Big news! We’ve added new housing program data - check them out under “Housing Programs” on each city page.

Gilroy

Housing Element Status
Certified
Rent Burden
56%
rent burdened
Affordable Housing Production
2%
affordable permits issued
Housing Programs
64
total programs
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Housing Programs

Housing programs are the strategies that cities and counties legally have at their disposal to produce more and preserve existing affordable housing, as well as protect existing residents from getting displaced from their homes and communities.

6th Cycle Programs

64
total programs

Local housing programs, as part of a housing element, have significant impacts on a city or county reaching its affordable housing goals. Each additional housing policy has a significant impact on the residents who are most in need of affordable housing. However, the number of programs that a jurisdiction includes in their housing element is not meant to imply how well a city or county is addressing local housing needs since the quality and impact of each will need to be determined as well.

Overview of Program Deliverables

Use the below data to explore this jurisdiction’s approaches to affirmatively furthering fair housing for the 6th element cycle, and review the actions, deliverables, and deadlines committed to for each program.

PROGRAM NUMBER
ACTIONS
DELIVERABLE
DELIVERABLE DATE
A - 1
To ensure that the City monitors its compliance with SB 166 (No Net Loss), the City will develop a procedure to and will track: Unit count and income/affordability assumed on parcels included in the sites inventory. Actual units constructed and income/affordability when parcels are developed. Net change in capacity and summary of remaining capacity in meeting remaining RHNA. The status of pipeline projects. To ensure the City has adequate sites to accommodate any net loss of Regional Housing Needs Allocation (RHNA) capacity due to development of RHNA sites or accessory dwelling units (ADUs) below projections, the City shall create a No Net Loss Inventory of replacement sites within 18 months of Housing Element certification. The backup replacement sites in the No Net Loss Inventory will be separate and distinct from the identified RHNA sites inventory included in Appendix B. The No Net Loss Inventory replacement sites are all appropriate for lower-income development based on the criteria used for RHNA site selection. The City has begun development of this list and initial estimates include capacity for approximately 600 units, if needed. The City will monitor the status of pipeline projects identified in the Housing Element. Should pipeline projects not be completed as anticipated, the no net loss inventory will be updated.
No net loss of capacity below the RHNA requirement during the planning period.
Adopt procedure and create No Net Loss Inventory by end of Q4 2024. Review RHNA site status twice yearly and update No Net Loss Inventory as necessary to maintain adequate RHNA sites.
A - 2
Implement the Surplus Lands Act and report any City-owned surplus land in the Annual Progress Report. Provide affordable housing developers the first priority for designated surplus lands as applicable per Government Code Section 54227. Assess City-owned properties for their potential redevelopment or development for residential uses that include housing for extremely low-income households and those with special needs such as seniors and persons with disabilities. Consider adding City owned parcels to the No Net Loss Inventory, as needed. Proactively advertise surplus land opportunities to affordable housing providers, the Santa Clara Office of Supportive Housing, and developers of special needs housing (e.g., extremely low income, disabled, farmworker housing). The City-owned site does not need to be surplused to meet the RHNA, since it is in the 15 percent buffer. Alternative sites will be identified if the one City-owned RHNA site is not developed and there is a net loss of capacity needed to meet the RHNA.
The City will contact affordable housing developers regarding any surplus lands, with the goal of developing at least 21 lower-income units during the planning period.
Report surplus lands in conjunction with the Annual Progress Report. Advertise surplus land opportunities to affordable housing developers, as they become available. Review all City owned sites by the end of Q4 2025 to determine which additional sites could be declared as surplus.
A - 3
Pursuant to the statutory requirements of Government Code Sections 65583.2(h) and (i), amend the Zoning Ordinance to require by- right approval of any “reuse” 4th and 5th Cycle sites being used to meet the 6th Cycle RHNA, if 20 percent of the units in the development are affordable to lower-income households.
By end of Q4 2023.
A - 4
The City shall make the residential sites inventory available to developers by publicizing it on the City website and providing copies of the inventory to developers. The City shall update the list of sites annually, or as projects are approved on the sites.
Maintain accurate and publicly available residential sites inventory throughout the planning period.
Post on website by end of Q4 2023; update annually.
A - 5
The City will revise the Neighborhood District Policy so it does not rely on the Residential Development Ordinance (RDO). Revisions to the policy include: Studying and adopting an inclusionary housing policy and in- lieu fee for Neighborhood District areas. Updating the Neighborhood District target densities, consistent with the Gilroy 2040 General Plan. Adopting standards related to the distribution of units across the levels of affordability (e.g., 30% of the 15% affordable units shall be designated for low income). Adopting standards related to the term of affordability (e.g., rental units shall be restricted as affordable for a minimum of 55 years).
By end of Q4 2024.
A - 6
Continuously track the number of building permits issued for ADUs. The City will also review geographic distributions of ADUs biennially. If the average ADU production is less than 25 units in years 2023, 2024, and 2025, the City will update the ADU strategy by the end of 2026. In this case, the City will hold a focus group event with local stakeholders in spring or fall 2026. The purpose of the collaborative meeting will be to identify appropriate ADU programs to help increase production. If necessary, the City will identify additional RHNA sites in No Net Loss Inventory, as discussed in Program A - 1.
Increase the number of new ADUs permitted in the City from an average of approximately 15.75 (2018-2021) to an average of approximately 25. Geographic Targeting: 30 percent of annual ADU production in high resource areas, RCAAs, and areas with relatively higher income.
Track ADU permits as they are submitted. Review ADU strategies annually as part of the Annual Progress Report process. Hold a focus group event with local stakeholders in spring or fall 2026 if average ADU production is less than 25 in years 2023, 2024, and 2025. Identify additional programs or sites within six months of shortfall.
A - 7
The City will develop an ADU program that includes pre designed “model” plans for ADUs that meet zoning and building, and fire codes. The program may be modeled after successful programs implemented in other cities. To inform this effort, the City will work with the Santa Clara County Planning Collaborative and join the ADU Advisory Committee. The Collaborative and Advisory Committee are working on creating a subregional program of pre designed ADU plans and a variety of ADU tools and resources that can be available to all residents and cities in Santa Clara County to encourage ADU production.
Increase the number of new ADUs permitted in the City from an average of approximately 17.5 (2018–2021) to an average of approximately 25.
By end of Q4 2024.
A - 8
Upon securing funding, the City will develop a financial assistance program for homeowners who build ADUs with an affordability restriction or commitment to offering housing choice vouchers. The City will utilize in-lieu fees to facilitate development of ADUs affordable to lower- income households in high-resource areas of the City. These funds can be used to help pay for impact fees and other costs associated with ADU development. Gilroy’s ADU impact fees have not acted as a constraint to ADU production. However, if ADU production is lower than anticipated, the City will evaluate reducing ADU impact fees as a potential incentive for affordable housing and update them as necessary to ensure the fees are consistent with regional trends and do not unreasonably constrain ADU development. The City will review successful programs from other cities or the Housing Trust of Silicon Valley and contact Community Development Financial Institutions for potential partnerships. These efforts will complement Program A-6 (ADU Tracking and Monitoring) Geographic Targeting: 30 percent of annual ADU production in high resource areas, RCAAs, and areas with relatively higher income.
After program funding is secured and sufficient for the intended purpose. Evaluate the effect of impact fees on ADU development by Q4 end of 2026 if ADU production is lower than anticipated in year 2025
A - 9
Implement the Land Management System for Tyler Technologies with a "go-live" date in 2023 and hold an outreach meeting to educate users on how to use the new permitting system. To assess the effectiveness of the new Land Management System, the City will survey users six months after its launch. The City will also create metrics that track the time to process permits. These metrics can be compared year-to-year to determine if the City’s processes and procedures are efficient or need refinement. As a part of the City’s outreach and engagement with developers, the City shall consult builders and other parties engaged in housing development activities to identify potential constraints in the City’s permit requirements, processes, procedures, and land use controls and analyze potential streamlining where feasible. Outreach methods will include or be equivalent to the City’s annual developer roundtable meeting.
Increase the percentage of permits that are processed online. Decrease the time it takes to process permits.
Survey six months after “go- live” date. Annual outreach to builders and developers, such as through the City’s annual developer’s roundtable meetings.
A - 10
Amend the City Code to allow triplexes, and fourplexes to be approved ministerially on corner lots with a minimum 8,000 sf lot size in the R1 and R2 zones (approximately 449 lots) so long as the project complies with objective design standards and the lot was created prior to May 1, 2023. This Program provides more flexibility than SB 9, by allowing triplexes or fourplexes, in lieu of a duplex with an ADU and a junior ADU. This program will also encourage the development of missing middle housing throughout the City, including high-resource areas primarily comprising detached single- family residences. Update the City’s SB 9 policy and website to reflect the changes allowed under this program. Create an informational and promotional pamphlet regarding opportunities to develop triplexes and fourplexes on corner lots in R1 and R2 zones. Provide the pamphlet online, at City Hall, and at informational booths where housing resources are provided (see Program G - 5).
Increased production and reduced permitting time and cost for triplexes and fourplexes. Facilitate construction of 100 missing middle (duplex, triplex, quadplex) housing units over the 6th Cycle planning period (approximately 10 percent of qualifying lots). Geographic Targeting: At least 50% of missing middle units developed in high resource areas, RCAA areas, or areas with comparatively higher incomes.
By end of Q4 2024.
A - 11
Conduct an inclusionary housing feasibility study to identify appropriate inclusionary requirements that will not constrain housing production. Review the City’s existing Neighborhood District Policy and former RDO Exemption Policy as a benchmark for developing the inclusionary requirements (e.g., resale controls, minimum term [years of affordability], minimum percentage of units that must be restricted as affordable, minimum percentage within each affordability category). Develop an affordable housing policy to establish inclusionary housing requirements so that specified new developments reserve a percentage of the total units for lower- and moderate-income households or pay an in- lieu of housing fee for projects below the threshold for inclusionary housing, such as smaller projects that cannot feasibly construct affordable housing. The inclusionary housing ordinance will include a requirement that the developer market the below market-rate units and accessible/adaptable units.
Increased production of affordable housing within the City, including housing choice and mobility for lower-income households. Prioritize use of in- lieu fees to develop affordable housing options in higher resource areas of the City. Geographic Targeting: Development of up to 15 percent of affordable units built in high resource areas, RCAAs, and/or areas of comparatively higher income.
By end of Q4 2024.
A - 12
Study and consider adopting an affordable housing incentives policy above and beyond the minimum requirements of density bonus state law. Specifically consider additional incentives for households with special housing needs such as large households, extremely low-income households, farmworkers, and households with members with intellectual or developmental disabilities. In lieu of adopting a separate incentives / density bonus policy, the City could structure the Inclusionary Policy (A - 11) like a density bonus program with incentives that are tiered by level of affordability provided.
Increased housing choice and mobility for special needs households.
By end of Q4 2025.
A - 13
Continue to coordinate with the California High Speed Rail Authority so that the Station Area Plan includes the development of a mix of affordable and market-rate housing and commuter parking on the parcels associated with the High Speed Rail Station.
Develop a specific commitment to housing development; set objective targets for the development of affordable and market-rate housing on the High Speed Rail site.
Immediately and throughout the planning period until the Station Area Plan is complete.
A - 14
The City will continue its partnership with Santa Clara County Office of Supportive Housing regarding development of affordable housing at the property at 8th and Alexander. This includes the offer of impact fee waivers through a memorandum of understanding approved by the Gilroy City Council and the County Board of Supervisors in September 2022. Next steps include community engagement and working on the City’s priorities for the site (e.g., targeted income / special needs groups).
Development of affordable housing on the 8th and Alexander property by the end of 2028.
Continual partnership throughout the planning period. Anticipated project completion by end of Q4 2028.
A - 15
The City worked in collaboration with the California Department of Housing and Community Development (HCD) on its current ADU ordinance. The City will continue to work with HCD to make necessary changes and ensure compliance with state law. prior to the end of 2023. To incentivize ADU production, the City will replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County. This change will accelerate and streamline the process for approving ADUs in the City. The City will use the affidavits to track the number of ADUs to ensure they are being built at the assumptions in the Housing Sites and Resources section.
Increase the number of new ADUs permitted in the City from an average of approximately 17.5 (2018–2021) to an average of approximately 25 over the 6th Cycle planning period.
By end of Q4 2023.
A - 16
In conjunction with Program A-10 (Facilitate Missing Middle / Middle Income Housing), the City will update its SB 9 webpage to highlight the streamlined process for approving SB 9 applications. The City will also create and post step-by-step, user friendly instructions for processing SB 9 units and lot splits in Gilroy. The Planning Department will hold informational meetings with the building division and engineering/land development division to review the streamlined process to ensure the City complies with state law.
Process ten (10) SB 9 applications in the 6th Cycle planning period. Geographic Targeting: Development of up to 50 percent of SB9 units built in high resource areas, RCAAs, and/or areas of comparatively higher income.
By end of Q4 2024.
B - 1
Repeal the RDO. The growth control measures of the City's RDO have been made null and void by SB 330 (2019). The RDO will be repealed as a part of the City's comprehensive zoning update. Portions of the policy related to affordability requirements may be used as a benchmark for the City’s proposed Inclusionary Policy.
Concurrent with the comprehensive Zoning Ordinance update, end of Q4 2023.
B - 2
Amend the Zoning Ordinance to ensure that the Gilroy 2040 General Plan maximum densities are achievable in the implementing zones (Housing Accountability Act/AB 3194). Changes include: Increasing the maximum density in the R3 (medium density) zone from 16 to 20 dwelling units per acre; Removing the maximum density in the R4 (high density) zone; Creating a zoning district for the mixed-use First Street corridor with a density range of 20–30 dwelling units per net acre; and Creating Neighborhood District High and Neighborhood District Low zoning designations with density allowances that are consistent with the 2040 General Plan.
Concurrent with the comprehensive Zoning Ordinance update, end of Q4 2023.
B - 3
Establish and implement expedited permit processing for qualifying affordable housing projects, pursuant to SB 35 and SB 330. Create checklists and instructions for reviewing and approving SB 35 and SB330 projects. Add information regarding the expedited permit process on the City’s website.
By end of Q4 2024.
B - 4
Pursuant to Assembly Bill (AB) 1483, the City will compile all development standards, plans, fees, and nexus studies in an easily accessible online location (also see Program B-8). The City will continue to provide a high-quality, parcel-specific zoning map and General Plan map online.
By end of Q4 2023.
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