at the March 8, 2021 Council study session,
the consultant will refine the scope of work and create objective standards that are in
line with Council expectations and the vision for the City of Gilroy. The
recommendations will be presented to the Planning Commission and the City Council
for review and approval prior to formally adopting them as part of the City’s multi-family
residential review process. This project is expected to be complete in fall 2021; however
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interim objective design standards could be implemented sooner. In addition, all existing
objective design criteria applicable to multi-family housing may still be applied.
Affordable Housing Ordinance: In 2020, the City was awarded $150,000 in HCD grant
funding1 to be used towards efforts that would help accelerate housing production in
Gilroy. One of the tasks identified in the grant application was the preparation and
implementation of an Affordable Housing Ordinance. This could take the form of an
Inclusionary Housing Ordinance or an Affordable Housing Incentives Ordinance. The
exact form of the Ordinance will be determined through community outreach, as part of
the Housing Element update. An Inclusionary Ordinance would require all residential
developments over a certain size to restrict a certain number of units as affordable and
would be in line with what many other jurisdictions throughout California have
implemented to satisfy RHNA. An Inclusionary Ordinance would also allow for more
controls over rental and owner-occupied affordable units. Alternatively, the City could
adopt an Affordable Housing Incentives Ordinance that takes a “carrot versus stick”
approach to meeting the City’s RHNA. A Housing Incentives Ordinance could include
incentives such as streamlined review and/or regulatory incentives that go beyond the
Density Bonus Ordinance. These incentives could also target specific areas identified
for more affordable housing, including the Downtown Gilroy Specific Plan area and the
City’s Neighborhood Districts or specific housing types such as micro-units. The City
could also prioritize specific needs identified in the Housing Element, including but not
limited to extremely low-income households, large households, and senior households.
This Ordinance would be adopted as part of the City’s 2023-2031 Housing Element
Update, following community outreach and the potential creation of a Housing Element
Update Advisory Committee.
Additional information on affordable housing has been prepared by the Santa Clara
County Planning Collaborative and is provided in Attachment 3. The Collaborative is a
shared effort among the county's jurisdictions to help address the region's housing
challenges. The jurisdictions, by working together collaboratively, save money, time,
and resources by sharing information and capacity; maintain & facilitate relationships
with non-profits, affordable housing advocates, and key governmental organizations;
and receive additional staffing support from Baird + Driskell Community Planning.
2023-2031 Housing Element Update: In 2021, the City applied for up to $182,602 in
ABAG funding to be used towards the City’s 2023-2031 Housing Element Update, since
it is anticipated that the cost of the update will be significant, given new requirements for
identifying sites that can accommodate the increase in RHNA units and new
requirements for affirmatively furthering fair housing. The City is guaranteed at least
$32,602 from this grant application. However, staff has recently heard that the overall
grant requests received by ABAG exceed the available funding by approximately $11
million.
1 Local Early Action Planning Grant Program (LEAP) funds through the 2019-20 State Budget Act
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Additional information regarding next steps in the 2023-2031 Housing Element Update
will be presented to the City Council soon.
Downtown Gilroy Specific Plan Update: As part of the ABAG housing grant discussed
above, the City also requested $700,000 in funding to update the City’s Downtown
Specific Plan and associated environmental review. Only jurisdictions that have a
designated Priority Development Area (PDA)2 were eligible to apply for the PDA funding
portion of the grant. However, as discussed above, overall grant requests exceed the
available funding by approximately $11 million. To be eligible for the PDA funds, the
grant must be used towards expanding the Downtown Specific Plan area further into the
PDA boundary. The PDA area includes the entire Downtown Specific Plan area as well
as commercial and residential properties located to the south of Old Gilroy Street
between Alexander Street and Highway 101 down to the intersection of Highway 101
and Monterey Street3. PDA grants must be completed within 30 months of being
awarded. If the funds were awarded sometime this summer, the funds would need to be
expended by the end of 2023, give, or take a few months. Given the highly competitive
nature of this grant funding and the requirement that the funds be exclusively used for
accelerating housing production in the PD, it is anticipated that the City of Gilroy would
need to provide additional funding towards this effort. Additional information and a
potential budget for the update will be presented to the City Council in late spring / early
summer, following ABAG’s grant hearings scheduled for May 2021.
ALTERNATIVES
1. Should the Council choose not to accept the report, staff will seek direction from the
Council regarding additional information needed and bring the report to a future
Council meeting for acceptance. This action is not recommended.
FISCAL IMPACT/FUNDING SOURCE
No fiscal impact has been identified in conjunction with this project.
NEXT STEPS
After acceptance of the report by the City Council, staff will transmit it to the Governor’s
Office of Planning and Research and the State Department of Housing and Community
Development.
2 Priority Development Areas (PDA) are places near public transit planned for new homes, jobs and
community amenities. PDAs are intended to help the Bay Area reduce greenhouse gas emissions and
provide housing for all, regardless of race or income.
3 The City’s PDA was approved by the Metropolitan Transportation Commission (MTC)
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PUBLIC OUTREACH
Staff posted a notice of this meeting on social media and through all other usual City
communication outlets. Staff will also be presenting the findings of this report to the
Planning Commission on April 1st as an informational item.
Attachments:
1. 2020 General Plan Annual Report
2. Housing Laws 101
3. Affordable Housing 101 and FAQs
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Affordable Housing 101 provided by the Santa Clara County Planning Collaborative Page 1 of 3
What is Affordable Housing in Santa Clara County?
When we all have safe, healthy, affordable homes we create opportunities for everyone to have a bright future, but our region’s housing shortage has made it increasingly harder for people to call Santa Clara County home. Many working and middle-income families cannot afford housing priced at market rates, and there aren’t nearly enough affordable housing options. Purchasing a home is out of reach for many low income and middle class families while renters face some of the highest rental rates in the country. There’s no single cause that has led us to this housing shortage and there’s no magic bullet that will solve it. Fortunately, there are a variety we can come together to
address the need for affordable housing options for all members of the community.
Together, we can rise up
to this challenge. Santa Clara County will need to plan for 129,927 housing units for the eight-year period between 2023 to 2031, with 73,199 of them being for lower and moderate-income residents. Improving and expanding housing options is imperative to advancing social, racial, and economic equity and inclusion goals across Santa Clara County. All communities across the County and the state will have to do their part in producing affordable housing and welcoming new residents to achieve housing for all. If we don’t produce enough affordable housing, the lack of housing options will result in longer commute times for workers, gridlocked traffic, and increased pollution. By creating affordable housing options, we’ll create robust and diverse communities that support a strong quality of life and welcome people of all generations, families with children, and single adults who will bring their talents and skills to Santa Clara County. This also includes having homes that match the diversity of incomes in our community and are available for the workers we rely on as a community.
What is affordable housing? When we talk about affordable housing, we mean homes that are rented or sold at rents or sales prices that are lower than prevailing market rates. Affordable housing means your favorite hairstylist, your child’s teacher, or the friendly medical assistant at your doctor’s office can live close to their work. A medical assistant and a preschool teacher in Santa Clara County with two children would be in need of affordable housing with their combined average salaries of close to $90,000 a year. A year’s worth of rent would swallow up over 40% of their income, making them
Affordable Housing Development Edwina Baker Plaza in Sunnyvale. Source: David
Baker Architects.
Affordable Housing 101 provided by the Santa Clara County Planning Collaborative Page 2 of 3
rent burdened. Consider a single-earner household of four. A daycare administrator with an average yearly income of about $55,000 heading a household of four. To afford market rent in Santa Clara County, 70% of this person’s income would be directed towards housing costs. In Santa Clara County, the vast majority of purpose-built affordable housing is built and managed by private and nonprofit developers using a variety of funding and financing sources. Affordable housing programs generally target households who earn 80% or below of the area’s median income, which for Santa Clara County is $112,150 a year for a household of four. Households that pay more than 30% of their monthly income are considered “rent burdened” while families who pay over 50% of their monthly income are considered “severely rent burdened”.
Santa Clara County Area Median Income (AMI) Levels, 2020
Number of
Persons in
Household 30% 50% 80% 100%
1 $ 33,150 $ 55,300 $ 78,550 $ 99,100
2 $ 37,900 $ 63,200 $ 89,750 $ 113,300
3 $ 42,650 $ 71,100 $ 100,950 $ 127,450
4 $ 47,350 $ 78,950 $ 112,150 $ 141,600
5 $ 51,150 $ 85,330 $ 121,150 $ 152,950
Source: HCD (hcd.ca.gov), 2020 Income Limits
The Wage and Housing Gap
Occupation
Mean Annual
Wage
% of AMI for 3
person HH
% of Monthly income
needed to afford average
market rent for a two-
bedroom unit
Dishwashers $30,160 24% 127%
Retail Salespersons $39,987 31% 96%
Security Guards $41,512 33% 93%
Daycare &
Preschool
Administrators $55,020 43% 70%
Police Officers $130,911 103% 29%
Preschool Teachers $41,563 33% 92%
Hair Dressers $33,384 26% 115%
Medical Assistants $47,846 38% 80%
Receptionists and
Information Clerks $39,239 31% 98%
(Based on fair market rent for a one bedroom in Santa Clara County (hcd.ca.gov). Wage information
from the California Employment Development Department)
Affordable Housing 101 provided by the Santa Clara County Planning Collaborative Page 3 of 3
Frequently Asked Questions about Affordable Housing
FAQs on affordable housing ● Who builds and manages affordable housing? ○ The vast majority of purpose-built affordable housing is built and managed by private and
nonprofit developers using a variety of Federal, State., Local Government and private
funding and financing sources. ● Who qualifies for affordable housing? ○ Affordable housing programs generally target households who earn 80% or below of the
area’s median income, which for Santa Clara County is $112,150 a year for a household of
four. See the tables below for more details on income levels and wages for the County as of
February, 2021. ● Who lives in affordable housing? ○ Seniors, families with children, people facing health challenges or disabilities, or those who
simply are starting a new phase of life – in short, people of all backgrounds. ● What does affordable housing look like? ○ Affordable housing is built in a wide range of architectural styles and densities. They can
be midsize to large multifamily family developments, duplexes, triplexes, quadplexes,
granny units, or cottage clusters. Affordable housing must comply with the same zoning
codes, restrictions, and design standards as market-rate housing. Often, because affordable
housing projects frequently rely on some public money, they have to comply with
additional restrictions and higher standards than market-rate housing. ● I’ve heard affordable housing makes traffic worse and brings in crime-- is that true? ○ Affordable housing residents tend to own fewer cars and drive less and many affordable
housing developments are located near transit centers. Local governments can also adopt
policies that encourage affordable housing developments near job centers so affordable
housing can help reduce traffic. ● Will an increase of affordable housing lead to overcrowded schools or affect the quality of
our schools? ○ Households living in affordable housing on average have fewer children than those living
in single family homes. School staff and teachers can benefit from affordable housing as
well since wages for educators have not kept up with rising housing costs. A more robust
supply of affordable housing options can be key to retaining talent in our schools. Lastly,
children’s educational performance can be affected if they aren’t able to stay in one school
for long and are forced to move around due to unstable housing. Affordable, stable housing
provides a foundation for children to learn better.
Housing Laws 101 prepared by City Staff as reference material for the 2020 Annual Report Page 1 of 2
Housing Laws 101
SB-35 was signed into State law in 2017 and became effective on January 1, 2018. SB-
35 applies in cities that are not meeting their Regional Housing Need Allocation (RHNA)
goal for construction of above-moderate income housing and/or housing for households
below 80% area median income (AMI). Currently, Gilroy meets its RHNA goal for
construction of above-moderate income and low-income housing. However, the City has
not yet met the RHNA goal for moderate and very-low income housing. Therefore,
projects in Gilroy are eligible for a ministerial approval process, provided they meet all of
the SB35 eligibility criteria, including setting aside at least 50% of the total units as
affordable housing for lower-income households (max 80% AMI).
AB 831, an "urgency statute" that took effect Sept. 28, 2020 upon being signed into law,
makes a number of amendments to SB35. This amendment prohibits cities from using
post-entitlement review processes to avoid the intent of SB 35, given that housing
developments inevitably evolve after an entitlement permit is issued. This bill allows
specified minor modifications to the development prior to the issuance of the final building
permit, so long as the project continues to meet specified objective standards that were
in place when the original application was submitted. The bill also provides that required
off-site public improvements should be approved without delay and in a manner that does
not inhibit, chill or preclude the development.
The Permit Streamlining Act is a State law that requires the City to compile an
application submittal checklist that specifies in detail the information that will be required
from an applicant for a development project. Pursuant to this Act, the City has a maximum
of 30 days to provide the applicant with a list and a thorough description of the specific
information needed to complete the application. Once an application is complete, this Act
also requires the City to approve or disapprove a development project within certain
timeframes, depending on the type of CEQA review needed.
The Housing Accountability Act (HAA) is a State law that is applicable to both
affordable and market rate housing development projects, including emergency shelters,
farmworker housing, transitional housing, and supportive housing. The HAA prohibits the
City from disapproving, or conditioning approval in a manner that renders infeasible, a
housing development project that is consistent with objective local development
standards, unless the City makes specified written findings based upon a preponderance
of the evidence that a specific, adverse health or safety impact exists. In other words, the
City cannot deny a housing development project based on subjective reasoning.
SB 330 (Housing Crisis Act of 2019) amended the Housing Accountability Act to
require, with certain exceptions, that a housing development project only be subject to
the ordinances, policies, and standards adopted and in effect when a preliminary
application is submitted.
Housing Laws 101 prepared by City Staff as reference material for the 2020 Annual Report Page 2 of 2
AB 2345 (amendments to State Density Bonus Law) increases the maximum density
bonus to up to 50%; lowers the minimum affordable unit threshold for granting
incentives/concessions; allows 20% of the units in a 100% affordable development to be
moderate-income units (the other 80% must be low-income); and requires the General
Plan annual report to include density bonus information. This legislative update also
decreases the maximum parking ratio to 1.5 spaces for 2-3 bedrooms units; authorizes a
developer to request a total waiver of parking for senior housing projects that meet certain
criteria; and clarifies how to measure half-mile of a major transit stop (for purposes of
qualifying for additional benefits (e.g., parking reductions) and defines the term "natural
or constructed impediments" for purposes of determining whether a development has
unobstructed access to a transit stop. Furthermore, the city shall not impose any
maximum controls on density if the housing development is located within one-half mile
of a major transit stop.
AB 1851 makes it easier for faith-based organizations to build affordable housing on their
parking lots. This legislation reduces/eliminates parking requirements that would
otherwise preclude such development and prevent cities from forcing faith-based
organizations to later make up lost parking spaces when a parking lot is developed for
housing.
AB 3182 (Limit HOA's Ability to Restrict Home Rentals, including ADUs) prohibits
HOAs from adopting or enforcing rental restrictions on more than 25% of the individual
dwelling units in a development. AB 3182 also makes clear that accessory dwelling units
(ADUs) and junior ADUs (JADUs) are not counted toward the overall 25% cap. However,
HOAs can still enforce bans on short-term rentals for fewer than 30 days. AB 3182 also
clarifies state ADU law to specify that an ADU application shall be deemed approved if
the City has not acted upon a completed ADU application within 60 days.
AB 725 (Moderate- and Above-Moderate-Income Housing Sites) imposes new
requirements for city housing element updates. Under state law, housing elements must
include, among other things, a residential land inventory that can be used to identify
potential housing development sites. Commencing January 1, 2022, this law requires that
at least 25% of a metropolitan jurisdiction’s RHNA share of moderate-income and above
moderate-income housing be allocated to sites with zoning that allows at least 4 units of
housing, but no more than 100 units per acre of housing.
AB 1561 (Housing Entitlement Extension) extends the expiration of a housing
entitlement by 18 months, if it was in effect on and issued before March 4, 2020, and
would have expired before Dec. 31, 2021. This legislation affects tentative maps,
discretionary permits, and ministerial approvals / building permits. It explicitly excludes
development agreements, a preliminary application under SB 330, and SB35 permit
applications. This bill also extends the time for Native American tribes to respond to a
CEQA consultation request by 30 days for any housing development application deemed
complete between March 4, 2020, and Dec. 31, 2021.
FY 2021-2022
Community Development Block Grant (CDBG) and
Housing Trust Fund (HTF) Public Services
•HNRC Recommendation
Agency Project
Funding
Amount Funding Source
Live Oak Adult Day Services Adult Day Care: Gilroy
Center $8,560 CDBG Public Service
Bay Area Community Health Community Outreach and
Navigation: PrEP $10,250 CDBG Public Service
South County Compassion Center Day Center and Outreach
for the Homeless $45,660 Housing Trust Fund
St. Joseph’s Family Center Gilroy Street Team $23,780 Housing Trust Fund
St. Joseph’s Family Center Homeless Prevention
Services $54,650 Housing Trust Fund
Project Sentinel Landlord/Tenant Counseling
and Dispute Resolution $15,960 Housing Trust Fund
The Health Trust Meals on Wheels $21,990
CDBG Public Service
($8,643)
Housing Trust Fund
($13,347)
Project Sentinel Project Sentinel Fair
Housing $14,590 Housing Trust Fund
City of Gilroy Recreation
Department Gilroy Youth Center $38,452 CDBG Public Service