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. In the Civic /Cultural Arts
District, residential units may be allowed on the ground floor if they are located
between Eigleberry Street and Church Street behind a business. Residential
units in all six Downtown Specific Plan Districts must also comply with the same
guidelines set forth within commercial districts.
3 -8
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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.
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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).
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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
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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.
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• 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.
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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.
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• 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,
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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
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• 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.
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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.)
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