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Resolution 2012-08RESOLUTION NO. 2012-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING M 11 -10, THE ADOPTION OF THE 2007 -2014 HOUSING ELEMENT AS AN AMENDMENT TO THE 2002 -2020 GENERAL PLAN WHEREAS, Government Code Sections 65302(c) and 65583 mandate that the City's General Plan contain a Housing Element that consists of an identification and analysis of existing and projected housing needs, a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing, and the identification of adequate sites for housing, including rental housing, factory - built housing, mobilehomes, and emergency shelters, making adequate provision for the existing and projected needs of all economic segments of the community; and WHEREAS, Government Code Sections 65580 through 65589.8 require local agencies to adopt, implement and periodically revise a housing element into their general plans to accommodate their respective fair share of new and affordable housing; and WHEREAS, Government Code Section 65589.3 provides that if the California Department of Housing and Community Development ( "HCD ") finds that a housing element or housing element revision substantially complies with Article 10.6 of the Government Code (Sections 65580 through 65589.8), then the housing element or housing element revision is rebuttably presumed to be valid; and WHEREAS, on September 29, 2005, pursuant to Government Code section 65584.02, HCD granted an extension of time until June 30, 2009 for members of the Association of Bay Area Governments (of which the City of Gilroy is a member), to submit their housing element revision to HCD for its review; and WHEREAS, the City developed a draft 2007 -2014 Housing Element revision ( "Housing Element Update ") in 2008 and 2009, which the City submitted to HCD for its review and "substantial compliance" finding under Government Code section 65589.3; and 1 Resolution No. 2012 -08 WHEREAS, the City has engaged in extensive negotiations with HCD about the contents of the draft Housing Element Update, and has submitted several revised drafts to HCD, the most recent of which was submitted on or about July 15, 2011; and WHEREAS, on September 13, 2011, HCD sent the City a letter stating that HCD completed its review of the City's draft Housing Element Update (as revised), that the draft Housing Element Update will comply with State Housing Element Law (Article 10.6 of the Government Code) once the Housing Element Update is adopted and an adequate number of sites have been rezoned for high density residential development to meet the City's fair share housing allocation, and indicating that no further revisions were necessary; and WHEREAS, in accordance with the California Environmental Quality Act ( "CEQA "), the City caused to be prepared a draft Initial Study and Negative Declaration for the proposed Housing Element Update, which concluded that the adoption of the proposed Housing Element Update would not have any significant effects on the environment, and thus, staff recommended that the City adopt a Negative Declaration for this project; and WHEREAS, the City provided the draft Initial Study and Negative Declaration for public and public agency review on December 20, 2011 for comment through January 23, 2012; and WHEREAS, the City timely received three letters commenting on the draft Initial Study and Negative Declaration, two from public agencies and one from a member of the public; and WHEREAS, the City addressed the comments on the draft Initial Study and Negative Declaration received during the public review period in staff's February 6, 2012 report to the City Administrator ( "Staff Report"); and WHEREAS, as explained in the Staff Report, the proposed Housing Element Update is a program -level document that provides policy guidance for local decision - making as it relates to housing; it does not provide any development site specifics that would enable a nonspeculative, meaningful evaluation of potential project -level or cumulative impacts; and -2- Resolution No. 2012 -08 WHEREAS, to the degree the proposed Housing Element Update is consistent with the 2002 -2020 General Plan ( "General Plan"), program -level potential impacts of the proposed Housing Element Update were addressed the General Plan EIR; and WHEREAS, as explained in the Staff Report, the City anticipates selecting specific sites for General Plan amendments, rezonings and/or residential density increases amongst candidate sites identified in the proposed Housing Element Update ( "Housing Implementation Projects "), and upon selection of those sites the City will conduct environmental analyses to evaluate the potential impacts of those changes at a site - specific, project level commensurate with the degree of specificity involved in those changes, as required by CEQA; and WHEREAS, the Gilroy City Planning Commission held a duly noticed public hearing on the proposed Housing Element Update (M 11 -10) on January 5, 2012, and following the public hearing the Planning Commission voted 6 -0 to recommend adoption of the Negative Declaration and to recommend approval of the proposed Housing Element Update; and WHEREAS, this City Council held a duly noticed public hearing on the proposed Housing Element Update (M 11 -10) on February 6, 2012, at which public hearing the Council considered the proposed Housing Element Update, the Negative Declaration, staff reports, public comments and testimony, and all documentation or other evidence received on the project; and WHEREAS, the location and custodian of the documents or other materials which constitute the record of proceedings upon which this project approval is based is the office of the City Clerk. NOW, THEREFORE, BE IT RESOLVED THAT: A. The City Council finds as follows: 1. The City has taken all actions required by CEQA. 2. The Negative Declaration reflects the City's independent judgment and analysis. 3. On the basis of the whole record, including the Initial Study and Negative Declaration and comments received, there is no substantial evidence that the -3- Resolution No. 2012 -08 adoption of the proposed Housing Element Update will have a significant effect on the environment. 4. Approval of M 11 -10 is in the public interest. 5. The proposed Housing Element Update substantially complies with the requirements of Article 10.6 of the California Government Code, commencing with Section 65580. B. The Negative Declaration for the Housing Element Update should be and hereby is adopted. C. M 11 -10 should be and hereby is approved, and the 2007 -2014 Housing Element, as attached hereto and incorporated herein as Exhibit "A," should be and hereby is adopted as an amendment to the Gilroy 2002 -2020 General Plan. This resolution shall take effect thirty (30) days after its adoption. PASSED AND ADOPTED this 6th day of February, 2012, by the following vote: AYES: COUNCILMEMBERS: ARELLANO, BRACCO, DILLON, LEROE- MUNOZ, TUCKER, WOODWARD and PINHEIRO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE APPROVED: Albert Pinheiro, Mayor -4- Resolution No. 2012 -08 I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2012 -08 is an original resolution, or true and correct copy of a city resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 6`h day of February, 2012, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 8t` day g"ruary, 2012. Shawna Freels' �C City Clerk of th�City Gilroy (Seal) CITY OF GILROY HOUSING ELEMENT 2007 -2014 Adopted February 6, 2012 • Housing Element Table of Contents Table of Contents: Chapter 1: Introduction .................................................... ............................1 -1 A. Purpose and Content ................................................ ............................1 -1 B. Housing Element Update Process ....................... ................................. 1 -1 C. State Law and Local Planning ........................................... .................. .1 -2 D. Housing Element Organization ................................. ............................1 -4 E. Citizen Participation .................................................. ............................1 -6 Chapter 2: Housing Needs Analysis ................................ ............................2 -1 A. Introduction. .......... ............................................................................... 2 -1 B. Community Profile ...... .......................................................................... 2 -1 1. Population Trends and Characteristics ................ ............................2 -1 2. Employment Trends ............................................ ............................2 -5 3. Household Characteristics ................................... ............................2 -8 4. Housing Inventory and Market Conditions .............. ..... .................. 2 -12 C. Housing Needs ................................................ ................................... 2 -24 1. Households Overpaying for Housing .................. ...........................2 -24 2. Overcrowding .................................... - ... ............... .... .............. .....2 -27 3. 2007 -2014 Growth Needs .................................. ...........................2 -27 4. Special Needs Groups ....................................... . ........................... 2 -28 5. Extremely Low - Income Households.. ........................ ................... 2-41 Chapter 3: Resources and Constraints Analysis ........... ............................3 -1 A. Governmental Constraints and Resources ....... ..................................... 3 -1 1. Land Use Controls ............................................... ............................3 -1 2. Density Bonus Ordinance ................................... ...........................3 -16 3. Residential Care Facilities .................... .... .......................... ...........3 -21 4. Emergency Shelters, Transitional Housing and Single Room Occupancy Units ....................... ...........................3 -22 5. Accessory Dwelling Units ............ ............... ...................... .... ..... .... 3 -26 6. Housing for Persons with Disabilities .................. ...........................3 -27 7. Building Codes and Enforcement ....................... ...........................3 -29 8. Development Fees .. .............. ......... ---- ............... --- ........ .... ... 3 -32 9. Local Processing and Permit Procedures ........... ...........................3 -36 10. Residential Development Ordinance ( RDO) ..... ...........................3 -39 11. Inclusionary Zoning Ordinance ........................... ......................... 3 -49 12. Neighborhood District Policy ............................. ...........................3 -49 13. Environmental and Infrastructure Constraints ... ...........................3 -50 14. Community Development Block Grant Program ............ .............. 3 -58 15. Housing Trust Fund... .................................................................. 3-59 16. State Funds for New Development ................... ...........................3 -59 Toc-1 Element U OF 0< B. Non - Governmental Constraints ................................ ...........................3 -60 1. Vacant and Underutilized Land ........................... ...........................3 -60 2. Land Prices ......................................................... ...........................3 -60 3. Construction Costs ............................................. ...........................3 -61 4. Financing ............................................................ ...........................3 -61 5. Energy Conservation .......................................... ...........................3 -63 Chapter 4: Housing Policy Program ................................ ............................4 -1 A. Housing Strategy Areas ............................................ ............................4 -1 B. Policy Program ............................................... ...................................... 4 -1 C. Quantified Objectives .............................................. ...........................4 -21 Appendices Appendix A: Community Outreach .............................. ............................A -1 Appendix B: Residential Land Resources ................ ............................... B -1 A. Adequate Site Analysis .................................... ............................... B -1 B. Preservation of Assisted Units at Risk of Conversion ................... B -74 Appendix 61: Units Constructed 1999 — 2006 ................ B1 -1 Appendix 132: Units Constructed 2007 — 2008 ........ ............................... 132 -1 Appendix B3: Downtown Gilroy Specific Plan ....... ............................... B3 -1 Appendix C: Review of 1999 -2006 Housing Element Performance....... C -1 Appendix D: Glossary of Terms ................................ ............................... D -1 Toc-2 U`y Of G /!- Housina Element Introduction Lo Q+RYrj M.vC. Chapter 1: Introduction The Housing Element provides for the identification and analysis of existing and projected housing needs and conveys the City's official policies for the preservation, conservation, improvement, and production of housing within the City of Gilroy. A. PURPOSE AND CONTENT The City of Gilroy Housing Element addresses housing opportunities for present and future residents through 2014 and provides the primary policy guidance for local decision - making as it relates to housing. The Housing Element is the only General Plan Element that requires review and certification by the State of California. The Housing Element provides a detailed analysis of the City's demographic, economic and housing characteristics as required by State Law. The Element also provides a comprehensive evaluation of the City's progress in implementing the past policy and action programs related to housing production, preservation and conservation. Based on the community's housing needs, available resources, constraints and opportunities for housing production and preservation and its past performance, the Housing Element identifies goals, objectives and action programs that address the housing needs of present and future residents. B. HOUSING ELEMENT UPDATE PROCESS The California State Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the State's main housing goal. Recognizing the important part that local planning programs play in pursuit of this goal, the Legislature has mandated that all cities and counties prepare a Housing Element as part of their comprehensive General Plan (California Government Code Section 65302 (c)). This Housing Element update covers the planning period from 2007 -2014. State planning law mandates that jurisdictions within the Association of Bay Area Governments (ABAG) region update and adopt their Housing Element by June 30, 2009. It is intended that this Housing Element be reviewed annually and updated and modified not less than every five years in order to remain relevant and useful; and reflect the community's changing housing needs. This document 1a Housing Element Introduction represents the update required and responds to the issues that currently face the City. C. STATE LAW AND LOCAL PLANNING 1. Consistency with State Law The Housing Element is one of the required General Plan elements, as articulated in Sections 65580 to 65589.8 of the California Government Code. State Law requires that each jurisdiction's Housing Element consists of "an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, and scheduled program actions for the preservation, improvement, and development of housing." The Housing Element plans for the provision of housing for all segments of the population. Section 65583 of the Government Code sets forth specific requirements regarding the scope and content of each Housing Element. Table 1 -1 summarizes these requirements and identifies where these requirements are addressed in the Housing Element. Table 1 -1 State Housing Element Requirements Required Housing Element Component Reference A. Housing Needs Assessment Chapter 2 1. Analysis of population trends in Gilroy in relation to countywide trends Chapter 2 2. Analysis of employment trends in Gilroy in relation to regional trends Chapter 2 3. Projections and quantification of Gilroy's existing and projected housing needs for all income groups Chapter 2 4. Analysis and documentation of Gilroy's housing characteristics, including: Chapter 2 a. Overpayment Chapter 2 b. Overcrowding Chapter 2 c. Housing conditions Chapter 2 5. Analysis of land suitable for residential development Appendix B 6. Analysis of governmental constraints upon housing Chapter 3 7. Analysis of nongovernmental constraints upon housing Chapter 3 8. Analysis of special housing needs Chapter 2 9. Analysis of emergency shelters Chapter 3 10. Analysis of opportunities for energy conservation Chapter 3 11. Analysis of assisted housing developments that are Appendix B 1 -2 • Housing Element Introduction Table 1 -1 State Housing Element Requirements Required Housing Element Component Reference eligible to change from low- income housing during the next 10 years B. Goals and Policies 12. Identification of Gilroy's goals, quantified objectives and Chapter 4 policies relative to the maintenance, improvement and development of housing C. Implementation Program 13. Identification of adequate sites which will be made Appendix B available through appropriate action to accommodate a variety of housing es for all income levels 14. Identification of programs to assist in the development Chapter 4 of adequate housing to met the needs of low and moderate - income households 15. Identification of opportunities to remove governmental Chapter 4 constraints to the maintenance, improvement, and development of housing 16. Identification of opportunities to remove constraints Chapter 4 and /or provide reasonable accommodations for housing for persons with disabilities 17. Identification of opportunities to conserve and improve Chapter 4 the condition of the existing affordable housing stock 18. Identification of programs to promote housing Chapter 4 opportunities for all persons 19. Identification of programs to address the potential Chapter 4 conversion of assisted housing development to market - rate housing 20. Identification of programs to identify zones where Chapter 4 emergency shelters are permitted 2. General Plan Consistency The California Government Code requires internal consistency among the various elements of a General Plan. Section 65300.5 of the Government Code states that the General Plan's various elements shall provide an integrated and internally consistent and compatible statement of policy. City staff has reviewed the other elements of the General Plan and has determined that this Housing Element provides consistency with the other elements of the General Plan. The City will maintain this consistency as future General Plan amendments are processed by evaluating proposed amendments for consistency with all elements of the General Plan. 1 -3 Housing Element Introduction 3. Relationship to Other Plans and Programs The Housing Element identifies goals, objectives, policies and programs for the next five years that directly address the housing needs of the City of Gilroy. There are numerous City plans and programs that work to implement the goals and policies of the Housing Element. These include the City's Municipal Code and Specific Plans. Every five years, the City prepares a Consolidated Plan that identifies the City's overall housing and community development needs and market conditions, establishes priorities and outlines a strategy to address these priorities. Annual Action Plans are developed each year to supplement the Consolidated Plan and reports on the prior year's programs and projects through the Consolidated Annual Performance and Evaluation Report (CAPER). The Consolidated Plan and Annual Action Plans address many of the goals, policies and implementing programs of the General Plan Housing Element. D. HOUSING ELEMENT ORGANIZATION California Government Code Section 65583 requires a jurisdiction's Housing Element to include the following components: • A review of the previous Element's goals, policies, objectives and programs to ascertain the effectiveness of each of these components, as well as the overall effectiveness of the Housing Element; An assessment of housing need and an inventory of resources and constraints related to meeting these needs; A statement of goals, policies and quantified objectives related to the maintenance, preservation, improvement and development of housing; and • A policy program that provides a schedule of actions that the City is undertaking or intends to undertake implementing the policies set forth in the Housing Element. The City of Gilroy Housing Element is organized into the following sections: Introduction- Explains the purpose, process and content of the Housing Element. • Housing Needs Analysis- Describes the demographic, economic and housing characteristics of Gilroy as well as the current and projected housing needs. 1-0 Housing Element Introduction • Resources and Constraints Analysis- Analyzes the actual and potential governmental and non - governmental constraints to the maintenance, preservation, conservation and development of housing. • Housing Policy Program- Details specific policies and programs the City of Gilroy will carry out over the planning period to address the City's housing goals. Given the detail and lengthy analysis in developing the Housing Element, supporting background material is included in the following appendices: • Appendix A: Community Outreach • Appendix B: Residential Land Resources Appendix C: Review of 1998 -2005 Housing Element Past Performance 1 -5 Ciy OF G Housing Element Introduction C C`q hb� TtIfJ U.wY -CY E. CITIZEN PARTICIPATION Community Workshops The following community workshops were advertised and open to the general public; and stakeholder groups such as affordable housing developers, community groups and housing advocacy groups were invited to participate: • Workshop #1: June 12, 2008 • Workshop #2: June 19, 2008 • Workshop #3: June 18, 2009 During the first community workshop, participants were provided with an overview of the Housing Element Update process and content. Participants identified and discussed challenges, opportunities and resources related to housing in Gilroy. During the second community workshop, participants were given a brief overview of the Housing Element content, a summary of key findings and input gathered from the previous outreach activities. Participants then identified additional challenges and opportunities that were not mentioned in the previous community workshop. The third community workshop targeted outreach to owners of properties in parcels that were identified as possible areas to provide adequate sites. The content of the meeting emphasized a review of the Housing Element key findings and recent legislation on adequate sites, reasonable accommodation procedures, emergency shelters, density bonus, and housing for Extremely Low - Income households. Comments received through the outreach activities are provided in Appendix A of this Housing Element. 2. Housing Advisory Committee (HAC) A Housing Advisory Committee representing nonprofit and for profit housing developers, renters, rental property owners, homeowners, and affordable housing advocates was formed in 2006 to provide recommendations to staff and the City Council on the Housing Element update and on affordable housing programs and policies. This committee holds monthly meetings to discuss and 1-6 Housing Elemen { t Introduction make recommendations to the City Council on housing - related issues. Two study sessions were held on May 14, 2008 and September 10, 2008 to discuss the current Housing Element update. 1 -7 Element 1-8 Page intentionally left blank. fis Housing Needs Analysis Chapter 2: Housing Needs Analysis A. INTRODUCTION When preparing the Housing Element, each jurisdiction must evaluate both existing and future housing needs for all segments of the population. This section analyzes demographic, economic and housing characteristics that influence the demand for and availability of housing. The analyses form a foundation for policies and actions that seek to address identified housing needs. Housing needs are identified according to income, tenure and special needs groups. Primary data sources used in these analyses include the 1990 and 2000 U.S. Census, the California Department of Finance (DOF) and the Association of Bay Area Governments (ABAG). These data sources are the most reliable for assessing existing conditions, provide consistent comparison with historical data and serve as the basis for forecasts. B. COMMUNITY PROFILE 1. Population Trends and Characteristics Housing needs are generally influenced by population and employment trends. This section provides a summary of the changes to the population size and age and racial /ethnic composition of the city. a. Historical, Existing and Forecast Growth The City of Gilroy is one of 15 cities within the County of Santa Clara. The California Department of Finance estimates Santa Clara County's population was 1,837,075 in 2008. 2 -1 Housing Element Table 2 -1 lists adjacent counties and their respective populations. Table 2 -1 Paninnal Pnnnlatinn Trends] 1990 -2008 County 1990 2000 2008' Santa Clara County 1,497,577 1,682,585 1,837,075 Alameda County 1,279,182 1,443,741 1,543,000 San Mateo County 649,623 707,161 739,469 Stanislaus County 370,522 446,997 525,903 Santa Cruz County 229,734 255,602 266,519 Merced County 178,403 210,554 255,250 San Benito County 36,697 53,234 57,784 Notes: ' California Department of Finance January 2008 Source: U.S. Census 2000 SF 1 P1, 1990 STF 1 P001, and the California Department of Finance, E4 According to the U.S. Census and the State Department of Finance, Gilroy experienced a 31.7 percent population increase between 1990 and 2000 and a 23.4 percent increase between 2000 and 2008. The City of Gilroy's percent population increase was greater than Santa Clara County's population increase. Table 2 -2 compares percent increase of the City and County population from 1990 through 2008. Table 2 -2 Pnnnlatinn t;rnwth, 1990 -2008 Note: ' California Department of Finance January 2008 Source: U.S. Census 1990 STF3 P001, U.S. Census 2000 SF3 P1 and California Department of Finance E4 2 -2 1990 -2000 2000 -2008 Jurisdiction 1990 2000 2008' Growth Growth Number % Number % Gilroy 31,487 41,464 51,173 9,977 31.7% 9,709 23.4 Santa Clara 1,497,577 1,682,585 1,837,075 185,008 12.4% 154,490 9.2% Count Note: ' California Department of Finance January 2008 Source: U.S. Census 1990 STF3 P001, U.S. Census 2000 SF3 P1 and California Department of Finance E4 2 -2 Housing Needs Analysis Age Composition Between 1990 and 2000, Gilroy experienced growth in the percentages of the "school age" (5 -17 years), "prime working" (25 -54 years) and "retirement" (55 -64 years) populations, while the percentages of "preschool" (0 -4 years), "young adult" (18 -24 years) and "senior citizen" (65+ years) populations declined. The "prime working" (25 -54 years) population remains the largest age group in the City. Table 2 -3 summarizes the population's age distribution in 1990 and 2000. Table 2 -3 Aae Distribution: 1990 -2000 Age Group 1990 2000 Number % of Population' Number % of Population' Preschool 2,958 9.4% 3,813 9.2% 0 -4 ears School 7,112 22.6% 9,750 23.4% 5 -17 ears Young Adult 3,510 11.1% 3,919 9.4% 18 -24 ears Prime 13,627 43.3% 18,737 45.0% Working 25 -54 ears Retirement 1,886 6.0% 2,559 6.2% 55 -64 ears Senior 2,394 7.6% 2,809 6.8% Citizen (65+ ears Total 31,487 100% 41,587 100% may not add up to 100% due to rounding. Source: U.S. Census 1990 STF3, P013 and U.S. Census 2000 SF3, P8 2 -3 Element Housing C. Race and Ethnicity Gilroy residents are predominantly comprised of three racial /ethnic groups: White, Hispanic and "Some other race alone'. As of 2000, 38 percent of Gilroy residents were White, 23 percent were of Hispanic origin, and 30 percent classified themselves as "Some other race alone." Between 1990 and 2000, the White population percentage declined by 9.7 percent, while persons of "Some other race alone" increased by 1.7 percent. The Hispanic population increased by 1.2 percent between 1990 and 2000. Table 2-4 summarizes the racial and ethnic composition of the population in 1990 and 2000. Table 2 -4 Racial and Ethnic Composition: 1990 -2000 Racial /Ethnic 1990 2000 Group Number % Number White 15,029 47.7% 20,318 40.7% Black 315 1.0% 680 1.4% American 115 0.4% 230 0.5% Indian & Alaska Native Asian or Pacific 1,060 2,084 4.2% Islander Hispanic 14,885 j473% 25,531 51.1% Some other 83 90 0.2% race alone Two or more - -- - -- 1,015 2.0% races' Total 31,487 100% 49,948 100% Notes: 'The "Population of two or more races" category has been added in 2000 U.S. Census. Data may not be Source: U.S. Census 1990 STF 1, P010 and U.S. Census 2000 SF1, P8 24 Housing Needs Analysis 2. Employment Trends Housing needs are influenced by employment trends. Significant employment opportunities within the City can lead to growth in demand for housing in proximity to jobs. The quality and /or pay of available employment can determine the need for various housing types and prices. As shown in Table 2 -5, in 2000, 17.2 percent of Gilroy residents were employed in manufacturing, 15.7 percent were employed in retail trade; 13.9 percent were employed in educational, health and social services; and 9.6 percent were employed in professional, scientific, management, administrative, and waste management services. Table 2 -5 Employment by Industry' 2000 Census 2 -5 Gilro Santa Clara Count Industry Employees % Employees % Agriculture, forestry, fishing 681 3.5% 0.5% and hunting, and mining Construction 1,718 8.9% 5% Manufacturing 3,311 17.2% 27.5% Wholesale trade 858 4.5% Retail trade 3,024 15.7% 83,369 9.9% Transportation and 686 3.6% 23,546 2.8% warehousing, and utilities Information 517 2.7% 4.6% Finance, insurance, real 945 4.9% 4.6% estate, and rental and leasin r39,098 Professional, scientific, 1,852 9.6% 15.5% management, administrative, and waste management services Educational, health and 2,673 13.9% 123,890 14.7% social services Arts, entertainment, 1,202 6.3% 49,186 5.8% recreation, accommodation and food services Other services (except 977 5.1% 29,987 3.6% public administration Public Administration 779 4.1% 21,211 2.5% Total 19,223 1 100% 843,912 1 100% 2 -5 Notes: ' Data indicates the occupations held by Gilroy /Santa Clara County residents, the location of the related workplace is not indicated by this data Source: U.S. Census 2000 SF3, P49 As shown in Table 2 -6, Gilroy Unified School District is the largest single employer in Gilroy with over 900 employees. Other large employers in Gilroy include Gilroy Gardens with 700 employees and Gilroy Foods with 600 employees. Table 2 -6 City of Gilroy Maior Emnlovers Company Number of Employees Gilroy Unified School District 920 Gilroy Gardens 700 Gilroy Foods 600 Christopher Ranch 530 Saint Louise Hos ital 440 Gavilan College 340 City of Gilroy 250 Kaiser Permanente 200 Goldsmith Seeds 170 Inland Paperboard 170 Source: City of Gilroy Chamber of Commerce, accessed June 2008 As shown in Table 2 -7, Gilroy's labor force decreased from 21,900 in 2000 to 20,100 in 2007. According to the California Employment Development Department, the unemployment rate in Gilroy for 2007 was 7.3 percent. The unemployment rate for Gilroy was higher than the County's unemployment rate of 4.7 percent in 2007. 2 -6 Housing Needs Analysis Table 2 -7 City of Gilroy Labor Force Trends: 2000 -2007 Year Labor Force Employment Unemployment Unemployment Rate 2000 21,900 20,800 1,100 4.8% 2001 22,100 20,400 1,700 7.8% 2002 21,400 18,700 2,700 12.6% 2003 20,400 17,800 2,600 12.6% 2004 19,600 17,700 1,900 9.8% 2005 19,400 17,800 1,600 8.2% 2006 19,600 18,200 1,400 6.9% 2007 20,100 18,600 1,5001 7.3% Source: State of California Employment Development Department (EDD), 2007 2-7 Housing Element 3. Household Characteristics This section describes Gilroy's household characteristics. The U.S. Census Bureau defines a household as all persons living in a single housing unit, whether or not they are related. One person living alone is considered a household, as is a group of unrelated people living in a single housing unit. The U.S. Census Bureau defines a family as related persons living within a single housing unit. a. Household Formation and Composition In 2000, the U.S. Census Bureau reported 11,894 households in Gilroy, a 25.7 percent increase from 1990. In comparison, total households in Santa Clara County increased by 8.4 percent between 1990 and 2000 and total households in California increased by 10.6 percent. The DOF provides data on occupied housing units, which correspond to total households. As shown in Table 2 -8, the DOF shows that the number of households in Gilroy continues to grow at a faster pace than the County and the State. DOF reports 14,509 occupied housing units in 2008, a 22 percent increase since 2000. Table 2 -8 Tntal Hnusahnlds[ 1990 -2008 U.S. Census 1990 STF3, P005, U.S. 5,2008 2-8 2-E- Percent Percent Increase Increase Area 1990 2000 2008' 1990 -2000 I 2000 -2008 Gilroy 9,464 11,894 14,509 25.7% 22.0% Santa Clara 522,040 565,863 608,652 8.4% 7.6% Count California 10,399,700 11,502,870 12,653,045 10.6% 10.0% U.S. Census 1990 STF3, P005, U.S. 5,2008 2-8 2-E- Housing Needs Analysis The average number of persons per household in Gilroy was 3.5 in 2000. The DOF estimates that in 2008 the average number of persons per household in Gilroy remained at 3.5. As shown in Table 2 -9, the average number of persons per household in Gilroy continues to be higher than the County average. Table 2 -9 Average Persons Der Household: 2000 -2008 Santa Clara County 1 3.0 1 3.0 Source: 'U.S. Census 2000 SF3, 2Department of Finance Table 2- E -5, 2008 As shown in Table 2 -10, households of three to four persons made up the largest segments of both owner- and renter - occupied households in 2000. One - person households comprised the smallest segment of both owner- and renter - occupied households. Table 2 -10 41r iiaahnlri Sipe nktrihutiorr 2000 Household Size Total Households' % of Total Renter Households I % of TotalZ Owner Households % of Tota12 1 Person 1,715 14.4% 764 6.4% 951 8.0% 2 Persons 2,847 Z4 .9% 737 6.2% 2,110 17.7% 3 — 4 Persons 4,458 37.5% 1,604 13.5% 2,854 24.0% 5+ Persons 2,874 23.2% 1,506 127% 1,368 11.5% Total 11,894 1 100% 4,611 38.8% 7,2831 61.2% Notes: ' Represents Total Households 2 Percent of Total Households Source: U.S. Census 2000 SF3 H17 z -V Element eds Analysis b. Household Income As indicated in Table 2 -11, the median household income for the City of Gilroy in 2000 was $62,213, approximately $11,000 less than the median income for the County. Within the City, the median income for owner - occupied households ($77,901) was higher than the median income for renter - occupied households ($41,517). Table 2 -11 2000 Median Household Income by Tenure Jurisdiction 2000 Median Income City of Gilroy Owner-Occupied Households $62,613 $77,901 Renter-Occupied Households $41,517 Santa Clara County $74,003 Source: U.S. Census 2000 SF3 HCT 12 The Federal Department of Housing and Urban Development (HUD) calculates an annual median family income (MFI) for the purpose of determining program eligibility. The State of California uses five income categories to determine housing affordability based on the MR. • Extremely Low - Income: 30% or less of the median family income; • Very Low- Income: 31% to 50% of the median family income; • Low- Income: 51% to 80% of the median family income; • Moderate - Income: 81% to 120% of the median family income; and • Above Moderate - Income: Greater than 120% of the median family income. Table 2 -12 shows the State - defined income ranges for each income category based on the area median income of $105,500 for Santa Clara County. 2 -10 Housing Needs Analysis Table 2 -12 Income Range by Affordability Category based on State Area Median Income Affordability Category Percent of County Median' Income Range ($)` Extremely Low- Income <_30% :_$31,650 Very Low- Income 31% -50% $31,651 - $52,750 Low - Income 51 % -80% $52,751- $84,400 Moderate- Income 81 %- 120% $84,401 - $126,600 Above Moderate- Income >120% >$126,600 Notes: ' Based on HUD income categories. 2 Based on 2008 State AMI of $105,500 for Santa Clara County The HUD MFI for Santa Clara County was $80,981 Census information shown in Table 2 -13, 47 households and 81 percent of renter - occupied hoi the Extremely Low -, Very Low- and Low - Income percent of both types of households were withi category. in 2000. Based on 2000 U.S. percent of owner - occupied Iseholds in Gilroy were within categories. Approximately 15 i the Extremely Low- Income Table 2 -13 Household Income by Tenure: 1999 Notes: ' Percentages may not equal 100 % due to rounding Source: U.S. Census 2000 SF3 HCT11 2 -11 Total Occupied Owner - Occupied Renter- occupied Housin Units Number %' Number W Number %' Less than $5,000 34 0.5% 107 2.3% 141 1.2% $5,000 to $9,999 126 1.7% 289 6.30% 415 3.5% $10,000 to $14,999 155 2.1% 276 6.0% 431 3.6% $15,000 to $19,999 84 1.2% 321 7.0% 405 3.4% $20,000 to $24,999 99 1.3% 334 7.2% 433 3.6% $25,000 to $34,999 456 6.3% 585 12.7% 1,041 8.8% $35,000 to $49,999 923 12.7% 801 17.4% 1,724 14.5% $50,000 to $74,999 1,562 21.4% 1,023 22.2% 2,585 21.7% $75,000 to $99,999 1,533 21.0% 470 10.2% 2,003 16.8% $100,000 to 1,637 22.5% 286 6.2% 1,923 16.2% $149,000 $150,000 or more 674 9.3% 119 2.5% 793 6.7% Total 7,283 100% 4,611 100% 1 1,894 100% Notes: ' Percentages may not equal 100 % due to rounding Source: U.S. Census 2000 SF3 HCT11 2 -11 Housing Element 4. Housing Inventory and Market Conditions This section describes the housing stock and market conditions in the City of Gilroy. By analyzing past and current housing trends, future housing needs can be projected. a. Housing Stock Profile According to the DOF, currently 2.4 percent of Santa Clara County's housing units are within Gilroy's boundaries. In 1990, Gilroy had 9,767 housing units. By 2000, the City experienced a 24 percent increase in housing units. In 2008, the DOF reported 14,853 housing units within the City. 2 -12 Housing Needs Analysis Table 2 -14 summarizes the number of housing units by area from 1990 to 2008. Table 2 -14 Number of Housing Units Gilrov and Santa Clara County (1990 -2008) Year Gilroy Santa Clara Count Gilroy as % of total Santa Clara County units 1990 9,767 540,240 1.8% 2000 12,152 579,329 2.1% 2008 14,853 622,779 2.4% Notes: ' Department of Finance Source: U.S. Census 1990 6 T1-3 H001, U.S. Census 2000 SF3 H1 and Department of Finance Table 2 E -5, 2008 Unit Size In 2000, 38.4 percent of renter - occupied units were 2- bedroom units. The second largest group of renter - occupied units was studio and 1- bedroom units (35.7 percent). Forty percent of owner- occupied units had 3 bedrooms and 36 percent had 4 bedrooms. Table 2 -15 summarizes the distribution of unit size by tenure in 2000. Table 2 -15 I Init Si7P_ by Tenure 2000 Notes: ' Percentages may not equal 100 % due to rounding — Source: U.S. Census 2000 SF3 H42 2 -13 owner-Occupied Renter - occupied Total Occupied Housing Units Units %' Units %' Units %' Studio /1 bedroom 339 4.7% 1,645 35.7 1,984 16.7% 2 bedrooms 12.0 1,770 38.4 2,641 22.2% 3 bedrooms E2,978 40.9 926 20.1 3,904 32.80/6 4 bedrooms 2,620 36.0 218 4.7% 2,838 23.9% 5 or more bedrooms 475 6.5% 52 1.1% 521 4.4% Total 7,283 1 100% 4,611 100% 11,894 100% Notes: ' Percentages may not equal 100 % due to rounding — Source: U.S. Census 2000 SF3 H42 2 -13 ii. Unit Type The 2000 U.S. Census shows multi - family housing and single - family detached units were the largest housing types in Gilroy with 3,225 units and 7,768 units respectively. From 1990 to 2000, the number of units for all housing types increased, except for those in the "other" category. Table 2 -16 summarizes Gilroy's housing inventory by unit type from 1990 to 2008. Table 2 -16 Housing Inventory by Unit Tvpe: 1990 -2008 Note: ' California Department of Finance 2 Discrepancy in 2000 SF3 total housing units data due to sampling error. Source: U.S. Census 1990 STF3 H020, U.S. Census 2000 SF3 H30 and California Department of Finance Table 2 E -5, 2008 2 -14 % of % of % of Housing Type 1990 Total 2000 Total 2008' Total Single family, 5,992 61.3% 7,768 63.8% 9,991 67.37/6 detached Single family, 645 6.6% 742 6.1% 925 6.2% attached Multi-family 2,744 28.1% 3,225 26.5% 3,506 23.6% Mobile homes 326 3.39/16 432 3.6% 431 2.9% Other (Boats, 60 0.6% 0 0% 0 0% RV, etc. Total Housing 9,767 100% 12,167 100% 14,853 100% Units Note: ' California Department of Finance 2 Discrepancy in 2000 SF3 total housing units data due to sampling error. Source: U.S. Census 1990 STF3 H020, U.S. Census 2000 SF3 H30 and California Department of Finance Table 2 E -5, 2008 2 -14 Housing Needs Analysis As shown in Table 2 -17, the majority of owner - occupied housing units were single - family detached, comprising 88 percent of all owner - occupied units. Renter - occupied units were predominately multi - family (5 or more units in the complex) with 40.4 percent of total renter - occupied units. Table 2 -17 Unit Tvne by Tenure: 2000 Notes: 1 Percentages may not equal 100% due to rounding. Source: U.S. Census 2000 SF3 H32 b. Tenure Approximately 61 percent of Gilroy's housing units were owner - occupied and 39 percent of the units were renter - occupied in 2000. As shown in Table 2 -18 the percentage of owner - occupied units in Gilroy was comparatively higher than Santa Clara County and California. Table 2 -18 Occupied Units by Tenure: 2000 Owner- Occupied Renter- Occupied Total Occupied Owner-Occupied Renter- Occupied Housing Units %1 Units %' Units %' Units %t Single family, 6,410 88.0% 1,194 25.9% 7,604 64.0% detached 565,863 100% California 6,546,237 56.9% 4,956,633 Single family, 381 5.2% 342 7.4% 723 6.1% attached Multi- family (2 -4 86 1.2% 1,147 24.9% 1,233 10.4% units Multi- family (5+ 123 1.7% 1,863 40.4% 1,986 16.7% units Mobile Homes 353 4.8% 65 1.4% 418 3.5% Other (Boats, RV, 0 0% 0 0% 0 0% etc. Total 7_,2_8_3_F_100%J 4,611 1 100%1 11,894 100% Notes: 1 Percentages may not equal 100% due to rounding. Source: U.S. Census 2000 SF3 H32 b. Tenure Approximately 61 percent of Gilroy's housing units were owner - occupied and 39 percent of the units were renter - occupied in 2000. As shown in Table 2 -18 the percentage of owner - occupied units in Gilroy was comparatively higher than Santa Clara County and California. Table 2 -18 Occupied Units by Tenure: 2000 Notes: Percent of Total in each geography Source: U.S. Census 2000 SF3 H7 2 -15 Owner- Occupied Renter- Occupied Total Number % Number %1 Number % Gilroy 7,283 61.2% 4,611 38.8% 11,894 100% Santa Clara County 338,636 59.8% 227,227 40.2% 565,863 100% California 6,546,237 56.9% 4,956,633 43.1% 11,502,870 100% Notes: Percent of Total in each geography Source: U.S. Census 2000 SF3 H7 2 -15 Housing Element Housing Needs Analysis Vacancy Rates Vacancy rates are indicators of housing supply and demand. Low vacancy rates influence greater upward price pressures. Higher vacancy rates indicate downward price pressure. A four to five percent vacancy rate is considered "healthy." In 2000, the vacancy rate in Gilroy was 2.2 percent. The vacancy rate reported by DOF in 2008 increased to 2.3 percent. Table 2 -19 summarizes the number of occupied and vacant units in Gilroy from 2000 to 2008. Table 2 -19 0 cupancy Status: 2000- 2008 Occupancy Status 2000 Percent 2008 Percent Occupied Housing Units 11,894 97.8% 14,509 97.7% Vacant Housing Units 273 2.2% 344 2.3% Total Housing Units 12,1672 100% 14,853 100% Notes: California Department of Finance. 2 Discrepancy in 2000 SF3 total housing units data due to sampling error. Source: U.S. Census 2000 SF3, H6 and California Department of Finance Table 2 E -5, 2008 d. Age of Housing Stock The age of a housing unit is often an indicator of housing conditions. In general, housing that is 30 years or older may exhibit need for repairs based on the useful life of materials. Housing over 50 years old is considered aged and is more likely to exhibit a need for major repairs. The U.S. Census provides data on age of housing stock by tenure. Approximately 50 percent of owner - occupied units in the City were built before 1980 and 14.6 percent were built before 1960. Of the renter - occupied units, 67.6 percent were built before 1980 and 22.1 percent were built before 1960. 2 -16 Housing Element Housing Needs Analysis Table 2 -20 provides a summary of age of housing stock by tenure. Table 2 -20 Tenure by Aqe of Housinq Stock (Occupied Units) Notes: Percentages may not equal 100% due to rounding Source: U.S. Census 2000 SF3 H36 e. Housing Conditions Housing is considered substandard when conditions are found to be below the minimum standard of living defined in the California Health and Safety Code. Households living in substandard conditions are considered to be in need of housing assistance, even if they are not seeking alternative housing arrangements, due to threat to health and safety. In addition to structural deficiencies and standards, the lack of infrastructure and utilities often serves as an indicator for substandard conditions. According to the 2000 U.S. Census, 71 occupied units in Gilroy lacked complete plumbing facilities. Twenty -seven of the units were owner- occupied and 44 of the units were renter - occupied. Seventy -one occupied units also lacked complete kitchen facilities. Of those lacking complete kitchen facilities, all were renter - occupied units. It should be noted that there might be some overlap in the number of substandard housing units, as some units may lack both complete plumbing and kitchen facilities. 2 -n Owner - Occupied Renter- Occu led Total Occupied Housing Units Year Built Units %' Units %' Units %' 1999 - March 2000 201 2.8% 17 0.4% 218 1.8% 1990 -1998 1,607 22.1 616 13.5 2,223 18.7% 1980 -1989 1,848 25.4 862 18.7 2,710 22.8% 1970 -1979 1,788 24.6 1,407 30.5 % 3,195 26.9% 1960-1969 782 10.7 691 15.0 1,473 12.46/ 1950-1959 543 7.5% 448 9.7% 991 8.3% 1940-1949 202 2.8% 202 4.4% 404 3.4% 1939 or earlier 312 4.3% 8.0% 680 5.7% Total 7,283 100% 4,611 1 100% 1 11,894 100% Notes: Percentages may not equal 100% due to rounding Source: U.S. Census 2000 SF3 H36 e. Housing Conditions Housing is considered substandard when conditions are found to be below the minimum standard of living defined in the California Health and Safety Code. Households living in substandard conditions are considered to be in need of housing assistance, even if they are not seeking alternative housing arrangements, due to threat to health and safety. In addition to structural deficiencies and standards, the lack of infrastructure and utilities often serves as an indicator for substandard conditions. According to the 2000 U.S. Census, 71 occupied units in Gilroy lacked complete plumbing facilities. Twenty -seven of the units were owner- occupied and 44 of the units were renter - occupied. Seventy -one occupied units also lacked complete kitchen facilities. Of those lacking complete kitchen facilities, all were renter - occupied units. It should be noted that there might be some overlap in the number of substandard housing units, as some units may lack both complete plumbing and kitchen facilities. 2 -n Housing Element Housing Needs Table 2 -21 summarizes the number of units lacking plumbing or complete kitchen facilities. Table 2 -21 Units Lackina Plumbina or Complete Kitchen Facilities: 2000 Units Owner Occupied Renter Occupied Total Lacking complete 27 44 71 plumbing facilities Lacking complete 0 71 71 kitchen facilities Source: U.S. Census 2000 SF3 H48, H51 Code Enforcement activities in the City of Gilroy are conducted by two Code Enforcement officers, one who was hired full -time in 2008. The officers respond to complaints about substandard housing conditions reported by citizens of Gilroy. A large number of these complaints come from the city's Neighborhood Revitalization Strategy Area (NRSA) which is the area bordered by Highway 101 on the east, the intersection of Monterey Road and Highway 101 on the south, Las Animas Rd on the north, and on the west side partially by several streets including Monterey Road, Rosanna Street and Eigleberry Street. The NRSA has neighborhood associations that work with city staff, including the police department, to monitor the housing code and blight enforcement. The city annually allocates $25,000 of CDBG funds for Code Enforcement Officers to respond to complaints regarding housing code violations. Gilroy's Housing Trust Fund provides $20,000 for urgent clean -up of serious code violations. The City annually allocates $150,000 of the Housing Trust Fund for low interest rehabilitation loans available to owners of eligible multi - family properties. In addition, the city has dedicated up to $190,000 of CDBG and the Housing Trust Fund to repair and add sidewalks with ADA accessible ramps in the Neighborhood Revitalization Strategy Area. In addition, CDBG funds of $31,000 are utilized for a part-time contract City employee to work in the NRSA to assist the neighborhood associations in organizing activities, including cleanups, newsletters, leadership training, Neighborhood Watch meetings, and youth events. Neighborhood complaints received by Code Enforcement regarding sub - standard housing in July 2008 include: • Garage converted to habitable space; Substandard housing conditions at a residence; Garage is converted and shacks in the rear yard. People are cooking with 2 -1a Housing Needs Analysis propane burners; • Garage structure in the back is being inhabited and the site is a mess; • Garage converted into living unit without permits and inspections; • A storage building in back yard is being used as habitable space; • Illegal unit created in the back of commercial space with substandard living conditions; • People are living in a non - permitted accessory building; • Storage building being converted into a second unit without permits; • House being remodeled without permits; • House is divided into 2 structures, illegal cooking facilities and bathroom; and • House has no electricity and no garage service. Many of the low- income multi - family developments in the City are owned by South County Housing, a non - profit developer located in Gilroy. This organization has a policy of providing high quality developments and takes pride in the maintenance and upkeep of their affordable properties. They have purchased older apartment complexes within the city in the past and apply to the City, State and Federal government for funds to rehabilitate the complexes to current codes and rent them to low- and very low- income households. The City of Gilroy can make loans from the Housing Trust Fund for rehabilitation purposes to multi - family developments or individuals who own properties with two or more units that need funds for maintenance, repair and upgrading. Clients must sign a rent restriction agreement assuring they will provide affordable rents for a specific number of years to their tenants. f. Housing Costs and Rents This section evaluates housing cost trends in Gilroy. i. Affordability Gap Analysis The costs of home ownership and renting can be compared to a household's ability to pay for housing. Housing affordability is defined as paying no more than 2 -19 30 percent of the household income on housing expenses. Table 2 -22 summarizes affordable monthly rents and total home purchase prices by income category based on the 2008 State AMI of $105,500 for Santa Clara County. Affordable home purchase price assumes a 6.0 percent interest rate with a 30 -year fully amortized mortgage. Table 2 -22 2008 Affordable Rent and Purchase Price By Income Category Notes: ' Percent of Area Median Income 2 Based on 30% of gross income. 3 Assumes 6.0% interest rate, 30 year fully amortized mortgage. Estimate includes principal and interest. Additional housing costs may include taxes, insurance, HOA dues and CFD's (Common Facilities District) as applicable. 4 AMI= 2008 State Area Median Income $105,500 ii. Existing and New Home Price Trends In 2000, the median value for all owner- occupied units in Gilroy was $337,200. As shown in Table 2 -23, approximately 5 percent of the owner - occupied housing units were valued below $100,000. Six percent were valued between $100,000 and $199,999. Twenty -four percent were valued between $200,000 and $299,999, and 65 percent were valued at $300,000 or more. z -2o Maximum Monthly Rent Maximum Total Income Category % of AMI' Pa ment2 Purchase Price Extremely Low- <_30% AM 14 <_$791 :_$132,000 income Very Low- income 30 %- 50% AM 14 $791 - $1,319 $132,000 - $220,000 Low - income 51 % -80 %AMI4 $1,320 - $2,110 $220,001 - $352,000 Moderate - income 81% -120% $2,111- $3,165 $352,001 - $528,000 AMI° Above Moderate- >120 %AMI >$3,165 >$528,000 income Notes: ' Percent of Area Median Income 2 Based on 30% of gross income. 3 Assumes 6.0% interest rate, 30 year fully amortized mortgage. Estimate includes principal and interest. Additional housing costs may include taxes, insurance, HOA dues and CFD's (Common Facilities District) as applicable. 4 AMI= 2008 State Area Median Income $105,500 ii. Existing and New Home Price Trends In 2000, the median value for all owner- occupied units in Gilroy was $337,200. As shown in Table 2 -23, approximately 5 percent of the owner - occupied housing units were valued below $100,000. Six percent were valued between $100,000 and $199,999. Twenty -four percent were valued between $200,000 and $299,999, and 65 percent were valued at $300,000 or more. z -2o Housing Needs Analysis Table 2 -23 Value of Owner - Occupied Housing Units: 2000 Price Range Number of Units Percent of Total $49,999 or less 163 2.1% $50,000 to $99,999 203 2.7% $100,000 to $149,999 107 1.5% $150,000 to $199,999 330 4.4% $200,000 to $249,999 671 9.2% $250,000 to $299,999 1,098 15.1% $300,000 to $399,999 2,877 40.0% $400,000 to $499,999 1,135 15.5% $500,000 or more 699 9.5% Total 7,283 100% Source: U.S. Census 2000 SF3, H84 2 -21 Element Housing As shown in Table 2 -24, the median sale price for new and resale homes in Gilroy was $377,500 as of October 2009. This represents a 0.7 percent decrease from the median sales price in October 2008. Table 2 -24 Median Sale Price Jurisdiction October 2008 October 2009 % Change Gilroy $380,000 $377,500 -0.7% Campbell $668,000 $572,500 -14.3% Santa Clara $525,000 $536,000 2.1% San Jose $445,000 $430,000 -3.4% Morgan Hill $559,500 $475,500 -15.0% Santa Clara County $489,000 $495,000 1.2% Source: CaliforniaAssociation of Realtors, accessed December 16, 2009. iii. Ownership Affordability The median sales price for new and resale- housing units in Gilroy in 2008 exceeds the affordability range for all Extremely Low - -, Very low- and Low - income categories. A household earning an annual income equal to the 2008 AMI of $105,500 for Santa Clara County could qualify for up to a $528,000 mortgage, assuming 100 percent financing of a 30 -year fixed -rate loan at 6 percent. iv. Rental Prices According to the RealFacts Second Quarter Report for 2009, the average rental for a 1- bedroom, 1 bath unit was $1,231; a 2 bedroom, 1 bath unit was $1,327; a 2 bedroom, 2 -bath unit was $1,518; and a 3 bedroom, 2 -bath unit was $1,583. 2 -22 Housing Needs Analysis Table 2 -25 summarizes the average monthly rent by unit size in 2009. Table 2 -25 Average Monthly Rent by Unit Size: 2009 Unit Size Average Monthly Rent 2009 Studio N /AZ 1 bedroom, 1 bath $1,231 2 bedrooms, 1 bath $1,327 2 bedrooms, 2 baths $1,518 3 bedrooms, 2 baths $1,583 All $1,409 Notes: 1RealFacts, Second Quarter 2009 2Rental rate for studio units not available in report Source: RealFacts, Annual Trend, obtained 01/11/2010 According to the 2000 U.S. Census, 37.6 percent of renter households in Gilroy spent 30 percent or more of their household income on rent in 1999. And 15.8 percent spent 50 percent or more on rent. Table 2 -26 shows the number of households by percentage of household income spent on rent in 1999. Table 2 -26 Gross Rent as a Percentage of Household Income in 1999 Percent of Household Income Number of Households Percent of Households Less than 10 percent 324 7.0% 10 to 14 percent 464 10.1% 15 to 19 percent 763 16.5% 20 to 24 percent 627 13.6% 25 to 29 percent 553 12.0% 30 to 34 percent 434 9.4% 35 to 39 percent 251 5.4% 40 to 49 percent 321 7.0% 50 percent or more 727 15.8% Not computed 147 3.2% Total 4,611 100.0% Source: U.S. Census 2000 SF3, H69 2 -23 Element Housing V. Rental Affordability In 2008, Extremely Low- and Very Low- Income groups would not be able to afford a market -rate apartment in Gilroy. The average rents for one - bedroom to three - bedroom units would be affordable to the Low -, Moderate -, and Above Moderate - Income groups. C. HOUSING NEEDS This section provides an overview of housing needs in Gilroy. It focuses on five categories: • Household overpayment; • Overcrowding; • Estimated new construction; • Replacement of units lost; and • Special needs groups. 1. Households Overpaying for Housing Overpayment is defined as households paying more than 30 percent of their gross income on housing related expenses, including rent or mortgage payments and utilities. Severe overpayment occurs when households pay 50 percent or more of their gross income for housing. Higher costs for housing may contribute to households having a limited ability to cover other everyday living expenses. The impact of housing costs is more apparent for Extremely Low -, Very Low -, and Low- Income households, especially renter households. Thirty -eight percent of owner - occupied households and 37.6 percent of renter - occupied households experienced overpayment in 2000. 2 -2a Housing Needs Analysis Tables 2 -27 and 2 -28 summarize housing cost as a percentage of household income for owner- occupied and renter - occupied households. Table 2 -27 Housin g Cost as a Percentage of Household Income for Owners Notes: 'Some households are not accounted for; therefore, figures may slightly differ from other U.S. Census estimates for Total Households. 2May not equal 100% due to rounding. Source: U.S. Census 2000 SF3, H97 2-25 Households % of Total Percentage of Income Spent on Housing Households2 Costs <20% of 20 -29% 30 -34% 35 %+ of Household HH of HH of HH HH Income Range Income Income Income Income <$10,000 94 1.4% 19 15 0 54 $10,000- 169 2.6% 44 56 10 59 $19,999 $20,000- 463 7.1% 163 45 33 222 $34,999 $35,000- 818 12.5% 262 123 10 423 $49,999 $50,000- 1,461 22A% 252 341 219 649 $74,999 >$74,999 3,590 55.1% 1,369 1,428 391 402 Total 6,520 100% 2,109 2,008 663 1,809 Notes: 'Some households are not accounted for; therefore, figures may slightly differ from other U.S. Census estimates for Total Households. 2May not equal 100% due to rounding. Source: U.S. Census 2000 SF3, H97 2-25 Housing Element Needs Analysis Table 2 -28 Housina Cost as a Percentaae of Household Income for Renters Notes: 1 Some households are not accounted for. therefore, figures may slightly differ from other U.S. Census estimates for Total Households. 2May not equal 100% due to rounding. Source: U.S. Census 2000 SF3, H73 2.26 Households % of Total Percentage of Income Spent on Households2 Housing Costs <20% 20 -29% 30 -34% 35 %+ of Household of HH of HH of HH HH Income Range Income Income Income Income <$10,000 396 8.6% 35 69 32 217 $10,000- 597 13.0% 84 71 36 383 $19,999 $20,000- 919 20.0% 118 184 123 467 $34,999 $35,000- 801 17.4% 152 342 111 184 $49,999 $50,000- 1,023 22.2% 479 123 115 41 $74,999 >$74,999 875 19.0% 683 146 17 7 Total 4,611 100% 1,551 1,180 434 7,299 Notes: 1 Some households are not accounted for. therefore, figures may slightly differ from other U.S. Census estimates for Total Households. 2May not equal 100% due to rounding. Source: U.S. Census 2000 SF3, H73 2.26 Housing Needs Anaiysis 2. Overcrowding An Overcrowded Housing Unit is defined by the U.S. Census Bureau as a housing unit occupied by more than one person per room (excluding bathrooms, kitchen, hallway and closet space). Overcrowding can affect public facilities and services, reduce the quality of the physical environment and create conditions that contribute to deterioration of the housing stock. Table 2 -29 summarizes overcrowding in Gilroy in 2000. Approximately 18 percent of Gilroy's total households were overcrowded. Instances of overcrowding vary by tenure. Approximately 7 percent of owner households and 37 percent of renter households were overcrowded. Table 2 -29 Overcrowded Households Notes: 'Total owner - occupied: 7,283; total renter - occupied: 4,611; total all households: 11,894 Source: U.S. Census 2000 SF3, H2O 2007 -2014 Growth Needs ABAG is responsible for allocating housing needs to each jurisdiction in its region, including Gilroy. A local jurisdiction's "fair share" of regional housing need is the number of additional housing units needed to accommodate the forecasted household growth, replace the loss of existing housing units, and to achieve vacancy rates that contribute to a stable and healthy housing market. Housing unit allocations are divided into the four income categories: Very Low -, Low -, Moderate -, and Above Moderate -. The allocation is further adjusted to avoid an over - concentration of lower- income households in any one jurisdiction. Based on the requirements of AB 2634 (Statutes of 2006), each jurisdiction must also address the projected need of Extremely Low - Income (ELI) households, which is defined as households earning less than 30 percent of the median income. The projected Extremely Low - Income need can be assumed as 50 z -27 Owners Renters Total Persons per Room Overcrowded Households Percent of Total Overcrowded Households Percent of Total Overcrowded Households Percent of Total <_1.00 6,783 93.1% 2,883 62.5% 9,666 81.3% 1.01 to 1.50 275 3.8% 714 15.5% 989 8.3% >1.50 225 3.1% 1,014 22.0% 1,239 10.4% Total Overcrowde d 500 6.9% 1,728 37.5% 2,228 18.7% Notes: 'Total owner - occupied: 7,283; total renter - occupied: 4,611; total all households: 11,894 Source: U.S. Census 2000 SF3, H2O 2007 -2014 Growth Needs ABAG is responsible for allocating housing needs to each jurisdiction in its region, including Gilroy. A local jurisdiction's "fair share" of regional housing need is the number of additional housing units needed to accommodate the forecasted household growth, replace the loss of existing housing units, and to achieve vacancy rates that contribute to a stable and healthy housing market. Housing unit allocations are divided into the four income categories: Very Low -, Low -, Moderate -, and Above Moderate -. The allocation is further adjusted to avoid an over - concentration of lower- income households in any one jurisdiction. Based on the requirements of AB 2634 (Statutes of 2006), each jurisdiction must also address the projected need of Extremely Low - Income (ELI) households, which is defined as households earning less than 30 percent of the median income. The projected Extremely Low - Income need can be assumed as 50 z -27 Housing Element Housing Needs Analysis percent of the total need for the Very Low - Income households. Table 2 -30 shows the Regional Housing Needs Allocation for the City of Gilroy. Table 2 -30 ABAG Regional Housini I Needs Allocation: 2007 -2014 Notes: ' Regional share of Extremely Low- income units is assumed to be 50 percent of the Very Low- income units. Source: Regional Housing Needs Allocation, ABAG 2007 4. Special Needs Groups Certain segments of the population may have more difficulty in finding decent, affordable housing due to special needs. This section identifies the needs for elderly persons, large households, female- headed households, persons with disabilities, homeless persons and farmworkers. In addition to the data from the 2000 U.S. Census, this section also uses data from the 2000 Comprehensive Housing Affordability Strategy (CHAS) published by HUD. The CHAS provides information related to households with housing problems, including overpayment, overcrowding and /or without complete kitchen facilities and plumbing systems. The CHAS data is based on the Census 2000 data files, but differs from the standard files by including a variety of housing need variable split by HUD - defined income limits and HUD - specified household types. a. Elderly Persons Elderly persons are considered a special needs group because they are more likely to have fixed incomes. Elderly persons are defined by HUD as people age 62 years and older. Elderly persons often have special needs related to housing location and construction. Because of limited mobility, elderly persons typically need access to services and amenities (i.e. medical and shopping) and public transit. In terms of housing construction, elderly persons may need ramps, handrails, elevators, lower cabinets and counters and special security devices to allow for greater self - protection. According to the 2000 U.S. Census, 6.8 percent of Gilroy's residents were elderly. 2 -2a Total Extremely Very Above Construction Low- Low- Low- Moderate Moderate - Need Income' Income Income - Income Income Number Of 1,615 159 319 217 271 808 Housing Units Notes: ' Regional share of Extremely Low- income units is assumed to be 50 percent of the Very Low- income units. Source: Regional Housing Needs Allocation, ABAG 2007 4. Special Needs Groups Certain segments of the population may have more difficulty in finding decent, affordable housing due to special needs. This section identifies the needs for elderly persons, large households, female- headed households, persons with disabilities, homeless persons and farmworkers. In addition to the data from the 2000 U.S. Census, this section also uses data from the 2000 Comprehensive Housing Affordability Strategy (CHAS) published by HUD. The CHAS provides information related to households with housing problems, including overpayment, overcrowding and /or without complete kitchen facilities and plumbing systems. The CHAS data is based on the Census 2000 data files, but differs from the standard files by including a variety of housing need variable split by HUD - defined income limits and HUD - specified household types. a. Elderly Persons Elderly persons are considered a special needs group because they are more likely to have fixed incomes. Elderly persons are defined by HUD as people age 62 years and older. Elderly persons often have special needs related to housing location and construction. Because of limited mobility, elderly persons typically need access to services and amenities (i.e. medical and shopping) and public transit. In terms of housing construction, elderly persons may need ramps, handrails, elevators, lower cabinets and counters and special security devices to allow for greater self - protection. According to the 2000 U.S. Census, 6.8 percent of Gilroy's residents were elderly. 2 -2a Housing Needs Analysis As shown in Table 2 -31, approximately 24 percent of Gilroy's households had an elderly householder in 2000. Table 2 -31 Householders by Tenure and Age: 2000 Source: U.S. Census 2000 SF3 H14 As indicated in Table 2 -32, the median household income for households with a householder age 65 to 74 years was $37,500 in 2000. In the same year, the median household income for households with a householder 75 years or older was $23,750. In 2006, the American Community Survey estimates that the median household income for households 65+ years in Santa Clara County was $41,144. Table 2 -32 Senior Citizen Median Household Income: 2000 and 2006 City of Gilroy Santa Clara County Householder Ace 2000 Median Income 2006 Median Income' Z 65 -74 years $37,500 $41,144 75 plus years $23,750 Notes: 'Estimated data from 2006 ACS for illustrative purposes only 2The ACS reports median income for households with a householder 65+ years Source: U.S. Census 2000 SF3 P56 and 2006 ACS 619049 2 -29 2000 Householder Age Units % 15 -24 years 482 7.1% 25 -34 years 2,494 36.9% 35 -64 years 2,149 31.8% 65 -74 years 829 12.3% 75 plus years 805 11.9% Total 6,759 100% Source: U.S. Census 2000 SF3 H14 As indicated in Table 2 -32, the median household income for households with a householder age 65 to 74 years was $37,500 in 2000. In the same year, the median household income for households with a householder 75 years or older was $23,750. In 2006, the American Community Survey estimates that the median household income for households 65+ years in Santa Clara County was $41,144. Table 2 -32 Senior Citizen Median Household Income: 2000 and 2006 City of Gilroy Santa Clara County Householder Ace 2000 Median Income 2006 Median Income' Z 65 -74 years $37,500 $41,144 75 plus years $23,750 Notes: 'Estimated data from 2006 ACS for illustrative purposes only 2The ACS reports median income for households with a householder 65+ years Source: U.S. Census 2000 SF3 P56 and 2006 ACS 619049 2 -29 Housing Element Housing Needs Analysis The HUD median family income for Santa Clara County was $80,981 in 2000. Based on 2000 U.S. Census data shown in Table 2 -33, 56.4 percent of senior citizen households earned less than $35,000, falling within the Extremely Low - and Very Low - Income categories and 28.8 percent earned $35,000 to $74,999, falling within the Low- and Moderate - Income categories. Table 2 -33 Senior Citizen Household Income Distribution: 2000 Source: U.S. Census 2000 SF3 P55 The U.S. Census Bureau provides information on the number of persons with disabilities of varying types and degrees. The types of disabilities included in the Census are: • Sensory: Blindness, deafness, or a severe vision or hearing impairment • Physical: A condition that substantially limits one or more basic physical activities, such as walking, climbing stairs, reaching, lifting, or carrying. • Mental: A condition lasting 6 months or more that made it difficult to perform certain activities including learning, remembering, or concentrating. • Self -care: A condition lasting 6 months or more that made it difficult to perform certain activities including dressing, bathing, or getting around inside the home. • Go- outside -home: Only asked for population 16 and older of a condition lasting 6 months or more that made it difficult to perform certain activities including going outside the home alone to shop or visit a doctor's office. 2-30 Householder Age 65+ years in 2000 Income Number % <$25,000 667 40.1% $25,000- $34,999 271 16.3% $35,000- $49,999 256 15.4% $50,000- $74,999 224 13.4% $75,000- $99,999 140 8.4% $100,000- $149,999 51 3.1% $150,000- $199,999 37 2.2% >$200,000 191 1.1% Total 1,665 100% Source: U.S. Census 2000 SF3 P55 The U.S. Census Bureau provides information on the number of persons with disabilities of varying types and degrees. The types of disabilities included in the Census are: • Sensory: Blindness, deafness, or a severe vision or hearing impairment • Physical: A condition that substantially limits one or more basic physical activities, such as walking, climbing stairs, reaching, lifting, or carrying. • Mental: A condition lasting 6 months or more that made it difficult to perform certain activities including learning, remembering, or concentrating. • Self -care: A condition lasting 6 months or more that made it difficult to perform certain activities including dressing, bathing, or getting around inside the home. • Go- outside -home: Only asked for population 16 and older of a condition lasting 6 months or more that made it difficult to perform certain activities including going outside the home alone to shop or visit a doctor's office. 2-30 Housing Needs Anaiysis Employment: Only asked for the population 16 and older of a condition lasting 6 months or more that made it difficult to perform certain activities including working at a job or business. As shown in Table 2 -34, twenty percent of the elderly population had one type of disability in 2000. Twenty -seven percent had two or more types of disability. Table 2 -34 Elderly with Disabilities Limiting Independent Living: 2000 Disability Status Total % of People Age 65 +' With one type of 561 20.2% disability With two or 762 27.4% more types of disability Total with a 1,323 47.6% Disability Notes: 'Total number of people 65 +in Gilroy: 2,779 Source: U.S. Census 2000 SF3 PCT 26 According to the 2000 CHAS data, 35.1 percent of elderly renter - occupied households and 27.5 percent of elderly owner - occupied households experience overpayment. The increasing number of elderly persons in the population is creating a demand for more affordable housing. The City will address the needs of the elderly population through the development of policies and programs that will address affordability and special design guidelines for the elderly. 2 -31 Table 2 -35 provides a summary of housing problems experienced by elderly households in Gilroy. Table 2 -35 Housing Problems- Elderly Households: 2000 Notes: ' "Housing Problem" defined as any occupied housing units lacking a complete kitchen, lacking complete plumbing, having more than 1.01 persons per room (overcrowded), or costing more than 30 percent of the occupant household's income. 2Percentaae of household income spent on housinq cost Source: 2000 HUD CHAS data 2 -32 Renters Owners Elderly Households- Household Income <_ 30% MFI 291 254 % with any Housing Problem 50.2% 42.9% Cost Burden2 > 30% 48.8% 42.9% Cost Burden > 50% 33.7% 37.4% Elderly Households- Household Income 30% to < 50% MFI 81 193 • with any Housing Problem' 27.2% 33.2% • Cost Burden' > 30% 27.2% 33.2% • Cost Burden > 50% 0.0% 10.4% Elderly Households- Household Income > 50% to < 80% MFI 10 214 with any Housing Problem' 0.0% 25.2% Cost Burden' > 30% 0.0% 25.2% % Cost Burden > 50% 0.0% 18.7% Elderly Households- Households Income >_ 80% MFI 85 455 • with any Housing Problem' 0.0% 17.6% • Cost Burden > 30% 0.0% 17.6% % Cost Burden2 >_ 50% 0.0% 2.2% Total Elderly Households 467 1,116 • with any Housing Problem' 36.0% 27.5% • Cost Burden 2 >_ 30% 35.1% 27.5% • Cost Burden >_ 50% 21.0% 14.8% Notes: ' "Housing Problem" defined as any occupied housing units lacking a complete kitchen, lacking complete plumbing, having more than 1.01 persons per room (overcrowded), or costing more than 30 percent of the occupant household's income. 2Percentaae of household income spent on housinq cost Source: 2000 HUD CHAS data 2 -32 Housing Needs Analysis Large Households State housing law defines large households as households having five or more persons living within the same household. Large households are considered a special needs group because larger families may require additional bedrooms. As shown in Table 2 -36, in 2000, there were 2,874 households in Gilroy with at least five persons, representing 24.2 percent of the total households in the City. Of the large households, 52 percent were renter - occupied and 48 percent were owner - occupied. Table 2 -36 Larne Households by Tenure: 2000 Number of Persons in Unit Owner Occupied Renter Occupied Total Five 820 533 1,353 Six 304 414 718 Seven or more 244 559 803 Total 1,368 1,506 2,874 Percent of Total Households' 11.5% 12.7% 24.2% Notes: 'Total number of households in Gilroy: 11,894 Source: U.S. Census 2000 SF3 H17 According to the 2000 CHAS data, 33.4 percent of large renter - occupied households and 41 percent of large owner - occupied households experience overpayment. Currently, less than six percent of the City's rental housing stock has four or more bedrooms (refer to Table 2 -18) resulting in a high percentage of large family households that are forced to live in overcrowded situations. To address this need, the City shall develop policies that will establish incentives and programs to encourage the development of housing for large families. 2-33 Element Housing Table 2 -37 provides a summary of housing problems experienced by large households in the City of Gilroy. Table 2 -37 Housing Problems- Large Households: 2000 Notes: ' "Housing Problem" defined as any occupied housing units lacking a complete kitchen, lacking complete plumbing, having more than 1.01 persons per room (overcrowded), or costing more than 30 percent of the occupant household's income. 'Percentage of household income spent on housing cost Source: 2000 HUD CHAS data 2-34 Renters Owners Large Households- Household Income <_ 30% MFI 319 25 % with any Housing Problem' 95.3% 100% % Cost Burden' > 30% 86.2% 100% % Cost Burden > 50% 59.6% 60.0% Large Households- Household Income 30% to !9 50% MFI 445 135 with any Housing Problem' 92.1% 92.6% Cost Burden' > 30% 36.0% 70.4% Cost Burden2 > 50% 5.6% 18.5% Large Households- Household Income > 50% to 5 80% MFI 314 223 with any Housing Problem' 88.9% 73.1% Cost Burden' > 30% 9.2% 57.8% Cost Burden' > 50% 0.0% 10.8% Large Households- Households Income >_ 80% MFI 400 980 % with any Housing Problem' 76.3% 53.1% Cost Burden ? 30% 7.5% 31.6% % Cost Burden >_ 50% 0.0% 4.1% Total Large Households 1,478 1,363 % with any Housing Problem 87.8% 61.1% Cost Burden' ? 30% 33.4% 41.0% % Cost Burden >_ 50% 14.5% 7.6% Notes: ' "Housing Problem" defined as any occupied housing units lacking a complete kitchen, lacking complete plumbing, having more than 1.01 persons per room (overcrowded), or costing more than 30 percent of the occupant household's income. 'Percentage of household income spent on housing cost Source: 2000 HUD CHAS data 2-34 Housing Needs Analysis Female- Headed Households Female- headed households are a special needs group due to comparatively low rates of homeownership, lower incomes and high poverty rates experienced by this group. According to the 2000 U.S. Census, there were 1,139 female- headed households with children and 640 female- headed households without children in Gilroy. Of the total female- headed households in the City, 65 percent were renter - occupied and 35 percent were owner - occupied. Table 2 -38 shows the number of female- headed households by tenure in 2000. Table 2 -38 Tenure in Female- Headed Households: 2000 Notes: 'Total number of households in Gilroy: 11,894 Source: U.S. Census 2000 SF3 HCT1 As shown in Table 2 -39, in 2000, 348 or 20 percent of the female- headed households in Gilroy were below poverty level. Of those below poverty level, 94.5 percent had children under age 18. 2 -35 Number % of Number % of % of Total Owner Owner Renter Renter Tota Household HouseholdType. Occupied Occupied Occupied Occupied I s' Female 251 40.0% 888 77.2% 1,13 9.6% householder, no 9 husband present, with own children under 18 Female 377 60.0% 263 22.8% 640 5.4% householder, no husband present, without own children Total 628 100% 1,151 % 1,77 15.0% 1 9 Notes: 'Total number of households in Gilroy: 11,894 Source: U.S. Census 2000 SF3 HCT1 As shown in Table 2 -39, in 2000, 348 or 20 percent of the female- headed households in Gilroy were below poverty level. Of those below poverty level, 94.5 percent had children under age 18. 2 -35 Table 2 -39 Povertv in Female- Headed Households: 2000 Source: U.S. Census 2000 SF3 P90 Persons with Disabilities Access and affordability of appropriate housing are the primary challenges for persons with disabilities. Access, both within the home and to /from the home site, is important for the persons with disabilities. This often requires specially designed dwelling units. Additionally, housing locations near public facilities and public transit are important for this special needs group. The U.S. Census Bureau provides information on the number of persons with disabilities of varying types and degrees. Table 2 -40 shows the number of Gilroy residents in 2000 with disabilities over the age of five. According to the U.S. Census, 9.6 percent of Gilroy residents reported having one type of disability and 7.6 percent had two or more types of disability in 2000. Table 2-40 Persons Reporting Disabilities: 2000 Age Group Number %Below Number %Above Total with Disabilities Below Poverty Above Poverty Household Type Poverty Level Level Poverty Level Level Female householder, 329 94.5% 1,046 73.7% no husband present, ?1_64 7' 2,379 10.1% 1,836 with own children 4,215 18.0% M_+ rs. 561 under 18 7621 27.4% 1,3231 47.3% Female householder, 19 5.5% 374 26.3% no husband present, 100% without own children 1 Total 348 1 100% 1,420 100% Source: U.S. Census 2000 SF3 P90 Persons with Disabilities Access and affordability of appropriate housing are the primary challenges for persons with disabilities. Access, both within the home and to /from the home site, is important for the persons with disabilities. This often requires specially designed dwelling units. Additionally, housing locations near public facilities and public transit are important for this special needs group. The U.S. Census Bureau provides information on the number of persons with disabilities of varying types and degrees. Table 2 -40 shows the number of Gilroy residents in 2000 with disabilities over the age of five. According to the U.S. Census, 9.6 percent of Gilroy residents reported having one type of disability and 7.6 percent had two or more types of disability in 2000. Table 2-40 Persons Reporting Disabilities: 2000 Age Group With one type of disability % of Age Group' With two or more types of disabilit % of Age Group' Total with Disabilities % of Age Group' 5 -15 yrs. 273 3.3% 108 1.3% 381 4.6% 16 -20 yrs. 388 13.0% 147 4.9% 535 18.0% ?1_64 7' 2,379 10.1% 1,836 7.8% 4,215 18.0% M_+ rs. 561 1 20.2% 7621 27.4% 1,3231 47.3% Total 5+ yrs. 1 3,607 1 55.8% 1 2,8531 44.2% 1 6,454 100% Note: 'Total 5 -15 year olds: 8,329 16 -20 year olds: 2,977; 21 -64 year olds: 23,463; 65+ year olds: 2,779 Source: U.S. Census 2000 SF3 PCT 26 2 -36 U in Element Housing Needs Analysis Table 2 -41 provides a summary of housing problems experienced by households with mobility and self -care limitations in the City of Gilroy. According to the 2000 CHAS data, 47.3 percent of the total number of households with mobility and self -care limitations experiences some sort of housing problem. As previously stated, these problems include overpayment, overcrowding and /or lack of complete kitchen facilities and plumbing systems. Table 2 -41 Housing Problems- Mobility and Self -Care Limitations: 2000 Notes: "I Extra Elderly" defined as 1 or 2 persons with either person 75 years or over 2 "Elderly" defined as 1 or 2 persons with either person 62 to 74 years 3 "Housing Problem" defined as any occupied housing units lacking a complete kitchen, lacking complete plumbing, having more than 1.01 persons per room (overcrowded) or costing more than 30 percent of the occupant household's income. Source: 2000 HUD CHAS data 2-37 Renters Owners Extra Elderly All Other Total Extra Elderly All Other Total Total Elderly' Households Renters Elderly' Households Owners Households Household 90 65 160 315 80 14 35 129 444 Income < 30% MFI %with any 55.6% 46.2% 71.9% 61.9% 25.0% 28.6% 71.4% 36.1% 55.0% Housing Problem3 Household 40 25 160 225 65 35 55 155 380 Income 30% to < 50% MFI %with any 37.5% 0.0% 78.1% 62.2% 46.2% 42.9% 100% 64.5% 63.2% Housing Problem3 Household 0 0 74 74 39 35 90 164 238 Income > 50% to <_ 80% MFI %with any N/A N/A 94.6% 94.6% 25.6% 28.6% 77.8% 54.9% 67.2% Housing Problem3 Households 0 29 200 229 64 44 460 568 797 Income >_ 80% MFI %with any N/A 0.0% 30.0% 26.2% 15.6% 45.5% 31.5% 30.8% 29.5% Housing Problem3 Total 130 119 594 843 248 128 640 1,016 1,859 Households %with any 50.0% 25.2% 62.3% 55.2% 28.2% 38.3% 46.1% 40.7% 47.3% Housing Problem3 Notes: "I Extra Elderly" defined as 1 or 2 persons with either person 75 years or over 2 "Elderly" defined as 1 or 2 persons with either person 62 to 74 years 3 "Housing Problem" defined as any occupied housing units lacking a complete kitchen, lacking complete plumbing, having more than 1.01 persons per room (overcrowded) or costing more than 30 percent of the occupant household's income. Source: 2000 HUD CHAS data 2-37 Housing Element Housing Needs Analysis e. Homeless Population In 2009, the County of Santa Clara, in conjunction with Applied Survey Research (ASR), conducted the 2009 Santa Clara County Homeless Count. Two strategies were used to collect the data for the study: a point -in -time count and a comprehensive qualitative assessment via homeless peer interviews. The homeless survey showed that the typical homeless person was living in Santa Clara County at the time they became homeless, and 46 percent had been homeless for one year or more. Of this number, 70 percent were unsheltered, 30 percent were in shelters, and one percent of people on the street were in families. The point -in -time street and shelter census identified 7,086 homeless people in Santa Clara County.. Thirty percent of survey respondents reported that the primary cause of their homelessness was due to a loss of job. And 21 percent of all homeless respondents cited that the primary cause of their homelessness was due to alcohol and drug abuse. Table 2-42 summarizes sheltered and unsheltered homeless person in the City of Gilroy according to the 2009 Santa Clara County Homeless Census and Survey. Table 2-42 Homeless Population: 2009 Source: 2009 Santa Clara County Homeless Census and Survey According to the 2009 study, there were 634 homeless persons in Gilroy. Of the total, 441 were sheltered and 1517 were unsheltered. Counting existing emergency shelter beds within the City of Gilroy (refer to Table 3 -9), there is remaining homeless need for 193 individual shelter beds. L Farm Workers Farm workers are defined as persons whose primary incomes are earned through seasonal agricultural work. The demographics on farm laborers in all 2 -38 Unsheltered in Homeless cars /RV's /vans or Population Sheltered Unsheltered encampments Homeless 162 148 Individuals 42 Persons in 279 3 Homeless families Total 441 151 42 Source: 2009 Santa Clara County Homeless Census and Survey According to the 2009 study, there were 634 homeless persons in Gilroy. Of the total, 441 were sheltered and 1517 were unsheltered. Counting existing emergency shelter beds within the City of Gilroy (refer to Table 3 -9), there is remaining homeless need for 193 individual shelter beds. L Farm Workers Farm workers are defined as persons whose primary incomes are earned through seasonal agricultural work. The demographics on farm laborers in all 2 -38 Housing Needs Analysis California markets are collected and reported on a regional or countywide basis. The data collected includes income, household status, and length of time the laborers work in each area. There are generally three classifications: 1) migrant workers move from place to place, planting and harvesting; 2) annual workers generally work in the same agricultural area year after year for nine or ten months and spend the rest of the year in their home country; and 3) permanent workers who are employed most of the year in one location and then collect unemployment for a month or two. Traditionally, Gilroy has been home to many agricultural businesses and industries. However, the increase in the retail and service trade and the expansion of the City as a "bedroom community" for northern Silicon Valley jobs, has reduced the prominent role of agriculture's influence in recent years. ABAG projects a drop in agricultural jobs in the County through 2020, with the number of agricultural jobs in Gilroy projected to drop by approximately 25 percent during that period. In 2000, 3.5 percent of Gilroy's workforce was employed in the agriculture industry. To provide a better estimate of the number of farm workers in the City, staff contacted local farms. Table 2-43 lists these local farms and the number of year - round and seasonal employees. Table 2 -43 Estimated Number of Farm Workers Number of Year- Number of Seasonal Farm Name Address Round Employ ees Employees Fiorio Farm 6330 Thomas Road 4 200 for a 2 -week period G & I< Farm 720 Las Animas 2 8 -12 for a 6 -month Ave. period Bonfante 3675 Hecker Pass 7 9 subcontracted Gardens H Goldsmith 2280 Hecker Pass 45 Average 3 per day Seeds Rd. Mibau Wong 2825 Leavesley 1 0 Nursery Rd. T & C 4860 Monterey 0 20 in winter; 120 during Supplies Hwy. seed season Total 59 Source: City of Gilroy Phone Survey The US Department of Agriculture conducts a Census of Agriculture every five years. Table 2-44 summarizes the census results for farm labor in Santa Clara County in 2007. There were a total of 5,589 farmworkers in the County in 2007. Census of Agriculture data from 1992, 1997, 2002 and 2007 shows a decline in 2 -39 Housing Element Housing Needs Analysis the number of hired farmworkers county -wide. 2008 -2018 Industry Employment Projections from the California Employment Development Department project that there will be 5,900 farmworkers in the San Jose - Sunnyvale -Santa Clara Metropolitan Statistical Area (Santa Clara and San Benito Counties) by 2018, representing an estimated 3.3 percent decline in farmworker employment estimates from 2008. Table 2 -44 Number of Farmworkers and Farms — Santa Clara County 2007 Source: Census of Agriculture, 2007 Table 7 Due to the seasonal nature of agricultural work and relatively low wages, farm worker households often have a difficult time securing safe, habitable, and affordable housing. To provide for the existing farm workers, the Santa Clara County Housing Authority operates the Ochoa Migrant Center in the Gilroy area. The center contains 100 family units and functions as a migrant camp for an - 8month period each year. Housing at the Ochoa Migrant Center is available in a seasonal basis for a maximum of 100 families whose primary income is derived from agricultural - related work. South County Property Management also operates four housing developments for farm workers: The Trees, which has 18 units available for farm workers and families, Aspen Grove has 24 apartments, Maple Gardens has 18 units, and Monterra has 28 out of 38 units for farm workers. The Rodriguez Migrant Labor Camp, which houses 37 seasonal farm workers, is privately owned and is located outside of the City limits. It has a potential to house more workers but is limited due to a potable water supply problem that has to be resolved before this can occur. Recognizing the need of farm labor in the community, the City of Gilroy has made farm worker housing a priority as part of the City's Balanced Planned Growth and Agricultural Viability Policy. The Santa Clara Housing Authority, the City of Gilroy, and various non - profit organizations such as the Gilroy Unified 2-40 Farmworkers Farms Farms with less than 10 employees 809 287 Farms with more than 10 employees 4,780 87 Workers working 150 days or more 2,848 Workers working less than 150 days 2,747 Total Farms 1 6,6891 374 Source: Census of Agriculture, 2007 Table 7 Due to the seasonal nature of agricultural work and relatively low wages, farm worker households often have a difficult time securing safe, habitable, and affordable housing. To provide for the existing farm workers, the Santa Clara County Housing Authority operates the Ochoa Migrant Center in the Gilroy area. The center contains 100 family units and functions as a migrant camp for an - 8month period each year. Housing at the Ochoa Migrant Center is available in a seasonal basis for a maximum of 100 families whose primary income is derived from agricultural - related work. South County Property Management also operates four housing developments for farm workers: The Trees, which has 18 units available for farm workers and families, Aspen Grove has 24 apartments, Maple Gardens has 18 units, and Monterra has 28 out of 38 units for farm workers. The Rodriguez Migrant Labor Camp, which houses 37 seasonal farm workers, is privately owned and is located outside of the City limits. It has a potential to house more workers but is limited due to a potable water supply problem that has to be resolved before this can occur. Recognizing the need of farm labor in the community, the City of Gilroy has made farm worker housing a priority as part of the City's Balanced Planned Growth and Agricultural Viability Policy. The Santa Clara Housing Authority, the City of Gilroy, and various non - profit organizations such as the Gilroy Unified 2-40 Housing Needs Analysis School District Migrant Education Program, are working together to continue to explore and implement ways of providing affordable farm worker housing, while conserving the City's current agricultural resources. The City's Municipal Code makes available zoning to accommodate various housing types to address the needs of farm workers. Manufactured and modular homes are permitted by -right in all residential zoning districts; boarding and rooming houses are allowed in all residential zoning districts with a CUP; and multi - family units are allowed in the R -3 and R -4 residential zoning districts as a matter of right. Currently, the City's Zoning Code is not consistent with the Employee Housing Act; therefore, as part of this Housing Element update, the City will include a program to revise the Zoning Code. 5. Extremely Low - Income Households Extremely Low - Income households are defined as households with income less than 30 percent of the MR. The provisions of Government Code Section 65583 (a)(1) require quantification and analysis of existing and projected housing needs of Extremely Low- Income households. In 2000, 15.3 percent of Gilroy households were within the Extremely Low - Income category (refer to Table 2 -15; household income less than $25,000). Table 2 -45 provides a summary Low - Income households in the occupied households experie According to data from the 2C Extremely Low - Income househi problem. of housing problems experienced by Extremely City of Gilroy. Extremely Low - Income renter - ice both overpayment and overcrowding. )0 CHAS provided by HUD, 71.8 percent of ilds experience at least one type of housing Table 2-45 Housina Problems- Extremely Low- Income Households: 2000 Notes: "Housing Problem" defined as any occupied housing units lacking a complete kitchen, lacking complete plumbing, having more than 1.01 persons per room (overcrowded), or costing more than 30 percent of the occupant household's income. ZPercentage of household income spent on housing cost Source: City of Gilroy 2005 -2010 Consolidated Plan 241 Renters Owners Total Households Household Income< 30% MFI 1,202 403 1,605 % with any Housing Problem' 76.0% 59.3% 71.8% Cost Burden > 30% 69.6% 59.3% 67.0% % Cost Burden2 > 50% 49.7% 48.4% 49.3% Notes: "Housing Problem" defined as any occupied housing units lacking a complete kitchen, lacking complete plumbing, having more than 1.01 persons per room (overcrowded), or costing more than 30 percent of the occupant household's income. ZPercentage of household income spent on housing cost Source: City of Gilroy 2005 -2010 Consolidated Plan 241 Housing Element Housing Needs Analysis The needs of Extremely Low- Income households include housing units designed for transient/homeless populations, multi - family rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single -room occupancy units and workforce housing. z -0z • Housing Element Resources and Constraints Chapter 3: Resources and Constraints A. GOVERNMENTAL CONSTRAINTS AND RESOURCES Governmental constraints are policies, standards, requirements and actions imposed by the government that may have a negative impact on the development and provision of housing for a variety of income levels. These constraints may include building codes, land use controls, growth management measures, development fees, processing and permit procedures, and site improvement costs. State and federal agencies play a role in the imposition of governmental constraints; however these agencies are beyond the influence of local government and are therefore not addressed in this analysis. The City of Gilroy regularly communicates with the local development community via phone and in- person meetings to hear concerns about potential development constraints including processing procedures, fees, development standards and other City policies and requirements. Potential constraints and opportunities for improvements are identified on an on -going basis through consultation with the development community and internal staff review and recommended changes are presented to the City Council for consideration. Governmental resources include programs that provide funds for housing - related activities, as well as, incentives provided by the local jurisdiction for the provision of housing. Land Use Controls Land use controls include city- initiated General Plan policies, zoning regulations and standards, permit processing requirements and development fees. a. General Plan The General Plan constitutes highest -level policy document for the City of Gilroy. The Land Use Element of the General Plan identifies the location, distribution and density /intensity of the land use within the City. Residential densities are measured in dwelling units per acre (du /ac). The 2002 Gilroy General Plan identifies six residential land use designations and one Downtown Specific Plan designation. Within the Downtown Specific Plan 3 -1 Housing Element Resources and Constraints designation are six distinct districts that all allow residential uses as a matter of right. Table 3 -1 summarizes Gilroy's residential land use designations by total acre and permitted density ranges. 3 -2 1 Housing Element Resources and Constraints Table 3 -1 2002 Gilroy General Plan Kesiaential Lana use uesi nations Existing Permitted Designation Description Acreage Density Rural Residential Applied to areas designated for 350 0.4 du /ac part-time farming and the keeping of livestock. Only very low residential development is considered appropriate, and is generally considered to be ancillary to agricultural use of the site. Hillside Applied to developable hillside 1,460 0.5 to 4.0 du /ac Residential areas with slopes of 10 percent (Actual allowed or greater (but less than 30 density on a site - percent). Development in these specific basis areas must follow special design according to the and setting guidelines criteria to formula set forth preserve hillside environment. in the Residential Hillside Zoning District requirements) Low Density Applied to existing areas of 2,240 3.0 to 7.25 du /ac Residential predominantly single - family detached homes. Medium Density This area is intended primarily 285 8.0 to 16.0 du /ac Residential for multi - family structures, but can also contain single - family detached homes, with or without secondary units. Buildings are typically two stories tall, and are usually located in transition areas between lower density neighborhoods and higher density developments or commercial areas. High Density This area is intended primarily 95 16.0 to 30.0 du /ac Residential for multi - family structures, such as apartments or condominiums, with buildings typically two or more stories. 33 Housing Element and Constraints Table 3 -1 2002 Gilroy General Plan Residentiai Lana use vest nations Existing Permitted Designation Description Acrea a Density Neighborhood This area is intended to create 1,623 7.25 - 30 du /ac District new neighborhoods that reflect a similar mix of housing throughout the City, avoiding concentrations of specific housing types in some areas. These new neighborhoods will be predominantly single - family in character, with duplexes, town homes, condominiums and a artments inters ersed. Downtown This designation encourages 160 Maximum building Specific Plan mixed -use development that height of 55 feet District supports the Downtown Historic (4 stories) District and creates a vibrant, active Downtown. There are six Downtown districts within this designation: • Downtown Historic District (DHD) • Downtown Expansion District (DED) • Civic /Cultural Arts District (CCA) • Transitional District (TD) • Cannery District (CD) • Gateway District GD Source: City of Gilroy General Plan According to the current General Plan, a total of 21,805 dwelling units are anticipated within the City's planning areas at "loud' build -out; and 31,321 dwelling units are anticipated at "high" build -out. As of January 2008, DOF estimates 14,853 dwelling units exist in Gilroy. Based on theoretical build out of the General Plan, approximately 6,952 new dwelling units could be constructed at "low" build -out; and 16,468 dwelling units at "high" build -out. Residential build out calculations are based on the following unit/acre ranges, with "low capacity" based on the low end of each density range and "high capacity" on the high end: 34 Housing Element Resources and Constraints • Hillside: based on actual development proposals, approved and pending. • Low Density: 3 to 7.5 du /acre • Medium Density: 8 to 16 du /acre • High Density: 16 to 30 du /acre • Neighborhood District: 6 to 12.5 du /acre Depending on land costs, a range of densities may be necessary to contribute to a project's feasibility for people at various income levels. According to the State of California, the densities identified below are generally sufficient to accommodate construction affordable to specific income levels. • Extremely Low -, Very Low- and Low - Income: 30 dwelling units per acre minimum • Moderate - Income: 11 -30 dwelling units per acre minimum • Above Moderate - Income: Up to 11 dwelling units per acre In addition to the generally accepted densities, Assembly Bill 2348 established "default" density standards. If a local government has adopted density standards consistent with the established population criteria, sites with those density standards are accepted as appropriate for accommodating the jurisdiction's share of regional housing need for lower- income households. Pursuant to AB 2348, Gilroy is considered a "suburban" jurisdiction with a "default" density of 20 dwelling units per acre. Glen Loma Ranch Specific Plan The Glen Loma Ranch Specific Plan Neighborhoods throughout the Specific has established a series of residential Plan area. Each Neighborhood has an established range of residential units as well as potential types of residential products. While the overall acreage of the Specific Plan is approximately 359 acres, the developable residential acreage of the Specific Plan area is approximately 192 acres. Based on the forecasted unit count of each Neighborhood, the Glen Loma Ranch Specific Plan will establish the following housing mix of units: • R -1 Residential Uses at 63% or 120.6 acres: 759 units • R -2 Residential Uses at 17% or 33.5 acres: 286 units • R -3 Residential Uses at 12% or 22.7 acres: 326 units 3 -5 Housing Element Resources and R -4 Residential Uses at 8% or 15.3 acres: 322 units The housing mix would produce a total of 1,693 market rate /exempt units. The City of Gilroy has allocated a total of 1,443 market rate RDO allocations to the Glen Loma Ranch. The remaining 250 units are affordable units exempt from the RDO allocation process. Hecker Pass Specific Plan The Hecker Pass Specific Plan is the mechanism designated by the City of Gilroy's General Plan for implementing the goals and policies for the Hecker Pass Area. The Hecker Pass Specific Plan projects the development of 506 housing units. The Hecker Pass Area will develop numerically in a manner consistent with the units allocated to the Specific Plan area by the RDO process. Downtown Gilroy Specific Plan The Downtown Gilroy Specific Plan covers over 160 acres in the central portion of the City of Gilroy. The area extends from Leavesley Road/Welburn Avenue on the north to Luchessa Avenue to the south. The Specific Plan divides the Downtown into six Districts. The six Districts are as follows: a Downtown Historic District Downtown Expansion District • Civic /Cultural Arts District Transition District • Cannery District • Gateway District In contrast to the single -use zoning based on land -use type, the Downtown Gilroy Specific Plan is based on geographic areas called planning districts. In this approach, each District has a unique vision and a tailored range of uses and development standards that support the desired future condition. The housing mix in the Downtown Gilroy Specific Plan area is projected to produce 1,576 residential units over a 20 year period. The Specific Plan expects 60 percent of undeveloped property will build -out and 10 percent of developed properties will increase in size. Downtown Gilroy Specific Plan units are exempt from the City's RDO Allocation application, thus the City Council can permit special exception to the assigned numerical limits for a calendar year provided that the exception does not aversely affect the City's ability to provide services. 3-6 • _ Housing Element Resources and Constraints Zoning Code The Zoning Code is the primary tool for implementing the General Plan. It is designed to protect and promote public health, safety and welfare, as well as to promote quality design and quality of life. The City of Gilroy's residential zoning designations control both the use and development standards of each residential parcel, thereby influencing the development of housing. The City has found that the maximum development limits established by the Zoning ordinance do not pose a constraint to the development of housing. Table 3 -2 summarizes permitted uses in residential districts. Single- family residential zonings include three districts: A1, RR and R1. Single- family units are permitted as a matter of right in all single - family residential districts. Accessory dwelling units are allowed in single - family zoning districts under Section 11.20 of the City's Zoning Ordinance. Multi- family residential zoning includes R2, R3, R4 and RH districts. Condominiums are permitted as a matter of right in R3, R4 and RH districts. Duplexes are permitted as a matter of right in R2, R3 and R4 districts. Townhouses are permitted as a matter of right R3, R4 and RH districts. Multiple family buildings are permitted as a matter of right in R3 and R4 districts. Single - family dwellings are permitted as a matter of right in all multi - family residential districts. The City of Gilroy has also established a Neighborhood District (ND) zone. Land in the ND district may be used as specified by a Master Plan or Specific Plan adopted for each Neighborhood District area. Each area is required to provide a mixture of low -, medium- and high- density residential units, and other compatible uses such as parks, schools and neighborhood- serving commercial facilities. Residential development is permitted in some commercial districts to enable development of mixed -use projects. Residential dwelling units are allowed as a matter of right in the Neighborhood Commercial (C1) and Shopping Center Commercial (C3) districts; and it is allowed in the Professional Office (PO) district with a Conditional Use Permit. All residential unit development within these commercial districts shall comply with the following guidelines: • The number of residential units shall not compromise the quality or character of any existing or proposed business located on the same property; • The number of residential dwellings shall be limited by the availability and provision of off - street parking stalls; 3 -7 Element Resources • All bedrooms proposed for residential units shall meet minimum square footage requirements; • Open space shall be provided, when feasible. Residential dwelling units are also permitted as a matter of right in all Downtown Specific Plan Districts. In the Downtown Historic District (DHD) and the Downtown Expansion District (DED), residential units are unconditionally permitted on the second story or above. Anytime residential uses are proposed for the first floor, a Conditional Use Permit is required. 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L L m N O �'f0 y N o O ";r N m N = N co a Y m • m to C i i U w m � N O LL J N U) Cc to 2 O m O O J d'C =N aLL U m U 3 LL V Cl O N O d C N Y U Y � @ N @ N N � O � G @ N � @ to 0 F o @ n n m O LL Q � @ U -6 @ N N U N � O U O O of o N N �L QUO 9 00 N n LL @ O Y L U @ � n O_ d 3 n d c E m d N N U @ N r 0 c N � O 0.2 N m c� 0 a = p N U � O O d 00 a Ol Y O" N U Z a U O w L N N N O d U w C `o w rn E O L G O 00 O w N o E @ a mmEp+- u@ N O @ y N N o w a = c E Y U N_ E E O CO o E m m n @ � @ p W_ @a Qav 0 oaci�o v E E .t- N O s w N @ U'O N N Nw� .0 t6MM o in y�7 Z_ N E C 0 U m a O N (D O U U 'o rn m M Housing Element and Constraints Parking Requirements Table 3 -4 summarizes the residential parking requirements in Gilroy. Parking requirements do not constrain the development of housing directly. However, parking requirements may reduce the amount of available lot areas for residential development. The City requires one parking space per dwelling be in a carport or garage, allowing greater flexibility in site design and building configuration. Table 3-4 Residential Parking Requirements Type of Residential Required Parking Spaces Development off street Single- and Two - family 2 stalls per dwelling units, one of which shall be a dwellings covered carport or garage (each space must be at least 10 feet by 20 feet Multiple family dwellings 1 '/2 stalls per one bedroom or two bedroom dwelling unit and 2 stalls for each unit having 3 or more bedrooms or rooms that could be used as bedrooms. One stall for every 4 units for guests. One stall for each unit shall be covered with a garage or carport. Accessory dwelling units One stall per unit (detached) Source: City of Gilroy Zoning Ordinance, Section 31 d. Planned Unit Development Combining District The intent of the Planned Unit Development (PUD) Combining District is to allow diversification in the relationships of buildings, structures and open spaces in building groups and the allowable heights of said buildings and structures, while insuring adequate standards related to the public health, safety and general welfare of the community. The PUD Combining District is an optional alternative to the underlying zoning district that is utilized at the request of the project applicant. A minimum of 75 percent of the land area of parcels designated as being in a PUD Combining District are for uses permitted by the base zoning district. Other land uses to a maximum of 25 percent may be permitted in accordance with a Planned Unit Development Approval. All site and building requirements, including yard, building height, lot coverage, and landscaping are specified in the Planned Unit Development Approval outlined in Section 50 of the Municipal Ordinance. If a parcel is located in a PUD Combining District, a building permit shall not be issued for any development until the Planning Commission and City Council have approved the development. 3 -14 Housing Element Resources and Constraints The City defines a planned unit development as: • Land which is planned and developed as a whole. • A single development operation or a definitely programmed series of development operations, including all lands and buildings. • Including principal and accessory structures and uses substantially related to the character of the surrounding district. • A program of comprehensive and detailed plans which will include all site and architectural design plans. • A program that should include the operation and maintenance of such areas and facilities that will be for common use and benefit by some or all of the occupants of the development, but in most cases not be provided, operated or maintained at the general expense of the City of Gilroy. e. Historic Site and Neighborhood Combining Districts The intent of the Historic Site and Neighborhood Combining Districts is: • To preserve historic sites and neighborhoods that represents important elements of Gilroy's past or contributes to the community's identity or educational resources. • To enhance the visual character of Gilroy by encouraging and regulating the compatibility of architectural styles within historic sites and neighborhoods. • To identify and designate areas which have a significant concentration or continuity of sites, buildings or objects unified by past events or physical development. • To encourage restoration of historic buildings and neighborhoods throughout the City. Permitted uses in both Historic Site and Neighborhood Combining Districts include all uses that are permitted in the base district. Any use which is listed as a conditional use for the base district may be allowed to locate within a Historic Site or Neighborhood Combining District subject to the Planning Commission making all of the following findings: • The proposed conditional use is compatible with the historic nature of the 345 Element Resources property and would require minimal alteration to the building or site; and All proposed and /or required alterations would not alter the historic significance of the building or site; and The site is adequate to accommodate any required parking, landscaping or other amenities required as a condition of approval of the conditional use permit. Applications to construct new structures, alter, change, modify, remove or significantly alter the exterior of any structure within a Historic Site or Neighborhood Combining District require architectural and site approval according to Section 50 of the Municipal Ordinance. The Historic Heritage Committee reviews and makes recommendations to the Planning Commission on applications for architectural and site approval which involve significant changes. The Planning Director reviews and may issue architectural and site approval for changes in Historic and Neighborhood Combining Districts that are not considered significant. All decision - making bodies are bound by uniform standards adopted by the City Council or Planning Commission relating to the intent, scope or review, of requirements of architectural and site approval. 2. Density Bonus Ordinance In order to encourage the construction of affordable housing developments for Very Low- and Low - Income households, and in accordance with Section 65915 et seq. of the California Government Code, the City of Gilroy has adopted a Density Bonus Ordinance (Section 46 of the Zoning Code). Upon request from the applicant, the City grants a density bonus based on the percentage of affordable units; dedication of land for the development of affordable housing units; provision of senior housing; conversion of apartments to condominiums that provide a certain number of affordable units; or the provision of child care facilities. Projects qualifying for the density bonus also receive reduced parking requirements and other development incentives. a. General Density Bonus for Affordable Units The City grants a density bonus for developments providing units affordable to and occupied by Moderate -, Low- and Very Low - Income persons and households. The project must have a minimum of five units and an affordability covenant is required for at least 30 years. Table 3 -5 outlines the density bonuses allowed based on the percentage of units in each affordability category. 3 -16 Housing Element Resources and Constraints Table 3 -5 Density Bonus for Provision of Affordable Units Percentage Very-Low Income Units Percentage Density Bonus 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 35 Percentage Low Income Units Percentage Density Bonus 10 20 11 21.5 12 23 13 24.5 14 26 15 27.5 16 29 17 30.5 18 32 19 33.5 20 35 Percentage Moderate Income Units Percentage Density Bonus 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 3 -17 Housing Element Resources and Constraints Table 3 -5 Densitv Bonus for Provision of Affordable Units 32 27 33 28 34 29 35 30 36 31 37 32 38 33 39 34 40 35 Source: City of Gilroy Zoning Code, Section 46 b. Density Bonus for Dedication of Land for Affordable Housing Development and Meeting Threshold Percentages for Qualifying Units The City grants a density bonus when an applicant dedicates land for affordable housing development. To be eligible under this provision, land donation and transfer must occur no later than the date of approval of the final subdivision map, parcel map or residential development application. The donated land must have sufficient developable acreage large enough to contain at least 40 units and the appropriate zoning classification to construct a minimum of 10 percent Very Low - Income units, appropriate infrastructure and adequate public facilities and be within the boundaries of the proposed development or, if the local agency agrees, within one - quarter mile of the boundary of the proposed development.. Table 3 -6 shows the density bonus granted based on percentage of very low income units. 3 -18 • Housing Element Resources and Constraints Table 3 -6 Transfer of Land Density Bonus Percentage Very-Low Income Units Percentage Density Bonus 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 21 26 22 27 23 28 24 29 25 30 26 31 27 32 28 33 29 34 30 35 Source: City of Gilroy Zoning Code, Section 46 3 -99 Housing Element and Constraints C. Density Bonus for Senior Housing For projects with 100 percent senior households, the City grants a 20 percent density bonus. d. Density Bonus for Condominium Conversion A density bonus, or another incentive of equivalent financial value, is granted for a condominium conversion project when the applicant agrees to provide at least 33 percent of the total units to low- or moderate- income households or 15 percent to lower income households. The density bonus is a 25 percent increase in units over the number of units otherwise legally permitted. Other incentives may include the reduction or waiver of requirements, which the City might otherwise apply as conditions of conversion approval. Density Bonus for Child Care Facilities Developments that qualify for a density bonus and include childcare facilities located on -site or adjacent to the development are granted an additional density bonus equal to or greater than the amount of square feet of the childcare facility. In lieu of the density bonus, an additional concession or incentive that contributes significantly to the economic feasibility of the construction of the childcare facilities can be granted. To be eligible under this provision, a childcare facility must remain in operation for 30 years and must serve the same percentage of Very Low -, Low- and /or Moderate - Income children as the percentage of qualifying units. Development Incentives In addition to the density bonus, at least one other incentive identified in California Government Code 65915 shall be provided to developers proposing housing developments that meet the required guidelines, unless the City finds that the additional concession or incentive is not required in order to provide for affordable housing development. Concessions and incentives are subject to City Council review and approval. Table 3 -7 lists the number of incentives granted by the level and percentage of affordability. 3 -20 • Housing Element Resources and Constraints Table 3 -7 Number of Incentives by Level of Affordability Level of Affordability Percentage of Affordable Units Number of Development Incentives Very Low - Income 5% 1 2 bedroom 10% 2 2.0 per unit 15% 3 Low - Income 10% 1 20% 2 30% 3 Moderate - Income 10% 1 20% 2 30% 3 Source: City of Gilroy Zoning Code, Section 46 Parking Ratio Reduction In addition to the density bonus and development incentives, reduced parking requirements are offered for projects that meet the criteria. The development may provide "on- site" parking through tandem parking or uncovered parking, but not through on- street parking. These parking requirements are provided in Table 3 -8. Table 3 -8 Density Bonus Parking Requirements Unit Size Permitted Minimum Parking Spaces Studio 1.0 per unit 1 bedroom 1.0 per unit 2 bedroom 2.0 per unit 3 bedroom 2.0 per unit 4 bedroom 2.5 per unit Source: City of Gilroy Zoning Code, Section 46 3. Residential Care Facilities The City's Municipal Code defines a "residential care facility" as a resident - occupied dwelling, licensed by the State /County in where children and /or adults are cared for on a full -time, live -in basis. Residential care facilities for less than six people are permitted in all residential districts except the Agriculture District (A -1). Residential care facilities for more than six people are permitted in all 3 -21 Housing Element residential districts except the A -1 district with a Conditional Use Permit. Residential care facilities can also be located in the ND district, but are subject to a Master Plan or Specific Plan adopted for the area. 4. Emergency Shelters and Transitional Housing and Single Room Occupancy Units Homeless Shelters The countywide services and shelter provider, Emergency Housing Consortium LlfeBuilders (EHC) provides cold weather shelter at the Gilroy National Guard Armory from November through March each year. Comprehensive services at the shelter are expected to be available in 2009 through County funding. Community Solutions provides services and shelter targeted to victims of domestic violence and to youth who are homeless or at risk of homelessness. State Housing Law requires that cities identify sites that are adequately zoned for homeless shelters and transitional housing. Additionally, cities must not unduly discourage or deter these uses. Table 3 -9 provides a summary of emergency shelters and transitional housing in Gilroy. Table 3 -9 Homeless Facilities in Gilroy Source: City of Gilroy, County of Santa Clara 3.22 Target Number of Facility Name Type of Facility Population Shelter Beds National Guard Winter Cold Weather Shelter Individuals 125 Homeless Shelter and families La Isla Pacifica Emergency Shelter/ Women and 14 Domestic violence children (under 12 ears old Sobrato Apartments Transitional /Emergenc Families 225 Shelter Bill Wilson Transitional Shelter Youth and 8 Young Families Community Solutions Transitional Shelter Single 20 Individuals St. Joseph's Family Center Transitional Shelter Youth (some 9 with children Total 401 Source: City of Gilroy, County of Santa Clara 3.22 Housing Element Resources and Constraints In addition to the National Guard Winter Homeless Shelter and La Isla Pacifica, the City of Gilroy provides annual funds to the EHC San Martin Family Living Center in the neighboring unincorporated town of San Martin. The facility provides 17 family units and eight emergency units for homeless families from December to March, and to migrant families from May to November. Infrastructure for a homeless shelter on Monterey Road was completed concurrently with the Sobrato Apartments. In 2006, with the housing market already starting to suffer, a major donor of materials and labor pulled out of its funding commitment for this project. This situation combined with a change in federal funding emphasis from emergency shelter to permanent housing for the chronically homeless left the nonprofit agency unable to raise enough funding to close financing gaps for construction and subsequent operations of the shelter. The developer of the Sobrato Apartments has proposed in 2008 to build on the proposed shelter site the following development that closely aligns with the federal Housing First concept: • 31 studio apartments for chronically homeless individuals: 0 — 30% AM[ • 10 one bedroom apartments for individuals less than 35% AM[ • 12 two and three bedroom units providing units for families "graduating" from Sobrato Transitional Apartments. First group of families have come up to their 2.5 year maximum residency at Sobrato and are not equipped to enter the market rate rental market. • Funding Sources include MHSA (Proposition 63), State of California MHP Supportive Housing funds (Proposition 1C), low income housing tax credits, State of California EHAP and conversion of funds previously awarded to EHC (County funds, City of Morgan Hill CDBG, City of Gilroy) To fulfill the requirements of SB -2 the City is considering the Commercial Industrial (CM) zoning district and the Cannery District in the City's Downtown to allow emergency shelters as a matter of right if they meet the requirements in the City's Homeless Shelter Guidelines. The guidelines will only apply to homeless shelter facilities serving more than six clients, since facilities serving six or fewer clients are considered residential uses. These guidelines shall not be applied in such a way that they prohibit or discourage homeless shelters from being located in the City of Gilroy. The City is currently revising the Homeless Shelter Guidelines to reflect development and management standards pursuant to Government Code 65582(a)(4). The City anticipates approval by the City Council within 6- months of Housing Element adoption. 3 -23 Housing Element Resources and Constraints The Homeless Shelter Guidelines will be applicable to Housing First projects that will provide individuals and families immediate access to permanent housing, plus a variety of services delivered following housing placement to promote housing stability. The housing program provides residents with the rights of tenancy and is linked to voluntary and flexible support and services designed to meet the residents' needs and preferences for permanent supportive housing. The Homeless Shelter Guidelines sets forth the guidelines on the following: • Location considerations • Management of shelters • Number of clients served • Recreational areas • Required parking • Exterior lighting • Hours of operation • Separation of clients • Provision of services • Alcohol and drug prohibitions The Commercial Industrial (CM) zoning district allows for commercial uses and low intensity manufacturing and industrial uses. The CM zoning district is located with convenient access to the City's transportation corridors and is adjacent to existing retail and service establishments. The Cannery District in Downtown Gilroy is an area transitioning from light industrial uses to retail commercial and residential uses. Table 3 -10 summarizes each zoning district's total land and development standards. There are a total of 250 acres of land within the CM zoning district and the Downtown Gilroy Cannery District, with approximately 46 acres of vacant land. There are opportunities for redevelopment or adaptive reuse of sites within both districts. 3 -24 • Housing Element Resources and Constraints Table 3 -10 Total Land and Development Standards in CM zoning district and Downtown Gilroy Cannery District Zoning District Total Acres Minimum Lot Area Front Yard Setback Side Yard Setback (Adjacent to street) Side (All other side ards) Rear Yard Maximum Building Hei ht CM 218.64 ac None Min. 26 Min. 26 Match Match Max. 35 feet feet setback setback feet required required along the along the same same property property line for the line for the most most restrictive restrictive property ro e Cannery 31.40 ac None Max. 15 Max 10 Max. 10 0 feet Max. 50 District 1 1 feet I feet I feet I I feet Source: City of Gilroy, Municipal Code 3 -25 Housing Element Resources and Constrai b. Transitional Housing The City of Gilroy Zoning Code defines "transitional housing" as housing that is operated and managed by a transitional housing shelter and used exclusively by households at immediate risk of being homeless, or transitioning from homelessness to permanent housing. According to the City's transitional housing policy, transitional housing developments may be constructed in residential zoning districts and must comply with the density restrictions of those districts. In non - residential districts, transitional housing may be constructed only in conjunction with an approved homeless shelter. All transitional housing developments regardless of location require a conditional use permit. Single Room Occupancy Units Single Room Occupancy (SRO) residences are small, one -room units occupied by a single individual, and may either have a shared or private kitchen and bathroom facilities. SRO's are rented on a monthly basis typically without a rental deposit, and can provide an entry point into the housing market for Extremely Low - Income individuals, formerly homeless and disabled persons. Single -room occupancy units are not defined or included in the City's Municipal Code. As a result, this Housing Element will include a program to establish zoning districts and development regulations in the municipal code for the development of SRO's. 5. Accessory Dwelling Units Accessory dwelling units provide additional opportunities to provide housing for people of all ages and economic levels, while preserving the integrity and character of single - family residential neighborhoods. The City of Gilroy permits accessory dwelling units in the RR, R1, R2 and RH districts, provided certain requirements are met. The City does not require RDO allocations for accessory dwelling units. Requirements for accessory dwelling units include: • The unit is not for sale and may be rented. • The lot contains one existing single - family unit. The existing single - family unit must have at least two parking spaces, one of which must be covered. One additional parking space consisting of a minimum 200 square feet is required for the accessory dwelling unit. The additional parking space may be uncovered and /or located in the 3 -26 • Housing Element Resources and Constraints driveway, provided that the parking requirement for the single - family dwelling unit has been met. The accessory dwelling unit shall be limited to a one - bedroom unit with the overall floor area not to exceed 600 square feet in size, not including garage areas. All accessory dwelling units shall be limited to a single story, unless a Conditional Use Permit is approved. Any construction shall conform to height, setback, lot coverage, architectural review, site plan review, fees, charges and other zoning requirements generally applicable to residential construction in the zone in which the property is located. The accessory dwelling unit shall contain water, sewer and gas and /or electric utility connections that are in working condition upon its occupancy and can be serviced by the primary residence or with separate utility meters. 6. Housing for Persons with Disabilities The U.S. Census Bureau defines persons with disabilities as those with a long - lasting physical, mental or emotional condition. This condition can make it difficult for a person to do activities such as walking, climbing stairs, dressing, bathing, learning or remembering. This condition can also impede a person from being able to go outside the home alone or to work at a job or business. a. Reasonable Accommodation Procedures: The provisions of SIB 520 require municipalities to analyze potential and actual constraints upon the development, maintenance and improvement of housing for persons with disabilities, and demonstrate local efforts to remove governmental constraints that hinder the locality from meeting the need for housing for persons with disabilities. Cities are required to include programs that remove constraints and provide reasonable accommodations for housing designed for persons with disabilities. Section 50.23 of the Municipal Code addresses Reasonable Accommodation Procedures in the City of Gilroy. Applications are provided and reviewed by the City's Planning Department. In making a determination concerning the reasonableness of a requested accommodation, the following factors are considered: 3-27 Housing Element • Special need created by the disability. • Potential benefit accomplished by the requested modification. • Potential impact on surrounding uses. • Physical attributes of the property and structures. • Alternative accommodations which may provide an equivalent level of benefit. • In the case of a determination involving a one - family dwelling, whether the household would be considered a single housekeeping unit if it were not using special services that are required because of the disabilities of the residents. • Whether the requested accommodation would impose an undue financial or administrative burden on the City • Whether the requested accommodation would require a fundamental alteration of a City Program, which includes the Uniform Housing, Building and Fire Codes. The City has found that these factors do not unduly constrain the development of housing for persons with disabilities. These considerations vary depending on whether the request is being made in a single - family, multi - family or commercial zoning district, and can only include the physical impacts of the proposed use, not on the type of residents. b. Zoning and Other Land Use Regulations: The City has not identified any zoning or other land -use regulatory practices that could discriminate against persons with disabilities and impede the availability of such housing for these individuals. Examples of the ways in which the City facilitates housing for persons with disabilities through its regulatory and permitting procedures are: • The City of Gilroy allows, as a matter of right, residential care facilities for 6 or fewer persons in any residential district except the A -1 district. Group care facilities for more than six persons are permitted subject to a conditional use permit in residential districts except the A -1 district. • The City of Gilroy allows residential care facilities for more than six people 3 -28 ..n. Housing Element Resources and Constraints in all residential districts except the A -1 district with a Conditional Use Permit. Residential care facilities can also be located in the ND district, but are subject to a Master Plan or Specific Plan adopted for the area. The City of Gilroy defines a "family" as one or more persons, occupying premises and living together as a single housekeeping unit, as distinguished from a group occupying a hotel, club, fraternity or sorority. This definition is consistent with State law, and does not pose a constraint on the development of housing for persons with disabilities. Parking requirements for residential care facilities are not specified in the City's Municipal Code, however the City allows for some variation from the application of its parking standards. Section 31.34 of the Municipal Code states, "The parking ratio shall be determined by the Planning Director for uses that are not specifically included, and that are not closely related to other uses included in the parking space requirement schedule." Resources provided by the City for reasonable accommodations and fair housing for people with disabilities include retrofit grants for the homes of very low income disabled residents with funding coming from the federal Community Development Block Grant (CDBG)and Gilroy's local Housing Trust Fund. The trust fund also provides funding to nonprofits that investigate fair housing complaints, perform accessibility audits on new construction, provide community education on fair housing for disabled people, and provide referrals to accessible units and in -home assistance. 7. Building Codes and Enforcement The City of Gilroy's building and safety codes are adopted to preserve public health and safety, and ensure the construction of safe and decent housing. These codes and standards also have the potential to increase the cost of housing construction or maintenance. a. Building Codes The City of Gilroy has adopted the 2007 California Building Code, which is based on the 2006 International Building Code and establishes construction standards for all residential buildings. The latest edition of the California Building Code shall be submitted to the Council from time to time together with changes or modifications as are reasonable and necessary because of local climatic, geological or topographical conditions, or as otherwise permitted by State law. The regulations set forth are designed to ensure the safety and welfare of 3 -29 Element Resources Gilroy's residents. Local amendments to the California Building Code include: • Section 108.4.2 is amended to read, "Fees shall be assessed in accordance with the adopted City of Gilroy Comprehensive Fee Schedule." • Sections 108.5, 108.7, 108.8 are deleted for "Right of Entry for Enforcement; Alternate Materials, Design, Test and Methods of Construction; and Appeals Board." • Section 406.1.4 is amended to change requirements for separation of residence and garage. • Section 903.2 is amended to read in its entirety, "Where required, approved automatic sprinkler system in new buildings and structures shall be provided in the locations as set forth in the Gilroy Fire Code and the California Fire Code." • Section 903.2.1.1 reads, "For 'automatic fire - extinguishing system" in new buildings and structures, any conflicts between the 2007 CBC and the Gilroy Fire Code, the Gilroy Fire Code shall prevail." • Section 1614 added to provide structural modifications that increase the minimum base shear level to be consistent with previous editions of the building code. • Section 1704.4 Exception 1- Special Inspection amended to read, "Isolated spread concrete footings of building three stories or less in height that are fully supported on earth or rock, no greater than 2500 per square inch." • Section 1806.2 to read, "Retaining walls shall be constructed of concrete or masonry and be designed by a California State licensed engineer." • Sections 1908.1 and 1908.1.17 amended to reduce the serviceability provisions. • Chapter 23- Amendment modifications to eliminate the use of gypsum board and stucco plaster as shear resisting element. • Appendix C- Agricultural Buildings to be adopted. 3 -30 • Housing Element Resources and Constraints • Appendix G- Flood Resistant Construction to be adopted. • Appendix I- Patio Covers to be adopted. • Appendix J- Grading to be adopted. • Section J110.3 added for erosion control. • Section J110.4 added for dust and mud control measures. • Section J110.5 added for archaeological discovery. • Section J110.6 added for work stoppage, right of entry, notification of violation, abatement of violation, penalties, enforcement and appeals. • Section 304.1 amended to read, "Fees shall be assessed in accordance with the adopted City of Gilroy Comprehensive Fee Schedule." • Sections 304.2 and 304.3 amended to read, "As set forth or shown per the adopted City of Gilroy Comprehensive Fee Schedule." • Section 304.4 amended for expiration of plan review. • Section 305.5 amended for required building inspections. • Section 604.2 exception deleted. • Section 609.3 amended to read, "Water piping shall not be installed in or under a concrete floor slab within a building without prior approval of the Administrative Authority." • Section 609.3.3 added to read, "Piping installations in or under a concrete floor slab will be installed within a chase or conduit for easy replacement, to the satisfaction of the Administrative Authority." • Section 609.4 amended for pipe testing. • Section 701.1.2.2 amended to read, "ABS and PVC installations are limited to not more than two stories in areas of residential accommodation in a three story building." • Section 719 amended for clean -outs. • Section 1201.2.7.2.2 amended for wall thickness. 3 -31 Housing Element Resources and Constraints Americans with Disabilities Act The Federal Fair Housing Act of 1998 (FHA) and the Americans with Disabilities Act (ADA) are federal laws intended to assist in providing safe and accessible housing. ADA provisions include requirements for a minimum percentage of units in new developments to be fully accessible for persons with physical disabilities. Compliance with these regulations may increase the cost of housing construction as well as the cost of rehabilitating older units, which may be required to comply with current codes. However, the enforcement of ADA requirements is not at the discretion of the City, but is mandated under federal law. Development Fees Various development and permit fees are charged by the City and other agencies to cover administrative processing costs associated with development. These fees ensure quality development and the provision of adequate services. Often times, development fees are passed through to renters and homeowners in the price /rent of housing, thus affecting the affordability of housing. Table 3 -11 compares the development fees in Gilroy with development fees of neighboring cities. 332 • Housing Element Resources and Constraints Table 3 -11 Fee Gilrov Morgan Hill I Hollister Planning Initial Department hourly $470 Determination rates with a $4,760 min. Electrical deposit + publishing Mechanical cost Negative -- Hourly Rate with $250 Declaration deposit EIR Processing 10% of contract price $5,506 (19% of study Hourly Rate with with a $14,770 costs whichever is deposit minimum + publishing greater, plus actual cost of cost study and any required State and Count fees Categorical $185.00 -- Exemption General Plan $10,010 /first 10 acres + $5,602 Hourly Rate with Amendment $160.00 /add'I 10 acres deposit + publishing cost Zone Change $4,360/first 10 acres + $5,210 Hourly Rate with $90.00 /add'I 10 acres + deposit publishing cost Tentative Tract $10,290 /first 12 lots + $4,460 Map $85.00 /add'I flat land or $305.00 /add'I lot hillside + publishing cost Site Plan Review $4,392 Planned $5,790.00 $6,102 Hourly Rate with Development deposit Review Conditional Use $3,780.00 + publishing $5,439 (CUP) $1,098 Permits and cost (CUP) $6,102 (Variance) Variances $3,585.00 + publishing cost (Variance) Building Building Plan Check 75% of building permit fee Electrical Mechanical Plumbing 3 -33 Housing Element Table 3 -11 Comoarative Development Fee Summary Description Gilroy Morgan Hill Hollister SMIP Fee is based on $2,653 (Multi-family) Storm attached Building $2,006 (Single - family) $2,240 Drain/Water Valuation fee which is $1,174 (Multi - family) $13,825 - $16,261 Quality determined by: $1,044 (Multi - family) (Single- family) Street $0.00010 x valuation $8,136 (Multi-family) Improvement with a minimum of $4,656- $6,405 (Single - Sewer $0.50 for Group R $11,507 (Single - family) Improvement occupancies excluding $9,738 Multi -family) Grading hotels and motels, and family) Surface $0.00021 x valuation Drainage for all other occupancies Energy Permit Issuance $67.00 each permit; $33.50 supplemental permit Enaineerina and Subdivision Final Tract Map $5,128 $2,940 (Single - family) $1,900 Sewer Studies $2,653 (Multi-family) Storm $12,273 $2,006 (Single - family) $2,240 Drain/Water $11,487 $1,174 (Multi - family) $13,825 - $16,261 Quality $1,044 (Multi - family) (Single- family) Street $8,136 (Multi-family) Improvement $4,656- $6,405 (Single - Sewer $11,507 (Single - family) Improvement $9,738 Multi -family) Grading -- family) Surface $155.00 Drainage Capital Facilities and Connections Water $5,128 $2,940 (Single - family) $1,900 $2,653 (Multi-family) Sewer $12,273 $3,560 Traffic /Road $11,487 $1,491 (Single - family) $13,825 - $16,261 fees $1,044 (Multi - family) (Single- family) $8,136 (Multi-family) In -lieu Park $4,656- $6,405 (Single - Facilities Fee family) $3,815- $5,244 (Multi- family) School Facilities $5.950 Notes: — not listed on City Fee Schedule Source: City of Gilroy, City of Morgan Hill, City of Hollister 3 -34 • Housing Element Resources and Constraints a. Development Impact Fees Development impact fees add to the cost of residential development. However, they are seen as a more cost effective mechanism for financing the new infrastructure required to support new development. The fees allow for the consolidation of infrastructure projects when it is more cost - effective to do so and, by law, must be linked to the actual impact of the specific project. The City believes that the system of planning infrastructure and financing it with development fees serves both the developer and the community by promoting orderly development and by fairly distributing the cost to all new development. The typical development fee for a single - family unit with subdivision is $64,163 and a multi - family unit in a planned unit development is $41,201. The single - family unit is a 2,000 square foot home on a 6,000 square foot lot; and the multi- family unit is a 1,000 square foot, 2- bedroom, 1 -bath unit. Fees for traffic, sewer, water, and public facilities are deferred until a building permit is granted. Table 3- 12 lists the typical development fees for single - family and multi - family developments. The majority of fees are impact fees which are necessary to provide infrastructure, facilities and services that support new housing units. The City is currently initiating a process to review and analyze the current fees. Table 3 -12 Typical Development Fees Fees 50 -unit Residential Subdivision' 50 -unit Apartment Com lex2 Residential Development Allocation $9,500 $9,500 Tract Ma $13,740 Architectural Site Review $17,075 $5,975 Final Ma $3,105 $2,370 Building Permit $180,369 $25,000 Public Works Fees Due at Time of Submittal Public Works Service $8,731 $7,996.00 Plan Check and Inspection $406,000 $166,000 Storm Drain $6,880 $5,400 Fees Deferred Until Building Permit Traffic Impact $590,450 $478,600 Sewer $626,550 $339,050 Water $261,800 $105,900 Public Facility $1,079,300 914,300 Construction Water $4,665 Total $3,208,165 $2,060,091 Per Unit $64,163 $41,201 Notes: 110 acres, 2,000 square foot homes on 6,000 square foot lots 211,000s uare foot 2- bedroom, 1 -bath units Source: City of Gilroy 3-35 9. Local Processing and Permit Procedures When authorized by the City Council, applications for residential development are accepted only from May 1 to June 1 each year. This limited application period is necessary in order to rank and rate applications according to the Residential Development Ordinance (RDO). The City has a Technical Advisory Committee (TAC) that meets every Thursday to review preliminary plans for compliance with city ordinances and standards, identify on -site or off -site improvements and determine the adequacy of the application. This provides the applicant an opportunity to evaluate his compliance with the development process early in the process, in order to minimize the need for later revisions to the application. Table 3 -13 illustrates the typical development timelines for various applications and permits. Table 3 -13 Approximate Development Timelines Type of Approval or Permit Typical Processing Time Approval Body Conditional Use Permit 3 -4 months Planning Variance 3 -4 months Planning Zone Change/Zoning Amendment 6 -12 months Planning General Plan Amendment 6 -12 months Planning Architecture and Site Review 3 -12 months Planning Planned Unit Development 8 -12 months Planning Tentative Tract Ma 4 -6 months Planning Negative Declaration' 6 -9 months Planning Environmental Impact Report' 9 -12 months Planning Final Subdivision Ma 2 -4 months Engineering Parcel Ma 1 -2 months Engineering Notes: 'The Negative Declaration and Environmental Impact Report comes out of an Initial Study and is processed with the application that is being submitted at that time. Source: City of Gilroy Both single - family and multi - family projects are required to request allocations through the RDO process, which takes approximately one year to complete. Subsequent to receipt of allocations, single - family projects are required to file applications for Tentative Subdivision Maps and Architectural and Site Reviews. These applications can be filed and processed concurrently. The review and 3 -36 Housing Element Resources and Constraints approval process typically takes up to one year to complete. After approval of these applications, Final Subdivision Maps must be submitted and approved. This process typically requires 3 to 6 months to complete. Once Final Maps are recorded, Building Permit Applications may be filed, which typically takes 3 to 4 months for approval. Multi- family projects are required to file and receive approval for Architectural and Site Review Applications and Building Permit application, but are not required to submit Tentative and Final Subdivision Maps. The review and approval of multi - family projects typically takes 4 to 6 months to complete, and application for Building Permits takes 3 to 4 months. Residential projects involving two or more units must receive Architectural and Site Review approval prior to construction. If a project does not require a subdivision map or PUD zoning, the Architectural and Site Review application is approved at the staff level. If a project requires subdivision or PUD zoning, the Architectural and Site Review application is reviewed by the Planning Commission and approved by the City Council as part of the review of those other applications. Applications are reviewed to ensure that the development addresses and adequately meets the requirements for the following: a) Traffic safety and efficiency. 1. Traffic volume and conditions on abutting or access streets. 2. Street improvements, including lighting. 3. Circulation patterns within the development, including the locations and dimensions of vehicular and pedestrian entrances, exits, drives, walkways, buildings and other related facilities. 4. Adequacy of off - street parking. 5. Surfacing, lighting and landscaping of off - street parking facilities. 6. Location, quantity, height of materials, and shape of landscaped areas. 7. Adequacy, location, arrangement and dimensions of truck loading and unloading facilities. b) Outdoor advertising and signs: 1. Potential traffic hazards. 2. Appearance. 3. Harmony with adjacent development. (This requirement is limited compliance with development standards and design guidelines in the City's Zoning Ordinance related to outdoor advertising and signs, Section 37, in order to ensure applicant certainty.). 4. Favorable image of the City. 5. Number, area, bulk, shape, height, location, separation, clearance, projection, illumination, color and landscaping of such signs. 3-37 Housing Element Resources and Constrai c) Site development: 1. Physical characteristics of the site. 2. Existing and proposed easements. 3. Appearance and harmony of buildings with adjacent development, the character of the neighborhood, and existing and projected public improvements (This requirement is limited to compliance with development standards and design guidelines in the City's Zoning Ordinance related to site development, Section 32, in order to ensure applicant certainty.). 4. Location, appearance and orientation of structures, open spaces and activities. 5. Determination of boundaries, building setbacks and uses intended. d) Landscaping: 1. Harmony with adjacent development. (This requirement is limited to compliance with development standards and design guidelines in the City's Zoning Ordinance related to landscaping, Section 38, in order to ensure applicant certainty.). 2. Concealment of storage areas, utility installations, or other unsightly development. 3. Quantity, location, height and materials of walls and fences, hedges, screen planting and landscaped areas. 4. Planting of ground cover or other surfacing to prevent erosion and reduce dust. 3-38 5. Unnecessary destruction of healthy trees. 6. Facilities and methods of insuring continued maintenance of landscaping. e) Drainage and flood control and health standards: 1. Effect on flood control and storm and surface water drainage facilities. 2. Additional flood control and drainage improvements required. 3. Minimum health standards. 4. Consistency with the City's adopted Flood Plain Management Ordinance 50 -9 f) Fire protection: 1. Additional fire protection improvements required. 2. Location, number and type of such improvements. 3. Adequacy of the water supply for fire protection purposes. g) Environmental impacts: 1. Consistency with the City's adopted Environmental Review Procedures and Process. 2. Consistency with the California Environmental Quality Act (CEQA). 3-38 • Housing Element Resources and Constraints The following conditions are standard on all architectural and site approvals: a) Landscaping: Landscaping plans including specification for an irrigation system shall be approved by the Planning Director in accordance with the adopted Consolidated Landscaping Policy, prior to issuance of a building permit. b) Trash Enclosures: All trash enclosures shall consist of visually solid fences and gates, six feet in height, in accordance with the adopted City of Gilroy standard trash enclosure design plan, or a similar design approved by the Planning Director. All trash enclosures shall be located in accordance with the approved site plan and the Uniform Fire Code. c) Exterior Lighting: No unobstructed beam of exterior lighting shall be directed outward from the site toward any residential use of public right -of- way. d) Mechanical Appurtenances: Mechanical equipment to be located on the roof of a building shall be screened by an architectural feature of the building such that it cannot be seen from ground level at the far side of the adjacent public right -of -way, whenever possible. e) Outdoor Storage: All outdoor storage and loading areas must be screened from public view with a combination of landscaping, solid fencing and building design and orientation. 10. Residential Development Ordinance In terms of housing production, the most significant procedure is the allocation of building permits through the Residential Development Ordinance (RDO). The RDO was first established in 1979 to monitor the amount of residential growth in the City. In past years, the City Council has reviewed and revised the RDO limits to reflect market changes and the City's vision. The impact of the RDO allocation process and limits on affordable housing development has been the subject of many community debates in Gilroy. The City recognizes that subjecting affordable housing projects to the overall RDO limit is a constraint to providing the total number of allocations needed to meet Gilroy's determined regional needs. However, there is a consensus in the community that the RDO plays a very important role in managing growth and protecting the community's quality of life. The City's most recent General Plan update focused on updating the RDO to address the concerns expressed by the members of the General Plan Update Committee. There was strong consensus that the RDO serves the City well as a growth management tool, although many expressed the need to revise its procedures, allocation numbers, and /or the evaluation criteria used to judge 3-39 Element Resources competing projects. Rather than remove the overall cap of the RDO by exempting affordable units, the General Plan update has focused on a number of strategies to reconfigure the RDO and the development environment in general in a manner that supports affordable housing goals and achieves other important community goals. These strategies include: • Establish the General Plan as the guiding document on which the RDO is based; • Continue to prioritize affordable housing projects; • Ensure a mix of housing types in areas of new residential development; • Take a more proactive and aggressive role in supporting affordable housing; • Create a specific geographic exemption area; • Establish a more aggressive "accessory dwelling unit" program; • Provide an exemption for mixed -use and live -work units; • Promote the construction of assisted living units. The RDO only applies to residential development. This application of the RDO is to ensure that residential growth is metered so that the City can provide and fund adequate services to support residents. These services include, but are not limited to, schools, parks, fire services and police services. In comparison, commercial and industrial developments do not require these services to the extent that residential developments need them. In addition, commercial and industrial developments support themselves by providing a tax base to fund services that serve both businesses and residents in the City. Commercial and industrial developments provide an important source of revenue for the City's economic development. 3 -00 • Housing Element Resources and Constraints a. Exemptions The Residential Development Ordinance applies to all residential development projects constructed within the City of Gilroy, except for those listed as exempt. The following types of residential projects are exempted from the provisions of the RDO: A Small Project Exemption may be granted to projects proposing twelve or fewer dwelling units. All projects submitted under this Small Project Exemption category shall require City Council review and approval. Tentative maps submitted with an application for this exemption must be accompanied by an architectural and site approval application, except projects proposing to create single - family lots for homes to be custom designed and built. Projects proposing more than twelve dwelling units submitted for a Small Project Exemption, may be considered by the City Council and granted exemption if the City Council determines that the project has all the following special circumstances: • The project meets the intent of the RDO Small Project Exemption; • The project needs only a few more than twelve units to completely build -out; and • The project will not create any remainder lots. Replacement dwellings are exempt provided that the number of exempted new dwelling units do not exceed more than four units, the number of dwelling units removed for such replacement on any parcel. Relocation of dwelling units existing within Gilroy to another site shall be exempt. A residential development project sponsored by a non - profit organization funded by federal, state, or local government is exempt, so long as such organization is one of the following: • An organization that receives annual operating grants in excess of $100,000 from government sources; or • An organization that qualifies as a Community Housing Development Organization (CHDO) Development projects receiving this exemption must be no more than 75 units and must be specifically approved for the exemption by the City Council. All requests under this exemption shall be processed through an Affordable Housing Exemption from RDO application. Public hearings before the Planning Commission and City Council will be held to consider this application. 341 Element Resources A project which meets the standards established by the "Policy Statement for Exempting Affordable Development Proposals from the RDC" is exempt if the project consists of 75 units or less and is specifically approved for exemption by the City Council. Large residential projects, which have received an approved Residential Development allocation of at least 100 units, may receive an allocation credit when specific portions of their project have been sold to a secondary builder or contractor. • An Infill Exemption may be granted to projects four or fewer dwelling units which meet the following criteria: • All street improvements must be in place, including water, sewer and storm drains; • The project must be surrounded by developed property, except that the project may be adjacent to an undeveloped or underdeveloped property which itself would otherwise qualify under this exemption; and • The project shall not be located on the edge of a developed area of the City, so that it, if built, would create or extend development in any way into a previously undeveloped area of the City. A project proposing a single dwelling unit may qualify for a Non - discretionary Single Unit Exemption if it meets the following criteria: • When no discretionary approval from the City is required; • The project is located in either R1 or Al zoning district; and • No other dwelling units exist on the property. • A project proposing a single dwelling unit may qualify for a Discretionary Single Unit Exemption if it meets the following criteria: • A discretionary approval from the City is required; and • No infrastructure is required as a prerequisite to the development of the property. Transitional housing units that meet the standards established by the City's adopted Transitional Housing Policy are exempt if specifically approved for exemption by the City Council. Projects located within the City's Downtown Commercial area as defined in the General Plan are specifically approved for exemption by the City Council. 3+32 • Housing Element Resources and Constraints RDO Affordable Housing Exemption Procedures In order to meet the current and future housing needs of all income segments of the community, the City of Gilroy provides exemption from the Residential Development Ordinance annual allocations. The City requires that 100 percent of the housing units granted an exemption must be sold and /or rented at prices that are affordable to Very Low -, Low- or Moderate - Income households. The procedure for this exemption is as follows: 1) The applicant applies for an RDO Affordable Housing Exemption, and submits all required fees at the time of application. Consideration for the approval of this application is made in accordance with the criteria for exempt categories as described above. 2) The applicant must specify the number of units to be constructed and identify the number of units that will be affordable to households with Very Low -, Low- and Moderate - Incomes. 3) Rental and /or sale prices of all units shall be reviewed and approved by the City. 4) The applicant must receive approval of the RDO exemption prior to Tentative Map Approval. In situations where a Tentative Map is not required, the applicant must receive approval of the RDO exemption prior to Architectural and Site Review approval. 5) After approval of the application, and prior to receiving Tentative Map approval (or Architectural and Site approval in situations where Tentative Maps are not required), the applicant must enter into a contract with the City agreeing to provide affordable housing as delineated in the RDO Affordable Housing Exemption policy. 6) The applicant will advertise the existence and terms of the agreed upon policy to the general public and accept applications from prospective purchasers and tenants. b. Annual Numerical Limits The City Council, after considering economic, public service, environmental, housing and other information deemed relevant to the residential development program of the City determines the maximum total number of dwelling units which should be built during a subsequent ten -year goal period. Each year of a ten -year goals period, the City Council holds a public hearing, which can be continued from time to time. Then Council adopts a resolution reaffirming, 3.43 Housing Element Resources and Constraints readjusting and resetting the Numerical Limits for each subsequent calendar year remaining in the ten -year goal period. The Numerical Limit for a given calendar year is expressed as the total number of dwelling units, for projects not exempt from the RDO, for which building permits may be issued in that calendar year. The Numerical Limit for one year may not exceed 130 percent of the average of the Numerical Limits for the remaining years in the ten -year goal period, or 13 percent of the ten -year goal, whichever is less. There is no set formula for determining the number of exempt units. Historically, the City Council has reserved one quarter to one third of all units for exempt projects. Table 3 -14 summarizes Gilroy's maximum allotted RDO growth numbers from 2004 -2013. The total RDO allocation, including market rate units, exempt units and Downtown Gilroy Specific Plan units, within the planning period exceeds the City's unmet RHNA need. For the period 2007- 2013 there are 1,499 market rate units, 679 exempt units (average of 97 units per year), and 1,576 Downtown Gilroy units available in the RDO allocation. At this time, the allocation for 2014 has not yet been determined. To ensure the RDO continues to provide capacity to meet the City's RHNA need, the City has included a policy program to monitor the RDO in this Housing Element update. Table 3 -14 RDO Growth Numbers Source: City of Gilroy In June 2010, the City Council adopted an amendment to the Residential Development Ordinance to provide a means by which allocations could be awarded to projects that are not currently exempt from the RDO competition. Specifically, the Council creates a new category of exemptions for infill projects that could develop in the near future when other projects that currently have RDO 3.44 • Housing Element Resources and Constraints allocations are not being built. In order to be eligible to build under the new exemption category, projects must be located on infill sites and must be able to complete construction within 36 months of approval of the exemption. Project sponsors must be able to demonstrate the ability to meet the 36 -month deadline in order to receive the exemption. Initially, 200 units have been set aside for projects which meet these requirements. Additional units may be added at a later date by the City Council. C. Application Procedures All applications for Residential Development Review Projects are submitted to the City of Gilroy, Department of Planning. The Planning Commission then holds a public hearing and assigns a point score to each residential development project for which the application has been deemed complete in accordance with the City's Project Rating Scale. The Planning Commission competitively evaluates each residential development project and establishes a ranking for each based upon its assigned point score. The Planning Commission recommends to the City Council a build -out schedule only for those projects for which building permits can be issued within the applicable Numerical Limits. If the Planning Commission finds that, due to environmental or other reasons, a given project is detrimental to the public health, safety and general welfare, the Commission may recommend to the City Council that the project not be granted a build -out schedule regardless of its score on the Project Rating Scale or whether or not the applicable Numerical Limits are fully allocated. The City Council holds a public hearing and reviews the point scores, rankings and build -out schedules and may affirm or modify the recommendation of the Planning Commission. The allocation process takes approximately one year to complete and is awarded for a 3 -5 year period beginning two years from the end of the allocation process. If allocated units are not constructed within the 3 -5 year period, then the City Council may reallocate them, add them to the next RDO allocation, or eliminate them. To date, fewer than five projects have expired and all of the units have been reallocated in the current RDO cycle. To address the possible elimination of unused allocations, this Housing Element update includes a policy program action to review the RDO and revise the policy as appropriate. The City of Gilroy allows concurrent submittal of remaining entitlements (e.g., subdivision maps and site and architectural review) with the RDO allocation process. The RDO application and allocation process takes approximately one year to complete. 3.45 Housing Element Resources and Constrai The following describes the RDO application procedures: 1) All applications for Residential Development Review of projects are submitted to the City of Gilroy's Planning Department. 2) Each request for Residential Development Review contains information and fees requested on the Residential Development Review application forms. Only applications deemed complete by the Planning Director are considered. The following describes the competitive evaluation procedures and assignment of build -out schedules: 1) The Planning Commission holds a public hearing and assigns a point score in accordance with the Project Rating Scale to each residential development project for which the application has been deemed complete by the Planning Director. 2) The Planning Commission competitively evaluates each residential development project and establishes a ranking for each residential project based upon its assigned point score. 3) The Planning Commission recommends to the City Council a build -out schedule only for those projects which the Planning Commission determines that building permits can be issued within the applicable Numerical Limits. If the Planning Commission finds that, due to environmental or other reasons, a given project is detrimental to the public health, safety, and general welfare, the Commission may recommend to the City Council that the project not be granted a build -out schedule regardless of its score on the Project Rating Scale or whether or not the applicable Numerical Limits are fully allocated. 4) The City Council holds a public hearing and reviews the point scores, rankings and build -out schedules recommended by the Planning Commission and may affirm or modify the recommendation. In making its decision, the Council shall give priority to accommodating subsequent phasing and build -out of previously approved projects for which substantial public infrastructure improvements have been constructed to serve such future phases. 5) The maximum Numerical Limit for any year does not have to be fully allocated. (Although the City Council has the authority to not fully allocate the available units, to date it has not happened and is unlikely to happen in the future.) 3-06