Spanish Responses:
▪ You have to build apartments at extremely low prices. ▪ That houses were built for extremely low excesses
▪ Gilroy needs housing for extreme low income
▪ Update the tabulators of the salary averages and the availability for housing payment, according to the current inflation. ▪ In Gilroy there are no technology companies to have prices close to those of Santa Clara, San Francisco. So there is no justification for having such high housing since the salaries mostly do not come from that branch. ▪ need money
▪ The city needs more extremely low income housing units. There are very few. The focus is always on low and very low.
There are many people who can't afford low and very low income housing in Gilroy. ▪ We need low income apartments.
▪ Homes that adapt to our budgets.
▪ Need homes for extremely low incomes
▪ Gilroy needs extremely low wage housing.
▪ We needed extremely low income housing.
▪ We need housing for extremely low income farmworkers. ▪ We need low income housing.
▪ That the owners arrange the apartments that give washing machines to all the apartments.
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APPENDIX C ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 358
▪ Take the community into account at every step.
▪ Maintenance of old houses.
▪ Extremely low income housing is needed in Gilroy.
▪ That they build more very low income villas. That there is no rent control every year! ▪ We need more housing for extremely low income people. ▪ We need very cheap homes because the income is very low and everything is very expensive. ▪ Give more publicity to housing assistance programs
▪ More affordable farmworker housing
▪ Well, beyond living more accessible for fieldworkers
▪ lower rents
▪ Rent prices are very high, we need rent control
▪ More low-income housing is needed
▪ We need economic living
▪ Need houses at lower prices. financial aid
▪ Please be aware of the requirements that they ask for to rent a place. ▪ Safety in Gilroy has been down. I live in the area of Las Animas park, where it used to be quiet and safe to go to the park.
Now it's neither of them. And lately neighbors are suffering from theft of car parts in the middle of the day or night. ▪ More information in Spanish for the Hispanic community ▪ Previously the city had a program where families could work on the construction of the house and could buy it. This would be a very good option.
Virtual Workshop – March 30, 2022
On March 30, 2022 the City of Gilroy sponsored a virtual workshop focused on educating the community about the Housing Element Update planning process. As part of this workshop, attendees were encouraged to give feedback via the question and answer function in Zoom, which were answered by either the presenter or in the chat box. Below is a listing of the questions as well a summary of the most frequently voiced concerns.
▪ How can our city and region assure the building of housing does not outpace available resources? Our water resources are dwindling.
▪ How can we as community/housing assistance programs assist those in leadership positions to “Fast Track" building affordable housing (Particularly for the disabled community)? ▪ Is the city considering any reductions in impact fees to encourage more development? ▪ Have any office buildings or motels been reviewed for possible housing for our unhoused? ▪ The responsibilities fall on other cities like ours. Most folks in affordable housing are not Gilroy. We need to house our own and get resources. Why aren't other cities taking their fair share of the responsibility. It's been 30 years without enforcement ▪ We definitely need more supportive housing! I believe many of the mentally ill would be able to function better if they had some supervision and were able to stay on their medications. ▪ We need more parking, especially for affordable units. ▪ In addition to having a serious concern about our housing crisis, I have an infill 10,000 sq ft zoned r3 and as a PUD parcel in Gilroy. I would like to develop this land in a way that would help our City achieve some our target goals for the lower income population. My biggest concern is dealing with the whole permitting process. ▪ As a current homeowner who really values Gilroy’s diversity (racial/ethnic, socioeconomic, political) I really hope that we prioritize ensuring that low-income and working families can always be a part of our community. Gilroy should be a place that someone can realize the “American Dream” by working hard, raising a family, and be able to own a home. Opportunities not only for affordable rental housing but also for affordable home ownership will be critical. ▪ Is Supportive Housing for the homeless part of this plan? That is housing that includes resources that address medical needs, mental health needs, good public transportation, etc? ▪ 91% of Gilroy adults with developmental disabilities live at home with aging parents or in segregated licensed care facilities not by choices but because of the lack of deeply affordable housing available. This is an issue that affects people of all abilities in Gilroy. As we saw in tonight's presentation median income in Gilroy is significantly lower than Santa Clara County's AMI which means that the majority of low income Gilroy residents will most likely fall well below VLI maximum income. In RHNA cycle 5 the city exceeded its low income RHNA but as of 2021 has met only 63% of it Very Low Income RHNA. The city needs to develop policies and programs to create housing at affordability levels to specifically promote development of housing at deeper levels of affordability.
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APPENDIX C ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 359
Virtual Workshop – June 28, 2022
On June 28, 2022 the City of Gilroy sponsored a virtual workshop focused on the RHNA sites and housing programs of Housing Element Update. As part of this workshop, attendees were encouraged to give feedback via the question and answer function in Zoom, which were answered by either the presenter or in the chat box. Below is a listing of the questions as well a summary of the most frequently voiced concerns.
▪ All but a few lower income sites are in areas designated by the state as low resource. How will you meet requirements to affirmatively further fair housing?
▪ These maps appear very segregated, all of the "low and affordable" on one side and moderate on the other side. What can we do to spread the demographics?
▪ The train does NOT provide robust service, nor has it for years now. I believe these policies are outdated. ▪ There is no enforcement on this new policy, especially not in Gilroy. Landlords and property management companies flat out refuse to take vouchers.
▪ Is there any way to plan housing for Gavilan College students? ▪ Will the western side of the city have a variety of housing; condos, market rate apartments, and single family? Something to consider is changing demographic needs, smaller family size (or no children) and the desire to downside in retirement years
▪ Can survivors of gender-based violence be considered under this category? ▪ Will year-round emergency shelter be proposed?
▪ Community members have also requested that an ongoing, multi-year source of funding for basic needs services for homeless residents be identified, rather than requiring providers to reapply each year. Will this be incorporated in the housing element?
▪ Will an Inclusionary Housing ordinance be prioritized? ▪ It’s wonderful to see farmworker housing on the list! A big thank you to staff and consultant, great work
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CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
2023 – 2031
HCD Review Draft #2
April 26, 2023
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Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan i
Table of Contents
INTRODUCTION ............................................................................................................................ 1 Purpose and Content.......................................................................................................................1 Relationship to Other Elements and Plans ...................................................................................1 Public Participation ..........................................................................................................................1 Summary of Comments Received..............................................................................................4 REVIEW OF PAST ACCOMPLISHMENTS .................................................................................... 12 Housing Production.......................................................................................................................12 No Net Loss and Adequate Sites..............................................................................................13 Effectiveness at Assisting Special Needs Populations ...............................................................13 Accessibility Improvements ......................................................................................................15 Seniors and Residents with Disabilities...................................................................................15 At-Risk Youth Services ...............................................................................................................16 Unhoused Outreach ..................................................................................................................16 Farmworkers...............................................................................................................................16 2015 – 2023 (5th Cycle) Housing Element Programs ..................................................................18 HOUSING NEEDS ASSESSMENT................................................................................................. 37 Projected Housing Needs..............................................................................................................38 Existing Housing Need...................................................................................................................38 Demographic Characteristics....................................................................................................38 Employment Trends ..................................................................................................................43 Household and Housing Stock Characteristics.......................................................................46 Overpayment..............................................................................................................................53 Overcrowding .............................................................................................................................55 Housing Inventory and Market Conditions.............................................................................56 Preservation of Assisted Units At Risk of Conversion............................................................61 Special Needs Groups....................................................................................................................66 Persons with Disabilities............................................................................................................66 Elderly Persons...........................................................................................................................71 Large Households ......................................................................................................................74 Female-Headed Households ....................................................................................................76 Homeless/Unhoused Population.............................................................................................77 Farmworkers...............................................................................................................................80 Extremely Low-Income Households ........................................................................................82 Summary of Housing Needs.........................................................................................................85
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Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan ii
AFFIRMATIVELY FURTHERING FAIR HOUSING........................................................................ 87 Introduction, Outreach, and Assessment ...................................................................................87 Introduction................................................................................................................................87 Public Outreach..........................................................................................................................87 Housing Element Survey (focused outreach)..........................................................................91 Stakeholder Meetings................................................................................................................91 Findings .......................................................................................................................................92 City Overview..................................................................................................................................92 Fair Housing Enforcement and Outreach Capacity................................................................98 Integration and Segregation...................................................................................................... 100 Race and Ethnicity................................................................................................................... 100 Income...................................................................................................................................... 105 Familial Status.......................................................................................................................... 111 Persons with Disabilities......................................................................................................... 114 Findings .................................................................................................................................... 118 Racially and Ethnically Concentrated Areas of Poverty and Affluence ................................. 118 R/ECAPs .................................................................................................................................... 118 Racially Concentrated Areas of Affluence ............................................................................ 123 Disparities in Access to Opportunities...................................................................................... 124 California Tax Credit Allocation Committee (TCAC) ............................................................ 124 Increasing Housing Opportunities in Higher Resource Areas ........................................... 131 Access to Opportunities, Regional Comparisons ................................................................ 133 Transportation......................................................................................................................... 134 CalEnviroScreen 4.0 ................................................................................................................ 136 Findings .................................................................................................................................... 138 Disproportionate Housing Needs ............................................................................................. 139 Substandard Housing............................................................................................................. 139 Overcrowding .......................................................................................................................... 142 Homelessness ......................................................................................................................... 144 Displacement........................................................................................................................... 148 Findings .................................................................................................................................... 150 Other Contributing Factors........................................................................................................ 151 Historic Immigration and Land Use Patterns ...................................................................... 151 Urban Growth Boundary........................................................................................................ 153 Fair Housing Issues, Contributing Factors, and Meaningful Action ...................................... 154 CONSTRAINTS ON HOUSING .................................................................................................. 168 Governmental Constraints......................................................................................................... 168 Land Use Controls................................................................................................................... 168
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Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan iii
Providing for a Variety of Housing Types ............................................................................. 183 Residential Development Ordinance.................................................................................... 188 Urban Growth Boundary and Urban Service Area.............................................................. 189 Development Review and Permitting Procedures .............................................................. 191 Housing for Persons with Disabilities ................................................................................... 200 Building Code........................................................................................................................... 202 Code Enforcement.................................................................................................................. 202 On- and Off-Site Improvement Requirements .................................................................... 202 Nongovernmental Constraints.................................................................................................. 205 Requests to Develop Below the Anticipated Density.......................................................... 205 Land Costs................................................................................................................................ 206 Construction Costs.................................................................................................................. 207 Financing Availability............................................................................................................... 207 Federal and State Programs .................................................................................................. 208 Environmental and Infrastructure Constraints ................................................................... 208 HOUSING SITES AND RESOURCES........................................................................................... 215 Land Inventory............................................................................................................................. 215 Housing Allocation.................................................................................................................. 215 Realistic Capacity..................................................................................................................... 217 Assumed Affordability ............................................................................................................ 220 Environmental and Infrastructure Constraints ................................................................... 221 Entitled and Pending Pipeline Projects................................................................................. 225 Accessory Dwelling Units (ADUs)........................................................................................... 226 Ability to Meet the RHNA........................................................................................................ 227 Opportunity Site Details ............................................................................................................. 230 Vacant Sites.............................................................................................................................. 230 Non-Vacant Sites ..................................................................................................................... 230 Non-Vacant Site Details .............................................................................................................. 231 Local Data................................................................................................................................. 231 R4 Northern Cluster................................................................................................................ 232 Monterey Cluster 1 (Downtown Expansion District)........................................................... 234 Monterey Cluster 2 (Gateway/Downtown Expansion District) .......................................... 237 Monterey Cluster 3 (Gateway District).................................................................................. 240 Monterey Cluster 4 (Downtown Expansion District)........................................................... 242 Other Zoning Districts and Designations ............................................................................. 244 Financial Resources .................................................................................................................... 252 Countywide Programs............................................................................................................ 252 U.S. Department of Housing and Urban Development (HUD) Grants ............................. 253 Statewide Resources............................................................................................................... 257 Administrative Resources ...................................................................................................... 258
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Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan iv
HOUSING GOALS, POLICIES, AND PROGRAMS ..................................................................... 260 Housing Production.................................................................................................................... 260 Removal of Governmental Constraints .................................................................................... 260 Housing Preservation and Rehabilitation ................................................................................ 261 Housing Assistance to Meet the Needs of All Income Levels ................................................ 261 Special Housing Needs ............................................................................................................... 262 Affirmatively Furthering Fair Housing....................................................................................... 262 Education and Outreach ............................................................................................................ 263 Quantified Objectives ............................................................................................................. 263 Programs...................................................................................................................................... 264 APPENDIX A: SITES INVENTORY MAP..................................................................................... 306 APPENDIX B: SITES INVENTORY LIST...................................................................................... 308 APPENDIX C: OUTREACH ......................................................................................................... 326 List of Figures
Figure 1: Population Age Distribution, 2019...................................................................................41 Figure 2: Regional Racial/Ethnic Composition, 2019......................................................................43 Figure 3: Regional Employment by Industry, 2019 ........................................................................45 Figure 4: Regional Home Prices Over Time, 2001–2020................................................................50 Figure 5: Disability by Type, 2019.....................................................................................................67 Figure 6: Developmental Disability by Type Served by San Andreas Regional Center, 2020....70 Figure 7: Census Tracts and RHNA Sites, 2022...............................................................................93 Figure 8: Racial and Ethnic Majority, 2010 ................................................................................... 101 Figure 9: Percentage of the Population that is Non-White, 2018.............................................. 102 Figure 10: Percent non-White Comparison of RHNA Units........................................................ 103 Figure 11: Dissimilarity Index for Race ......................................................................................... 104 Figure 12: Low to Moderate Income Population and RHNA Sites, 2011-2015 ........................ 106 Figure 13: Low to Moderate Income Population Comparison of RHNA Units......................... 107 Figure 14: Households per Income Level, 2021 .......................................................................... 108 Figure 15: Median Household Income, 2019............................................................................... 109 Figure 16: Poverty Status, 2010-2014 and 2015-2019................................................................ 110 Figure 17: Housing Choice Vouchers............................................................................................ 111 Figure 18: Children in Female-Headed Households and RHNA Sites....................................... 112 Figure 19: Female Headed Households Comparison of RHNA Units ....................................... 113 Figure 20: Children in Married-Couple Households ................................................................... 114 Figure 21: Disability Characteristics, Gilroy, 2019 ....................................................................... 115 Figure 22: Population with a Disability, 2010-2014 and 2015-2019.......................................... 116 Figure 23: Population with a Disability Comparison of RHNA Units......................................... 117
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Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan v
Figure 24: Infrastructure Improvements...................................................................................... 121 Figure 25: R/ECAPs in the City and Vicinity................................................................................... 122 Figure 26: Presence of a R/ECAP Comparison of RHNA Units................................................... 123 Figure 27: RCAAs Vicinity and RHNA Sites.................................................................................... 124 Figure 28: TCAC Economic Score, 2021 ........................................................................................ 126 Figure 29: TCAC Education Score .................................................................................................. 127 Figure 30: TCAC Environmental Score.......................................................................................... 128 Figure 31: TCAC Composite Score and RHNA Sites..................................................................... 130 Figure 32: TCAC Designation Comparison of RHNA Units ......................................................... 131 Figure 33: Existing Single-Family Homes on Corner Lots in R1 and R2 Zones......................... 132 Figure 34: Transit Route Map ........................................................................................................ 136 Figure 35: CES Percentile and RHNA Sites ................................................................................... 137 Figure 36: CalEnviroScreen Percentile Comparison of RHNA Units.......................................... 138 Figure 37: Housing Problems by Tenure and Race/Elderly/Housing Size ................................ 140 Figure 38: Cost Burden by Tenure and Race/Elderly/Housing Size........................................... 140 Figure 39: Overpayment by Owners............................................................................................. 141 Figure 40: Overpayment by Renters............................................................................................. 141 Figure 41: Year Structure Built....................................................................................................... 142 Figure 42: Overcrowded Households........................................................................................... 143 Figure 43: Communities Vulnerable to Displacement................................................................ 150 Figure 44: Gilroy Land Use Map .................................................................................................... 169 Figure 45: Gilroy Special Flood Hazard Areas.............................................................................. 223 Figure 46: Gilroy Wildland Urban Interface Areas....................................................................... 224 List of Tables
Table 1: 5th Cycle RHNA Progress (2015 through 2022).................................................................13 Table 2: Review of 2015 – 2023 (5th Cycle) Housing Element Programs......................................19 Table 3: Gilroy RHNA, 2023–2031 ....................................................................................................38 Table 4: Regional Population Trends, 2010–2020..........................................................................39 Table 5: Average Annual Population Growth Rate.........................................................................39 Table 6: Population Age Distribution, Gilroy...................................................................................40 Table 7: Racial and Ethnic Composition, Gilroy..............................................................................42 Table 8: Employment Trends, Gilroy ...............................................................................................44 Table 9: Major Employers, 2021.......................................................................................................46 Table 10: Change in Households, 2000–2019.................................................................................47 Table 11: Regional Average Household Size...................................................................................47 Table 12: Household Size Distribution, 2019..................................................................................47 Table 13: Median Household Income by Tenure, 2019.................................................................48 Table 14: Income Range by Affordability Level Based on State Area Median Income, 2022....48 Table 15: Household Income by Tenure, 2018...............................................................................49 Table 16: Zillow Home Value Index, 2020 and 2021......................................................................51 Table 17: Average Monthly Rent by Unit Size, 2021.......................................................................51
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Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan vi
Table 18: Maximum Affordable Rent by Income, Santa Clara County ........................................52 Table 19: Maximum Affordable Monthly Rent by Income Category............................................52 Table 20: Occupancy Rates ...............................................................................................................53 Table 21: Housing Cost as a Percentage of Household Income, 2018 ........................................54 Table 22: Overcrowded Households, 2019.....................................................................................56 Table 23: Housing Units, 2000–2019 ...............................................................................................57 Table 24: Unit Size by Tenure, 2019.................................................................................................57 Table 25: Housing Inventory by Unit Type......................................................................................58 Table 26: Unit Type by Tenure, 2019 ...............................................................................................59 Table 27: Tenure by Housing Age ....................................................................................................60 Table 28: Units Lacking Plumbing or Complete Kitchen Facilities, 2019 .....................................61 Table 29: Potential Units at Risk of Conversion..............................................................................63 Table 30: Replacement Cost.............................................................................................................64 Table 31: Gilroy and Santa Clara County Population with Developmental Disabilities.............68 Table 32: Living Arrangements of Adults with Developmental Disabilities ................................69 Table 33: Householders by Age, 2020 .............................................................................................72 Table 34: Median Household Income for Elderly Households, 2019...........................................72 Table 35: Income Distribution, Elderly Households, 2018 ............................................................72 Table 36: Elderly People with Disabilities, 2019 .............................................................................73 Table 37: Elderly Households by Housing Problems and Tenure, 2018 .....................................74 Table 38: Large Households by Tenure, 2019 ................................................................................75 Table 39: Income Distribution, Large Households, 2015-2019 ....................................................76 Table 40: Large Households by Housing Problems and Tenure, 2018........................................76 Table 41: Female-Headed Households by Tenure, Gilroy, 2019 ..................................................77 Table 42: 2022 Santa Clara County Homeless Census and Survey..............................................78 Table 43: Homeless Facilities in or Adjacent to Gilroy...................................................................80 Table 44: Number of Santa Clara County Farmworkers and Farms, 2017 .................................81 Table 45: Overcrowding by Income Level, 2019.............................................................................83 Table 46: Extremely Low-Income Households with Housing Problems, 2018 ...........................85 Table 47: Comparison of Fair Housing with Respect to Location.................................................96 Table 48: Dispute Cases by Income Category, 2015-2022 ............................................................99 Table 49: Dispute Cases by Age, 2015-2022 ...................................................................................99 Table 50: Dispute Cases by Race, 2015- 2022.............................................................................. 100 Table 51: Dissimilarity Index for Income...................................................................................... 105 Table 52: Opportunity Indicators .................................................................................................. 134 Table 53: Overcrowding, 2019....................................................................................................... 144 Table 54: Homeless Facilities in or Adjacent to Gilroy................................................................ 145 Table 55: 2022 Santa Clara County Homeless Census and Survey........................................... 146 Table 56: Permanent Local Housing Allocation Funds for FYs 2022-2024............................... 148 Table 57: Fair Housing Issues, Contributing Factors, and Proposed Action ............................ 155 Table 58: AFFH Actions Matrix....................................................................................................... 157 Table 59: Neighborhood District Target Densities...................................................................... 172
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Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan vii
Table 60: Downtown Specific Plan Development Standards..................................................... 175 Table 61: Downtown Specific Plan Development Standards (Special Circumstances)........... 176 Table 62: Residential Standards (2022) ........................................................................................ 179 Table 63: Residential Parking Standards (2022).......................................................................... 181 Table 64: Residential Use Table (2022)......................................................................................... 185 Table 65: Permit Processing Time (2022)..................................................................................... 193 Table 66: Permit Processing Time, Months, Regional Comparison (2021-2022)..................... 194 Table 67: Planning Related Fees (August 2022)........................................................................... 195 Table 68: Development Impact Fees (2022)................................................................................. 197 Table 69: Total Fees per Unit, Regional Comparison (2021-2022) ............................................ 198 Table 70: Fees as Percentage of Total Development Costs, Regional Comparison (2021-2022) .............................................................................................................................................. 198 Table 71: 2022 Vacant Lot Sales in Gilroy..................................................................................... 206 Table 72: Disposition of Home Loans, 2020 ................................................................................ 208 Table 73: 2023–2031 RHNA ........................................................................................................... 215 Table 74: Pipeline Projects and ADUs Progress Towards RHNA............................................... 216 Table 75: Target Sites Capacity (15% No Net Loss Buffer of Unmet RHNA)............................. 217 Table 76: Example Multifamily Project Densities ........................................................................ 219 Table 77: Assumed Yields .............................................................................................................. 220 Table 78: Densities, Affordability, and Implementing Zones..................................................... 221 Table 79: Pipeline Projects Counted in 6th Cycle (Proposed, Entitled, Permits Issued)........... 226 Table 80: ADUs Toward the RHNA................................................................................................ 227 Table 81: ADU Affordability Assumptions.................................................................................... 227 Table 82: RHNA Capacity and Buffer ............................................................................................ 228 Table 83: Lower Income RHNA Capacity ...................................................................................... 228 Table 84: Residential Vacant Sites Capacity................................................................................. 230 Table 85: Non-Vacant Site Capacity .............................................................................................. 231 Table 86: CDBG Funded Agencies................................................................................................. 254 Table 87: CARES Act CDBG-CV Funds ........................................................................................... 254 Table 88: Permanent Local Housing Allocation Funds for FYs 2022-2024............................... 256 Table 89: Total Quantified Objectives, 2023 – 2031.................................................................... 263 Table 90: Opportunity Sites ........................................................................................................... 308 Table 91: Pending Project Sites ..................................................................................................... 312
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Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 1
Introduction
Purpose and Content
The City of Gilroy’s 2023 – 2031 6th Cycle Housing Element has been prepared in compliance with the State of California Government Code Section 65302 and in conformance with the Housing Element Guidelines as established by the California Department of Housing and Community Development (HCD). This Housing Element sets forth the City’s overall housing objectives in the form of goals, policies, and programs.
Relationship to Other Elements and Plans
This Housing Element identifies goals, policies, and programs that guide housing policy for the City for the 2023 – 2031 planning period. The goals, policies, and programs are consistent with the direction of the City’s other General Plan elements, specifically the Land Use Element, Potential Hazards Element, and the Environmental Justice Element. Each goal is followed by one or more policies that are designed to provide direction to the policy makers that will enable progress toward the goals. Consistency will be reviewed as part of the annual General Plan implementation progress report as required under Government Code Section 65400. As amendments are made to the General Plan, the City will also review and revise the Housing Element for ongoing consistency. Listed after a discussion of the goals and policies are the programs designed to implement the specific goals and policies.
The Housing Element goals, policies, and programs aim to:
• Encourage the development of a variety of housing opportunities and provide adequate sites to meet the 2023 – 2031 Regional Housing Needs Allocation (RHNA).
• Assist in the development of housing to meet the needs of lower- and moderateincome households. • Address and, where appropriate and legally possible, remove governmental constraints to housing development.
• Conserve, preserve, and improve the condition of the existing affordable housing stock.
• Promote equal housing opportunity for all residents to reside in the housing of their choice. These objectives are required by and delineated in State law (California Code Section 65583 [c][1]).
Public Participation
The City of Gilroy made a diligent effort to encourage public participation in the development of the Housing Element. Outreach for the Housing Element update began in 2021, starting with City Council public meetings to introduce the housing element update process and to get initial
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Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 2
feedback on potential programs for inclusion in the housing element. The City of Gilroy also participated in a regional (virtual) outreach meeting through the Santa Clara County Collaborative that included residents and stakeholders from Gilroy, Morgan Hill, and the County of Santa Clara; approximately 20 attendees participated in the Gilroy breakout room.
Targeted outreach began in January 2022. This involved engaging a diverse group of people in the planning process, including community members, stakeholders, service providers, educators, and the Planning Commission and City Council in identification of Gilroy’s Housing Element housing issues and goals.
Additional details about the public outreach process can be found in the Affirmatively Furthering Fair Housing Chapter. In summary, the public participation program included:
• Website. An interactive housing element update website, launched in February 2022 and accessed through the City’s webpage, which included a description of the project, how to provide input, workshop dates and video recordings, a link to the Housing Element update survey, FAQs, and the draft Housing Element. • Surveys. A bilingual (Spanish) online community survey was heavily promoted through email list notification, project website, flyers, stakeholder interviews, community workshops, and handed out in person.
• Stakeholder Interviews. Four focus groups were held on Tuesday, March 29 at 1:00 p.m.; Tuesday, April 5 at 1:00 p.m.; Thursday, April 7 at 1:00 p.m.; and Tuesday, April 12 at 10:00 a.m. to gather input from community members and housing service providers.
• Community workshops. Two bilingual virtual community workshops were held on Wednesday, March 30, 2022 at 6:00 PM, and Tuesday, June 28, 2022 at 6:00 PM. The website was updated to include information about the community meetings and the project planner sent emails to notify individuals on the mailing list which included stakeholders, community service providers, and members of the public.
The links to both the English and Spanish language presentation video recording were posted on the Housing Element Update website.
• Equity Advisory Group Meeting. On August 23, 2022, the City gave a presentation to the Santa Clara County Equity Advisory Committee. The purpose of the presentation was to provide a brief summary of Gilroy’s demographics and housing trends, including income levels and housing inventory. The meeting also included a summary of public outreach efforts, survey results, and stakeholder feedback. Staff also introduced the draft housing goals, a snapshot of some of the proposed housing programs, and a look at the RHNA sites inventory map. The session also included questions and answers related to the Housing Element. The Equity Advisory Committee consists of 15 community-based organizations that represent and/or serve the County's diverse community. They include organizations that represent ethnic communities, provide direct services including housing assistance, or work on housing-related issues.
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City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 3
• Study Session. One bilingual joint study session with the Planning Commission and City Council was held on August 29, 2022 at 6:00 PM. All the efforts of notifying the public that were made for the two community meetings were repeated for the joint study session. The links to the presentation video recording were posted on the Housing Element Update website. The joint study session focused primarily on RHNA site strategy, housing issues, and proposed programs included in the Housing Element. It included a robust discussion of housing issues and responsive programs to meet the needs of all Gilroy residents. The meeting was well attended by both Spanish and English-speaking residents and stakeholders. • Public Draft Community Meeting. One virtual community meeting was held on Tuesday, September 27, 2022 at 6:00 PM. The link to the presentation video recording was posted on the Housing Element Update website. The meeting provided the community with a high-level overview of the Draft Housing Element chapters and appendices, the overall goals and programs, and then a brief description of some of the programs that could potentially have the highest impact on housing production, removal of governmental constraints, and meeting special housing needs.
• Public Draft City Council and Planning Commission Public Hearings. Following the release of the first public draft, the City held two in-person public hearings. The public hearings were held Monday, October 17, 2022 at 6:00 PM (City Council) and Thursday, October 20, 2022 at 6:00 PM (Planning Commission). The purpose of the meetings was to provide the public and the City’s decision makers with another opportunity to provide comments and suggestions prior to sending the draft to the California Department of Housing and Community Development for their review. • Farmworker Outreach. In November and December 2022, the City of Gilroy worked with staff from the Ochoa Migrant Camp to survey resident farmworkers. Twentysix (26) surveys were completed by the farmworkers with assistance from bilingual staff at the Migrant Camp. Feedback from the farmworkers was summarized in the Special Needs Groups section in the Housing Needs Assessment chapter of the Housing Element. The City of Gilroy also modified Programs E - 7 and E - 11 to help facilitate needed housing for farmworkers who work in and surrounding Gilroy. • Youth Commission and Gavilan College Outreach,. On December 12, 2022, City staff attended the Gilroy Youth Commission meeting to discuss the Housing Element update, answer questions, and gather feedback from youth in attendance (~15 to 18 years old). City staff also asked those in attendance to complete the online housing survey and to ask their friends and older siblings to complete the survey.
In an effort to reach out to the young adult community, City staff reached out to members of the Associated Students of Gavilan College (ASGC) student body. Eight (8) surveys were completed by the Youth Commission and Gavilan College community.
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Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 4
• Seniors Outreach. On January 25, 2023, City staff made a brief presentation to seniors at the Gilroy Senior Center, informing them about the Housing Element and gathering feedback. Nineteen (19) surveys were completed by seniors in attendance.
• Intellectually and Developmentally Disabled Outreach. On January 24, 2023, the City held a virtual meeting with Housing Choices and intellectually and developmentally disabled (I/DD) stakeholders (primarily parents of I/DD children and I/DD adults), informing them about the Housing Element and gathering verbal feedback. On February 15, 2023, the City also met with and gathered verbal feedback from I/DD residents, caregivers, and staff at Villa Esperanza, a facility that provides low-income apartment units and services for persons with disabilities.
Summary of Comments Received
During the initial outreach process (prior to the release of the public draft) the City heard comments ranging from: difficulty paying rent, mortgage or down payment; homelessness; and insufficient housing supply including affordable housing, farm-worker housing, and preference on locations for future housing. Many of the programs proposed as well as the RHNA sites inventory in the 2023-2031 Housing Element reflect the community input. In summary, the community engagement and input yielded the following themes and feedback:
• Affordability: Participants expressed the difficulties to afford homes and rent in Gilroy and the larger region; specifically identifying first time home buyers, farm workers and seniors as key impacted groups. Participants expressed concern that Gilroy incomes are lower comparatively to the regional median; therefore, housing that may be affordable for the surrounding region may not be affordable for Gilroy residents. Program A - 11 consists of the development of an Inclusionary Housing Policy to establish inclusionary housing requirements so that new developments reserve a percentage of the total units for lower- and moderate-income households.
• Importance of Investment in East Gilroy: Participants noted a disparity in housing and quality of infrastructure and amenities between the east side and west side of the City. Participants noted the importance of investing in downtown to provide access to necessary resources and adequate infrastructure concurrently with housing development. Program F - 3 is included to ensure place-based investments and improvements are occurring in the eastern areas of Gilroy, especially in the downtown area.
• Education and Outreach: Participants expressed a lack of community engagement and education on affordable housing, accessory dwelling units (ADUs), available housing services and programs, and housing policy. Programs G - 2, G - 3, G - 5, and G - 8 implement outreach and education strategies to increase community awareness about ADUs, housing resources, and available fair housing support.
Program G - 4 provides focused outreach in the downtown area.
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• Prioritizing Extremely Low-Income Housing: Participants addressed the need for prioritizing development of extremely low-income units. Additionally, residents expressed the need to prioritize the allocation of these extremely low-income units to existing Gilroy residents. Program A - 12 considers adopting an incentives beyond density bonus state law program that targets extremely low-income populations and other special needs. Program E - 9 is included to develop a priority system for current residents of Gilroy and individuals working in Gilroy to inhabit these special needs households.
• Disparity of income between the City and the larger region. The large difference between the median income in the City and the regional area median income (AMI) was frequently noted in outreach. The difference was $33,871 (24%) in 2020.
Participants expressed the inability to afford lower-income units based on the AMI category income limits. Program E - 9 is included to develop a priority system for the allocation of extremely low-income units, including prioritizing current residents of Gilroy.
A summary of outreach is also provided in the Housing Needs Assessment and Affirmatively Furthering Fair Housing chapters. For complete survey results and additional detail on outreach, see Appendix C: Outreach.
Public Comments on the September 12, 2022, Draft Housing Element Update The City of Gilroy held a 30-day public review period on the draft Housing Element from September 12, 2022, to October 12, 2022. Twenty-two comment letters and emails were received between January and October 12. The City received two (2) additional comment letters following the end of the 30-day review period. The City of Gilroy received comments from affordable housing advocates and residents. Concerns included RHNA sites analysis, community engagement, and program enhancements. While generally supportive of the City’s draft Housing Element efforts, several comments requested additional or enhanced programs as well as additional analysis or rationale on the site selection. Many of the suggested programs were included in some variation in the draft housing element. Program examples include enhancing the ADU program, seeking more grants and technical assistance, and enhancing community engagement and education.
Comments fell into several categories including:
▪ ADU promotion and incentives (see Program A - 6 and A - 7) ▪ Tools, techniques, and funding sources to increase affordable housing (see Program D - 1, D - 2, D – 3, D - 4, and D - 5)
▪ Streamline permit process (see Program A - 9 and B - 5) ▪ Provide rationale for RHNA sites and how they Affirmatively Further Fair Housing and the needs of Gilroy (addressed in the AFFH and Needs Assessment sections)
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▪ Expand on community and stakeholder engagement process (see Program G - 1 and G - 2)
▪ Displacement and tenant protections (See Program F - 5) ADUs
Commenters called for more programs and incentives for ADU production and affordability, through methods like reduction of development standards and incentives for below market rate units. Commenters also suggested funding programs for ADU production through a Community Development Financial Institutions Fund (CDFI) program. The original draft included Program A - 6 to track and monitor its ADU production to ensure that annual production matches the RHNA assumption. Program A - 7 commits the City to providing pre designed plans to expedite development review as an incentive to production. In response to public comments received on the draft, the City added a new ADU program (A - 8) which creates a financial assistance program for homeowners who build ADUs with an affordability restriction. The City added program A - 15 (ADU Ordinance Updates) which directs the City to update the zoning ordinance to conform to current state law regarding ADUs. Under this program, 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 streamline the process for approving ADUs in the City of Gilroy. To further incentivize ADU production, the City will increase the allowable ADU floor area from 1,000 square feet to 1,200 square feet. The City also modified its ADU Education Program (G - 3) by including an effort to consolidate its building department and planning department ADU webpages into one so that all ADU information is in one single place online.
Affordable Housing Incentives and Funding
Several commenters expressed a desire for the City to include examples of funding sources and other tools to support and incentivize the development of affordable housing, such as grants through the Metropolitan Transportation Commission and the Association of Bay Area Governments. The original draft included Programs D - 1, D - 2, D – 3, D - 4, and D - 5 to support housing developers and homeless service providers in financing the development of affordable housing. Program D-2 was amended to include the Metropolitan Transportation Commission and the Association of Bay Area Governments as additional funding sources. As noted above, the revised draft submitted to HCD also includes Program A - 8 which creates a financial assistance program, for homeowners who build ADUs with an affordability restriction.
Permitting
A number of the letters expressed concerns regarding the development process in the City and the constraints that result from the process. Commenters recommended several strategies to improve the transparency and turn-around time for getting permits approved.
The original draft included Programs B - 5 to streamline the permitting process for affordable housing and Program A - 9 that implements a new online permitting system. The revised draft
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submitted to HCD includes Program B - 8 which creates an Entitlement Roadmap Webpage on the City’s website that provides simple and clear information on how to navigate the City’s permitting process, including projects that can be approved ministerially or through a staff level administrative process.
Engagement and Education
Commenters called for a more extensive community engagement process to reach as many stakeholders as possible and keep them involved throughout the process. Commenters iterated the importance of the promotion and education on housing programs and resources and provided strategies to address this topic. The original draft included Program G - 1 and G - 2 to create education and awareness and to enhance the City community outreach strategy and relations. The revised draft submitted to HCD adds three new programs to improve engagement and education (G - 6, G - 7, and G - 8). Program G - 6 consists of educating the public on homelessness, consolidating information on resources for the unhoused population, and restarting monthly meetings of the unhoused service providers group. Program G - 7 increases bilingual services and advertises the City of Gilroy’s collective bargaining bilingual pay benefit to attract new staff that can assist the Spanish-speaking community in the City.
Program G - 8 creates a Help Center Webpage to provide a centralized resource for tenants and landlords to receive information on local laws, assistance to apply for rent relief, and legal aid.
Tenant Protections
Anti-displacement and tenant protections were prominent issues discussed by commenters.
Several programs were suggested to address these concerns, including tenant relocation assistance, eviction reduction, security deposit limits, Fair Chance Ordinance, legal assistance, and first refusal to purchase. The City amended Program F - 5 to include organizing a focus group to explore displacement prevention polices and completing an analysis of best practices in jurisdictions that are similar to Gilroy, within approximately two years of Housing Element adoption.
Program Changes in Response to Public Comment
In response to public comment the City made a number of additions and changes to its programs during the 10-day revision period in October 2022. The following additions and changes were made to programs to accommodate the needs of the community. ▪ Modified Program A - 6 (ADU Tracking and Monitoring and Ordinance Updates) to include the commitment to coordinate with HCD and revise the ADU ordinance in conformance with state law.
▪ Added Program A - 8 (Incentives for Affordable ADUs) to develop a financial assistance program for homeowners who build ADUs with an affordability restriction or commitment to offering housing choice vouchers, upon securing adequate funding for the program.
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▪ Modified Program A - 11 (Inclusionary Housing Policy) to include a requirement that developers market both Below-Market-Rate (BMR) units and accessible/adaptable units in developments.
▪ Modified Program A - 12 (Incentives Beyond Density Bonus State Law) to include households with intellectual and developmental disabilities as a special needs group to consider in the expanded program. The City also noted that the Inclusionary Policy could be structured like a Density Bonus program with incentives that are tiered by level of affordability provided.
▪ Added Program A - 14 (Coordination with Santa Clara Office of Supportive Housing) to continue the partnership regarding the development of affordable housing on the property at 8th and Alexander, including offering impact fee waivers. ▪ Added Program B - 8 (Entitlement Roadmap Webpage) to develop a website to provide clear and simple information about the City’s permitting process for residential development. Information will include a flow chart, FAQs, live links, and application forms.
▪ Modified Program D-2 (Funding Sources to Assist Homeownership) to include the Metropolitan Transportation Commission and the Association of Bay Area Governments as additional funding sources.
▪ Modified Program E 6 (Reduced Parking Requirements for Senior Housing) to include discussion of AB 2097 which prohibits minimum parking requirement for projects within one half-mile of public transit.
▪ Modified Program F - 5 (Displacement Prevention Policy) to include organizing a focus group to explore displacement prevention polices and completing an analysis of best practices in jurisdictions that are similar to Gilroy.
▪ Modified Program G - 3 (ADU Education) committing the City to consolidate its two ADU webpages into one page, so that all ADU information is located in a single location. ▪ Added Program G - 6 (Unhoused Population Education and Outreach) to educate the public about the unhoused population and homelessness in the City. The program develops a dedicated website on homelessness, creates printed information for distribution at City Hall and by code enforcement officials in the field, posts resources for the unhoused population on the City website, and commits the City to restarting the unhoused service providers group meetings.
▪ Added Program G - 7 (Bilingual Engagement) to increase availability of bilingual outreach materials and advertise the City of Gilroy’s collective bargaining bilingual pay benefit to attract new staff that can converse with the City’s Spanish-speaking population.
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Program Changes in Response to HCD Comments
Sufficient Sites. The City revised Program A-1 (No Net Loss Inventory and Monitoring) to include the addition of a no net loss inventory list; revised Program A - 2 (Surplus Lands/Affordable Housing on City-Owned Sites) to advertise City-owned lands to affordable housing providers, the Santa Clara County Office of Supportive Housing, and developers of special needs housing; Program A - 6 (ADU Tracking and Monitoring) was amended to include an update to the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources chapter; modified Program A - 10 (Facilitate Missing Middle / Middle Income Housing) to provide more flexibility in the type of units allowed under SB 9 by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. Added Program E - 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) to allow 100% Residential in the Downtown Expansion District and provide flexibility for mixed-use projects that accommodate extremely low-income and Special Needs Households.
Governmental Constraints. New programs were added, and existing programs were amended to remove governmental constraints to housing production. Program A - 6 (ADU Tracking and Monitoring) was amended to include an update to the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources chapter. Program A - 8 (Financial Incentives for Affordable ADUs) was amended to evaluate ADU impact fees If ADU production is lower than anticipated. Program A - 10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size. A-15 (ADU Ordinance Updates) was amended to replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County and to increase the allowable floor area from 1,000 square feet to 1,200 square feet. A - 16 (SB 9 Processing) was added to update the City’s SB 9 webpage to include step-by-step, user friendly instructions for processing SB 9 units and lot splits in Gilroy. Program B - 3 (SB35/SB330) was amended to include the creation of checklists and instructions for reviewing and approving SB 35 and SB330 projects, and Zoning Ordinance amendments to ensure that any demolished units shall be replaced pursuant to Government Code Section 65915(c)(3) and Government Code Section 65583.2(g). Under Program B - 7 (Zoning Ordinance update) the City will evaluate development standards for all zones including the Downtown Specific Plan zones for potential governmental constraints. Under Program B - 9 (Building Department Webpage), the City will update the Building Department webpage to include information required pursuant to AB 2234, which should help reduce applicant time and cost and increase certainty. Under Program B - 10 (Zoning Code Annual Updates), the City will establish a process to update City policies, codes and ordinances to comply with new State laws affecting housing and land use. Under Program E - 3 (Emergency Shelters), the City has drafted an update to the zoning ordinance to comply with Assembly Bill (AB) 2339, AB 139, and Government Code Section 65583(a)(4) regarding emergency shelters. Program E - 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) will allow 100% Residential in the Downtown Expansion District and allow flexibility
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for the non-residential portion of mixed-use projects that accommodate extremely lowincome and Special Needs Households.
Affirmatively Furthering Fair Housing (AFFH). Program A - 10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on all corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size to encourage the development of missing middle housing throughout the City, including high-resource areas primarily comprising detached single-family residences. Programs A - 11 (Inclusionary Policy) and A - 12 (Incentives Beyond Density Bonus State Law) will facilitate affordable housing opportunities in the City’s higher resource / higher income areas. Under Program E - 10 (Development and Rehabilitation of Housing for Persons with Disabilities), the City will evaluate and revise standards and procedures related to reasonable accommodation and residential care homes (i.e., group homes) as necessary to remove governmental constraints. Program F - 3 (Place-Based Improvements in Downtown Gilroy) will improve conditions in the City’s R/ECAP area. Program G - 2 (Community Outreach and Inclusion in the Decision-Making Process) includes geographic targeting in the R/ECAP area. Similarly, Program G - 4 (Increased Outreach in Downtown Areas) directs the city to consider the viewpoints and concerns of all neighborhoods within Gilroy, and specifically the R/ECAP area when drafting the High-Speed Rail Station Area Plan and when updating the Downtown Specific Plan. Under Program G - 7 (Bilingual Engagement), the City will increase Spanish language engagement given the City’s large Hispanic population which is further facilitated by the recent expansion of the City’s bilingual pay benefits, which should increase the number of bilingual staff available to assist the Spanish-speaking community.
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11 CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
REVIEW OF PAST ACCOMPLISHMENTS
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Review of Past Accomplishments
California Government Code Section 65588(a) requires that each jurisdiction review its housing element as frequently as is appropriate and evaluate:
• The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal.
• The effectiveness of the housing element in attainment of the community’s housing goals and objectives.
• The progress in implementation of the housing element.
According to the State HCD, the review is a three-step process:
• Review the results of the previous element’s goals, objectives, and programs. The results should be quantified where possible but may be qualitative where necessary.
• Compare what was projected or planned in the previous element to what was actually achieved. Determine where the previous housing element met, exceeded, or fell short of what was anticipated.
• Based on the above analysis, describe how the goals, objectives, policies, and programs in the updated element are being changed or adjusted to incorporate what has been learned from results of the previous element.
Housing Production
The City of Gilroy had a total RHNA allocation of 1,088 units in the 5th Cycle. As of December 2022, 2,605 units have been permitted during the 5th Cycle, exceeding the overall allocation by 1,517 units. About 60 percent of these new units were affordable to above-moderate incomes.
The City produced nearly five (5) times (490%) the low-income allocation, approximately 46% of its moderate-income allocation, and approximately 68% of its very-low income allocation.
There is a remaining RHNA need of 75 very low-income units and 117 moderate income units.
The following table includes data through the end of 2022, consistent with the 2022 annual progress report submitted to HCD.
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Table 1: 5
th Cycle RHNA Progress (2015 through 2022)
Very Low Low Moderate Above
Moderate Total
5 th Cycle RHNA
Allocation 236 160 217 475 1,088
Building
Permits Issued 161 785 100 1,559 2,605
Remaining
Requirement 75 - 117 - 192
No Net Loss and Adequate Sites
The 2015 – 2023 Housing Element identified adequate capacity for its 5 th Cycle allocation of
units, identifying a surplus of 526 lower-income units and 960 above moderate- income units.
Additionally, in 2020, the City updated its General Plan to increase densities for specified land use designations and allow mixed-use residential along the First Street commercial corridor.
These amendments increased zoned capacity for all income levels in Gilroy.
The City reviewed its 5
th Cycle sites, past approvals, and the Zoning Ordinance and determined that it has maintained adequate sites to meet the RHNA for all income levels throughout the 2015 – 2023 planning cycle.
Effectiveness at Assisting Special Needs Populations
This section reviews the City’s progress on assisting populations with special housing needs during the 5th Cycle. The City of Gilroy supports the preservation of long-term housing stability and affordability. The City has received and allocated funding to improve access to needs that improve the quality of life among seniors, the homeless, and extremely low-income households during the 2015 to 2023 planning cycle.
Funding for housing, homeless services, and special needs populations during the 5th Cycle was provided through the federal Community Development Block Grant (CDBG) program, CDBG CARES ACT-Corona Virus (CDBG-CV), and the Housing Trust Fund (HTF).
CDBG Funding. For the 2021 – 2022 fiscal year funding cycle, the City allocated $205,905 in CDBG funds toward community service needs, including senior services ($17,560), youth services ($38,452), health services ($10,250). and home repair ($140,000). For the 2022 – 2023 fiscal year, the City allocated $205,452 in CDBG funds towards senior services ($10,000), youth services ($55,452), and home repair ($140,000). Specific programs and recipients varied slightly between the two fiscal years.
CDBG-CV Funding. The City also allocated $613,154 in CDBG-CV funds towards programming that would address the impacts resulting from the COVID-19 pandemic, including St. Joseph’s Rental Assistance ($287,309), small business assistance ($225,486), and YMCA Healthy Food Delivery ($100,359).
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PLHA Funding. The City Council approved the replacement of the HTF with the Permanent Housing Allocation (PLHA) Fund, making more funds available for public service programs addressing basic needs and homelessness prevention. Although the HTF will no longer be made available for public service programs or rehabilitation purposes, it will continue to be used to partially cover staff and consulting service costs to monitor affordable rental and ownership agreements until the money is depleted.
PLHA funding allocations are also based on priorities identified in the City of Gilroy 2020-2025 Consolidated Plan and 2020-2021 Annual Action Plan1. High priority items identified in the plan include special needs services for the elderly, special need services for youth, homeless supportive services, and rehabilitation of existing affordable housing. By partnering with the County and a broad range of community-based organizations, the City is expanding homelessness prevention and basic needs services to assist Gilroy families and individuals who are experiencing, or at risk of, homelessness.
The City received PLHA funding from the State through application and partnership with Santa Clara County. As a new resource, the City is implementing $474,000 in program funds during the first two years of the PLHA Program.
o With $110,000 over two years, St. Joseph’s Family Center provides emergency rental assistance, utility assistance, and other supportive programs that help diminish the risk of becoming homeless.
o With $40,000 over two years, Project Sentinel provides fair housing services and investigates complaints to address housing discrimination for Gilroy residents. o With $40,000 over two years, Project Sentinel provides a landlord-tenant counseling and dispute resolution program to help resolve housing conflict and protect Gilroy residents from displacement.
o With $40,000 over two years, Community Agency for Resources Advocacy and Services provides rental and deposit assistance to prevent homelessness for Gilroy families and individuals.
o With $80,000 over two years, South County Compassion Center provides services to unhoused Gilroy residents to meet their basic needs and to connect them with services that can help them attain permanent housing.
o With $70,000 over two years, St. Joseph’s Family Center provides training and employment readiness to prepare individuals that are homeless or at risk of homelessness for stability and greater self-sufficiency. o With $54,000 over two years, The Health Trust delivers meals to low income and homebound seniors at risk of food insecurity, allowing them to remain in their homes.
11 City of Gilroy 2020-2025 Consolidated Plan and 2020-2021 Annual Action Plan. https://www.cityofgilroy.org/DocumentCenter/View/11526/City-of-Gilroy-2020-2025-Consolidated-Plan-and-AAP-FINAL
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o With $40,000 over two years, Silicon Valley Independent Living Center provides Gilroy residents with disabilities counseling, emergency rental assistance, and housing search services to obtain safe, affordable, and accessible long-term housing.
As can be seen above, Gilroy is allocating and implementing federal and state grant funding to assist Gilroy’s vulnerable communities and create safe and healthy neighborhoods for all. In general, these programs have been successful at providing new opportunities, resources, and procedures to assist special needs populations. The City is committed to furthering fair housing and supporting special needs populations and has included several programs in its 6 th Cycle Element to further address the housing needs of all groups.
Accessibility Improvements
The need to revitalize older City infrastructure, particularly accessibility for elderly persons and persons with disabilities is identified as a top priority in the City’s 2020 – 2025 Consolidated Plan and 2020 – 2021 Annual Action Plan. The Consolidated Plan further identifies accessibility improvements such as wheelchair ramps, curbing, and sidewalks as one solution to this need.
In November 2021, the City awarded $70,592 in CDBG funding to a consultant to design and prepare construction documents for off-site improvements in front of the Gateway Senior affordable Apartments, located at 6500 Monterey Road. The scope of work included design of a standalone HAWK (High-Intensity Activated Crosswalk) system for safe pedestrian crossing, design of two ADA compliance curb ramps and minor concrete work, and design of new striping for pedestrian crossing and safety. The full construction cost of the CIP project is estimated to be $314,400. For the 2022-2023 fiscal year funding cycle, the City also allocated $145,090 in CDBG funds toward improving sidewalks and curb ramps throughout the City.
Seniors and Residents with Disabilities
The City also identifies supportive services for seniors and persons with disabilities under the Special Needs section of the 2020-2025 Consolidated Plan. As noted above, the City allocated a portion of the CDBG funds and a portion of the PLHA funds towards senior services and residents with disabilities.
Over the two fiscal years from 2021 to 2023, CDBG funds included $18,560 for the Live Oak Adult Day Care program and $8,643 for the Meals on Wheels program which provides access to hot meal deliveries 5-days per week to people with disabilities and seniors who are unable to leave the house. Similarly, $100,359 of the CDBG-CV funds were allocated towards the local YMCA’s food distribution program for homebound seniors impacted by the COVID-19 pandemic and shelter in place orders.
Over the two-year period from 2022-2024, PLHA funds included $54,000 for the Health Trust that delivers meals to low income and homebound seniors at risk of food insecurity, allowing them to remain in their homes, and $40,000 for Silicon Valley Independent Living Center which provides counseling for Gilroy residents with disabilities, emergency rental assistance, and housing search services to obtain safe, affordable, and accessible long-term housing.
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The Recreational Division at City Hall provides seniors access to a free Box/Dine in lunch in partnership with the YMCA at the Gilroy Senior Center on 7371 Hanna Street. Free groceries from the Second Harvest Food Bank are available at San Ysidro Park on 7700 Murray Avenue.
At-Risk Youth Services
The 2020 – 2025 Consolidated Plan also identified Gilroy’s at-risk youth as a priority need for the City. Over the 2021 – 2023 (two-year) fiscal cycles, a portion of the CDBG funds discussed above were allocated towards Gilroy’s at-risk youth. The Community Agency for Resources Advocacy and Services (CARAS) RYSE (Reaching our Young people to Succeed and Empower with Unlimited Potential) program received $8,500 to provide support to at-risk young girls through crime prevention, gang intervention, youth empowerment, and recreational activities.
The Boys and Girls Club Ochoa Clubhouse CORE Enrichment Program received $8,500 to empower kids and teens to excel in school, become good community members, and lead healthy, productive lives through education, learning, the arts, health and wellness, character and leadership, sports and recreation, and workforce readiness. The Gilroy Youth Center received $76,904 for engaging high-risk youth and their families with social, recreational and educational programs that support and enhance their quality of life through communitybased recreation. The Gilroy Youth Center is a free program for income eligible residents, providing an after-school program during the school year and a day camp during the summer.
Unhoused Outreach
A portion of the PLHA funds and CDBG-CV funds discussed above was allocated towards homelessness prevention. The following agencies received PLHA Funding for FY 22-23 and FY 23-24: St. Joseph’s Family Center received $110,000 to provide emergency rental assistance, utility assistance, and other supportive programs that help diminish the risk of becoming homeless. St. Joseph’s Family Center received an additional $70,000 to provide training and employment readiness to prepare individuals that are homeless or at risk of homelessness for stability and greater self-sufficiency. Community Agency for Resources Advocacy and Services received $40,000 to provide rental and deposit assistance to prevent homelessness for Gilroy families and individuals. South County Compassion Center received $80,000 to provide services to unhoused Gilroy residents to meet their basic needs and to connect them with services that can help them attain permanent housing.
Through its CDBG-CV funds, the City provided $287,309 in support to Saint Joseph's Family Center's Rental Assistance program. This program is designed to prevent homelessness through emergency rental assistance and deposits. The funds helped very-low-income tenants who have been impacted by COVID-19 with paying a portion of their rents to avoid eviction.
The Program benefited an estimated 231 low-income individuals.
Farmworkers
Due to the seasonal nature of farm work, many households have a difficult time securing safe, habitable, and affordable housing. There are 56 dwelling units within Gilroy City limits to meet the permanent and seasonal housing needs of extremely low-income and low-income
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farmworkers. These units are located in the following three (3) housing developments, owned and managed by Eden Housing:
• The Trees, with 14 units
• Aspen Grove, with 24 units
• Maple Gardens with 18 units
In addition, the Santa Clara County Housing Authority (SCCHA) provides 100 farmworker housing units through the Ochoa Migrant Center, located just outside of the Gilroy City boundary. The center serves as a migrant camp 8 months out of the year (April through November) for farmworkers and their families. There are 33 three-bedroom apartments and 67 two-bedroom apartments within the 100-unit development. During the off-season (midDecember through mid-March), the Ochoa Migrant Center provides temporary housing for the unhoused.
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2015 – 2023 (5th Cycle) Housing Element Programs
This section illustrates the City of Gilroy’s accomplishments and status in implementing the housing programs identified for the 2015-2023 5
th Cycle, as well as the continued
appropriateness of each program for the 2023-2031 6
th Cycle. Programs that have been
successfully completed or that consist of routine staff functions are marked as “remove,” as these programs are no longer necessary for the 6th Cycle. Previous programs that are continued with no or minor modifications are marked as “continue.” Finally, programs marked as “modify” or “consolidate” are programs that will be continued, but have updated goals and metrics, and may involve combining multiple existing programs into a single 6th Cycle program for ease of use and streamlining.
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Table 2: Review of 2015 – 2023 (5th Cycle) Housing Element Programs 5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
HOUSING PRODUCTION
H-1.A Publicize
Residential Sites
Inventory
The City shall make the residential sites
inventory available to developers by
publicizing it on the City website and
providing copies of the sites to developers.
The City shall update the list of sites annually,
or as projects are approved on the sites.
Post on website
within 6 months
of adoption;
update annually,
or as needed
The most recent Residential
Vacant Land Inventory was
completed in October 2022 and is
available on the City’s website.
Retain – modify to
include clear
objectives and
additional
developer
outreach.
A - 4
H-1.B Residential
Development
Ordinance
The City shall review and revise, as
appropriate, the Residential Development
Ordinance to ensure that it does not pose a
constraint on the maintenance, improvement
and development of housing; and provides
capacity to meet the City’s RHNA need.
Furthermore, the City will encourage the
development of housing that is affordable to
a variety of income groups through the
Residential Development Ordinance by
comparing its features with the
Neighborhood District Ordinance and making
any changes to ensure the two policies are
compatible.
Review of RDO
following
adoption of the
New General Plan
(estimated FY
2015/16)
Senate Bill 330, signed by the
governor in 2019, prohibits a
jurisdiction from implementing any
provision that limits the number of
approvals or permits or puts a cap
on the number housing units that
can be approved or constructed, or
limits population. As a result, the
Residential Development
Ordinance is now null and void and
will be repealed as part of the City's
comprehensive zoning update in
2023.
Retain - modify:
The RDO will be
repealed as a part
of the City’s
comprehensive
zoning update in
2023.
B - 1
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5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-1.C Variety of
Housing in
Neighborhood
Districts
The City shall review and revise, as
appropriate, the Neighborhood District Policy
to ensure that it encourages the
development of housing that is affordable to
a variety of income groups by comparing its
features with the Residential Development
Ordinance and making any changes to
ensure the two policies are compatible and
designed to reach the same goals.
Review of
Neighborhood
District Policy in
conjunction with
the New General
Plan preparation
(estimated FY
2015/16)
The Residential Development
Ordinance is no longer in effect.
The 2040 General Plan includes a
new higher density Neighborhood
District designation, allowing a
greater range of housing types
from single family detached
dwellings (0-7 du/ac) to higher
density multi-family dwellings (16-
30du/ac).
Retain – modify
the
Neighborhood
District policy to
eliminate any
references to the
RDO (see
discussion above)
and provide
standards related
to the new
density ranges
and affordable
housing
requirements.
A - 5
H-1.D Facilitate Infill
Development
The City shall coordinate efforts with private
and non-profit developers, and other housing
related groups to encourage the construction
of residential development through a menu
of regulatory incentives (e.g., streamlined
review and other methods that will effectively
encourage infill development). The City shall
monitor infill development on a biannual
basis to ensure the effectiveness of programs
to encourage housing development. If, based
on its biannual review, the City finds that
additional programs are needed to facilitate
infill development, the City shall revise
programs as appropriate.
Monitor biennially
starting in 2016
Between January 1, 2015 and
December 31, 2022, the City
permitted 2,605 new residential
units. The City’s residential
development standards are
generally very permissive. For
example, single-family and multifamily residential projects that comply with objective development
and design standards can
generally be approved through a
ministerial or administrative
review process, without the need
for public hearings.
Furthermore, multi-family
development is typically built with
moderate to high densities, with
higher densities allowed through
Retain – modify
with a program
that will “Facilitate
Missing Middle
Housing” by
streamlining the
entitlement
process with a
ministerial
process for
duplexes,
triplexes and
quadplexes in
specified areas of
the City, that
meet objective
design standards.
A - 9
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the State Density Bonus law.
H-1.E Monitor Permit
Requirements,
Processing
Procedures and
Land Use
Controls
To ensure permit requirements and
processing procedures do not constrain
residential development, the City shall
evaluate current requirements and
procedures on a biannual basis. The City shall
consult builders and other parties engaged in
housing development activities to identify
concerns. If permitting requirements are
determined to be a constraint to residential
development the City shall modify permitting
requirements and/or procedures to address
constraints, as feasible.
Biennial
evaluation
starting in 2016
and implement
changes as
appropriate
In 2020, the City awarded the
contract for the purchase and
implementation of a Land
Management System to Tyler
Technologies for the
implementation of EnerGov to
manage and track land
development applications, business
and professional licenses, special
event permits, code enforcement
cases, and fire prevention/pretreatment/ hazardous materials management. The City and Tyler
teams kicked off the project in
September of 2020 with an
anticipated "go-live" in 2023.
Applicants will be able to check the
status of their permit online and
staff will have greater control over
the workflow. The City also
continues to hold development
stakeholder roundtable meetings
(virtual in 2020) to maintain a dialog
with the Development Community.
Topics included bicycle parking,
objective design standards, and a
potential update to the City's
Downtown Specific Plan.
Retain - modify by
splitting into two
programs. One
for the Land
Management
System
Implementation
and one that is
streamlining the
permit process as
a part of the 2023
comprehensive
Zoning Ordinance
update
A - 8 and
B - 5
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th Cycle Housing Plan 22
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Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-1.F Zoning to
Encourage and
Facilitate SingleRoom
Occupancy Units
The City shall revise the Zoning Ordinance to
establish explicit definitions for and
regulatory standards addressing single-room
occupancy units.
Review and
Amend Zoning
Ordinance
(estimated FY
2015/16)
following
adoption of the
New General Plan
Not completed. The City will include
a definition for and regulatory
standards addressing single-room
occupancy units as part of the 2023
Zoning Update.
Retain - modify E - 2
H-1.G Study MicroUnitsThe City shall conduct a study of the appropriateness of “micro-units” in Gilroy
and the existing barriers in the Zoning
Ordinance to the provision of micro-units.
Based on the findings of the study, the City
will make a determination of the
appropriateness of micro-units in Gilroy and,
if determined appropriate, identify methods
for eliminating barriers, and establish
appropriate development standards.
FY 2017/18 Not completed. The City will define
“micro-units” in Gilroy as part of the
2023 Zoning Update.
Retain – modify
The draft 2023 –
2031 Housing
Element includes
a program to
develop
incentives for
micro-units which
help contribute to
the City’s
affordable by
design housing
stock.
E - 5
AFFORDABLE HOUSING
H.2.A Develop
Affordable
Housing
Incentives
The City shall review and revise, as
appropriate, current incentives and
regulatory concessions available to
developers for the development of affordable
housing throughout the city, and especially
within the Downtown Gilroy Specific Plan
area and Neighborhood District. Incentives
and regulatory concessions may include, but
are not limited to parking reductions, and
reduced setbacks. The City shall also provide
technical assistance, as feasible; information
Review incentives
within 1-year of
Housing Element
adoption; revise,
as appropriate;
Monitor
effectiveness of
incentives and
regulatory
concession
biennially, staring
Partially Complete. The City
continues to monitor development
in the Neighborhood
District areas (e.g., Glen Loma) and
the Downtown Specific Plan area
and provide technical assistance to
potential developers.
The draft 2023-2031 Housing
Element includes a program to
Retain – modify
The draft 2023-
2031
Housing Element
also anticipates
new development
in the
downtown area
including
A - 10
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on State and Federal funding opportunities;
and marketing to potential developers.
The City shall continue to monitor
development within the City’s Downtown
area on a biannual basis to ensure the
implementation of the Specific Plan’s policy
on encouraging the development of a mix of
retail, office and higher density residential
uses. The City shall encourage the
development of uses within the area to
closely follow the recommended land use
assumptions contained in the Specific Plan. If,
based on its biannual review, the City finds
that the proportion of residential uses to
non-residential uses are not being developed
as assumed in the Specific Plan, the City shall
investigate additional incentives, concessions
or assistance and revise programs as
appropriate.
in 2016; Ongoing
monitoring of
development
within Downtown
Specific Plan.
adopt an Affordable Housing Policy.
The City continues to seek grant
funding to update the
Downtown Specific Plan to ensure
that the City’s vision for the
downtown is implemented.
affordable
housing units
H-2.B Pursue Funding
for Affordable
Housing
The City shall pursue funding from State,
Federal, and regional sources and support
applications for funding to help increase the
supply of affordable housing. Funding
programs may include but are not limited to:
• One Bay Area Grants awarded by the
Association of Bay Area Governments;
• HCD Local Housing Trust Fund Program;
• HUD Section 811 funding for supportive
housing for extremely low-income
residents;
• The state Infill Infrastructure Grant
program, sponsored by the Department
At least biennially,
or as funding
opportunities
become available
The City evaluates funding
opportunities as they arise and
apply as appropriate. The City also
facilitates public hearings on behalf
of private developers who wish to
seek tax credit financing for an
affordable housing project.
Retain D - 4
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th Cycle Housing Plan 24
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Program
Number
of Housing and Community
Development (HCD); and
• The State Multifamily Housing Program
(MHP), sponsored by HCD.
H-2.C Community
Development
Block Grant
Program
The City shall continue to administer the
Community Development Block Grant
Program for all eligible activities, including
acquisition, rehabilitation, home buyer
assistance, economic development, homeless
assistance, public services, and public
improvements. The City shall continue to
inform non-profit organizations of funding
availability through the City’s website and
informational packets at City Hall.
Annually The City continues to administer
the CDBG program and funds
eligible activities as funding allows.
One such activity is a housing
rehabilitation program that helps
low income individuals with
accessibility improvements. The city
has provided a grant to Rebuilding
Together Silicon Valley to operate
and expand the Home Repair,
Rehabilitation and Modification
program in Gilroy. This program
provides a wide range of home
repair, accessibility, mobility and
rehabilitation improvements for
low income homeowners.
Retain D - 5
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th Cycle Housing Plan 25
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Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-2.D Housing Trust
Fund
The City shall continue to administer the
City’s Housing Trust Fund for all eligible
activities, including new construction,
acquisition, rehabilitation, home buyer
assistance, homeless assistance, public
services related to housing, and preservation
of affordable housing. The City shall continue
to inform non-profit organizations of funding
availability through the City’s website and
informational packets at City Hall.
Annually Completed. During most of the 5th
cycle planning period, the City
allocated Housing Trust funds
towards housing-related activities.
These activities include fair housing
services, tenant landlord
counseling services, and homeless
prevention services. In 2022, the
City replaced the HTF with the
Permanent Housing Allocation
(PLHA) Fund, making more funds
available for public service
addressing homeless basic need
programs as well as programs that
focus on homelessness prevention.
Retain – modify to
reflect funds are
from the PLHA
rather than the
Housing Trust
Fund
D - 1
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th Cycle Housing Plan 26
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Program
Number
H-2.E Funding Sources
to Assist
Homeownership
The City shall pursue potential sources of
additional funding for homeownership
assistance, including the availability of State
HCD, CalHFA funds, HOME, and County
funds. The City shall improve public outreach
activities through the compilation of
resources for down payment assistance,
silent second mortgages, and other means of
acquiring a home.
Development of
resources for
public
dissemination by
December 2015;
ongoing review of
additional
funding sources
Partially completed. The City has
posted on its website links to
organizations who offer
homebuyer assistance, including
the Housing Trust of Silicon Valley,
an organization that helps first-time
homebuyers secure Below Market
Rate (BMR) down payment
assistance.
On December 6 and December 8,
2022, the City co-hosted
Spanish and English Webinars
(respectively) to educate the public
on the Santa Clara County
Empower Homebuyers Down
Payment Assistance Program. The
webinar was co-hosted with the
City of Morgan Hill and the Housing
Trust of Silicon Valley.
Retain - modify D - 2
H-2.F Section 8
Referrals
The City shall continue to provide Section 8
referral services and information to City
residents. The City shall make information on
the Section 8 voucher program available on
the City website.
Post on website
by January 2016;
provide referral
on an ongoing
basis
Completed. The City has posted on
its website a link to the Housing
Authority of Santa Clara County
website. Here individuals can learn
more about Housing Choice
voucher eligibility and determine if
the current waiting list is accepting
any additional households.
Retain D - 3
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th Cycle Housing Plan 27
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6th Cycle
Program
Number
H-2.G Development of
Housing for
Extremely LowIncome
Households
The City shall review and incorporate
appropriate regulatory incentives, financial
incentives, and other policies that encourage
the development of housing units for
extremely low-income households. The City
shall encourage and support the
development of housing for extremely lowincome households within future affordable housing projects through various strategies
and programs that may include assistance
with entitlement processing; and modifying
development standards and granting
concessions and incentives for projects that
provide housing for lower income families.
Review and
amend Zoning
Ordinance
(estimated FY
2015/16), as
appropriate,
following
adoption of the
New General Plan
Partially completed. The City
continues to encourage developers
to include extremely low-income
units in their housing projects. Staff
are available to meet with
developers and discuss various
incentives and concessions,
consistent with State density bonus
law.
Retain – modify
by including an
incentives beyond
density bonus
state law program
with incentives
for ELI
households, and
inclusionary
housing policy.
A - 10 and
A - 11
H-2.H Water and Sewer
Service Priority
The City shall review and update every five
years, as necessary, the Water and Sewer
Service Priority Policy to ensure future
affordable projects will receive service
priority.
Review every 5
years, starting
December 2015
Completed. The Gilroy collection
system includes about 140 miles of
sewer mains. Policies in the new
2040 General Plan provide for
reliable sewer service for all
residents and businesses through a
cooperative effort between the City
and SCRWA. The General Plan also
includes policies to ensure the
provision of healthy, safe water for
all users in Gilroy through facilities,
policies, programs, and regulations.
Retain and Modify E - 1
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th Cycle Housing Plan 28
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Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
HOUSING PRESERVATION AND REHABILITATION
H-3.A Housing
Rehabilitation
To enhance the quality of existing
neighborhoods, the City shall continue to
implement the City’s Housing Rehabilitation
Program. The City will continue using
Community Development Block Grant (CDBG)
funds to assist in the improvement of
substandard housing.
Ongoing The City currently funds a housing
rehabilitation program that
provides accessibility
improvements to very low income
households. The City has provided
a grant to Rebuilding Together
Silicon Valley to operate and
expand the Home Repair,
Rehabilitation and Accessibility
Modification program in Gilroy.
This program will provide a wide
range of home repair, accessibility,
mobility and limited rehabilitation
improvements for low income
homeowners.
Retain C - 2
H-3.B Code
Enforcement
Program
To ensure continued maintenance of housing
quality, condition, and use, the City shall
continue to enforce building codes to
address existing exterior and interior code
violations. Within current staffing limits, the
City shall contact owners of units identified as
substandard, offering inspection services and
providing information on the City’s
Rehabilitation Loan Program and
landlord/tenant information and mediation
services.
Ongoing The City continues to enforce
building codes to address code
violations. Code enforcement
officers work with owners of units
identified as substandard, offering
inspection services and providing
information on the City’s programs
and services.
.
Retain – modify to
set quantified
objective
C - 3
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th Cycle Housing Plan 29
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Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-3.C Monitoring of
Units At-Risk of
Converting to
Market Rate
The City shall provide for regular monitoring
of deed-restricted units that have the
potential of converting to market rate. In
order to proactively address units at-risk of
conversion, the City shall develop a program
to partner with non-profit housing providers
and develop a preservation strategy. This
strategy will at least include biennial contact
with property owners of affordable units,
identification of funds to purchase and
preserve affordable units, noticing of tenants
and technical assistance with applications for
funds.
Ongoing To date, no multi-family affordable
housing units have converted to
market rate or are at-risk of
conversion. Many of the complexes
have undergone significant
rehabilitation to update and
prolong the longevity of the units.
The city has contracted with
HouseKeys to serve as Program
Administrator of the city's BMR
home ownership and rental
property program. HouseKeys will
continue to evaluate the city's
current multi-family affordable
housing stock to determine if any
developments are at-risk of
conversion.
Retain C - 1
H-3.D Resale Control
on OwnerOccupied Below
Market Rate
Units
The City shall continue to implement resale
controls on owner-occupied Below Market
Rate (BMR) units to ensure that affordable
units provided through public assistance or
public action are retained for 30 years or
more as affordable housing stock.
Ongoing The City has contracted with
HouseKeys to serve as Program
Administrator of the city's BMR
home ownership and rental
property program.
Retain C - 4
H-3.E Rent and Income
Restrictions on
Rental BelowMarket Rate
Units
The City shall continue to implement rent and
income restrictions on rental Below Market
Rate (BMR) units to ensure that affordable
units provided through public assistance or
public action are retained for 30 years or
more as affordable housing stock.
Ongoing The City has contracted with
HouseKeys to serve as Program
Administrator of the city's BMR
home ownership and rental
property program to to help ensure
that the homeowners and property
owners are complying with
affordable housing requirements.
Retain C - 5
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th Cycle Housing Plan 30
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Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
HOUSING OPPORTUNITY FOR RESIDENTS WITH SPECIAL NEEDS
H-4.A Housing for
Large Families
The City shall review and revise the Zoning
Ordinance, as appropriate, to incorporate
appropriate regulatory incentives, and other
policies that encourage the development of
rental housing units with three or more
bedrooms to accommodate the needs of
large families. The City shall encourage and
support the development of rental housing
for large families within future affordable
housing projects through various strategies
and programs that may include assistance
with site identification and entitlement
processing; and modifying development
standards and granting concessions and
incentives.
Review and
amend Zoning
Ordinance
(estimated FY
2015/16), as
appropriate,
following
adoption of the
New General Plan
Not completed. The City will
consider the appropriateness of
regulatory incentives and other
policies that encourage the
development of rental housing
units with three or more bedrooms
to accommodate the needs of large
families in Gilroy as part of the
2023 Zoning Update and the 2023 –
2031 Housing Element incentives
beyond density bonus law
program.
Remove and
consolidate with
Density Bonus
Incentives
program
The 2023 – 2031
Housing Element
includes a
program to
develop
incentives to
encourage the
development of
housing to
accommodate the
needs of large
families in Gilroy.
A - 11
H-4.B Development of
Housing for
Seniors
The City shall consider areas for new senior
housing development, including residential
care facilities, that are convenient to public
transit and within walking distance to
shopping and restaurants, and incorporate
appropriate regulatory incentives, financial
incentives, and other policies that encourage
the development of housing for seniors. The
City shall continue to accept Senior only and
Affordable Senior Housing projects through
the RDO Exemption program to encourage
the development of these projects.
Review and
amend Zoning
Ordinance
(estimated FY
2015/16), as
appropriate,
following
adoption of the
New General Plan
Not completed. As noted above,
the Residential Development
Ordinance is no longer in effect.
The City will consider areas for new
senior housing development,
including residential care facilities,
as part of the 2023 Zoning Update.
Retain – modify.
The RDO is no
longer in effect.
Housing for
seniors is a need
that will be
considered and
incorporated into
the incentives
beyond density
bonus state law
A - 11
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th Cycle Housing Plan 31
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Program
Number
H-4.C Reduced Parking
Standards for
Senior Housing
The City shall conduct a study to determine if
reduced parking standards for senior
housing is appropriate in Gilroy. Based on the
findings of the study, the City may revise the
Zoning Ordinance, as necessary, to reduce
parking standards for senior housing.
Conduct study
and review
Zoning Ordinance
(estimated FY
2015/16) (as
appropriate)
following
adoption of the
New General Plan
Not completed. The City will
consider reduced parking
standards for senior housing as
part of the Zoning Ordinance
update, which will be completed in
2023.
Retain E - 6
H-4.D Development
and
Conservation of
Housing for
Farmworkers
The City shall continue to partner with the
Housing Authority of Santa Clara County and
various non-profit organizations to explore
and implement ways of providing affordable
farmworker housing. The City shall assist with
requests by developers for State and Federal
funding for development of multi-family
housing within city limits.
Outreach to Santa
Clara Housing
Authority and
non-profit
organizations
biennially starting
in 2016, and
identify and
pursue
development, as
appropriate
The City maintains communication
with Santa Clara County and other
organizations regarding the need
for farmworker housing and the
potential for expanding
farmworker housing in Gilroy.
There is currently farm worker
housing in Gilroy, including three
apartment buildings (managed by
Eden Housing). The Ochoa Migrant
Camp (managed by EAH Housing) is
just outside of city boundaries. The
Ochoa Migrant camp is seasonal,
following the surrounding harvest
season. During the off season, it is
used to accommodate un-housed
families.
Retain E - 7
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th Cycle Housing Plan 32
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6th Cycle
Program
Number
H-4.E Consistency with
the Employee
Housing Act
The City shall update the Zoning Ordinance
to be consistent with the Employee Housing
Act (Health and Safety Code 17021), which
generally requires employee housing to be
permitted by-right, without a CUP, in singlefamily zones for less than six persons, and in all zones that allow agricultural uses with no
more than 12 units or 36 beds.
Review and
amend Zoning
Ordinance
(estimated FY
2015/16)
following
adoption of the
New General Plan
Not completed. The City will update
the Zoning Ordinance to be
consistent with the Employee
Housing Act (Health and Safety
Code 17021). The zoning update
will be completed in 2023.
Retain E - 8
H-4.F Support
Homeless
Service
Providers
The City shall continue to support the efforts
of agencies providing emergency shelter for
homeless residents, including providing
funding when feasible and appropriate.
Ongoing The City provides funding to
homeless service providers
through both its CDBG and
HTF/PLHA programs. Services
include referrals to the Santa Clara
County Continuum of Care
program, case management,
homelessness prevention and
provision of basic need items.
The City hosts monthly meetings
with Unhoused Service
Providers. The goal of USP Network
is to increase collaboration
and partnership among the service
providers and the City of
Gilroy to connect the unhoused
with services.
Consolidate with
other programs;
the PLHA and
CDBG funds
includes funding
for homelessness
prevention
services and
homelessness
assistance
D – 1 and
D - 5
H-4.G Home Access
Grants
The City shall continue to administer Home
Access Program to provide very low-income
disabled residents with help in safely entering
and exiting their homes and accessing
essential areas within their homes.
Ongoing This program was eliminated from
the consolidated plan. The City
continues to look at programs that
can help its very-low income
disabled residents, including the
Home Access Program.
Remove and
consolidate with
Housing
Rehabilitation
program
C - 2
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th Cycle Housing Plan 33
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Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-4.H Coordinate with
the San Andreas
Regional Center
The City shall work with the San Andreas
Regional Center to implement an outreach
program informing residents of the housing
and services available for persons with
developmental disabilities. The City shall
make information available on the City
website.
Initiate
coordinate by
2016
The San Andreas Regional Center
provides services to residents at
Villa Esperanze in Gilroy.
Remove N/A
H-4.I Zoning
Ordinance
Amendments for
Transitional and
Supportive
Housing
The City shall update the Zoning Ordinance
to be fully compliant with State law and allow
transitional and supportive housing in all
zones that allow residential uses, subject to
the same restrictions that apply to other
residential uses of the same type in the same
zone.
Amend Zoning
Ordinance
(estimated FY
2015/16)
following
adoption of the
New General Plan
Completed. The Zoning Ordinance
allows transitional and supportive
housing in all residential zoning
districts, subject to the same
restrictions that apply to other
residential uses of the same type in
the same zone.
Remove N/A
FAIR HOUSING
H-5.A Fair Housing
Counseling
The City shall continue to provide funds to
and contract with a non-profit agency to
provide fair housing assistance including
landlord/tenant counseling, homebuyer
assistance, and improvement or removal of
identified impediments. The City shall
disseminate information about fair housing
assistance through pamphlets in City-owned
buildings and other public locations (e.g., City
Hall, Library, post office, other community
facilities) and by posting information on the
City website.
Ongoing The City funds fair housing
counseling services through its
Housing Trust/PLHA Fund program.
It also publishes the availability of
both tenant/landlord counseling
and fair housing services via its
website.
Retain F - 2
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th Cycle Housing Plan 34
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
EXPANDING OUTREACH
H-6.A Interagency
Collaboration for
Lower Cost
Housing
The City shall continue participation in
Countywide housing assistance programs,
and collaborate with other public agencies
and non-profit housing sponsors in the use
of available programs to provide lower-cost
housing in Gilroy.
Ongoing Abode Services provides a direct
subsidy to one individual at the
Cherry Blossom Apartments,
owned by the City, through a
partnership with the City and
Community Solutions. The City also
facilitates TEFRA hearings, as
needed, to allow for the
development and rehabilitation of
affordable housing units
throughout the City.
Consolidate – roll
into programs to
outreach for
developers and a
program to
provide for
rehabilitation of
affordable
housing units.
G - 1 and
C - 2
H-6.B Collaboration
with
Development
Community
The City shall continue to establish
relationships with and provide technical
assistance to both for-profit and non-profit
development companies working in the area
of affordable housing, facilitating innovative
partnerships and collaborative approaches to
affordable housing development. The City will
especially utilize the Housing Advisory
Committee to address housing issues and
provide outreach to the development
community.
Ongoing The City continues to establish
collaborative relationships with forprofit and non-profit development companies to find innovative
approaches to affordable housing
development in Gilroy. The housing
advisory duties now fall under the
Planning Commission, a decisionmaking body with authority to approve or recommend approval of
housing developments in Gilroy.
City staff continue to provide
outreach to the development
community.
Retain and
modify
G - 1
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5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-6.C Community
Access to
Housing
Information
To ensure the Gilroy community is provided
the highest level of access to information, the
City shall evaluate the effectiveness of
existing outreach and community education
efforts and develop a comprehensive
outreach strategy for the delivery of housing
information. The outreach strategy will
consider various methods of delivery,
including print media, mailers, web-based
information, and other methods that
consider economic and cultural
considerations unique to the City of Gilroy.
Develop housing
information
strategy by June
2016
The City's 2040 General Plan,
adopted in November 2020,
includes goals, policies, and
implementation actions regarding
outreach and community
education efforts including various
methods of delivery, such as print
media, mailers, web-based
information, and other methods
that consider economic and
cultural considerations unique to
the City of Gilroy.
City hosts monthly meetings with
Unhoused Service
Providers. The goal of USP Network
is to increase collaboration
and partnership among the service
providers and the City of
Gilroy to connect the unhoused
with services.
Retain G - 5
H-6.D Annual Review
of Housing
Element
Pursuant to HCD Requirements, the City shall
conduct an annual implementation review of
the Housing Element. The review will include
the following information: a log of new
residential development permits and
completion reports; inventory of units built in
the Extremely Low-, Very Low- and LowIncome categories, an update or inventory of approved projects; an annual estimate of
population from the State Department of
Finance; and available vacant land and zoning
survey.
Annually to HCD The City has submitted Annual
Progress Reports in from 2015
through 2022.
Remove N/A
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36 CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
HOUSING NEEDS ASSESSMENT
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Housing Needs Assessment
The housing needs assessment discusses the varied needs of all segments of the community.
Components that dictate housing need are population trends, demographics, employment trends, household characteristics, housing stock characteristics, housing inventory and market conditions, and preservation of at-risk units. The assessment also analyzes the housing needs of various special needs groups including elderly persons, large households, female-headed households, persons with disabilities (including intellectual and developmental disabilities), homeless/unhoused persons, farmworkers, and extremely low-income households. These components are presented within the context of Gilroy, Santa Clara County, and other regional or neighboring areas as appropriate. The needs assessment guides the identification of appropriate goals, policies, and programs for the City to implement during the 2023–2031 Housing Element Cycle.
The needs assessment uses multiple data sources for analysis. Primary data sources include the 2019 American Community Survey (ACS), the 2014–2018 Comprehensive Housing Affordability Strategy (CHAS) published by the US Department of Housing and Urban Development (HUD), and the 2020 US Census. CHAS provides information related to households with housing problems, including overpayment, overcrowding, and those without complete kitchen facilities and plumbing systems. The CHAS data is based on the 2014–2018 ACS data files but differs from the standard files by including a variety of housing need variables split by HUD-defined income limits and HUD-specified household types. CHAS data uses the HUD Area Median Family Income (HAMFI), which is similar to the area median income (AMI) used by the California Department of Housing and Community Development (HCD), except that it does not utilize the income categories described below. Both the AMI and HAMFI use the same median income from the metropolitan statistical area. In Gilroy, the calculation for the San Jose/Sunnyvale/Santa Clara metropolitan statistical area is used. Tables that use HAMFI instead of AMI are noted.
Note that data from the different sources and different years may have varying estimates for totals such as population or number of households.
Some of the data is broken down by income group. HCD uses five income categories to evaluate housing need based on the AMI for each metropolitan statistical area. The AMI is used for both funding and planning purposes. The categories and their corresponding percentages of the AMI are as follows:
• Extremely low-income households, 0% to 30% of the AMI • Very low-income households, between 31% and 50% of the AMI • Low-income households, between 51% and 80% of the AMI • Moderate-income households, between 81% and 120% of the AMI • Above moderate-income households, above 120% of the AMI
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Extremely low-, very low-, and low-income households may be grouped together for planning purposes and referred to as “lower-income households.”
Projected Housing Needs
California General Plan law requires that each city and county have land zoned to accommodate its fair share of the regional housing need. 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 achieve vacancy rates that contribute to a stable and healthy housing market. HCD determines the projected housing need for each region. The housing unit need as determined by HCD for the 2023–2031 planning period for the Bay Area region is 441,176 units. The Association of Bay Area Governments (ABAG) is responsible for allocating housing needs to each jurisdiction within the Bay Area region, which includes Gilroy. Housing unit allocations are divided into four income categories: very low, low, moderate, and above moderate. Gilroy’s RHNA is a total of 1,773 units, as shown in Table 3.
Table 3: Gilroy RHNA, 2023–2031
Income Group % of County AMI Units % of Units
Very Low* 31–50% 669 37.7%
Low 51–80% 385 21.7%
Moderate 81–120% 200 11.3%
Above Moderate > 120% 519 29.3%
Total - 1,773 100%
Source: ABAG, Regional Housing Needs Allocation, 2023-2031. *Note: Pursuant to AB 2634, local jurisdictions are also required to project the needs of extremely low-income households (0– 30% of AMI). The projected extremely low-income need can be assumed as 50 percent of the total need for the very low-income households.
Existing Housing Need
Demographic Characteristics
Understanding the demographic characteristics and trends in a city is an important facet of planning for the needs of a community. This section summarizes the population size, age, and racial/ethnic composition of the City of Gilroy and region.
Population Growth Trends
The City of Gilroy is one of 15 cities in Santa Clara County. Gilroy is the southernmost incorporated city in Santa Clara County and is surrounded by the unincorporated county. The 2020 US Census estimated the population of Gilroy at 59,520, an increase of over 10,500 from 2010. Table 4 displays the population trends of Gilroy and surrounding areas, including areas in southern Santa Clara County and northern Santa Cruz County. Gilroy’s population increase
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was similar to Morgan Hill and Hollister, but more than double the growth rate of Watsonville and Santa Clara County as a whole.
Table 4: Regional Population Trends, 2010–2020
City 2010 2020 % Change
Gilroy 48,821 59,520 21.9%
Morgan Hill 37,882 45,483 20.1%
Watsonville 51,199 52,590 2.7%
Hollister 34,928 41,678 19.3%
Santa Clara County 1,781,642 1,936,259 8.7%
Source: US Census, 2010 and 2020.
Both the City of Gilroy and Santa Clara County continue to see steady population growth.
According to the US Census and the California Department of Finance, Gilroy experienced an average annual growth rate of 1.6 percent between 2010 and 2020, which was higher than the County’s average annual growth rate (AAGR) of 1 percent, as shown in Table 5. The growth rate in Gilroy remained steady in comparison to the period from 2000 through 2010, which was 1.7 percent. Table 5 compares the AAGRs of the City and County from 2000 through 2020.
Table 5: Average Annual Population Growth Rate
Jurisdiction
2000 2010 2020 2000–2010 2010–2020
Total Population Population
Increase AAGR Population Increase
AAGR
Gilroy 41,464 48,821 59,520 7,357 1.7% 10,699 1.6%
Santa Clara
County 1,682,585 1,781,642 1,936,259 99,057 0.6% 154,617 1.0% Source: Decennial Census, 2020
Age Composition
Table 6 summarizes the population’s age distribution and percentage change from 2000 to 2019. Different age groups have varying housing needs that may fluctuate across the stages of life. Generally, both the young adult (20 to 34 years old) and the elderly (65 years and older) live in apartments, condominiums, and smaller single-family units. Persons over 65 may also need accommodations so that they can age in place. Persons between the ages of 35 to 65 are more likely to live in single-family homes during this stage of life, per the census estimates. 2 From 2010 to 2019, the largest increases in population were in age groups from 55 to 84 years of age. There was a slower rate of growth in the 25 to 34 years age group and a negative change 2 https://censusreporter.org/data/table/?table=B25125&geo_ids=16000US0629504&primary_geo_id=16000US0629504.
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in the 4 years and younger and the 85 years and older age group. This data suggests that there is an increasing need for senior focused housing in Gilroy, which may take the form of agerestricted developments, smaller units, increased support services, and housing with proximity to healthcare.
Table 6: Population Age Distribution, Gilroy
Age Group 2000 2010 2019
% Change
(2000–2010)
% Change
(2010–2019)
Age 0-4 3,903 4,144 3,738 6.2% -9.8%
Age 5-14 7,550 8,419 9,885 11.5% 17.4%
Age 15-24 6,194 6,934 8,079 11.9% 16.5%
Age 25-34 6,790 6,718 7,006 -1.1% 4.3%
Age 35-44 6,750 7,386 8,439 9.4% 14.3%
Age 45-54 4,919 6,613 7,553 34.4% 14.2%
Age 55-64 2,543 4,509 6,123 77.3% 35.8%
Age 65-74 1,522 2,326 3,656 52.8% 57.2%
Age 75-84 958 1,237 1,756 29.1% 42.0%
Age 85+ 335 535 531 59.7% -0.7%
Source: US Census 2000, 2010, 2019
Figure 1 shows the age distribution of Gilroy and Santa Clara County in 2019. The distribution is largely similar between the two. Gilroy has a higher percentage of the population that is 24 years or younger, while the County has a larger percentage of the population between 25 and 39 years of age. The County’s population above 45 years of age is also higher than Gilroy.
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Figure 1: Population Age Distribution, 2019
Source: ACS 2019
Race and Ethnicity
An understanding of the racial and ethnic trends in a region contributes to an analysis of housing demand. Non-White populations occupy multifamily units at a higher rate. 3 Race and
ethnicity characteristics also can be associated with income levels. Table 7 summarizes the racial and ethnic composition of the population in 2010 and 2019. As of 2019, 59 percent of Gilroy residents of any race were of Hispanic or Latino origin and 41 percent were NonHispanic. Of the Non-Hispanic population, 28 percent were white, and 9.1 percent were Asian or Pacific Islander. Between 2010 and 2019, the White Non-Hispanic population percentage declined by 3.4 percent, while the Asian or Pacific Islander population percentage increased by 2.2 percent, and the Hispanic or Latino population increased by 1.3 percent. 3 ACS Five Year Estimates Table B25032.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
% of Population
Age
City of Gilroy Santa Clara County
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Table 7: Racial and Ethnic Composition, Gilroy
Racial/Ethnic Group
2010 2019
Number % Number %
Not Hispanic or Latino
White 15,335 31.4% 15,877 28%
Black 709 1.5% 610 1.1%
American Indian & Alaska Native 180 0.4% 113 0.2%
Asian or Pacific Islander 3,351 6.9% 5,160 9.1%
Some other race alone 58 0.1% 0 0%
Two or more races 974 2.0% 1,460 2.6%
Subtotal 20,607 42.3% 23,220 41%
Hispanic or Latino
White 13,339 27.3% 26,640 46.9%
Black 233 0.5% 262 0.5%
American Indian & Alaska Native 651 1.3% 215 0.4%
Asian or Pacific Islander 208 0.4% 168 0.3%
Some other race alone 12,264 25.1% 4,807 8.5%
Two or more races 1,519 3.11% 1,454 2.6%
Subtotal 28,214 57.7% 33,546 59%
Total 48,821 100% 56,766 100%
Source: ACS 2019 Five Year Estimates.
Figure 2 displays the racial and ethnic makeup of Gilroy, Santa Clara County, and the entire Bay Area region. The racial and ethnic makeup of Gilroy varies from that of the region.
Comparatively, Gilroy’s Hispanic or Latino population (59 percent) is more than double that of the County (25 percent) and region (24 percent). Gilroy has a slightly smaller White, nonHispanic or Latino population (28 percent) than Santa Clara County (32 percent) and the Bay Area region (39 percent). Gilroy’s Asian/Pacific Islander population (9 percent) is also much smaller than the County (37 percent) and the region (27 percent).
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Figure 2: Regional Racial/Ethnic Composition, 2019
Source: US Census Bureau, ACS 2015–2019, Table B03002.
Employment Trends
Employment trends in a region also influence housing needs. Significant employment opportunities in Santa Clara County have led to a 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.
Table 8 shows the labor force and employment trends in Gilroy in 2010, 2014, and 2019. The labor force has increased by over 5,000 from 2010 to 2019. The unemployment rate increased from 2010 to 2014 but decreased from 2014 to 2019. The unemployment rate for Gilroy (3.9 percent) was higher than the County’s unemployment rate (3.5 percent) in 2019, according to the 2019 census.
9%
37%
27% 1%
2%
6%
28%
32% 39%
3%
4% 5% 59%
25% 24%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Gilroy Santa Clara County Bay Area
Percent of Population
Hispanic or Latinx
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic
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Table 8: Employment Trends, Gilroy
Year Labor Force Employment Unemployment Unemployment
Rate
2010 23,354 21,272 2,068 6.2%
2014 26,213 23,272 2,930 7.9%
2019 29,620 27,955 1,665 3.9%
Source: ACS Five Year Estimates, 2010, 2014, 2019.
Figure 3 displays the employment share by industry in Gilroy, Santa Clara County, and the entire Bay Area region. The employment by industry breakdown is similar between the City, County, and Bay Area region, with a few differences. Gilroy has a smaller percentage of workers employed in the financial and professional services than Santa Clara County and the Bay Area. It has a higher percentage of workers employed in the retail, construction, and agriculture/natural resources industries. Since there are more people in comparatively lowerpaying industries, there may be an increased need for housing for low- and moderate-income households in Gilroy.
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Figure 3: Regional Employment by Industry, 2019
Source: US Census ACS 2015–2019, Table C24030.
Table 9 shows the major employers in the City of Gilroy. As of 2021, Christopher Ranch is the largest single employer in Gilroy with 780 employees. Other large employers in Gilroy include Saint Louise Hospital (535 employees), Gavilan College (450 employees), and Olam International (400 employees).
3% 2% 0%
11% 5% 6%
16% 26% 26%
30% 27% 30%
2% 5% 4%
17%
21% 17%
13%
8% 9%
8% 6% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gilroy Santa Clara County Bay Area
Share of Employed Residents
Place
Other
Retail
Manufacturing, Wholesale & Transportation
Information
Health & Educational Services
Financial & Professional Services
Construction
Agriculture & Natural Resources
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Table 9: Major Employers, 2021
Company Number of Employees
Christopher Ranch 780
Saint Louise Hospital 535
Gavilan College 450
Olam International 400
Walmart 360
Community Solutions 323
Costco 272
Rebekah Children Services 240
Monterey Gourmet Foods 230
United Natural Foods Inc 205
Kaiser Permanente 175
Headstart Nursery 165
Source: Gilroy Chamber of Commerce, 2021.
Household and Housing Stock Characteristics
This section describes Gilroy’s household characteristics, including data on household size, income, median sale prices, rental prices, and vacancy rates. The US Census Bureau defines a family as related persons living within a single housing unit. The US Census Bureau defines a household as all persons living in a single housing unit, whether they are related or not. A household can be one person, a single family, multiple families, or any group of related or unrelated persons.
As shown in Table 10, the number of households in Gilroy continues to grow at a faster pace than the County and the State. In 2019, the US Census Bureau reported 16,126 households in Gilroy, a 13.8 percent increase from 2010. In comparison, total households in Santa Clara County increased by 6 percent between 2010 and 2019, while total households in California increased by 3.7 percent.
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Table 10: Change in Households, 2000–2019
Area 2000 2010 2019
% Change
2000-2010
% Change
2010-2019
Gilroy 11,894 14,175 16,126 19.2% 13.8%
Santa
Clara
County
565,863 604,204 640,215 6.8% 6.0%
California 11,502,870 12,577,498 13,044,266 9.3% 3.7%
Source: US Census 2000, 2010, 2019.
The average number of persons per household in Gilroy was 3.5 in 2020, an increase from 2010. As shown in Table 11, the average number of persons per household in Gilroy continues to be higher than the State and County average by 0.5 persons.
Table 11: Regional Average Household Size
Geography 2010 2020
Gilroy 3.4 3.5
Santa Clara County 2.9 3.0
California 2.9 3.0
Source: US Census 2010 SF1, DP-1 and US Census 2020.
Table 12 shows the household size distribution of Gilroy, Santa Clara County, and the Bay Area region. Gilroy has a lower percentage of one-person households (14.5 percent) than Santa Clara County (20.3 percent) and the Bay Area region (24.7 percent). Gilroy’s percentage of 2- and 3–4 person households is similar to the County and region, while the City’s percentage of households with 5 or more people (24.3 percent) is nearly twice that of Santa Clara County (12.4 percent). The high proportion of large households influences the needs for a variety of larger unit types and may correlate with some presence of overcrowding.
Table 12: Household Size Distribution, 2019
Geography 1 Person % 2 Person % 3-4
Person %
5 Person
or More
% Total
Gilroy 2,345 14.5% 4,353 27% 5,512 34.2% 3,916 24.3% 16,126 Santa Clara
County 130,090 20.3% 196,510 30.7% 234,061 36.6% 79,554 12.4% 640,215 Bay Area 674,587 24.7% 871,002 31.9% 891,588 32.6% 294,257 10.8% 2,731,434 Source: US Census Bureau, ACS 5-Year Data (2015-2019), Table B11016-H2.
The median household income for Gilroy in 2019 was $101,616, an increase of over $25,000 from the median income of $76,060 in 2012. However, Gilroy’s 2019 median household
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income ($101,616) was about $22,439 less than the 2019 median income for the County ($124,055). In the City, the median income for owner-occupied households ($134,115) was significantly higher than the median income for renter-occupied households ($60,022) in 2019.
Table 13: Median Household Income by Tenure, 2019
Jurisdiction and Tenure 2019 Median Income
City of Gilroy $101,616
Owner-Occupied Households $134,115
Renter-Occupied Households $60,022
Santa Clara County $124,055
Owner-Occupied Households $155,139
Renter-Occupied Households $91,265
Source: ACS 2019 Table B25119.
The State of California uses five income categories to determine eligibility for housing programs based on area median income (AMI) for a family. Because eligibility is based on the AMI for a 4-person household in Santa Clara County, cities such as Gilroy, which have a lower median income than the AMI, will have more residents that qualify for housing programs.
However, many low-income families in Gilroy have difficulty paying for housing even with housing program subsidies, which are based on the County AMI. In 2019, Gilroy’s median income ($101,616) was $22,439 less than the Santa Clara County AMI ($124,055) at that time.
This disparity is in part due to the fact that Gilroy is located farther from high-paying technology and finance jobs in the Bay Area and Silicon Valley than the remainder of Santa Clara County jurisdictions. Table 14 shows the State-defined income ranges for each income category based on the 2022 Santa Clara County AMI of $168,500 for a household of four, a significant increase from 2019.
Table 14: Income Range by Affordability Level Based on State Area Median Income, 2022 Affordability Category % of County Median Income Range
Extremely Low Income 30% ≤ $50,550
Very Low Income 31%-50% $50,550 ≤ $84,250
Low Income 51%-80% $84,250 ≤ $131,750
Moderate Income 81%-120% $131,750 ≤ $202,200
Above Moderate Income > 120% > $202,200
Source: California Department of Housing and Community Development, 2022.
Table 15 uses HUD HAMFI. As discussed above, the difference between HAMFI and AMI is that HAMFI is a HUD-defined term that does not utilize HCD income categories. Table 15 provides a breakdown of income level by tenure in Gilroy, using the 2014–2018 CHAS data. The table
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shows that just under 40 percent of households in Gilroy are renter-occupied, compared to
43.2 percent of households in the County. In Gilroy, 42.5 percent of the population falls into the extremely low-, very low-, and low-income categories, highlighting the need for affordable housing options in the City.
Table 15: Household Income by Tenure, 2018
Income Level
Renter-Occupied Owner-Occupied Total Occupied
Housing Units
Number % Number % Number %
City of Gilroy
Less than or equal to 30% of
HAMFI 1,995 12.3% 644 4.0% 2,639 16.3%
Greater than 30%
but less than or equal to 50% of
HAMFI
1,340 8.3% 894 5.5% 2,234 13.8%
Greater than 50%
but less than or equal to 80% of
HAMFI
1,040 6.4% 965 6.0% 2,005 12.4%
Greater than 80%
but less than or equal to 100% of
HAMFI
605 3.7% 1,035 6.4% 1,640 10.1%
Greater than 100% of HAMFI 1,420 8.8% 6,259 38.6% 7,679 47.4% Total 6,400 39.5% 9,797 60.5% 16,197 100.0%
Santa Clara County
Less than or equal to 30% of
HAMFI 55,360 8.7% 27,980 4.4% 83,340 13.1%
Greater than 30%
but less than or equal to 50% of
HAMFI
35,920 5.7% 27,635 4.3% 63,555 10.0%
Greater than 50%
but less than or equal to 80% of
HAMFI
34,260 5.4% 32,440 5.1% 66,700 10.5%
Greater than 80%
but less than or equal to 100% of
HAMFI
24,640 3.9% 28,655 4.5% 53,295 8.4%
Greater than 100% of HAMFI 124,680 19.6% 243,955 38.4% 368,635 58.0% Total 274,860 43.2% 360,665 56.8% 635,525 100.0%
Source: HUD 2014-2018 CHAS data.
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Median Home Sales Price
Figure 4 shows the change in home prices in Gilroy, Santa Clara County, and the Bay Area region from January 2001 to December 2020. While each geography follows the same general trend over time, Gilroy home prices are lower than the other two geographies. Notably starting after 2005, Santa Clara County home prices trend higher than the Bay Area region on average.
After 2007, the housing market slowdown affected home sale prices in Gilroy, which decreased by approximately 50 percent between mid-2007 and early 2012. Since 2012, the median sales prices for new and resale homes in Gilroy have steadily increased, with a minor dip at the start of the COVID-19 pandemic. However, Gilroy home prices remain significantly lower than the County. As shown in Table 16, the November 2021 median home price in Gilroy ($1,000,000) was $405,000 less than Santa Clara County ($1,405,000).
Figure 4: Regional Home Prices Over Time, 2001–2020
Source: Zillow.com, 2020.
As shown in Table 16, the median home price in Gilroy increased almost 20% in a one-year period, from $835,000 in November 2020 to $1,000,000 in November 2021. Comparatively, the median sales price in Santa Clara County increased by 15 percent. Since a household can typically qualify to purchase a home that is 2.5 to 3.0 times the annual income of that household, Gilroy’s median income of $101,616 in 2019 implies that the median sales price $100,000
$300,000
$500,000
$700,000
$900,000
$1,100,000
$1,300,000
$1,500,000
20012002200320042005200620072008200920102011201220132014201520162017201820192020 Bay Area Santa Clara County Gilroy
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should have been around $305,000. Looking ahead, the $1,000,000 median sales price in November 2021 indicates a high potential of cost burden in the City.
Table 16: Zillow Home Value Index, 2020 and 2021
Jurisdiction November 2020 November 2021 % Change
Gilroy $835,000 $1,000,000 20%
Campbell $1,420,000 $1,640,000 15%
Santa Clara $1,380,000 $1,560,000 13%
San Jose $1,120,000 $1,330,000 19%
Morgan Hill $1,050,000 $1,260,000 20%
Santa Clara County $1,225,000 $1,405,000 15%
Source: Zillow Housing Market Data, 2021.
Rental Prices and Affordability
Table 17 summarizes the average monthly rent of market-rate housing in Gilroy by unit size in 2021. According to Zumper, the average rental rate for a one-bedroom unit was $1,850; a twobedroom unit was $2,285; and a three-bedroom unit was $3,100.
Table 17: Average Monthly Rent by Unit Size, 2021
Unit Size Average Monthly Rent
Studio $1,600
1 bedroom $1,850
2 bedrooms $2,285
3 bedrooms $3,100
4 bedrooms $3,775
Source: Zumper, August 2021.
Using the assumption that any rent that exceeds 30 percent of household income renders the resident cost-burdened, Table 18 shows the maximum monthly rent that a household in Santa Clara County (including Gilroy) can afford based on income and the number of bedrooms in the household.
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Table 18: Maximum Affordable Rent by Income, Santa Clara County Typical Unit
Size Income (hourly) Income (annually)
Income
(monthly)
Maximum
Affordable rent
(30% of
income)
Studio $42.85 $89,120 $7,426.67 $2,228
One Bedroom $49.19 $102,320 $8,526.67 $2,558
Two Bedroom $58.67 $122,040 $10,170 $3,051
Three
Bedroom
$76.62 $159,360 $13,280 $3,984
Four
Bedroom
$88.33 $183,720 $15,310 $4,593
Source: National Low Income Housing Coalition. Out of Reach 2021.
Table 19 shows the maximum affordable monthly rent by affordability category.
Table 19: Maximum Affordable Monthly Rent by Income Category Affordability
Category % of County Median Income Range Maximum AffordableMonthly Rent Extremely Low
Income 30% ≤ $50,550 $1,264
Very Low Income 31%-50% $50,550 ≤ $84,250 $2,106
Low Income 51%-80% $84,250 ≤ $131,750 $3,294
Moderate Income 81%-120% $131,750 ≤ $202,200 $5,055
Above Moderate
Income > 120% > $202,200 -
Source: California Department of Housing and Community Development, 2022.
Current average rents in Gilroy (Table 17) would allow a moderate-income household, making $131,750, to afford a rental unit of most any size, since such households can afford up to $5,055 in rent. However, extremely low-income households would likely be cost-burdened in any size unit, since the maximum rent they can afford would be $1,264 (less than the rent for a studio apartment). The average monthly rent for a two-bedroom unit in Gilroy ($2,285) would be unaffordable to a four-person household in the extremely low- and very low-income groups, as shown in Table 19. This disparity leads to overcrowding, which is discussed later in this chapter. The disparity between incomes and housing costs indicates a need for more housing options at a variety of unit sizes available, especially to households below the AMI.
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Vacancy Rates
Vacancy rates are indicators of housing supply and demand that reflect the degree of housing choice that is available. Higher vacancy rates can induce downward price pressure, while low vacancy rates can influence upward price pressures. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market. Too low a vacancy rate can force prices up, making it more difficult for lower- and moderate-income households to find housing. For rental units, a 7 to 8 percent vacancy rate is considered “healthy”. For owneroccupied housing, a vacancy rate of 2 percent or below is considered “healthy.” In 2013, the vacancy rate in Gilroy was 4.6 percent, decreasing to 2.9 percent in 2019. Table 20 summarizes the number of occupied and vacant units in Gilroy from 2013 to 2019.
Table 20: Occupancy Rates
Occupancy Status 2013 % 2019 %
Occupied Housing Units 14,657 95.4% 16,126 97.1%
Vacant Housing Units 701 4.6% 482 2.9%
Total Housing Units 15,358 100% 16,608 100%
Source: ACS 5 Year Estimates, 2013 and 2019.
Overpayment
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. Households paying greater than 30 percent of their gross income on housing-related expenses are considered cost burdened. 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, and especially renter households.
Table 21 illustrates housing cost as a percentage of household income by tenure, showing the number and percentage of households that are experiencing cost burden and severe cost burden for both Gilroy and Santa Clara County. In 2018, 9,079 Gilroy households, or 56.3 percent, experience some form of overpayment, with 18.1 percent of households experiencing severe overpayment. This is an increase of 1,769 households from 2012. At about 56.3 percent, Gilroy experiences overpayment at a slightly higher rate than the County, where 50.2 percent of households experience some sort of overpayment.
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Table 21: Housing Cost as a Percentage of Household Income, 2018 Housing Income
Range
Households
Percentage of Income Spent on Housing
Overpayment
(>30%income on
housing)
Severe Overpayment
(>50% income on housing)
Number % Number % Number %
City of Gilroy: Owner Households
Less than or
equal to
30% of HAMFI
645 4.0% 470 2.9% 400 2.5%
Greater than 30%
but less than or
equal to
50% of HAMFI
895 5.6% 550 3.4% 330 2.0%
Greater than 50%
but less than or
equal to
80% of HAMFI
975 6.1% 465 2.9% 240 1.5%
Greater than 80%
of HAMFI 7,305 45.4% 1,160 7.2% 165 1.0%
Total 9,820 61.0% 2,645 16.4% 1,135 7.0%
City of Gilroy: Renter Households
Less than or
equal to
30% of HAMFI
1,885 11.7% 1,590 9.9% 1,230 7.6%
Greater than 30%
but less than or
equal to
50% of HAMFI
1,339 8.3% 979 6.1% 395 2.5%
Greater than 50%
but less than or
equal to
80% of HAMFI
1,030 6.4% 590 3.7% 165 1.0%
Greater than 80%
of HAMFI 2,029 12.6% 350 2.2% 0 0.0%
Total 6,283 39.0% 3,509 21.8% 1,790 11.1%
Santa Clara County: Owner Households
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Housing Income
Range
Households
Percentage of Income Spent on Housing
Overpayment
(>30%income on
housing)
Severe Overpayment
(>50% income on housing)
Number % Number % Number %
Less than or
equal to
30% of HAMFI
25,960 4.1% 20,765 3.3% 16,670 2.6%
Greater than 30%
but less than or
equal to
50% of HAMFI
27,625 4.4% 15,370 2.4% 9,725 1.5%
Greater than 50%
but less than or
equal to
80% of HAMFI
32,435 5.2% 15,680 2.5% 6,870 1.1%
Greater than 80%
of HAMFI 272,605 43.3% 46,610 7.4% 7,635 1.2%
Total 358,625 57.0% 98,425 15.6% 40,900 6.5%
Santa Clara County: Renter Households
Less than or
equal to
30% of HAMFI
51,035 8.1% 45,275 7.2% 35,590 5.7%
Greater than 30%
but less than or
equal to
50% of HAMFI
35,940 5.7% 29,750 4.7% 15,250 2.4%
Greater than 50%
but less than or
equal to
80% of HAMFI
34,270 5.4% 21,565 3.4% 5,615 0.9%
Greater than 80%
of HAMFI 149,320 23.7% 22,390 3.6% 1,165 0.2%
Total 270,565 43.0% 118,980 18.9% 57,620 9.2%
Source: HUD 2014-2018 CHAS data.
Overcrowding
An overcrowded housing unit is defined by the US Census Bureau as a housing unit occupied by more than one person per room (excluding bathrooms, kitchen, hallway, and closet space).
Occupancy by more than 1.5 persons per room constitutes severe overcrowding.
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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.
Additionally, overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community. Table 22 summarizes overcrowding in Gilroy by tenure. Approximately 1,482 households in Gilroy, roughly 9.2 percent, were experiencing overcrowding in 2019. This included 347 owners and 1,135 rental households. Instances of overcrowding vary by tenure, with renters experiencing higher levels of overcrowding than owners.
Table 22: Overcrowded Households, 2019
Persons per Room
Owners Renters Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
City of Gilroy
1.01 to 1.50 285 1.8% 665 4.1% 950 5.9%
>1.50 62 0.4% 470 2.9% 532 3.3%
Total Overcrowded 347 2.2% 1,135 7.0% 1,482 9.2%
Santa Clara County
1.01 to 1.50 7,526 1.2% 21,951 3.4% 29,477 4.6%
>1.50 2,340 0.4% 17,983 2.8% 20,323 3.2%
Total Overcrowded 9,866 1.6% 39,934 6.2% 49,800 7.8%
Source: ACS 2019 Table B25014.
Housing Inventory and Market Conditions
This section discusses the housing stock and market conditions in Gilroy, including change in housing units, unit size, unit type, age of housing stock, and housing conditions. By analyzing past and current housing trends, future housing needs can be assessed.
Table 23 summarizes the number of housing units in the City and County from 2000 to 2019.
In 2000, Gilroy had 12,167 housing units. By 2010, the number of housing units increased to 14,854, and in 2019 the Census reported 16,608 housing units in the City. According to the California Department of Finance, 2.5 percent of housing units in the County are within Gilroy’s boundaries, representing an increase of 0.4 percent from 2000 to 2019.
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Table 23: Housing Units, 2000–2019
Year Gilroy Santa Clara County Gilroy as % of Total Santa Clara County Units
2000 12,167 579,329 2.1%
2010 14,854 631,920 2.4%
2019 16,608 672,495 2.5%
Source: US Census 2000 SF3, H1, US Census 2010 SF1, H1, and Department of Finance Table E-5, 2019.
Table 24 summarizes Gilroy’s distribution of unit size by tenure in 2019. The most common unit size for renter-occupied units was two-bedroom units, followed by three-bedroom units.
Owner-occupied units had more bedrooms, on average, than renter-occupied units.
Table 24: Unit Size by Tenure, 2019
Unit Size
Owner-Occupied Renter-Occupied
Total Occupied
Housing Units
Units % Units % Units %
No
bedroom
15 0.1% 218 1.4% 233 1.5%
1 bedroom 126 0.8% 972 6% 1,098 6.8%
2 bedrooms
632 3.9% 2,601 16.1% 3,233 20%
3 bedrooms
3,895 24.2% 1,481 9.2% 5,376 33.4%
4 bedrooms
4,016 24.9% 685 4.2% 4,701 29.1%
5 or more
bedrooms
1,230 7.6% 255 1.6% 1,485 9.2%
Total 9,914 61.5% 6,212 38.5% 16,126 100%
Source: ACS 2019 Table B25042.
Table 25 summarizes Gilroy’s housing inventory by unit type from 2000 to 2021. From 2010 to 2021, the number of units for all housing types increased, except for single-family attached units and mobile homes, which remained the same at 887 and 317 units, respectively. The US Census defines single-family attached houses as houses running together or that are attached, such as townhomes4. In 2021, there were 11,739 single-family detached units in Gilroy, 4 US Census Appendix A. Subject Definitions and Table Index. https://www2.census.gov/programssurveys/ahs/2017/2017%20AHS%20Definitions.pdf
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comprising the largest percentage of housing stock, at almost 70 percent. Multifamily housing made up just over 23 percent of the housing stock with 3,883 units.
Comparatively, Santa Clara County had fewer detached single-family housing units (51.7 percent) and more multifamily housing units (35.8 percent) in 2021.
Table 25: Housing Inventory by Unit Type
Housing Type
2000 2010 2021
Number % Number % Number %
City of Gilroy
Single family, detached 7,768 63.8% 9,997 67.3% 11,739 69.8% Single family, attached 742 6.1% 887 6.0% 887 5.3%
Multifamily 3,225 26.5% 3,653 24.6% 3,883 23.1%
Mobile homes 432 3.6% 317 2.1% 317 1.9%
Total Housing Units 12,167 100% 14,854 100% 16,826 100% Santa Clara County
Single family, detached 323,923 55.9% 344,586 54.5% 351,726 51.7% Single family, attached 52,736 9.1% 61,517 9.7% 66,146 9.7% Multifamily 182,999 31.6% 206,779 32.7% 243,502 35.8%
Mobile homes 19,102 3.3% 19,038 3.0% 18,924 2.8%
Total Housing Units 578,760 100% 631,920 100% 680,298 100% Source: US Census 2000 SF3, H30 and California Department of Finance Table E-5, 2010 and 2021.
Table 26 displays occupied housing units by tenure in Gilroy in 2019. 5 The majority of owneroccupied housing units were single-family detached units (82.3 percent), while renter-occupied units were predominantly multifamily (96.7 percent).
5 This excludes vacant housing units.
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Table 26: Unit Type by Tenure, 2019
Building Type Owner
Occupied % Renter Occupied % Total
Detached SingleFamily Homes8,967 82.3% 1,933 17.7% 10,900 Attached SingleFamily Homes398 41.6% 559 58.4% 957
Multifamily
Housing
125 3.3% 3,615 96.7% 3,740
Mobile Homes 424 80.2% 105 19.8% 529
Source: ACS 2019 Table B25032.
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 number of housing units in need of repair and replacement is discussed separately in this chapter. Many federal and state programs use age of housing as one factor to determine housing needs and the availability of funds for housing and community development.
Table 27 summarizes the age of housing stock by tenure in 2019. Approximately 56.2 percent of units were built prior to 1990 and 19.9 percent of units were built before 1970. The City has seen very little rental family housing stock built within the past two decades: only 1,092 rental units were built between 2000 and 2019, compared to 3,112 new owner-occupied units. This disparity in building ages by tenure indicates a need for new rental housing options.
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Table 27: Tenure by Housing Age
Year Tenure: Owner Tenure: Renter Total
Built 2014 or later 764 4.7% 32 0.2% 796 4.9%
Built 2010 to 2013 383 2.4% 226 1.4% 609 3.8%
Built 2000 to 2009 1,965 12.2% 834 5.2% 2,799 17.4%
Built 1990 to 1999 1,570 9.7% 1,290 8% 2,860 17.7%
Built 1980 to 1989 1,388 8.6% 1,145 7.1% 2,533 15.7%
Built 1970 to 1979 1,887 11.7% 1,428 8.9% 3,315 20.6%
Built 1960 to 1969 724 4.5% 477 2.9% 1,201 7.5%
Built 1950 to 1959 642 3.6% 216 1.3% 858 5.3%
Built 1940 to 1949 223 1.4% 90 0.6% 313 1.9%
Built 1939 or earlier 368 2.3% 474 2.9% 842 5.2%
Total 9,914 61.5% 6,212 38.5% 16,126 100%
Source: ACS 2019 Table B25036.
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. Substandard housing units include those in need of repair and/or replacement. 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 threats to health and safety.
A household is considered substandard, or to have a housing problem, if it has one or more of the four following housing problems:
• Housing unit lacks complete kitchen facilities
• Housing unit lacks complete plumbing facilities
• Housing unit is overcrowded
• Household is cost burdened
In addition to structural deficiencies and standards, the lack of infrastructure and utilities often serves as an indicator for substandard conditions. Table 28 summarizes the number of units lacking plumbing or complete kitchen facilities. According to the 2019 ACS three-year estimates, 47 occupied units in Gilroy lacked complete plumbing facilities. Of these, 23 were owner occupied and 24 were renter occupied. A total of 49 units lacked complete kitchen facilities. Of those, 16 were owner-occupied and 33 were renter-occupied. It should be noted that there is potential for overlap in the number of substandard housing units, as some units may lack both complete plumbing and kitchen facilities.
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Table 28: Units Lacking Plumbing or Complete Kitchen Facilities, 2019 Units
Owner
Occupied
% of Total
Units
Renter
Occupied
% of Total
Units Total
% of
Total
Units
Lacking Complete
Plumbing Facilities 23 0.2% 24 0.2% 47 0.3%
Lacking Complete
Kitchen Facilities 16 0.1% 33 0.2% 49 0.3%
Source: ACS 2019 B25049 and B25053.
Local Data
Code enforcement activities in the City of Gilroy are conducted by two Code Enforcement officers. From July 1, 2021 to June 30, 2022, code enforcement responded to 78 complaints about substandard housing conditions or other issues reported by residents. The majority of neighborhood complaints related to issues other than substandard housing conditions, including a person living in an RV, junk in the front yard, trash dumped in the alley, and illegal garage conversion. The City estimates that about 2 percent of housing, or about 320 units in the City, are in need of significant rehabilitation or replacement.
Over the two-year 2021–2023 fiscal years, the City utilized CDBG funds to address housingrelated issues in Gilroy. The City allocated $280,000 in CDBG funds to Rebuilding Together Silicon Valley to implement a wide range of home repair, accessibility, mobility, and rehabilitation improvements for low income homeowners. Affordable housing is preserved by providing critical safety home repairs and accessibility modifications for low income, often elderly, homeowners at no cost so that these residents are not displaced and can remain in their existing homes in a safe and healthy environment.
The City also allocated $81,475 in CDBG funds toward rehabilitation of the Cherry Blossom affordable housing development.
Preservation of Assisted Units At Risk of Conversion
Jurisdictions are required by state Housing Element law to analyze government-assisted housing that is eligible to convert from low-income to market-rate housing over the next 10 years. State law identifies housing assistance as a rental subsidy, mortgage subsidy, or mortgage insurance to an assisted housing development. Government-assisted housing might convert to market-rate housing for a variety of reasons, including expiring subsidies, required mortgage repayments, or expiration of affordability restrictions.
Qualified Entities
Under Government Code Section 65863.11, owners of federally assisted projects must provide a Notice of Opportunity to Submit an Offer to Purchase to qualified entities (nonprofit or forprofit organizations) that agree to preserve the long-term affordability if they should acquire
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at-risk projects at least one year before the sale or expiration of use restrictions. Qualified entities have first right of refusal for acquiring at-risk units. Qualified entities are nonprofit or for-profit organizations with the legal and managerial capacity to acquire and manage at-risk properties, and which agree to maintain the long-term affordability of projects. The following is a list of qualified entities from HCD for Santa Clara County that could potentially acquire and manage properties if any were at risk of converting to market rate in the future. • Cambrian Center, Inc.
• Charities Housing Development Corp.
• Palo Alto Senior Housing Project, Inc.
• Mid-Peninsula Housing Coalition
• Affordable Housing Foundation
• Palo Alto Housing Corp (Alta Housing)
• Satellite Housing Inc.
• ROEM Development Corporation
• Silicon Valley at Home
• L + M Fund Management LLC
Inventory of At-Risk Units
Per Government Code Section 65863.10, assisted housing developments are defined as multifamily, rental housing complexes that receive government assistance under any of the specified federal, state, and/or local programs.6 There are approximately 1,926 assisted affordable housing units in Gilroy. The City is currently inventorying its assisted housing developments to determine which developments are at risk of conversion.
As shown in Table 29, Maria Way Home, Glenview Drive Home, and Parkview Apartments all have estimated affordability end years in the next four (4) years. Thus, there are 55 units within three projects that are at risk of conversion to market rate before 2031. Program C - 6 is included to complete the inventory of assisted units in the City. Should the units expire during the 6
th Cycle, the City will ensure that owners are contacted and advanced notice to tenant is provided.
6 HCD Building Blocks, https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks/assisted-housing-developments-risk-conversion
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Table 29: Potential Units at Risk of Conversion
Project Address Total
Units
Assisted
Units
Estimated
Affordability
End Year
Gilroy Garden
Apartments 9250 Wren Ave 74 73
Lilly Garden Apartments 8800 Lilly Ave 84 83
Maria Way Home 780 Maria Way 5 5 8/21/2022
Glenview Drive Home 6940 Glenview Drive 5 5 12/19/2026
Parkview Apartments
(Pierce Street
Apartments)
181 Pierce Street 54 45 3/31/2023
Total 64 55
Source: LIHTC Database, 2022.
Replacement Costs
The California Tax Credit Allocation Committee’s 2020 report provides estimates and data on the cost of building assisted units. It estimates that the average cost of an assisted unit in the State of California is $439,827.7 However, the estimated cost in Santa Clara County is higher, with an average per unit cost of $607,463.
Table 30 summarizes the estimated replacement costs per unit using construction cost estimates from the UC Berkeley Terner Center’s 2018 Construction Cost Index and average unit sizes in the City of Gilroy from RentCafe. Combined, they provide an estimate for replacement costs by unit size specific to Gilroy. It ranges from $261,690 for a one-bedroom unit to $494,520 for a four-bedroom unit. However, at the time of publication, construction costs have increased due to supply issues associated with the COVID-19 pandemic. 7 California Tax Credit Allocation Committee, 2020 Annual Report. https://www.treasurer.ca.gov/CTCAC/2020/annualreport/2020- TCAC.pdf
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Table 30: Replacement Cost
Unit Size
Construction
Cost per Square
Foot
Average Square
Foot/ Unit
Replacement
Cost per Unit
Number of
At-Risk Units
Total
Replacement
Cost
1 bedroom $390 671 $261,690 8 $ 2,093,520
2 bedroom $390 901 $351,390 17 $ 5,973,630
3 bedroom $390 1,091 $425,490 20 $ 8,509,800
4 bedroom $390 1,268 $494,520 10 $4,945,200
Total -- -- -- 55 $ 21,522,150
Source: 2018 UC Berkeley Terner Center Construction Cost Index, RentCafe Financial Resources
A variety of programs exist to assist cities to acquire, replace, or subsidize at-risk affordable housing units. The following summarizes financial resources available to the City of Gilroy.
Preservation Strategies
There are many options to preserving units, including providing financial incentives to project owners to extend low-income use restrictions; purchasing affordable housing units by a nonprofit or public agency; or providing local subsidies to offset the difference between the affordable and market rate. Scenarios for preservation will depend on the type of project at risk.
Tenant-based subsidies could be used to preserve the affordability of housing. The Housing Authority of Santa Clara County and local nonprofit agencies provide Section 8 Housing Choice Vouchers to lower-income households. These agencies could request funding from the City to provide vouchers for residents if additional sources of revenue were available.
Federal Programs
Community Development Block Grant (CDBG) – CDBG funds are awarded to cities on a formula basis for housing activities. The primary objective of the CDBG program is the development of viable communities through the provision of decent housing, a suitable living environment, and economic opportunity for principally low- and moderate-income persons.
CDBG funds can be used for housing acquisition, rehabilitation, economic development, and public services.
HOME Investment Partnership – HOME is a flexible grant program and funds are awarded on a formula basis for housing activities. HOME considers local market conditions, inadequate housing, poverty, and housing production costs. HOME funding is provided to jurisdictions to assist rental housing or homeownership through acquisition, construction, reconstruction and/or rehabilitation of affordable housing.
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Section 8 Rental Assistance / Housing Vouchers Program – The Section 8 Rental Assistance / Housing Vouchers Program provides rental assistance payments to owners of private, market-rate units on behalf of very low-income tenants.
Section 811/202 Program – Nonprofit and consumer cooperatives can receive no interest capital advances from HUD under the Section 202 program for the construction of very lowincome rental housing for seniors and persons with disabilities. These funds can be used in conjunction with Section 811, which can be used to develop group homes, independent living facilities, and immediate care facilities. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance.
State Programs
California Housing Finance Agency (CalHFA) Multifamily Programs – CalHFA’s Multifamily Programs provide permanent financing for the acquisition, rehabilitation, and preservation or new construction of rental housing that includes affordable rents for low- and moderateincome families and individuals. One of the programs is the Preservation Acquisition Finance Program, which is designed to facilitate the acquisition of at-risk affordable housing developments and provide low-cost funding to preserve affordability.
Low-Income Housing Tax Credit (LIHTC) – This program provides tax credits to individuals and corporations that invest in low-income rental housing. The LIHTC program creates affordable housing opportunities when the developer of a project “sells” the tax credits to an investor or investors who contribute equity to the development in exchange for an ownership position in the project.
California Community Reinvestment Corporation – The California Community Reinvestment Corporation is a multifamily affordable housing lender whose mission is to increase the availability of affordable housing for low-income families, seniors, and residents with special needs by facilitating private capital flow from its investors for debt and equity to developers of affordable housing. Eligible activities include new construction, rehabilitation, and acquisition of properties.
Program Efforts to Preserve At-Risk Units
Through the Community Development Department, the City monitors the list of affordable housing units and their eligibility to convert to market-rate housing. Constant monitoring allows the City to anticipate the time frame by which affordability covenants would expire, thus permitting the City to implement various resources to ensure the continued affordability of the housing units. Through the Consolidated Annual Performance and Evaluation Report (CAPER), the City annually checks with the regional HUD division on the status of rental multifamily housing units that are funded with federal subsidies. To monitor for-sale affordable units, the City’s BMR Program Administrator annually sends a “Below Market-Rate” pamphlet in English and Spanish to all property owners under a resale restriction program.
The pamphlet reminds the owners that their home is currently in the program and directs them to contact City staff when they plan to sell, refinance, or transfer ownership of their
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property. The City is including Programs C - 1, C - 2, C - 4, and C - 5 for preservation of at-risk and other below market-rate units.
Quantified Objectives
Housing Element law requires that cities establish a maximum number of units that can be converted over the planning period. As shown in Table 29, three (3) assisted projects with a total of 55 units may be at risk of converting to market-rate housing within the planning period.
Program C - 1 and C - 6 are included to confirm the expiration dates and preserve at-risk units.
Special Needs Groups
Certain segments of the population may have more difficulty finding decent, affordable housing due to special needs. This section identifies the housing needs for elderly persons, large households, female-headed households, persons with disabilities (including developmental disabilities), homeless persons, farmworkers, and extremely low-income households. People may belong to more than one special needs group. Identifying special needs groups helps to fully assess Gilroy’s housing needs and develop appropriate programs and actions to address them. The City maintains a list on its website of affordable rentals in Gilroy and what population each property serves.
Persons with Disabilities
The US Census Bureau provides information on the number of persons with disabilities of varying types and degrees. According to the US Census Bureau, a person is considered to have a disability if they have difficulty performing certain functions or difficulty with certain social roles. Affordability of appropriate housing and access, both within the home and to/from the home site, are the primary challenges for persons with disabilities. Access often requires specially designed dwelling units. Additionally, housing locations near public facilities and public transit are important for this special needs group. The 2019 ACS survey estimates that 8 percent of Gilroy, 8 percent of Santa Clara County, and 10 percent of the Bay Area region have a disability.8
The US 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:
• Hearing difficulty: deaf or has serious difficulty hearing • Vision difficulty: blind or has serious difficulty seeing even with glasses • Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions
• Ambulatory difficulty: has serious difficulty walking or climbing stairs 8 US Census Bureau, American Community Survey 5-year Data (2015–2019), Table B18101.
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• Self-care difficulty: has difficulty dressing or bathing • Independent living difficulty: has difficulty doing errands alone, such as visiting a doctor’s office or shopping
Figure 5 shows an estimate of the number of Gilroy residents with disabilities by type of disability and age group. The most prevalent types of disability are cognitive, ambulatory, and independent living difficulty. Note that individuals may have more than one type of disability.
Ambulatory issues are the highest reported disability citywide. A large population with walking difficulty creates a need for single-story housing, elevators, transit access, wheelchair access, larger homes for live-in help, and proximity to health facilities. For many in need of live- in help or living assistance, accessory dwelling units (ADUs) may serve as a caregiver unit. The City is including Program A - 7 to develop an ADU program that includes pre- designed “model” plans for ADUs that meet zoning, building, and fire codes. This will decrease the cost of ADU construction for potential caregiver units. Additionally, per Program E - 10, the City will evaluate and revise its reasonable accommodation standards and procedures as they pertain to potential constraints to accommodating persons with disabilities.
Figure 5: Disability by Type, 2019
Source: ACS 2019 Table B18108.
Persons with Developmental Disabilities
A subgroup of disabled residents is those who are developmentally disabled. Housing Element law mandates that an analysis of special needs of disabled persons, including persons with developmental disabilities, be included in Housing Elements. 0 500
1,000
1,500
2,000
2,500
Hearing
Difficulty
Vision
Difficulty
Cognitive
Difficulty
Ambulatory
Difficulty
Self Care
Difficulty
Independent
Living
Difficulty
Population by Age
Disability Type
<18 years old 18-64 years old ≥65 years old
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Local Data
Kalisha Webster with Housing Choices.org works with the intellectual and developmentally disabled residents of Villa Esperanza in Gilroy. Ms. Webster provided a Developmental Disabilities Housing Needs Analysis for the City’s draft Housing Element that included the following information.
People with disabilities face additional housing challenges. Many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care. When it comes to housing, people with disabilities generally are not only in need of lower-income housing but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a higher risk for housing insecurity, homelessness and institutionalization, particularly when they lose aging caregivers.
Many developmentally disabled persons are able to live and work independently. However, more severely disabled individuals require a group living environment with supervision, or an institutional environment with medical attention and physical therapy. When developmental disabilities exist before adulthood, the first housing issue for the developmentally disabled is the transition from living with a parent/guardian as a child to an appropriate level of independence as an adult.
The City of Gilroy is home to 520 people with developmental disabilities, as shown in Table 31.
The table below shows that Gilroy has a lower concentration of adults with developmental disabilities than other jurisdictions in Santa Clara County; 59 percent of Gilroy residents with developmental disabilities are 18 and older compared to 63 percent in Santa Clara County.
Instead, a higher proportion of Gilroy’s residents with developmental disabilities are under age 18 (41% vs 37%). As discussed below, a lack of affordable housing with supportive services could be one of the factors contributing to fewer adults with developmental disabilities being able to live in the City of Gilroy.
Table 31: Gilroy and Santa Clara County Population with Developmental Disabilities Age Gilroy Santa Clara County
Under 18 212 (41%) 4,016 (37%)
18 and older 308 (59%) 6,737 (63%)
Total 520 10,753
Source: Gilroy data provided by San Andreas Regional Center as of November 2021. County data based on county-level data published by Department of Developmental Services as of June 2021.
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Living Arrangements of Gilroy Adults with Developmental Disabilities.
Local Data
According to the Developmental Disabilities Housing Needs Analysis report prepared specifically for Gilroy by Kalisha Webster with Housing Choices.org, assessing the housing needs of adults with developmental disabilities is of particular importance because, as they age, the adults will require a residential option outside the family home, whereas the family home is the preferred living option for children with developmental disabilities. Living arrangements for adults with developmental disabilities in Gilroy closely mirror that of all adults with developmental disabilities in the County. As of November 2021, the San Andreas Regional Center reported that the family home is the most common living arrangement for Gilroy adults with developmental disabilities, with 65 percent of adults continuing to live in the family home; the same percentage is found throughout the County. Only 8 percent of Gilroy adults with developmental disabilities have successfully transitioned to living in their own apartment, which is lower than the County’s percentage, at 11 percent. This is most likely due to a lack of deeply affordable housing in the City. The availability of extremely low income (30% AMI) housing is needed for adults with developmental disabilities to live independently. As of 2021, 26 percent of Gilroy adults with developmental disabilities were reported to be living in licensed care facilities, higher than the County overall (23%). Opportunities for adults to live in a licensed care facility are declining throughout the County, thus fueling the need for affordable housing with supportive services, to decrease the risk of homelessness or displacement when a parent or family member is no longer able to provide housing for the developmentally disabled individual.
Table 32: Living Arrangements of Adults with Developmental Disabilities Adult Living Arrangements Gilroy Santa Clara County
In the family home 200 (65%) 4,362 (65%)
Own apartment with supportive services 26 (8%) 756 (11%) Licensed Facilities 79 (26%) 1,525 (23%)
Other (including homeless) 3 (1%) 94 (1%)
Total Adults 308 6,737
Source: Kalisha Webster, Housing Choices.org
The San Andreas Regional Center provides service to developmentally disabled individuals throughout Santa Clara, Santa Cruz, San Benito, and Monterey Counties. According to the California Department of Developmental Services, as of December 2020, the San Andreas Regional Center served 17,309 residents with developmental disabilities in the region. Figure 6 displays the breakdown of type of developmental disabilities served at the San Andreas Regional Center. The largest populations served are those with an intellectual disability (42 percent) followed by autism (31 percent).
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Figure 6: Developmental Disability by Type Served by San Andreas Regional Center, 2020 Source: California Department of Developmental Services, 2020.
Outreach to Services Providers
Local Data
On January 24, 2023, in collaboration with Housing Choices, the City held a virtual meeting for intellectually and developmentally disabled (I/DD) stakeholders (primarily parents of I/DD children and I/DD adults). The meeting was attended by 11 participants, with representatives from Housing Choices and the San Andreas Regional Center in attendance. Housing Choices was born as an advocacy organization, mobilizing stakeholders to create new housing opportunities for people with developmental and other disabilities and are committed to educating local elected officials, city and county housing staff, and housing developers about the opportunity to plan for and include people with developmental and other disabilities in their local housing plans. The San Andreas Regional Center is a community-based, private nonprofit corporation funded by the State of California to serve people with developmental disabilities as required by the Lanterman Developmental Disabilities Act.
On February 15, 2023, City staff also met with 12 I/DD residents, caregivers, and staff at Villa Esperanza, a single-story 21-unit low-income apartment development that includes services for intellectually and developmentally disabled (I/DD) individuals. The Villa Esperanza housing development is managed by Eden Housing and receives services from Housing Choices and the San Andreas Regional Center. Approximately 25% of the units have live-in caregivers. Some of the units are occupied by families with children.
Both meetings were helpful in providing staff with a better understanding of I/DD community needs. Participants expressed a need for extremely low-income housing since I/DD individuals 31%
8%
7%
42%
12%
Disability Type
Autism
Epilepsy
Cerebral Palsy
Intellectual Disability
Other Diagnosis
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generally rely on social security income. The City is including Programs A - 6, A - 7, and A - 8 to promote the construction of and incentivize the affordability of ADUs for I/DD individuals and their caregivers. The City is also including Program A - 11 to develop an inclusionary housing policy and Program A - 12 to develop incentives beyond density bonus state law to facilitate the creation of extremely low-income units in higher opportunity areas. The City is also including Program E - 11 to prioritize funds to assist special needs households, such as persons with disabilities.
Participants also expressed a need for project-based vouchers. The City is including Programs A - 8 and D – 3, which include providing financial assistance for homeowners who build ADUs with an affordability restriction or commitment to offering housing choice vouchers. The City will notify interested residents and provide technical assistance to residents who need help applying to the Santa Clara County Housing Authority (SCCHA) voucher program.
Another identified need by participants was housing and services for both independent living and supportive living skills. For individuals in need of independent living assistance, accessory dwelling units (ADUs) may serve as a caregiver unit. The City is including Program A - 7 to develop an ADU program that includes pre-designed “model” plans for ADUs that meet zoning, building, and fire codes. This will decrease the cost of ADU construction for potential caregiver units. Additionally, per Program E - 10, the City will evaluate and revise its reasonable accommodation standards and procedures as they pertain to potential constraints to accommodating persons with disabilities.
Elderly Persons
Elderly persons are considered a special needs group because they are more likely to have fixed incomes. Elderly persons are generally defined as people aged 65 years and older. They often spend a higher percentage of their income on food, housing, medical care, and personal care compared to non-elderly persons. Elderly persons may have special needs related to housing location and construction. Because of limited mobility, elderly persons typically need easier access to medical services, amenities such as 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 2020 US Census, and as shown in Table 33, Gilroy has a slightly lower percentage of elderly householders than the County; 19 percent of Gilroy’s residents were elderly, while 21.3 percent of the County’s residents were elderly.
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Table 33: Householders by Age, 2020
Householder Age
Gilroy Santa Clara County
Households % Households %
15-24 Years 271 1.7% 15,468 2.4%
25-34 Years 1,990 12.3% 107,194 16.8%
35-64 Years 10,794 66.9% 381,415 59.7%
65-74 Years 1,921 11.9% 74,305 11.6%
75 Plus Years 1,150 7.1% 61,833 9.7%
Total 16,126 100% 640,215 100%
Source: 2019 ACS 5 Year Estimates.
As indicated in Table 34, the 2019 median household income for households with a resident aged 65 and older was $71,432 in Gilroy and $75,758 in Santa Clara County. This is compared to the citywide median income of $101,616 and countywide median income of $133,076 in 2019. The lower income is likely because fewer elderly persons are working full-time, and most income comes from Social Security and/or part-time work.
Table 34: Median Household Income for Elderly Households, 2019 Householder Age City of Gilroy Median Income Santa Clara County Median Income
65 Years and Older $71,432 $75,758
All Households $101,616 $133,076
Source: ACS 2019 5 Year Estimates
Based on HUD’s 2014-2018 CHAS data shown in Table 35, 47.4 percent of elderly households in Gilroy are in one of the lower-income categories. Santa Clara County had a slightly smaller percentage of elderly households within the lower-income categories, at 45.8 percent.
Table 35: Income Distribution, Elderly Households, 2018 Income
Gilroy Santa Clara
County
Number % Number %
Less than or equal to 30% of HAMFI 980 20.2% 39,300 19.7% Greater than 30% but less than or equal to 50% of HAMFI 695 14.3% 26,085 13.1% Greater than 50% but less than or equal to 80% of HAMFI 625 12.9% 26,380 13.2% Greater than 80% of HAMFI 2,555 52.6% 108,105 54.1%
Total 4,855 100% 199,870 100%
Source: HUD 2014-2018 CHAS data.
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Table 36 displays the percentage of the elderly population and their disability status. Of people aged 65 and above, 11.3 percent have one type of disability and 16.5 percent have two or more disabilities. The City and County have similar percentages of elderly individuals with disabilities, at 27.8 and 30.7 percent, respectively.
Table 36: Elderly People with Disabilities, 2019
Disability Status
# of Elderly
People with a
Disability
% of
People
Age 65+
# of Elderly
People
with a Disability
% of
People
Age 65+
Gilroy Santa Clara County
With one type of disability 669 11.3% 31,527 12.4%
With two or more types of
disability
978 16.5% 46,455 18.3%
Total, Elderly with a Disability 1,647 27.8% 77,982 30.7% Source: ACS 2019 Table C18108.
Table 37 provides a summary of housing problems experienced by elderly households in Gilroy. According to the 2014-2018 CHAS data, 61.6 percent of all elderly households experience some type of housing problem. This includes 81.3 percent of elderly renters and
54.5 percent of elderly owners. The increasing number of elderly persons in the population is creating a demand for more affordable and accessible housing.
The City will address the needs of the elderly population through Program E - 6, which will develop incentives for senior housing in the City. Program E - 6 will also remove potential zoning constraints to the development of senior housing. The City will conduct a study to determine if reduced parking standards for senior housing are appropriate and, based on the findings of the study, may revise the Zoning Ordinance to reduce said parking standards for senior housing. In addition, the Gilroy Senior Center provides access to a variety of support services at the center, including the YMCA Nutrition program, which serves lunch Monday to Friday; free legal services through Senior Adults Legal Assistance; and information and assistance with social security, housing, and employment matters through Sourcewise Community Resources Solutions. Through CDBG and the Housing Trust/PLHA Funds, the City allocated funds for Meals on Wheels and Rebuilding Together Silicon Valley’s Rebuilding Home Repair, Rehabilitation and Accessibility Modification Program. Also, Santa Clara County owns the Gateway Senior Apartments, a 75‐unit affordable senior housing complex with approximately half of the units reserved for special needs seniors.
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Table 37: Elderly Households by Housing Problems and Tenure, 2018 Housing Problem Type Renters Owners Total (Elderly
Households)
% with any Housing Problem 81.3% 54.5% 61.6%
% with Cost Burden 29.5% 15.7% 19.4%
% with Severe Cost Burden 29.1% 20.0% 22.4%
Total 843 2,350 3,193
Source: 2014-2018 HUD CHAS data.
Large Households
State housing law defines large households as households with five or more members. Large households are considered a special needs group based on the limited availability of adequately sized, affordable housing units. Large households may have lower incomes, which could result in the overcrowding of smaller units. Table 38 displays household size by tenure for both Gilroy and the County. In 2019, there were 3,916 large households, representing 24.3 percent of all households in Gilroy. Compared to the County as whole, Gilroy has almost double the percentage of large households (24.3 versus 12.4 percent). The disproportionately high number of large households may indicate a need for larger units in Gilroy to accommodate large households. The City is including Program E - 11 to prioritize funds to assist in the development of housing to serve special needs households, such as large families.
The 5th Cycle Program H-4.A (Housing for Large Families) has been consolidated with 6th Cycle Program A - 12 to include incentives beyond density bonus state law for developments that include housing for large households.
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Table 38: Large Households by Tenure, 2019
Number of
Persons in
Unit
Owner
Occupied %
Renter
Occupied % Total
Gilroy
Five 1,239 58.6% 876 41.4% 2,115
Six 636 60.7% 412 39.3% 1,048
Seven or
more
405 53.8% 348 46.2% 753
Total Large
Households
2,280 58.2% 1,636 41.8% 3,916
% of Total
Households
23% 26.3% 24.3%
Total
Households 9,914 61.5% 6,212 38.5% 16,126
Santa Clara County
Five 26,406 57.9% 19,190 42.1% 45,596
Six 10,802 58.0% 7,822 42.0% 18,624
Seven or
more
8,684 56.6% 6,650 43.4% 15,334
Total Large
Households
45,892 57.7% 33,662 42.3% 79,554
% of Total
Households
12.7% 12.1% 12.4%
Total
Households 361,105 56.4% 279,110 43.6% 640,215
Source: 2019 ACS B25009.
Based on HUD’s 2015-2019 CHAS data shown in Table 39, 51.1 percent of large households in Gilroy are in one of the lower-income categories. Santa Clara County had a smaller percentage of large households within the lower income categories, at 42.9 percent. The City is including Program E - 11 to prioritize funds to assist in the development of affordable housing and to serve special needs households, such as large families.
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Table 39: Income Distribution, Large Households, 2015-2019 Income
Gilroy Santa Clara
County
Number % Number %
Less than or equal to 30% of HAMFI 1,025 15.1% 16,429 11.9% Greater than 30% but less than or equal to 50% of HAMFI 1,100 16.2% 20,250 14.7% Greater than 50% but less than or equal to 80% of HAMFI 1,340 19.7% 22,410 16.3% Greater than 80% of HAMFI 3,320 48.9% 78,600 57.1%
Total 6,785 100% 137,689 100%
Source: HUD 2015-2019 CHAS data.
Table 40 provides a summary of housing problems experienced by large households in Gilroy by tenure. As previously noted, the types of housing problems include overcrowding, overpayment, and housing lacking kitchen or plumbing facilities. CHAS data from 2014-2018 indicates that 49.2 percent of large households experience at least one of these housing problems, including 72.4 percent of large renter households and 30.3 percent of large owner households.
Currently, less than 10 percent of the City’s rental housing stock has four or more bedrooms (refer to Table 24), resulting in a high percentage of large family households that are forced to live in overcrowded situations. To address this need, the Housing Element includes Program A - 12 that will adopt incentives beyond density bonus state law for developments that include housing for large households.
Table 40: Large Households by Housing Problems and Tenure, 2018 Renters Owners Total (Large Households)
% with any Housing Problem 72.4% 30.3% 49.2%
% with Cost Burden 23.2% 12.6% 17.4%
% with Severe Cost Burden 24.3% 6.9% 14.7%
Total Large Households 1,360 1,665 3,025
Source: 2014-2018 HUD CHAS data.
Female-Headed Households
Female-headed households are a special needs group because they experience comparatively low rates of homeownership, lower incomes, and high poverty rates. Table 41 shows the number of female-headed households by tenure. In 2019, 16.2 percent of households in Gilroy were female-headed households. Of the 2,616 female-headed households in Gilroy, 1,410 had children under 18 living with them, while 1,206 had no children present. Gilroy has more
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approximately six percent more female-headed households than the County, where 10 percent of households in the County are female-headed households.
In Gilroy, 33 percent of female-headed households with children under 18 were below the poverty line, (approximately 465 households).
9 This is significantly higher than the poverty rate
in Santa Clara County, which is 6.6 percent.
Table 41: Female-Headed Households by Tenure, Gilroy, 2019 Household Type
Owner Occupied Renter Occupied
Total
% of Total
Households
Number % Number % (16,126)
Female
householder, no
spouse present,
with children
under 18
377 2.3% 1,033 6.4% 1,410 8.7%
Female
householder, no
spouse present,
without children
639 4% 567 3.5% 1,206 7.5%
Total 1,016 6.3% 1,600 9.9% 2,616 16.2%
Source: ACS 2019 Table B25115.
Homeless/Unhoused Population
In 2022, the County of Santa Clara, in conjunction with Applied Survey Research, conducted the 2022 Santa Clara County Homeless Census and Survey. This survey is conducted every two years in the last ten days of January. The 2022 Santa Clara County Homeless Census and Survey was performed using HUD-recommended practices for counting and surveying the homeless.
The Point-in-Time Homeless Count identified a total of 10,028 persons experiencing homelessness in Santa Clara County in 2022, an increase of 3 percent from the count conducted in 2019. Table 42 summarizes sheltered and unsheltered homeless persons in Santa Clara County jurisdictions. There were 814 homeless persons surveyed in Gilroy in January 2022, including 606 sheltered and 208 unsheltered persons. 9 US Census Bureau, American Community Survey 5-year Data (2015–2019), Table B17010.
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Table 42: 2022 Santa Clara County Homeless Census and Survey Homeless Population Sheltered Unsheltered Total
Gilroy 606 208 814
Campbell 216 0 216
Cupertino 102 0 102
Los Altos 65 0 65
Los Altos Hills 0 0 0
Los Gatos 58 0 58
Milpitas 249 25 274
Monte Sereno 0 0 0
Morgan Hill 60 0 60
Mountain View 206 140 346
Palo Alto 263 0 263
San Jose 4,975 1,675 6,650
Santa Clara 375 65 440
Saratoga 0 0 0
Sunnyvale 279 106 385
Source: Santa Clara County Office of Supportive Housing, October 29, 2022.
Local Data
According to one of the City of Gilroy’s Quality of Life Officers, a majority of unhoused individuals are Hispanic, consistent with the overall population of Gilroy. Based on his observations, unhoused persons in Gilroy mostly reside in creek areas, including for example Miller creek. Many unhoused persons also reside near the IOOF bridge. Although most of the observed unhoused persons are physically able to move around by either walking or riding a bicycle, they do not generally migrate to hillside areas or edges of the City where there are fewer businesses or access to food. Furthermore, based on his observations, a very large majority of the unhoused are mentally challenged, whether it be self-induced from drugs, or because they are mentally ill. The Quality of Life Officer also stated that less than 20 percent of the unhoused persons he encounters take advantage of available services.
Table 43 lists emergency shelters and transitional housing in Gilroy.
The Countywide services and shelter provider, HomeFirst Services, provides a 24/7 shelter for adults at the Gilroy shelter. The Gilroy shelter provides sleeping accommodations, meals, restrooms, showers, mobile laundry, and case management support services via South County Compassion Center staff. It has a capacity of serving 100 persons.
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The Arturo Ochoa Migrant Center is used as an emergency shelter during the cold weather season from mid-December through mid-March. It provides 128 shelter beds and has the capacity to house 35 unhoused families with a dependent child under the age of 18. St.
Joseph’s Family Center manages the shelter and referral process. Walk-ins or families without a referral from a designated community partner are not accepted and 5-7 spots are reserved for Here4You call center hotline referrals. EAH Housing is contracted for day-to-day property management operations and site security.
According to conversations with service providers, if the weather is manageable, unhoused individuals express a strong reluctance to use the service. The service providers stress the need for a permanent emergency shelter as well as shelter or housing for single adults who do not exhibit mental illness or substance abuse disorders.
The City of Gilroy provides annual funds to homelessness prevention support and services through the PLHA. For FY 22-23 and FY 23-24: St. Joseph’s Family Center received $180,000 to provide emergency rental and utility assistance, as well as training and employment readiness to prepare individuals that are homeless or at risk of homelessness. Community Agency for Resources Advocacy and Services received $40,000 to provide rental and deposit assistance. South County Compassion Center received $80,000 to provide services to unhoused Gilroy residents and to connect them with services that can help them attain permanent housing. Through its CDBG-CV funds, the City provided an additional $287,309 in support to Saint Joseph's Family Center's Rental Assistance program.
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Table 43: Homeless Facilities in or Adjacent to Gilroy
Facility Name Type of Facility Target Population
Number of
Shelter Beds or
Families Served
Gilroy Shelter Emergency
Shelter Adults Only 100
Arturo Ochoa
Migrant
Center10
(adjacent to
Gilroy)
Cold Weather
Shelter Households with a dependent under 18 35 families La Isla Pacifica
Confidential
Emergency
Shelter
Women victims of intimate partner
abuse and their children under 16 years
old (16 and up, on a case-by-case basis)
14 Glenview, El
Invierno, and
Walnut
Transitional
Shelter Single Individuals 25
Source: City of Gilroy, County of Santa Clara.
Farmworkers
Farmworkers are defined as persons whose primary incomes are earned through seasonal agricultural work. The demographics on farm laborers in all 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:
• Migrant workers who move from place to place, planting and harvesting; and • Annual workers who 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 • Permanent workers who are employed most of the year in one location and may collect unemployment for the remainder of the year.
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 continues to reduce the role of agriculture. Many of these farms are located in the southern areas of the County, in the regions surrounding Gilroy. The majority of farmworkers, almost 80 percent, work on farms with more than 10 employees.
10 The Arturo Ochoa Migrant Center is located slightly outside city bounds, but serves Gilroy residents.
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The US Department of Agriculture conducts a Census of Agriculture every five years. As indicated in Table 44, there were an estimated 4,175 farmworkers in the County working on 359 farms in 2017. This represents a decrease of 1,414 farmworkers compared to the 2007 study, when there were 5,589 farmworkers.
The 2019 ACS estimates indicate that 2.9 percent of Gilroy is employed in the agriculture and natural resource industry, a decrease from 4.6 percent in 2012.11 Table 44: Number of Santa Clara County Farmworkers and Farms, 2017 Farm /Worker Type Farmworkers Farms
Farm Size
Farms with less than 10 employees 847 293
Farms with more than 10 employees 3,328 66
Length of Employment of Workers
Workers working 150 days or more 2,418 -
Workers working less than 150 days 1,757 -
Source: 2017 Census of Agriculture, Table 7.
The California Department of Conservation’s Important Farmland Finder indicates that the vicinity to the east and south of the Gilroy City limits includes large amounts of prime farmland, farmland of local or statewide importance, and unique farmland.12 The presence of such farmland indicates a need for farmworker housing to support those who work on farmland in and around the City.
Due to the seasonal nature of agricultural work and relatively low wages, farmworker households often have a difficult time securing safe, habitable, and affordable housing.
Eden Housing manages three housing developments within Gilroy City limits, providing 56 housing units for farmworkers:
• 14 units at The Trees
• 24 apartments at Aspen Grove
• 18 units at Maple Gardens
The Rodriguez Migrant Labor Camp, which houses 37 seasonal farmworkers, is privately owned, and is also located just outside of the City limits.
Eden Housing also operates the Arturo Ochoa Migrant Center, located just outside Gilroy City limits. The center functions as a migrant camp from April through November each year, 11 US Census Bureau, American Community Survey (2015–2019), Table C24030. 12 California Department of Conservation. California Important Farmland Finder. https://maps.conservation.ca.gov/DLRP/CIFF/
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providing housing for 100 farmworker families within 33 three-bedroom and 67 two-bedroom apartments.
Local Data
In November and December 2022, the City of Gilroy worked with staff from the Ochoa Migrant Camp to survey resident farmworkers. Twenty-six (26) surveys were completed by the farmworkers with assistance from bilingual staff at the Migrant Camp.
The top three housing issues identified by farmworkers was difficulty paying rent, mortgage, or down-payment (26), followed by insufficient housing supply (11) and homelessness (6).
Respondents also identified issues regarding length of rental leases and the need for temporary housing.
Additionally, the primary issues limiting housing options for farmworker respondents included insufficient money available for the deposit (24), and credit history or low credit scores (8). The City of Gilroy modified Programs E - 7 and E - 11 to help facilitate needed housing for farmworkers who work in and surrounding Gilroy.
The Gilroy Zoning Ordinance makes available zoning to accommodate various housing types to address the needs of farmworkers. Manufactured and modular homes are permitted byright in all residential zoning districts; boarding and rooming houses are allowed in all residential zoning districts with a conditional use permit; and multifamily units are allowed in the R3 and R4 residential zoning districts by right. Currently, the City’s Zoning Ordinance is not consistent with the Employee Housing Act;
13 therefore, as part of this Housing Element update,
the City is including Program E - 8 to revise the Zoning Ordinance in 2023.
Extremely Low-Income Households
Extremely low-income households in Gilroy are defined as households with income less than 30 percent of the Santa Clara County AMI. 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 2018, 16.1 of Gilroy households were within the extremely lowincome category, a decrease from 18.9 percent in 2012.
An overcrowded housing unit is defined by the US Census Bureau as a housing unit occupied by more than one person per room (excluding bathrooms, kitchen, hallway, and closet space).
Occupancy by more than 1.5 persons per room constitutes severe overcrowding.
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 45 provides a summary of overcrowding rates experienced by extremely low-income households in Gilroy compared to other income levels. Households in Gilroy experience 13https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=HSC&division=13.&title=&part=1.&chapter=1.&article
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overcrowding at a higher rate than those in the County. Extremely low-income owner-occupied households experience overcrowding at a similar rate to low-income owner-occupied households, but at a higher rate than other owner-occupied households. Extremely lowincome renter-occupied households experience overcrowding at a lower rate than very lowand low-income renter-occupied households.
Overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community. In the 5th cycle, the City included program H.2-G to encourage the development of extremely lowincome housing, and the City will continue to encourage developers to include extremely lowincome units in their housing projects. The City is also including Programs A - 6, A - 7, A - 8, and A -15 to promote the construction of and incentivize the affordability of ADUs. Affordable ADUs provide an alternative housing supply to allow for housing mobility in higher opportunity areas. The City will develop an inclusionary housing policy under Program A - 11 and incentives to create extremely low-income units under an incentives beyond density bonus state law Program A - 12.
Table 45: Overcrowding by Income Level, 2019
Housing Income Range Households Number of People per Room Overcrowding
(>1 person per
room)
Severe
Overcrowding
(>1.5 persons per
room)
Number Number % Number %
City of Gilroy: Owner Households
Less than or equal to 30% of HAMFI 880 70 8.0% 20 2.3%
Greater than 30% but less than or
equal to 50% of HAMFI 1,024 44 4.3% 4 0.4%
Greater than 50% but less than or
equal to 80% of HAMFI 1,385 115 8.3% 35 2.5%
Greater than 80% but less than or
equal to 100% of HAMFI 1,295 20 1.5% 0 0.0%
Greater than 100% of HAMFI 5,334 99 1.9% 4 0.1%
Total 9,918 348 3.5% 63 0.6%
City of Gilroy: Renter Households
Less than or equal to 30% of HAMFI 2,195 375 17.1% 200 9.1% Greater than 30% but less than or
equal to 50% of HAMFI
1,300 310 23.9% 125 9.6%
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Housing Income Range Households Number of People per Room Overcrowding
(>1 person per
room)
Severe
Overcrowding
(>1.5 persons per
room)
Number Number % Number %
Greater than 50% but less than or
equal to 80% of HAMFI
1,160 255 22.0% 40 3.5%
Greater than 80% but less than or
equal to 100% of HAMFI
570 55 9.7% 25 4.4%
Greater than 100% of HAMFI 975 135 13.9% 80 8.2%
Total 6,200 1130 18.2% 470 7.6%
Santa Clara County: Owner Households
Less than or equal to 30% of HAMFI 34,600 975 2.8% 280 0.8% Greater than 30% but less than or
equal to 50% of HAMFI
33,095 1,870 5.7% 345 1.0%
Greater than 50% but less than or
equal to 80% of HAMFI
38,665 2,155 5.6% 510 1.3%
Greater than 80% but less than or
equal to 100% of HAMFI
31,345 1,665 5.3% 585 1.9%
Greater than 100% of HAMFI 223,395 5,530 2.5% 1,130 0.5% Total 361,100 12,195 3.4% 2,850 0.8%
Santa Clara County: Renter Households
Less than or equal to 30% of HAMFI 64,310 9,360 14.6% 3,830 6.0% Greater than 30% but less than or
equal to 50% of HAMFI
40,810 9,000 22.1% 3,705 9.1%
Greater than 50% but less than or
equal to 80% of HAMFI
37,760 7,305 19.3% 2,400 6.4%
Greater than 80% but less than or
equal to 100% of HAMFI
26,915 4,000 14.9% 1,520 5.6%
Greater than 100% of HAMFI 109,315 10,360 9.5% 4,320 4.0% Total 279,110 40,025 14.3% 15,775 5.7%
Source: 2015-2019 CHAS data
Table 46 provides a summary of housing problems experienced by extremely low-income households in Gilroy. Disproportionate housing needs are determined by finding trends in housing problems in the population by race, household size, or household age. A housing unit
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is considered substandard or having a housing problem if it has one or more of the following housing conditions:
• Housing unit lacks complete kitchen facilities
• Housing unit lacks complete plumbing facilities
• Housing unit is overcrowded
• Household is cost burdened
Extremely low-income renter-occupied households experience both overpayment and overcrowding. According to 2014–2018 CHAS data provided by HUD, 79.7 percent of extremely low-income households experience at least one type of housing problem. Housing rehabilitation and repair may be more of a cost burden on lower-income households, which may lead to a higher proportion of housing problems. To enhance the quality of existing neighborhoods, the City is including Program C - 2 to utilize Community Development Block Grant (CDBG) funds, as available, to assist in the improvement of substandard housing. The City is also including Program E - 11 to prioritize funds to assist special needs households, such as extremely low-income households, farmworkers, large families, seniors, and persons with disabilities.
Table 46: Extremely Low-Income Households with Housing Problems, 2018 Income Level Renters % Owners % Total %
Household Income < 30% MFI 1,990 625 2,615
With any Housing Problem 1,610 80.9% 475 76.0% 2,085 79.7% With a Cost Burden 30-50% 360 18.1% 70 11.2% 430 16.4%
Cost Burden > 50% 1,230 61.8% 400 64.0% 1,630 62.3%
Source: HUD 2014-2018 CHAS data.
Summary of Housing Needs
An analysis of the housing needs in the City of Gilroy reveals a number of trends, such as an increased need for housing large households and farmworkers. Additionally, compared to the County, Gilroy has a lower median income and larger percentage Hispanic or Latino population.
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86 CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
AFFIRMATIVELY FURTHERING FAIR HOUSING
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Affirmatively Furthering Fair Housing
Introduction, Outreach, and Assessment
Introduction
Assembly Bill (AB) 686 requires a jurisdiction’s housing element to provide an analysis of contributing factors to fair housing issues and to commit to actively and meaningfully affirmatively further fair housing. This analysis includes an assessment of fair housing enforcement, outreach activities, integration and segregation, racially and ethnically concentrated areas of affluence and poverty, disparities in access to opportunities, disproportionate housing needs, and any other contributing factors that serve as impediments to fair housing. The assessment also analyzes the extent to which the identified Regional Housing Needs Allocation (RHNA) sites affirmatively further fair housing.
Public Outreach
The City of Gilroy solicited community input throughout the Housing Element update planning process in a variety of ways. The main strategies to gather public participation are summarized below.
Outreach Activities
Community members were engaged using the following methods:
• Survey available in hard copy and online in both English and Spanish • Stakeholder focus groups
• Webpage on City website
• Email list
• City newsletter
• Community workshops
• Joint City Council and Planning Commission study session • Utility billing mailing insert
• Public hearings
Organizations Contacted and Consulted
Organizations contacted and interviewed included:
• Housing & Neighborhood Revitalization Committee
• St. Joseph's Family Center
• Gilroy Historical Society
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• Rebuilding Together Silicon Valley
• Project Sentinel
• Gilroy Compassion Center
• Live Oak Adult Day Services
• Silicon Valley at Home
• South County Collaborative
• League of Women Voters
• Aperto Property Management
• Housing Choices
• Health Trust
• Visit Gilroy
• MidPen Housing
• Garlic World
• CARAS South County
• Eden Housing
• Gilroy Unified School District Migrant Education Program Housing Element Update Website
The City created the Housing Element update webpage on the City’s website to provide:
• Background and information on the Housing Element process; • Link to the Housing Element update survey;
• Documents related to the Housing Element, including the first public review draft, dated September 12, 2022, the October 31, 2022 revised daft as submitted to the California Department of Housing and Community Development (HCD) following the 30-day public comment period, and the second public review draft revised in response to HCD comments;
• Recordings of the community workshop presentations in English and Spanish; • Notification to the public of future events; and
• Notification and interest sign-up lists and pathways for residents to get involved in the process and to provide comments or questions to the project team or City representatives.
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Stakeholder Interviews
The City reached out to 40 individuals and groups who represented service providers, nonprofits, and other stakeholders to participate in focus group interviews about the housing needs and issues in Gilroy. Out of the 40 individuals and groups that were contacted, 25 people participated in the focus groups. Four focus groups were held: Tuesday, March 29, 2022, at 1:00 PM; Tuesday, April 5, 2022, at 1:00 PM; Thursday, April 7, 2022, at 1:00 PM; and Tuesday, April 12, 2022, at 10:00 AM. Hosting the focus group on four different days provided multiple opportunities to accommodate different schedules. The stakeholders who participated discussed a variety of concerns, including:
• Need for incentives to support farmworker housing;
• Need for more education and outreach to inform residents of housing law and affordable housing;
• Need for emergency, short-term stay housing, and senior housing at the extremely low-income area median income (AMI);
• Disparity of housing and quality of infrastructure and amenities between the east side and west side of the City;
• Disparity of incomes between Gilroy and the County AMI, as the City’s AMI was $33,871 less (24%) in 2020;
• Challenges and lack of support for homeownership; and • Need to incentivize accessory dwelling unit (ADU) construction.
The participants had varying perspectives informed by their involvement and familiarity with Gilroy, but increased services, education and support, equitable development and investment, and a lack of extremely low-income housing were the most consistent and prevalent issues covered.
Public Workshops
Prior to releasing the first public draft of the Housing Element, the City held two bilingual virtual public workshops. The meetings were held on Wednesday, March 30, 2022, at 6:00 PM and Tuesday, June 28, 2022, at 6:00 PM to present information on the Housing Element update and gather public input. Sixty-one members of the community participated in the workshops and provided feedback via live polling and questions and answers on the Housing Element update process including housing needs, the potential RHNA sites, draft goals, and programs.
Presentation slides were in English and Spanish. Live Spanish interpretation was provided, recorded, and posted on the project webpage for both workshops.
Following release of the first public draft, the City held a third virtual public workshop on Tuesday, September 27, 2022, at 6:00 PM. The presentation provided a high-level overview of the draft Housing Element chapters and appendices, and the overall goals and programs, and then a brief description of some of the programs that could potentially have the highest impact
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on housing production, removal of governmental constraints, and meeting special housing needs. The meeting also included a question-and-answer session with public attendees.
The public workshops were held at 6:00 PM on weekdays to accommodate a typical work schedule. Materials and video recordings of the presentations in English and Spanish were made available on the Gilroy Housing Element webpage on the City’s website for those who could not attend, or who wanted to review the materials and meetings at their leisure.
Study Session
An in-person bilingual joint public study session with the City Council and Planning Commission was held on Monday, August 29, 2022, at 6:00 PM. This bilingual meeting included a summary of proposed housing programs to address the identified needs of the community and a map of properties that are currently vacant or underutilized that may provide an opportunity for redevelopment with new housing. The meeting included comments from the public and a question-and-answer session with the Council and Planning Commission.
Spanish interpretation and translation were provided. The meeting recording and the presentation slides in both English and Spanish were posted on the project webpage.
Public Hearings
Following the release of the first public draft, the City held two in-person public hearings. The public hearings were held Monday, October 17, 2022, at 6:00 PM (City Council) and Thursday, October 20, 2022, at 6:00 PM (Planning Commission). The purpose of the meetings was to give the public and the City’s decision makers another opportunity to provide comments and suggestions prior to sending the draft to HCD for its review.
Public hearings held on April 20, 2023 (Planning Commission) and May 1, 20223 (City Council) gave the public and the City’s decision makers an opportunity to review and comment on Housing Element revisions made in response to HCD’s comments.
Housing Element Survey (general population)
Another component of the outreach effort was the Housing Element survey, posted on the City’s website from April 2022 through August 2022, and promoted through a myriad of channels for the furthest outreach. The survey was available in both English and Spanish. As of August 2, 2022, a total of 367 English and 143 Spanish completed surveys were received, with 248 (34%) respondents being homeowners, 125 (17%) being renters, 191 (35%) of respondents being white or Caucasian, and 236 (44%) being Hispanic or Latino. 14 Responses
to the survey primarily revealed concerns from residents regarding:
• Difficulty paying rent, mortgage, or down payment;
14 Note: 510 total surveys were completed to varies degrees of completeness. Respondents did not answer every question; therefore percentages represent the percentage of respondents to each question not total number of survey respondents.
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• Homelessness; and
• Insufficient housing supply including affordable housing.
Respondents also believe that the greatest housing needs are lower- and middle-income workforce housing and affordable housing. The survey results show strong support for more affordable housing while some respondents feel the City is growing too much and thus did not support more development. Most of the survey and stakeholder responders believe that there are not enough services or housing to support individuals who fall within the extremely lowincome designation. Stakeholder interviewees and 94 percent of survey respondents supported the adoption of an inclusionary housing ordinance.
Housing Element Survey (focused outreach)
In addition to posting the housing element survey on the City website, City staff conducted a focused bilingual survey effort for farmworkers, youth, and seniors. Hard copy and online surveys were distributed between November 2022 and the end of January 2023. ▪ Farmworker Outreach. Twenty-six (26) surveys were completed. The top three housing issues identified by farmworkers was difficulty paying rent, mortgage, or downpayment (26), followed by insufficient housing supply (11) and homelessness (6).
Respondents also identified issues regarding length of rental leases and a need for temporary housing.
▪ Youth Outreach. Eight (8) surveys were completed. The top housing issues identified by this group was difficulty paying rent, mortgage, or down-payment; overcrowding; homelessness; and lack of suitable housing types. Responses also reflected the desire for the City to implement programs to require affordable housing units in new developments and assist residents with finding available housing. ▪ Seniors Outreach. Nineteen (19) surveys were completed. The top three housing issues identified by seniors were difficulty paying rent, mortgage, or down-payment (12), followed by lack of suitable housing types (9), and insufficient housing supply (7).
Respondents identified requiring affordable housing units in new developments (10) and access to low-cost pre-designed plans for ADUs as potential programs to improve housing access in Gilroy.
Focused Stakeholder Meetings
Between December 2022 and February 2023, City staff met with Gilroy’s youth, seniors, and the intellectually and developmentally disabled (I/DD) community. On December 12, 2022, City staff attended the Gilroy Youth Commission meeting to discuss the Housing Element update, answer questions, and gather feedback from youth in attendance (~15 to 18 years old). On January 25, 2023, City staff made a presentation to seniors at the Gilroy Senior Center, informing them about the Housing Element and gathering feedback. On January 24, 2023, the City held a virtual meeting with Housing Choices and intellectually and developmentally disabled (I/DD) stakeholders (primarily parents of I/DD children and I/DD adults), informing
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them about the Housing Element and gathering verbal feedback. On February 15, 2023, the City also met with and gathered verbal feedback from I/DD residents, caregivers, and staff at Villa Esperanza, a facility that provides low-income apartment units and services for persons with disabilities.
Findings
Most focus group attendees and survey respondents support the provision of more assistance, financial or otherwise, to the extremely low-income population in finding housing.
City Overview
Much of the fair housing analysis is based upon census data provided at the census tract level.
Gilroy has a total of 11 census tracts. Figure 7 displays the census tracts in the City and the RHNA sites within those census tracts; however, several of the census tracts are not solely in Gilroy and have large portions in neighboring jurisdictions. As a result, demographic information for these census tracts reflects neighboring communities, as well as Gilroy. The west tracts have more open space and agriculture, so the population as a whole is generally more concentrated in the east, which may skew data perception. Several of the tracts include more land and more households in adjacent jurisdictions other than in Gilroy. These external households are included in the census data, which may affect the displayed maps.
Until 2018, a large portion of the Downtown Specific Plan area and several properties west of downtown were designated as a Neighborhood Revitalization Strategy Area by the US Department of Housing and Urban Development (HUD). A number of capital improvements, youth activities, neighborhood beautification projects, and other downtown revitalization efforts were pursued during this time.15 The downtown area in Gilroy is also identified as a Priority Development Area in the Association of Bay Area Governments’ Plan Bay Area 2050.
The AFFH section also considers the effects that the selected RHNA sites may have on fair housing. Selected RHNA sites are primarily in the eastern portion of the City, while pipeline projects are more evenly distributed throughout Gilroy. Pipeline projects are defined as pending projects (proposed, entitled, permits issued) that had not received certificates of occupancy as of June 30, 2022. The sites inventory includes a mix of vacant and non-vacant sites, selected for their access to resources, suitability for multifamily housing, and proximity to upcoming plans for community revitalization, including the planned high speed rail station, parking management plan, Downtown Specific Plan update, and currently funded place-based improvements. Additionally, non-vacant sites were selected based on their likelihood to develop during the 6th Cycle and the extent to which the existing use may preclude development.
The City is including Program F - 3 for place-based improvements in the downtown area. The City is also including programs to encourage ADU development in the western portion of the 15 Neighborhood Revitalization Strategy Area Renewal Request for 2013-2018. https://www.cityofgilroy.org/DocumentCenter/View/9045/NRSA-Strategy-Renewal-Request-for-2013-2018
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City to promote housing mobility and increased housing opportunities (Program A - 6).16 To encourage a variety of housing types throughout the City, a program to create a ministerial permit process for triplexes and quadplexes that meet objective design standards is included (Program A - 10). SB 9 facilitates the creation of up to four housing units, comprised of a duplex with an ADU and a junior ADU or two primary units plus an ADU and a junior ADU.
Program A - 10 provides more flexibility than SB 9 by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. This program will also encourage the development of middle-income housing throughout the City, including highresource areas primarily comprised of detached single-family residences.
Figure 7: Census Tracts and RHNA Sites, 2022
Source: HCD AFFH Data Viewer
As noted in Table 47. Gilroy is split between the Low, Moderate, and High Opportunity categories, with the intersecting tracts in the west being considered a Racially Concentrated Area of Affluence (RCAA) and the tracts in the east containing a Racially and Ethnically 16 ADUs are calculated on a citywide basis and are not represented on the sites maps
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Concentrated Area of Poverty (R/ECAP)
17 . These are relative rankings based on composites of the environmental, economic, and education scores.
Of the 2,053 RHNA sites, including pipeline projects and opportunity sites, 23 percent of units are in Low Resource tracts, 71 percent of units are in Moderate Resource tracts, and 6 percent of units are in High Resource tracts.
Eight (8) of the eleven census tracts that intersect Gilroy have the majority of their area located inside City limits, Of the eight (8) tracts mostly in the City, 41 percent of units are in the tract with the second highest median income. Both High Resource tracts, 5125.03 and 5122, have a large portion of their land area as rural and undeveloped. Due to the large quantities of open space in these tracts, they have disproportionately high environmental TCAC scores (see the California Tax Credit Allocation Committee (TCAC) section for more information). Tract 5122 has an environmental resource category of 91, while the education resource category is scored at 27. The disproportionately high environmental score of this majority rural, open space, steep tract skews the overall opportunity category towards High Resource. This indicates that disparities between the developable area that is actually within the City bounds, and the Low and Moderate Resource opportunity areas of the City may be smaller than indicated. In fact, educational opportunity is significantly higher in the R/ECAP, with an index of 40.
Less than 25 percent of the RHNA units are in the R/ECAP. The majority of the lower- income pipeline RHNA sites are in higher opportunity areas outside of the R/ECAP. It is unlikely that the location of proposed RHNA opportunity sites will exacerbate any fair housing conditions.
The City encourages development and redevelopment in the older Downtown R/ECAP, as this is an efficient area with transit, employment, and services. These tracts are also where participants of the focus groups and local housing service providers, specifically advocated for new housing. The High Resource areas of Gilroy in the northwestern tracts are newly developed, single-family, steep and hilly, and not likely to develop or redevelop. This area is the most distant from transit, employment, and services and would not likely score well for affordable housing financing. Despite mapped disparities in opportunity indices, lower-income residents have greater access to job and transit opportunities in the lower resource areas.
The City is including a number of programs to increase housing types and opportunities in higher resource areas of the City. These efforts go beyond sites that are included on the Opportunity Site List and help improve housing choice and mobility, by providing opportunities to increase the number and type of dwelling units in lower density residential zones. Program A - 10 will encourage the development of missing middle housing throughout the City, including high-resource areas primarily comprising detached singlefamily residences. 17 HUD defines R/ECAP as areas where the percentage of the population that is non-White is over 50 percent and the percentage of households with incomes below the poverty line is over 40 percent. Alternatively, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower.
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Through Program A - 10, the City will allow triplexes and fourplexes on corner lots in the R1 and R2 zones with a minimum lot size of 6,000 square feet. This includes approximately 1,106 parcels as shown in Figure 33. SB 9 facilitates the creation of up to four housing units, comprised of a duplex with an ADU and a junior ADU or two primary units plus an ADU and a junior ADU. Program A - 10 provides more flexibility than SB 9, by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU.
Program A - 10 will also encourage the development of middle-income housing throughout the City, including high-resource areas primarily comprising detached single-family residences.
Program G - 5 includes the creation of informational and promotional pamphlets regarding opportunities to develop duplexes, triplexes, and quadplexes in the City. The pamphlets will be provided online, at City Hall, and at informational booths where housing resources are provided. Program A - 6 includes targeted ADU outreach to the single-family neighborhoods.
In the R-1 zone, there are approximately 1,067 parcels with single-family homes on corner lots greater than 6,000 square feet. Allowing triplexes and quadplexes by right on these corner lots could allow for an additional 3,201 units. These units are primarily in the moderate and high resource areas of the City and thus would allow for increased capacity for housing and increased flexibility for middle-income housing in the R1 zone. Of these 1,067 parcels, 361 are in the high resource TCAC category, 664 are in the moderate resource category, and 42 are in the low resource category. Program A - 10 would also apply to approximately 39 corner lots with single-family homes in the R2 zone. Of these 39 parcels, 22 are in the moderate resource category, and 17 are in the low resource category.
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96 Table 47: Comparison of Fair Housing with Respect to Location Census
Tract
RHNA
Units1
(% Total)
Total
Household
s
2 Total
Population
172
TCAC
Composite
Category
Median
Household
Income
% with a
Disability
% of
Children in
FHH
CalEnviroS
creen
Percentile
% NonWhiteR/ECAP
Present
Census Tracts Mostly Inside of Gilroy
5125.03 116
(6%)
2,567 9,452 High
Resource
$135,863 5.9% 8.2% 15.9 45.8
No
5125.05 211
(10%)
2,058 8,373 Moderate
Resource
$77,481 8.3% 16.2% 32.7 75.5
No
5125.06 156
(8%)
1,779 7,443 Moderate
Resource
$54,770 11.3% 26.1% 56.3 83.0
No
5125.08 19
(1%)
2,644 8,007 Moderate
Resource
$74,032 11.2% 15.6% 52.1 65.7
No
5125.09 216
(11%)
1,239 5,244 Moderate
Resource
$79,306 6.5% 5.8% 38.8 70.2
No
5125.1 846
(41%)
2,270 7,352 Moderate
Resource
$85,960 10.0% 25.4% 29.4 61.9
No
5126.03 376
(18%)
971 4,563 Low
Resource
$37,301 9.5% 30.9% 90.8 91.2
Yes
5126.04 112
(5%)
1,161 4,854 Low
Resource
$35,297 6.0% 23.6% 75.8 91.2
Yes
Census Tracts Mostly Outside of Gilroy
5126.02 0 805 2,377 Low
Resource
$64,375 13.0% 37.7% 78.0 58.1 No
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Census
Tract
RHNA
Units1
(% Total)
Total
Household
s
2 Total
Population
172
TCAC
Composite
Category
Median
Household
Income
% with a
Disability
% of
Children in
FHH
CalEnviroS
creen
Percentile
% NonWhiteR/ECAP
Present
5124.01 0 1,427 4,782 Moderate
Resource
$107,599 13.1% 17.2% 42.4 55.2 No
5122 1 1,612 3,895 High
Resource
$124,130 6.1% 12.8% 13.4 33.8 No
Note:
1) Includes opportunity sites and pending projects.
2) Includes all households in the tract, including those not within the bounds of the City of Gilroy.
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Fair Housing Enforcement and Outreach Capacity
Fair housing enforcement and outreach capacity refers to the ability of a locality and fair housing entities to disseminate information related to fair housing laws and rights and provide outreach and education to community members. Enforcement and outreach capacity also includes the ability to address compliance with fair housing laws, such as investigating complaints, obtaining remedies, and engaging in fair housing testing.
Project Sentinel provides fair housing counseling services for the City of Gilroy. The City publishes the availability of both tenant/landlord counseling and fair housing services via its website. In the fiscal years 2022-2023 and 2023-2024, the City of Gilroy allocated $80,000 in total funds to two Project Sentinel programs: Fair Housing and Landlord/Tenant Counseling and Dispute Resolution. The funds are provided through the Permanent Local Housing Allocation (PLHA) fund, which is administered by Santa Clara County’s Office of Supportive Housing.
Project Sentinel is a nonprofit organization that provides a variety of fair housing resources and services in Northern California, including resources for tenants, property managers, and service providers, dispute resolution, and housing counseling. Annually, Project Sentinel processes over 10,000 initial contacts; handles over 400 housing discrimination complaints and over 1,700 landlord tenant and community dispute cases; counsels over 750 homeowners; and provides monthly workshops on housing topics.
Local Data
On March 8, 2023, staff from Project Sentinel provided information for the Housing Element update related to fair housing activity in the City of Gilroy. Project Sentinel has received 256 calls on behalf of the City of Gilroy since 2017 and has managed 139 cases on behalf of the City since 2015. Over the approximately 7- to 8-year period, 32 cases cited different terms/conditions, 15 cited eviction, 46 cited reasonable accommodation or modifications/accessibility, 16 cited coercion or intimidation/harassment, and 20 cited a refusal to rent. The remaining cases cited either repairs not being completed, a hostile environment, or being falsely denied. As shown in Table 48, over 60 percent of the cases since 2015 (86 cases) were filed by residents in the extremely low income (0 to 30% AMI) category.
Residents from all age categories have filed cases, with no strong patterns identified (Table 49). Of the cases, seven (7) were filed by Black households, 109 were submitted by White households, two (2) were submitted by Native American households, and six (6) were submitted by other or multiple racial identifying households (Table 50).
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Table 48: Dispute Cases by Income Category, 2015-2022
Income Category
of Complainant 2015 2016 2017 2018 2019 2020 2021 2022
0-30% 5 14 18 8 17 11 6 7
31-50% 3 1 1 3 3 - 2 -
51-80% 10 1 1 - 2 - - 2
80% + 3 1 4 - 1 - - 1
N/A - - - - 3 10 1 -
Totals 21 17 24 11 26 21 9 10
Source: Project Sentinel, 2023.
Table 49: Dispute Cases by Age, 2015-2022
Age of
Complainant 2015 2016 2017 2018 2019 2020 2021 2022
<30 3 1 5 2 3 2 1 1
30 - 40 9 5 4 4 2 6 1 2
41-50 4 3 5 1 4 - 1 4
51-60 2 1 4 - 2 1 3 3
61-70 - 4 3 4 7 1 1 -
71-80 1 1 2 - 2 - 1 -
>80 1 2 1 - - - - -
N/A 1 - - - 6 11 1 -
Totals 21 17 24 11 26 21 9 10
Source: Project Sentinel, 2023.
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Table 50: Dispute Cases by Race, 2015- 2022
Race of
Complainant 2015 2016 2017 2018 2019 2020 2021 2022
White 21 15 19 10 19 9 6 10
Black - 1 3 - 1 1 1 -
Native American - 1 - - 1 - - -
Other/MultiRacial - - 2 1 2 - 1 -
N/A - - - - - 11 1 -
Totals 21 17 24 11 23 21 9 10
Source: Project Sentinel, 2023.
The City is including Program F - 1 to coordinate with Project Sentinel to conduct a workshop to inform residents of income protection and state rent control laws. Additionally, under Program F - 1, the City will continue to coordinate outreach efforts to inform landlords and tenants of recent change to state law. The City is including Program F - 2 to commit to work with the Fair Housing Provider to track number of households assisted in Gilroy annually.
Under Program G - 8, the City will develop a Housing Help Center webpage to provide a centralized resource for tenants and landlords to receive information on local laws, assistance to apply for rent relief, and legal aid. This webpage will consolidate existing information on the City’s website with additional information provided by local service providers to best serve the needs of the Gilroy community.
The Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity (FHEO) enforces fair housing by investigating complaints of housing discrimination. Over the 7- to 8- period from 2013-2021, there were 15 fair housing inquiries filed with FHEO on behalf of the City of Gilroy. Three (3) inquiries referenced disability concerns, one (1) inquired on race, and the remaining 11 were found to have no identity-based inquiries. Of these inquiries, nine (9) were found to have no valid case of fair housing discrimination, five (5) failed to respond or continue further with the inquiry process, and one (1) resulted in other disposition. There are no outstanding lawsuits or complaints regarding fair housing in the City.
Integration and Segregation
Race and Ethnicity
Figure 8 shows the racial and ethnic majority by census tract in the City of Gilroy. As illustrated, the western half of the City has a slim (<10%) to sizeable (10%–50%) White majority, while the eastern half of the City has areas with sizeable (10%–50%) to predominant (> 50%) Hispanic majorities. The tracts with Hispanic majorities have larger low- to moderate-income populations and a higher quantity of female-headed households than the majority White
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tracts. The City is including a program to increase Spanish language engagement in order to target outreach to the Hispanic population (Program G - 7). The area with the predominant Hispanic majority also contains a R/ECAP. HUD defines R/ECAP as areas where the percentage of the population that is non-White is over 50 percent and the percentage of households with incomes below the poverty line is over 40 percent. Alternatively, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower.
Regionally, there is a common correlation between wealth and race, which may help explain the racial/income concentrations in the City. The City has a significantly larger Hispanic population (57.6 percent) in comparison to the County (25.1 percent). Gilroy has a much smaller Asian/Asian Pacific Islander (API) population (9 percent) compared to the County (37 percent), and a slightly smaller non-Hispanic White population (28 percent) compared to the County (32 percent).
Figure 8: Racial and Ethnic Majority, 2010
Source: HCD AFFH Data Viewer
As shown in Figure 9, there are no block groups in the City with a non-White population less than 41 percent. The area with the highest non-White percentage is also the area with the
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R/ECAP. In the City, newer developed single-family housing is primarily available in the west, while the multifamily, more affordable housing opportunities are primarily available in the east of the City, where there is a larger non-White population. As of 2019, 72 percent of the City was non-White while 68 percent of the County was non-White, indicating that the overall distribution of the non-White population is similar between the City and the region as a whole.
Figure 9: Percentage of the Population that is Non-White, 2018 Source: HCD AFFH Data Viewer
Figure 10 compares the RHNA units with the percentage of the population that is non-White.
While many sites are in the downtown area, where there is a large non-White population, this area is where the City is targeting revitalization, and placed-based improvements, which includes plans for significant investment, further economic development, and a future high speed rail station.
The City is including Program F - 5, Displacement Prevention Policy, to ensure that existing residents are protected from displacement. Program F - 2 includes multilingual tenant counseling through a partnership with Project Sentinel. The City is also including programs to encourage development opportunities throughout the City, including Program G - 3 for ADU
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outreach focused in the western portion of the City, Program A - 11 for adoption of an inclusionary housing policy, and Program A - 10 allowing triplexes and fourplexes that meet objective design standards to be approved ministerially on corner lots in the R1 and R2 zones.
SB 9 facilitates the creation of up to four housing units, comprised of a duplex with an ADU and a junior ADU or two primary units plus an ADU and a junior ADU. Program A - 10 provides more flexibility than SB 9 by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. Program A - 10 will also encourage the development of middle-income housing throughout the City, including high-resource areas primarily comprised of detached single-family residences. The City is also including a program to incentivize affordable ADU production, specifically focusing outreach to households in the western area of the City (Program A - 8).
Figure 10: Percent non-White Comparison of RHNA Units
Dissimilarity Index – Race and Ethnicity
Segregation is defined by the census as the spatial distributions of different groups among units in a metropolitan area.
18 Segregation can be quantified by using the dissimilarity index.
The dissimilarity index measures the distribution of two groups in a city and assigns a score 18 Measures of Residential Segregation. https://www.census.gov/topics/housing/housing-patterns/guidance/appendix-b.html 0%
5%
10%
15%
20%
25%
30%
35%
40%
40-60% 60-80% 80-100%
Percent of RHNA Units
Percent of the Population that is Non-White by Block Group Lower Moderate Above Moderate
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between 1 and 100. The level of segregation is determined by assessing what percentage of residents of a census block would have to move for each block to have the exact same population of said group. A score of zero (0) reflects a fully integrated environment; a score of 100 (or 100%) reflects full segregation. Therefore, a higher dissimilarity index indicates higher concentrations of the indicated ethnic groups in areas of the City, when compared to the White population distribution. A lower dissimilarity index implies higher integration, and a more even distribution of each ethnicity when compared to the White population. The formula for this calculation is provided by the HCD AFFH Guidance Document.
The categories for the dissimilarity index on a scale of 1-100 are as follows:
• <30: Low Segregation
• 30 – 60: Moderate Segregation
• >60: High Segregation
Figure 11 provides the dissimilarity index values in Gilroy, indicating the level of segregation between White residents and residents who are non-White, Black, Hispanic, or Asian. In 2020, there was moderate segregation between the Hispanic and White populations and low segregation between the Black and White populations, and between the Asian and White populations. A moderate dissimilarity index of 35.41 in the figure below means that 35.41 percent of Gilroy’s Hispanic or White residents would need to move to a different census block to create balanced integration between Hispanic and White residents. Segregation at the City level is much lower than Santa Clara County as a whole.
Figure 11: Dissimilarity Index for Race
Source: HUD AFFH Data tool.
0 10
20 30
40 50
60 Non-White/White
Black/White
Hispanic/White
Asian/White
Non-White/White
Black/White
Hispanic/White
Asian/White
Gilroy San Jose-Sunnyvale-Santa Clara Region
1990 2000 2010 2020
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Income
The dissimilarity index can also be used to calculate income segregation, using the same scale as above. The segregation between below-moderate and above-moderate income groups is moderate. Regionally in the Bay Area, segregation is also moderate.
Table 51: Dissimilarity Index for Income
2010 2015
Below 80% AMI
/ Above 80%
AMI
Below 50% AMI
/ Above 120%
AMI
Dissimilarity
Below 80% AMI
/ Above 80%
AMI
Dissimilarity
Below 50% AMI
/ Above 120%
AMI
Dissimilarity
Gilroy 31.5 46.2 41.6 53.3
Bay Area 28.7 36.6 27.4 35.1
Source: Association of Bay Area Governments AFFH Data Report.
As shown in Figure 12, the area with a large low-to-moderate income population is also the area with a predominant Hispanic majority, and largest non-White population. This area is also where the R/ECAP is located. There is a large low- to moderate-income population in the area with more multifamily housing. Income often correlates with housing type—i.e., large singlefamily areas generally have higher incomes. Compared to the region, Gilroy has a lower median income and a higher income disparity.
While a large percentage of the RHNA opportunity sites are in the area with the highest concentration of the low- to moderate-income population, this area also falls within downtown Gilroy, which provides residents with close access to transit, resources, and employment opportunities. The anticipated development of the future high-speed rail station is also expected to increase economic investment in the downtown. The Housing Element includes programs to help ensure redevelopment of nonresidential sites downtown and to minimize displacement. Programs include the creation of an inclusionary housing ordinance (Program A - 11), allowing 100% residential uses in the Downtown Expansion District (Program E - 12), multilingual tenant support in partnership with Project Sentinel (Program F - 2), and a displacement prevention policy (Program F - 5).
The City also has an affordable housing portfolio available to lower-income households, including ownership and rental units. The below market-rate units are administered by HouseKeys through Programs C - 1, C - 4, and C - 5, which include monitoring of units at risk of converting to market rate and resale/rent control on BMR units. There are over 400 units in the BMR program.
The City is including programs to encourage development opportunities in the western portion of the City that are not captured by the sites inventory. Programs include ADU tracking and monitoring (Program A - 6), adoption of an inclusionary housing policy (Program A - 11), allowing triplexes and fourplexes to be approved ministerially on corner lots in R1 and R2 zones (Program A - 10), and an incentives beyond density bonus state law policy (Program
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A - 12). The City is also including a program to incentivize affordable ADU production, specifically focusing outreach to households in the western area of the City (Program A - 8), and a program to replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County, and increase the allowable ADU floor area from 1,000 square feet to 1,200 square feet (Program A - 15).
Figure 12: Low to Moderate Income Population and RHNA Sites, 2011-2015 Source: HCD AFFH Data Viewer
Figure 13 shows the percentage of RHNA units compared to the percent of each block group that is in the low- to moderate-income category. The lower- and moderate-income RHNA sites are proposed in the areas with a larger low- to moderate-income population to provide new housing opportunities without displacing current residents from their neighborhoods.
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Figure 13: Low to Moderate Income Population Comparison of RHNA Units Figure 14 shows the number of households with income levels similar to the income ranges provided by the HCD Income Limits. The moderate-income category has the largest percentage of the population, while the very low-income category has the smallest population.
The remaining income categories have relatively comparable population sizes without extreme discrepancies.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0-25% 25-50% 50-75% 75-100%
Percent of RHNA Units
Percent of the Population that is Low to Moderate Income by Block Group Lower Moderate Above Moderate
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Figure 14: Households per Income Level, 2021
Source: 2021 ACS Table B19001
According to US Census 2015-2019 American Community Survey estimates, the median household income for Gilroy was $101,616. This is about 18 percent lower than the Santa Clara County median household income of $124,055.
Figure 15 shows median household income by census block group. In Gilroy, the highest median household incomes are located in the western portion of the City, where there is more single-family zoning and open space. The lowest median incomes are in the central and eastern portions of the City, including downtown, which is the oldest area of the City.
The west tracts have more open space and agriculture, so the population as a whole is generally more concentrated in the east, which may skew data perception. Additionally, the block groups in the western region of Gilroy have the majority of their acreage outside of the City of Gilroy, making it likely that the small portion of tracts within the City are not primarily responsible for overall trends. Newer single-family development primarily occurs in the west and are often more expensive than older small homes in the downtown areas, which correlates with higher income households in these newer western areas. The data collected through Program A - 6 (ADU Tracking and Monitoring) will help inform the City’s efforts in Program A - 8 (Incentives for Affordable ADUs), to promote housing mobility and increased housing opportunities, including ADU production, in the western portion of the City. 3,392
2,218
3,672
4,174
3,567
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
≤ $49,999 $50,000 - $74,999 $75,000 - $124,999 $125,000 - $199,999 > $200,000
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Figure 15: Median Household Income, 2019
Source: HCD AFFH Data Viewer
Figure 16 shows the change in the population under the federal poverty line by census tract from 2010–2014 to 2015–2019. Poverty is defined by incomes falling below the annually defined thresholds for family size by the Census. Poverty levels in the eastern area, where the downtown R/ECAP is located, decreased significantly over this period. From 2010 to 2014, 30- 40 percent of households in the eastern downtown R/ECAP area were living in poverty.
Between 2015 and 2019, the percentage decreased significantly, with less than 20 percent, and in some cases less than 10 percent, of residents in this area living in poverty. Similarly, the number of impoverished residents in southern Gilroy decreased between 2010 and 2019, with less than 10 percent of these residents currently living in poverty. The 2015–2019 map shows lower levels of poverty Citywide and increased geographic parity. The 2015–2019 map also shows that pipeline projects and proposed RHNA Opportunity sites are spread throughout the City with more pipeline projects in the west and proposed RHNA sites in the east. It is the intent of the City’s placed based improvements and revitalization efforts in the downtown R/ECAP area to further minimize poverty by providing safe affordable housing choices to residents living in this area.
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Figure 16: Poverty Status, 2010-2014 and 2015-2019
Source: HCD AFFH Data Viewer
Figure 17 displays the distribution of housing choice vouchers in the City. The Santa Clara County Housing Authority (SCCHA) is the regional Public Housing Authority for the City of Gilroy and administers the Housing Choice Voucher (HCV) program (also known as Section 8). The HCV program is a 100 percent federally funded rental subsidy for low-income households living in privately owned rental units. The City does not own any public housing; however, the SCCHA owns and manages affordable housing units in Gilroy and throughout the County of Santa Clara. Santa Clara County owns the Gateway Senior Apartments, a 75‐unit affordable senior housing complex with approximately half of the units reserved for special needs seniors. Many of the seniors in this housing complex use housing choice vouchers. There is little housing choice voucher use in the west side of the City. The majority of housing choice voucher usage is in the R/ECAP, where there is more multifamily housing and rental apartments.
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Figure 17: Housing Choice Vouchers
Source: HCD AFFH Data Viewer
Familial Status
Figure 18 shows the percentage of children that are living in female-headed households with no spouse by census tract. It also shows pipeline projects and proposed RHNA Opportunity sites. In 2019, 2,616 households, or 16.2 percent of the total households in Gilroy, were femaleheaded households, which is about 6 percent higher than in the County, at 10 percent. There is no tract with a significant concentration of children in female-headed households. As shown in Figure 19, RHNA pipeline and opportunity sites are distributed throughout the City and are not expected to impact fair housing concerns based on familial status. For example, 27.4 31.4 percent of the RHNA units are located in tracts where 0-20% of children are living in femaleheaded households with no spouse.
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Figure 18: Children in Female-Headed Households and RHNA Sites Source: HCD AFFH Data Viewer
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Figure 19: Female Headed Households Comparison of RHNA Units As shown in Figure 20, areas with high concentrations of children in married-couple households are also areas with large numbers of single-family households. In Gilroy, 30.5 percent of households are married-couple households with children present, compared to
26.6 percent countywide. RHNA pipeline and opportunity sites are distributed throughout the City and are not expected to impact fair housing concerns based on familial status. 0%
10%
20%
30%
40%
50%
60%
70%
80%
0-20% 20-40%
Percent of RHNA Units
Percent of Children in Female-Headed Households by Tract Lower Moderate Above Moderate
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Figure 20: Children in Married-Couple Households
Source: HCD AFFH Data Viewer
Persons with Disabilities
The US Census Bureau provides information on the number of persons with disabilities of varying types and degrees. According to the US Census Bureau, a person is considered to have a disability if they have difficulty performing certain functions or difficulty with certain social roles. Affordability of appropriate housing and access, both within the home and to/from the home site, are the primary challenges for persons with disabilities. Access often requires specially designed dwelling units. Additionally, housing locations near public facilities and public transit are important for these special needs group. The 2019 American Community Survey estimates that 8 percent of Gilroy, 8 percent of Santa Clara County, and 10 percent of the Bay Area region have a disability.19
The types of disabilities included in the Census are:
19 US Census Bureau, American Community Survey 5-year Data (2015–2019), Table B18101
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• Hearing difficulty: deaf or has serious difficulty hearing • Vision difficulty: blind or has serious difficulty seeing even with glasses • Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions
• Ambulatory difficulty: has serious difficulty walking or climbing stairs • Self-care difficulty: has difficulty dressing or bathing • Independent living difficulty: has difficulty doing errands alone, such as visiting a doctor’s office or shopping
Figure 21 shows an estimate of the number of Gilroy residents with disabilities by type of disability and age group. The most prevalent types of disability are cognitive, ambulatory, and independent living difficulty. Note that individuals may have more than one type of disability.
Ambulatory issues are the highest reported disability countywide. A large population with walking difficulty creates a need for single-story housing, elevators, transit access, wheelchair access, larger homes for live-in help, and proximity to health facilities.
Figure 21: Disability Characteristics, Gilroy, 2019
Source: 2019 ACS B18108.
Figure 22 shows that the disabled population is relatively evenly distributed throughout Gilroy.
There were no significant changes in location or concentration of those with a disability from 2010–2014 to 2015–2019. There is no area of the City with an extreme concentration of persons with disabilities. The area in the east of the City with a larger low- to moderate-income population and larger non-White population does have a slightly larger disabled population, though the difference is minimal. Furthermore, the west tracts have more open space and 0 500
1,000
1,500
2,000
2,500
Hearing
Difficulty
Vision
Difficulty
Cognitive
Difficulty
Ambulatory
Difficulty
Self Care
Difficulty
Independent
Living
Difficulty
Population by Age
Disability Type
<18 years old 18-64 years old ≥65 years old
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agriculture, so the population is generally more concentrated in the east, which may skew data perception. A larger or more concentrated disabled population may indicate a greater need for access to health care. However, health care facilities are also more concentrated in the areas to the east.
Figure 22 also shows pipeline and proposed RHNA Opportunity sites in the context of persons with a disability. As shown in Figure 23, the RHNA sites are relatively evenly distributed between areas with higher and lower concentrations of the disabled population. For example,
50.3 percent of the RHNA units are located in the area where 0-10% of the population has a disability. As such, the sites are not expected to cause fair housing concerns as they relate to residents with a disability.
Figure 22: Population with a Disability, 2010-2014 and 2015-2019 Source: HCD AFFH Data Viewer
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Figure 23: Population with a Disability Comparison of RHNA Units Local Data
On January 24, 2023, in collaboration with Housing Choices, the City held a virtual meeting with intellectually and developmentally disabled (I/DD) stakeholders (primarily parents of I/DD children and I/DD adults), with representatives from Housing Choices and the San Andreas Regional Center in attendance.
I/DD participants expressed a need for extremely low-income housing since I/DD individuals generally rely on social security income. The City is including Programs A - 6, A - 7, and A - 8 to promote the construction of and incentivize the affordability of ADUs. Affordable ADUs provide I/DD individuals and their caregivers an alternative housing supply. Program A - 11 (inclusionary housing policy) and Program A - 12 (incentives beyond Density Bonus state law) will help facilitate the production of extremely low-income households and housing mobility for the I/DD community in higher opportunity areas. The City is also including Program E - 11 to prioritize funds to assist special needs households, such as persons with disabilities.
I/DD participants also expressed a need for project-based vouchers. The City is including Programs A - 8 and D – 3, which include providing financial assistance for homeowners who build ADUs with an affordability restriction or commitment to offering project-based vouchers. 0%
10%
20%
30%
40%
50%
60%
0-10% 10-20%
Percent of RHNA Units
Percent of the Population with a Disability by Tract
Lower Moderate Above Moderate
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The City will notify interested residents and provide technical assistance to residents who need help applying to the Santa Clara County Housing Authority (SCCHA) voucher program.
Another identified need was housing and services for both independent living and supportive living skills. For many in need of independent living assistance, ADUs may serve as a caregiver unit. The City is including Program A - 7 to develop an ADU program that includes pre-designed “model” plans for ADUs that meet zoning, building, and fire codes. This will decrease the cost of ADU construction for potential caregiver units. Additionally, per Program E - 10, the City will evaluate and revise its reasonable accommodation standards and procedures as they pertain to potential constraints to accommodating persons with disabilities.
Findings
Overall, the City of Gilroy has higher concentrations of non-White and low- to moderateincome residents in the eastern portion of the City. This area saw a reduction over time in households under the federal poverty level, from 30-40 percent in 2010-2014 to either 10-20 percent or less than 10 percent in 2015-2019. This area is also where housing choice voucher use primarily occurs. Many of the proposed RHNA Opportunity sites are located in this area, which includes placed-based improvements in the Downtown Specific Plan area, including the future high-speed rail station. The selected RHNA sites are not anticipated to cause displacement or worsen patterns of segregation. The City is including programs to address needs in the downtown. These programs include an inclusionary housing policy (A - 11), multilingual tenant outreach in partnership with Project Sentinel (F - 1), a displacement prevention ordinance (F - 5), and place-based improvements in this area (F - 3).
Much of the western portion of Gilroy was developed relatively recently, leaving few vacant or underdeveloped sites that would likely be redeveloped during the 2023-2031 eight-year planning cycle. Furthermore, most of the remaining undeveloped parcels on the west side do not meet the size requirements for lower-income units. However, the City is including programs to encourage development opportunities in the western portion of the City, including an ADU tracking and monitoring (Program A - 6), adoption of an inclusionary housing policy (A - 11) to provide integrated and affordable housing, and allowing triplexes and fourplexes meeting objective design standards to be approved ministerially on corner lots in the R1 and R2 zones (Program A - 10). The City is also including a program to incentivize affordable ADU production, specifically focusing outreach to households in the western area of the City (Program A - 8).
Racially and Ethnically Concentrated Areas of Poverty and Affluence R/ECAPs
HUD defines R/ECAPs as areas where the percentage of the population that is non-White is over 50 percent and the percentage of households with incomes below the poverty line is over 40 percent. Alternatively, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower.
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Gilroy has a R/ECAP in Census Tracts 5126.03 and 5126.04. The tracts are shown in Figure 25 along with the proposed RHNA sites by their income levels. The tracts include the Downtown Specific Plan area and the future high-speed rail station, which will increase access to transit options and employment centers for potential residents. Existing and proposed transit bring the opportunity for transit-oriented development to the R/ECAP area. The downtown area has excellent proximity to commercial and employment resources and opportunities. Additionally, placing new housing sites in this area allows lower-income residents to stay in their neighborhood and take advantage of new, high-quality housing with new amenities. The location of RHNA sites in the R/ECAP will not exacerbate or create any additional R/ECAPs.
Figure 26 compares the percent of RHNA units within the R/ECAP area by their income levels, illustrating that the majority of the RHNA units are located in non-R/ECAP areas. About 24.7 percent of units from pipeline projects and potential RHNA Opportunity sites are proposed in the R/ECAP. Less than 30 percent of lower- income units are in the R/ECAP. This area is also designated for higher density housing options in a smart growth pattern with access to transit, employment, and service uses and facilities. Furthermore, planning for more affordable units in this area will help minimize displacement of existing residents when older properties are redeveloped.
Less than 25 percent of the RHNA units are in the R/ECAP. The City encourages development and redevelopment in the older downtown R/ECAP, as this is an efficient area with transit, employment, and services. These tracts are also where participants of the focus groups and local housing service providers specifically advocated for new housing. The High Resource areas of Gilroy in the northwestern tracts are newly developed, single- family, steep and hilly, and less likely to develop or redevelop. This area is the most distant from transit, employment, and services and would likely not score well for affordable housing financing. Despite mappeddisparities in opportunity indices, lower-income residents have greater access to job and transit opportunities in the lower resource area. Placed based improvements planned and currently financed for this area and other Programs, efforts, and opportunities described below will improve conditions rather than exacerbate existing conditions.
As a part of the 2040 General Plan update, the City adopted an Environmental Justice Element focused on the eastern portion of the City, including the R/ECAP. The Environmental Justice Element includes programs to improve the quality of life in the R/ECAP.
The two census tracts that make up the R/ECAP are also qualified Opportunity Zones as designated by the Tax Cuts and Jobs Act of 2017. Opportunity Zones are designated census tracts where new investments may be eligible for preferential tax treatment. The Opportunity Zones designator helps spur economic investment by providing tax incentives that defer or eliminate federal taxes through a temporary deferral, step-up in basis, or permanent exclusion. These census tracts are also qualified census tracts in the New Market Tax Credit program, which incentivizes community development and economic growth by using tax credits.
The City is including multiple programs to ensure that the sites in the R/ECAP improve conditions rather than exacerbate existing conditions. These include place-based
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improvements (Program F - 3), a displacement prevention policy (Program F - 5), increased outreach in downtown areas (Program G - 4), and fair housing support through partnerships with Project Sentinel (Programs F - 1 and F - 2).
Place-based improvements in 2023 include the $3.9 million grant through the California Department of Transportation’s Clean California Local Grant Program for the Historic Downtown in Gilroy. Improvements anticipated from the grant include:
• Gourmet Alley between 4th and 7th: pedestrian and bicycle-friendly markings, new signage, new benches, new trees, repaving of alley in decorative stamped asphalt, new trash enclosures and trash receptacles, additional lighting. • Railroad Street between 4th and 7th: pedestrian and bicycle-friendly markings, new trash receptacles for pedestrians, new signage, additional lighting, new benches, new fencing.
• Clean Up and Media Campaign: cleanup days for alleys, anti-littering campaign.
Other place-based improvements in the Downtown include:
• The Downtown Façade Improvement and Blight Removal Program, which includes providing a 50%/50% matching grant of up to $5,000 to property owners and tenants within a portion of Downtown to assist with exterior improvements to the façade, or face, of the building. These improvements may include new paint, building surface treatment, awnings, windows, doors, and other improvements that can help improve the exterior of a building. The maximum grant award amount may be increased to $10,000 if the project includes blight removal activities approved by the City.
• The Downtown Building and Planning Permit Fee Reduction Policy. This includes a 50% rebate of up to $5,000 for all City-related building and planning fees. This is available to any downtown business or property owner that pulls a permit for buildings along Monterey Road between First and Tenth Streets.
As shown in Figure 24, the City is using CDBG funding to improve the quality of life, infrastructure, neighborhood conditions, and ADA improvements throughout the City, including in the R/ECAP. Pavement rehabilitation is being targeted at:
• Hanna Street from Welburn Avenue to its northern terminus • El Toro Drive from Hanna Street to La Coche Way
• Glenwood Drive from Welburn Avenue to El Cerrito Way
• La Paloma Way from Wren Avenue to Welburn Avenue
Additionally, curb ramps are being installed at the following street corners:
• La Paloma Way / Chiesa Drive
• Welburn Avenue/ Carmel Street
• El Cerrito Way / Glenwood Drive
• Welburn Avenue / Glenwood Drive
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• El Toro Drive / Hanna Street
• El Toro Drive / La Coche Way
• Hanna Street / Welburn Avenue
• Hanna Street / Sherwood Drive
• Hanna Street / Arnold Drive
Figure 24: Infrastructure Improvements
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Local Data
In March 2023, the City’s code enforcement officers noted that improvements to sidewalks are being made throughout the City, without an area of concentration. The code enforcement officers also noted that community amenities such as health clinics and hospitals are concentrated in the eastern areas of the City, making these resources accessible to those in the R/ECAP area. They also noted that transit routes are more accessible on the east side, where the R/ECAP is located, and is only minimally accessible in the higher resource western areas of the City. Grocery stores are well distributed throughout the City, including the eastern R/ECAP area.
Figure 25: R/ECAPs in the City and Vicinity
Source: HCD AFFH Data Viewer
As shown in Figure 26, the majority of the RHNA units are located in non-R/ECAP areas. The City is including multiple programs to ensure that the units that are included in the R/ECAP improve conditions rather than exacerbate existing conditions.
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Figure 26: Presence of a R/ECAP Comparison of RHNA Units Racially Concentrated Areas of Affluence
HUD defines RCAAs as areas where the percentage of the population in a tract that is White is over 1.25 times the average percentage of the population that is White in the given Council of Governments (COG) region and median income is 1.5 times higher than the COG or State AMI, whichever is lower.
The City of Gilroy has an RCAA area along the western portions of the City. The west tracts have more open space and agriculture, so the population as a whole is generally more concentrated in the east, which may skew data perception. Additionally, these census tracts have the majority of their acreage outside of the City of Gilroy, making it likely that the small portion of tracts within the City are not primarily responsible for this overall designation. However, newer single-family development primarily occurs in these areas. Newer large homes are often more expensive than older small homes in the downtown areas, which correlates with higher income households in these newer areas. The data collected through Program A - 6 (ADU Tracking and Monitoring) will help inform the City’s efforts in Program A - 8 (Incentives for Affordable ADUs), to promote housing mobility and increased housing opportunities including ADU development in the western portion of the City.
0%
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Not a R/ECAP R/ECAP
Percent of RHNA Units
Presence of a R/ECAP by Tract
Lower Moderate Above Moderate
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Figure 27: RCAAs Vicinity and RHNA Sites
Source: HCD AFFH Data Viewer
Disparities in Access to Opportunities
California Tax Credit Allocation Committee (TCAC)
One tool that can be used to analyze disparities in access to opportunities is the California Tax Credit Allocation Committee’s (TCAC) Opportunity Area scores. These were prepared by a task force commissioned by the TCAC and HCD to identify areas statewide whose economic, educational, and environmental characteristics support positive outcomes for low-income families. The map is updated annually. Opportunity maps are made for three domains:
economic, environmental, and education. Each map uses categorical indicators to determine its individual score. A composite score and resource designation combining all three designations is then assigned to each block group.
To determine the final resource category, the top 20 percent of overall scores in a county are labeled as highest resource and the next 20 percent of scores are labeled as High Resource.
Then, any area that is considered segregated and that has at least 30 percent of the population
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living below the federal poverty line is labeled as an area of High Segregation and Poverty. Any remaining uncategorized areas in the County are evenly divided between Moderate Resource and Low Resource areas. The rationale and metric for each indicator is described in more detail in current guidance documents for the California TCAC program. 20 Additional information
regarding these indicators in Gilroy are provided on the following pages.
Economic Indicators
Economic indicators include poverty, adult education, employment, job proximity, and median home value. The scores for Gilroy are shown in Figure 28. Gilroy has more positive economic scores in the west, and less positive scores in the eastern parts of the City. The less positive scoring area includes the R/ECAP, while the more positive scoring area contains single-family homes. The more positive scoring area also has some open space, which may slightly skew results. The City is located far away from major regional job centers. For this reason, the City also trends lower in score when compared to the region as a whole. 20 https://www.treasurer.ca.gov/ctcac/opportunity/2022/2022-hcd-methodology.pdf
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Figure 28: TCAC Economic Score, 2021
Source: HCD AFFH Data Viewer
Education Indicators
Education indicators include math and reading proficiencies of fourth graders, high school graduation rates, and the student poverty rate. The entirety of Gilroy is served by the Gilroy Unified School District, which includes 11 elementary schools, 6 middle schools, and 6 high schools. According to Great Schools, 31 percent of schools in the district are rated below average, 44 percent are rated average, and 25 percent are rated above average.21 The Gilroy Unified School District has a Migrant Education Program which aims to ensure that all migrant students experience a high-quality education. This program includes actions to ensure that migrant children who move among the states are not penalized by disparities among the states in curriculum, help students overcome language barriers, and more.22 21 Great Schools, Gilroy Unified School District Summary. https://www.greatschools.org/california/gilroy/gilroy-unified-schooldistrict/#summary_rating 22 Migrant Education Program. https://www.gilroyunified.org/departments/educational-services/migrant-education
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As shown in Figure 29, most of the City has less positive education outcome scores, with the northmost areas being positive. Additionally, the above average poverty rates in the City have a negative effect on TCAC educational scores, as poverty rates are included in this calculation.
Figure 29: TCAC Education Score
Source: HCD AFFH Data Viewer
Environmental Indicators
The environmental domain utilizes CalEnviroScreen (CES) 3.023 pollution indicators and values (see below for more discussion on CES). As shown in Figure 30, the scores vary throughout the City, with environmental outcomes becoming less positive as the tracts move eastward. The tracts bisected by the 101 Highway have lower outcomes, potentially due to pollution from freeway proximity. Pesticides, hazardous waste, solid waste, and impaired water are the highest scoring pollutants in the area, which may be contributions from the large agriculture industry in the City.
23 Note that the 2021 TCAC environmental score relies on CES 3.0, rather than the updated CES 4.0.
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Figure 30: TCAC Environmental Score
Source: HCD AFFH Data Viewer
TCAC Composite Score
Figure 31 displays the 2022 TCAC composite score for the City. The vast majority of the City is in the moderate or low resource area. A corner of the City is a part of a large census tract that is high resource. The portions of this tract in the City contain mostly hillside open space and the Gilroy Gardens Family Theme Park, along with two single-family neighborhoods. A large portion of the population in the census tract lives outside of the City.
The downtown area has access to regional transit, employment opportunities, and social resources. Furthermore, through the 2040 General Plan and the Downtown Specific Plan, the City is focusing growth and economic development to revitalize the downtown area.
Investments in the area, including the future construction of a high-speed rail station are expected to increase access to opportunity and increase resources in the low resource area of the City. As such, the majority of RHNA opportunity sites are located in the downtown, which is currently considered a low resource area.
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Place-based improvements in the downtown area includes the $3.9 million grant through the California Department of Transportation’s Clean California Local Grant Program for the Historic Downtown in Gilroy. Improvements anticipated from the grant include:
• Gourmet Alley between 4th and 7th: pedestrian and bicycle-friendly markings, new signage, new benches, new trees, repaving of alley in decorative stamped asphalt, new trash enclosures and trash receptacles, additional lighting. • Railroad Street between 4th and 7th: pedestrian and bicycle-friendly markings, new trash receptacles for pedestrians, new signage, additional lighting, new benches, new fencing.
• Clean Up and Media Campaign: cleanup days for alleys, anti-littering campaign.
Other place-based improvements in the Downtown include:
• The Downtown Façade Improvement and Blight Removal Program, which includes providing a 50%/50% matching grant of up to $5,000 to property owners and tenants within a portion of Downtown to assist with exterior improvements to the façade, or face, of the building. These improvements may include new paint, building surface treatment, awnings, windows, doors, and other improvements that can help improve the exterior of a building. The maximum grant award amount may be increased to $10,000 if the project includes blight removal activities, approved by the City.
• The Downtown Building and Planning Permit Fee Reduction Policy. This includes a 50% rebate of up to $5,000 for all City-related building and planning fees. This is available to any downtown business or property owner that pulls a permit for buildings along Monterey Road between First and Tenth Streets.
Many of the pipeline projects, including low- and moderate-income units, are located in the moderate resource areas of the City. The City is also including programs to encourage development in the Moderate Resource area of the City. Programs include targeted ADU outreach to the single-family neighborhoods (Program A - 6), and ministerial approval of triplexes and fourplexes on corner lots in the R1 and R2 zones throughout the City (Program A - 10). The City is also adopting an inclusionary housing ordinance (Program A - 11), a program to develop incentives beyond density bonus state law (Program A - 12), and a program to allow flexibility for the non-residential portion of mixed-use projects that accommodate extremely low-income and Special Needs Households in the First Street Corridor (Program E - 12).
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Figure 31: TCAC Composite Score and RHNA Sites
Source: HCD AFFH Data Viewer
As shown in Figure 32, the majority of RHNA sites in the City are in low or moderate resource areas, with a large majority of above moderate pipeline projects in the moderate resource area. The area of the City with the highest resource category is about half open space. As the majority of the City is moderate resource, distributing RHNA sites of a variety of income in areas of these categories is unlikely to exacerbate any conditions or make any negative changes to the resource designation. Just over 30 percent of the City is low resource, and 24.7 percent of RHNA sites are located in the low resource area.
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Figure 32: TCAC Designation Comparison of RHNA Units
Increasing Housing Opportunities in Higher Resource Areas The City is including several programs to increase housing types and opportunities in higher resource areas of the City. These efforts go beyond sites that are included on the Opportunity Site List and help improve housing choice and mobility, by providing opportunities to increase the number and type of dwelling units in lower density residential zones. Program A - 10 creates a ministerial approval process for triplexes and fourplexes on corner lots in the R1 and R2 zones to encourage the development of middle-income housing in high-resource areas primarily comprising detached single-family residences. Under Program E - 12, the City will allow flexibility for the non-residential portion of mixed-use projects that accommodate extremely low-income and Special Needs Households in the First Street Corridor. Program G - 5 includes the creation of informational and promotional pamphlets regarding opportunities to develop duplexes, triplexes, and quadplexes in the City. The pamphlets will be provided online, at City Hall, and at informational booths where housing resources are provided. Program A - 6 includes targeted ADU outreach to the single-family neighborhoods.
The missing middle policy would apply to approximately 1,106 total parcels in the R1 and R2 zones, as shown in Figure 33.
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Low Resource Moderate Resource High Resource
Percent of RHNA Units
TCAC Composite Category by Census Tract
Lower Moderate Above Moderate
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In the R-1 zone, approximately 1,067 parcels have single- family homes on corner lots greater than 6,000 square feet. Allowing triplexes and quadplexes by right on these corner lots could allow for an additional 3,201 units. These units are primarily in the moderate and high resource areas of the City, so this would allow for increased capacity for housing in these zones and increased flexibility for missing middle housing in the R1 zone. Of these 1,067 parcels, 361 are in the high resource TCAC category, 664 are in the moderate resource category, and 42 are in the low resource category. Program A - 10 would also apply to approximately 39 corner lots with single-family homes in the R2 zone. Of these 39 parcels, 22 are in the moderate resource category, and 17 are in the low resource category.
Figure 33: Existing Single- Family Homes on Corner Lots in R1 and R2 Zones Source: City of Gilroy
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Access to Opportunities, Regional Comparisons
HUD has developed a series of indices for fair housing analysis to assist cities in identifying disparities in access to opportunity. The following indicators are scored on a scale from zero to 100.
24 • Low Poverty Index: The low poverty index captures poverty at the census tract level. The higher the score, the less exposure to poverty. • School Proficiency Index: The school proficiency index uses the performance of fourth-grade students on state exams to describe which areas have higher and lower performing schools. The higher the score, the higher the school system quality.
• Labor Market Index: The labor market index measures the relative intensity of labor market engagement and human capital. The index is calculated using employment levels, labor force participation, and education attainment. The higher the score, the higher the labor market participation in a neighborhood. • Transit Index: The transit index is based on estimates of transit trips taken by a three-person, single-parent family with income at 50 percent of the median income for renters for the region. The higher the index, the more likely that the residents use public transit.
• Low Transportation Cost Index: The low transportation cost index is calculated based on estimates for a three-person, single-parent family with income at 50 percent of the median income for renters for the region. More specifically, this index considers transportation costs as a percentage of income for this household type. The higher the index, the lower the cost of transportation. • Jobs Proximity Index: The jobs proximity index quantifies the accessibility of a given residential neighborhood as a function of its distance to all job locations within a region. Larger employment centers are more heavily weighted. The higher the index, the better access to employment opportunities. • Environmental Health Index: The environmental health index summarizes potential exposure to a variety of toxins that are harmful to human health. The higher the index, the less exposure to toxins.
As shown in Table 52, the most variation between different ethnicities in Gilroy is seen in the low poverty index, with the Hispanic population at 41.0 while the Asian and White populations score 60.1 and 57.7, respectively. The labor market index also shows variation, with the Hispanic population at 43.7, while the Asian population scores 59.0.
Compared to the wider Santa Clara County region as a whole, Gilroy scores lower in all index categories for all groups, indicating the City may have less access to resources when compared 24 HUD Affirmatively Furthering Fair Housing Data and Mapping Tool (AFFH-T) Data Documentation
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to the County as a whole. This means that Gilroy generally has more exposure to poverty and lower performing elementary school students. Gilroy scores are about the same as the region’s scores in the low transportation cost index. Gilroy also has a lower score in the environmental health index, indicating higher exposure to toxins than the region. Additionally, scores in job proximity are much lower than in the region, which is likely due to the City’s distance from tech industry jobs in the region, since the City is located in the southern portion of the County.
Table 52: Opportunity Indicators25
Low Poverty
Index
School
Proficiency
Index
Labor Market
Index
Transit Index
Low
Transportatio
n Cost Index
Jobs Proximity
Index
Environmental
Health Index
Gilroy
White 57.7 59.5 57.8 55.4 88.6 16.4 39.1
Black 54.1 62.5 54.8 55.1 88.8 16.9 39.1
Hispanic 41.0 58.4 43.7 55.3 90.8 21.1 38.9
Asian 60.1 62.4 59.0 55.3 88.3 15.8 39.0
Native American 45.1 59.4 46.8 54.9 90.4 20.9 39.0
Santa Clara County
White 81.1 81.9 82.2 68.1 91.2 52.8 58.8
Black 72.9 74.1 74.2 73.4 93.1 57.1 53.5
Hispanic 65.3 58.9 61.9 64.5 91.3 43.2 54.6
Asian 82.0 85.3 83.3 71.4 91.4 51.7 61.6
Native American 70.9 69.4 68.4 67.2 91.8 50.6 56.7
Source: Decennial Census; American Community Survey; Great Schools; Common Core of Data; School Attendance Boundary Information System; Local Affordability Index; Longitudinal Employer Household Dynamics; National Air Toxics Assessment Transportation
Access to adequate transportation and a variety of transit options can help illustrate disparities in access to opportunities. The Valley Transportation Authority (VTA) serves Santa Clara County, and there is also a commercial shuttle service available from the San Francisco and San Jose airports. Both public transportation and Highway 101 provide access from Gilroy to north Santa Clara County. The City is the southernmost stop on the Caltrain, which operates commute service to the Santa Clara Valley, San Francisco Peninsula, and San Francisco.
Amtrak’s Capitol Corridor line runs a thruway line from San José to Santa Barbara with a stop 25 HUD Affirmatively Furthering Fair Housing. https://egis.hud.gov/affht/
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in Gilroy. The Monterey-Salinas Transit Line 55 stops in Gilroy and provides rush hour service between San José and Monterey. The San Benito County Express provides intercounty bus service from Gilroy to Hollister and San Juan Bautista.
Transit routes in Gilroy are shown in Figure 34. The VTA provides service to Gavilan College with bus lines along Luchessa Avenue and Santa Theresa Boulevard. The City also has a full network of bike lanes which connect all elementary, middle, and high schools in the area.
A future high-speed rail station is proposed in downtown Gilroy at the existing Caltrain station on Monterey Street between 7th and 9th Streets. This station will be a transit hub for southern Santa Clara County and provide additional transit access for the community. Many RHNA sites have been chosen specifically for their proximity to existing and proposed transit.
The City will work with California High Speed Rail to develop a station area plan for the proposed station through Program A - 13. The existing transit and proposed high speed rail bring the opportunity to create transit-oriented development in the downtown area.
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Figure 34: Transit Route Map
Source: Valley Transportation Authority, 2022
CalEnviroScreen 4.0
CES 4.0 is a tool that identifies communities in California that are disproportionately burdened by pollutants. Factors used to identify communities include ozone, particulate matter, drinking water contaminants, pesticide use, lead, diesel particulates, asthma rates, and linguistic isolation. A higher score indicates a higher effect of pollutants for the area.
The CES scores for the City of Gilroy in Figure 35 show that highest scores occur in the eastern half of the City, where the R/ECAP is located. CES scores are lower in the west. The areas
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bisected by the 101 Highway have less positive outcomes, potentially due to pollution from freeway proximity. Pesticides, hazardous waste, solid waste, and impaired water are the highest scoring pollutants in the area, which may be attributed to both permitted and unpermitted contributions from the large agriculture industry in the City. The lower density western portion of Gilroy contains steeply sloped areas and low-density development, and large open areas that significantly limit development, contributing to lower CES scores.
Figure 35: CES Percentile and RHNA Sites
Source: HCD AFFH Data Viewer.
As shown in Figure 36, RHNA pipeline and opportunity sites are distributed throughout both the lower and higher scoring areas of the City. For example, 41.2 36.5 percent of RHNA units are located in a tract in the 20-30% CalEnviroScreen Percentile. Although the Downtown Specific Plan area contains the highest CES scores in the City, RHNA sites in this area will provide potential residents with access to transit and employment resources, including a new future high speed rail station.
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Figure 36: CalEnviroScreen Percentile Comparison of RHNA Units Findings
Overall, the City of Gilroy is largely of lower and moderate resource. The City has lower scores in opportunity metrics compared to the County as a whole. As such, many of the RHNA sites are located in a low-resource area (see Figure 31), which includes the Downtown Specific Plan area. The low resource area is also where housing choice voucher use primarily occurs. While pipeline projects are more evenly distributed throughout the City, proposed RHNA sites in the downtown area will provide potential residents the best access to services, employment resources, and transit, including the future high-speed rail station.
The City is including Program F - 3 to ensure that the RHNA site selection will improve access to place-based improvements in lower-resource areas, such as the $3.9 million grant in the historic downtown. The grant funding is for streetscape improvements, including new pedestrian and bicycle-friendly paving/markings, lighting, signage, benches, street trees, and waste receptacles. The Housing Element also includes a displacement prevention program (Program F - 5), tenant mediation program (Program F - 2), and targeted funding such as Housing Rehabilitation (Program C - 2), CDBG funding (Program D - 5), and the Permanent Local Housing Allocation (PLHA) Fund (Program D - 1).
0%
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CalEnviroScreen Percentile by Tract
Lower Moderate Above Moderate
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Additionally, other programs in the Housing Element are intended to spur housing development in the moderate- and high-resource areas of the City. This includes a program that geographically targets ADU education (Program G - 3), development of an inclusionary housing policy (Program A - 11), development of a density bonus program that goes beyond state law (Program A - 12), and ministerial approval of triplexes and quadplexes that meet objective design standards (Program A - 10).
Disproportionate Housing Needs
Substandard Housing
Disproportionate housing needs are determined by finding trends in housing problems in the population by race, household size, or household age. A housing unit is considered substandard or having a housing problem if it has one or more of the following housing conditions:
• Housing unit lacks complete kitchen facilities
• Housing unit lacks complete plumbing facilities
• Household is cost burdened
• Housing unit is overcrowded
Large and elderly households are often more likely to experience housing problems. A large household is a household with three or more children, but is also often calculated as a household with five or more people. An elderly household is calculated as any household with a person over 62 years of age.
Black and Native American renters experience housing problems at the highest rate, around 75 percent, while only about 25 percent of both Asian and White owners experience housing problems. Rates of housing problems for Hispanic owners vary between the City (35.1%) and the County (41.8%), while rates of housing problems for Hispanic renters are relatively comparable between the City (68.1%) and the County (67.4%). In 2018, there was no Pacific Islander population in the City, which indicates why Figure 37 reads that 0 percent of that population experiences housing problems.
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Figure 37: Housing Problems by Tenure and Race/Elderly/Housing Size Source: HUD CHAS Data, 2018
Cost burden is when a household spends more than 30 percent of its monthly income on housing costs such as rent, mortgage, or utilities. Large households have more costs to support more people, and may experience cost burden or a lack of excess funds to amend housing problems. Elderly households may be on a fixed income, which affects excess funds necessary for maintenance in an older home bought before retirement.
Figure 38: Cost Burden by Tenure and Race/Elderly/Housing Size Source: HUD CHAS Data, 2018
Overpayment by both owners and renters has decreased in Gilroy over time in most areas of the City. The area with the highest levels of overpayment is the same area that has low environmental scores and higher levels of poverty. Overpayment in the City occurs at a similar, though slightly higher level than in the County, with 38 percent of households experiencing a 0%
10%
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White Black Asian Nat Am Pac
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Owner-Occupied Renter-Occupied Santa Clara County
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100%
White Black Asian Nat Am Pac
Islander
Hispanic Elderly Large All
Owner-Occupied Renter-Occupied Santa Clara County
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cost burden Citywide, compared to 34.2 percent in the County. In both cases, renters have higher rates of overpayment than owners.
Figure 39: Overpayment by Owners
Source: HCD AFFH Data Viewer
Figure 40: Overpayment by Renters
Source: HCD AFFH Data Viewer
Local Data
Per conversations with the City’s Code Enforcement officers in March 2023, the areas with housing conditions in potentially higher need of rehabilitation and replacement are the areas with the oldest housing stock in Gilroy. As shown in Figure 41, housing stock in the eastern portions of the City is generally older and there are more households experiencing overcrowding. The City is including multiple place-based programs to promote improvement in the eastern, older portions of the City, including place-based improvements (Program F - 3), a displacement prevention policy (Program F - 5), increased outreach in downtown areas
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(Program G - 4), and fair housing support through partnerships with Project Sentinel (Programs F - 1 and F - 2). Code Enforcement officers also noted that the eastern or downtown areas of Gilroy have better access to transit than the newer neighborhoods in the west.
Figure 41: Year Structure Built
Source: County Assessor data and Michael Baker International Overcrowding
A household is considered overcrowded when there is more than one person per room, including living and dining rooms but excluding bathrooms and kitchens. 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. Additionally, overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community.
In Gilroy, areas with high concentrations of overcrowding are in areas with high levels of poverty and low economic opportunity, where the R/ECAP is located. Overcrowding is only slightly more prevalent in Gilroy (9.2%) than in the County (7.8%), as a whole. Overcrowding is more prevalent for renters than owners both in the City and regionwide.
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Figure 42: Overcrowded Households
Source: HCD AFFH Data Viewer
Table 53 summarizes overcrowding in Gilroy by tenure. Approximately 1,482 households, roughly 9.2 percent of all households in Gilroy, were experiencing overcrowding in 2019. This included 347 owner-occupied households and 1,135 renter-occupied households. Instances of overcrowding vary by tenure, with renters experiencing higher levels of overcrowding than owners.
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Table 53: Overcrowding, 2019
Source: HUD CHAS Data, 2018
Homelessness
Table 54 lists emergency shelters and transitional housing in and adjacent to Gilroy.
The Countywide services and shelter provider HomeFirst Services provides a 24/7 shelter for adults at the Gilroy shelter. The Gilroy shelter provides sleeping accommodations, meals, restrooms, showers, mobile laundry, and case management support services via South County Compassion Center staff. It has a capacity of serving 100 persons.
The Arturo Ochoa Migrant Center is used as an emergency shelter during the cold weather season from mid-December through mid-March. It provides 128 shelter beds and has the capacity to house 35 unhoused families with a dependent child under the age of 18. St.
Joseph’s Family Center manages the shelter and referral process. Walk-ins or families without a referral from a designated community partner are not accepted and 5-7 spots are reserved for Here4You call center hotline referrals. EAH Housing is contracted for day-to-day property management operations and site security.
According to conversations with service providers, if the weather is manageable, unhoused individuals express a strong reluctance to use the service. The service providers stress the need for a permanent emergency shelter as well as shelter or housing for single adults who do not exhibit mental illness or substance abuse disorders.
The City of Gilroy provides annual funds to homelessness prevention support and services through the PLHA. For FY 22-23 and FY 23-24: St. Joseph’s Family Center received $180,000 to provide emergency rental and utility assistance, as well as training and employment readiness to prepare individuals that are homeless or at risk of homelessness. Community Agency for Resources Advocacy and Services received $40,000 to provide rental and deposit assistance. South County Compassion Center received $80,000 to provide services to unhoused Gilroy residents and to connect them with services that can help them attain Jurisdiction Persons per
Room
Owners Renters Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
Gilroy
1.01 to 1.50 285 1.8% 665 4.1% 950 5.9%
>1.50 62 0.4% 470 2.9% 532 3.3%
Total
Overcrowded 347 2.2% 1,135 7.0% 1,482 9.2%
Santa Clara
County
1.01 to 1.50 7,526 1.2% 21,951 3.4% 29,477 4.6%
>1.50 2,340 0.4% 17,983 2.8% 20,323 3.2%
Total
Overcrowded 9,866 1.6% 39,934 6.2% 49,800 7.8%
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permanent housing. Through its CDBG-CV funds, the City provided an additional $287,309 in support to Saint Joseph's Family Center's Rental Assistance program.
Table 54: Homeless Facilities in or Adjacent to Gilroy
Facility Name Type of Facility Target Population
Number of
Shelter Beds or
families served
Gilroy Shelter Emergency
Shelter Adults Only 100
Arturo Ochoa
Migrant
Center26
(adjacent to
Gilroy)
Cold Weather
Shelter Households with a dependent under 18 35 families La Isla Pacifica
Confidential
Emergency
Shelter
Women victims of intimate partner
abuse and their children under 16 years
old (16 and up, on a case-by-case basis)
14 Glenview, El
Invierno, and
Walnut
Transitional
Shelter Single Individuals 25
Source: City of Gilroy, County of Santa Clara.
In 2022, the County of Santa Clara, in conjunction with Applied Survey Research (ASR), conducted the 2022 Santa Clara County Homeless Census and Survey. This survey is conducted every two years in the last 10 days of January. The 2022 Santa Clara County Homeless Census and Survey was performed using HUD-recommended practices for counting and surveying the homeless population. The Point-in-Time Homeless Count identified a total of 10,028 persons experiencing homelessness in Santa Clara County in 2022, an increase of 3% from the count conducted in 2019. Table 55 summarizes sheltered and unsheltered homeless persons in Santa Clara County jurisdictions. There were 814 homeless persons surveyed in Gilroy in January 2022, including 606 sheltered and 208 unsheltered persons. 26 The Arturo Ochoa Migrant Center is located slightly outside City bounds, but serves Gilroy residents.
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Table 55: 2022 Santa Clara County Homeless Census and Survey Homeless Population Sheltered Unsheltered Total
Gilroy 606 208 814
Campbell 216 0 216
Cupertino 102 0 102
Los Altos 65 0 65
Los Altos Hills 0 0 0
Los Gatos 58 0 58
Milpitas 249 25 274
Monte Sereno 0 0 0
Morgan Hill 60 0 60
Mountain View 206 140 346
Palo Alto 263 0 263
San Jose 4,975 1,675 6,650
Santa Clara 375 65 440
Saratoga 0 0 0
Sunnyvale 279 106 385
Source: Santa Clara County Office of Supportive Housing, 10-29-22 Local Data
In March 2023, the City reached out to South County Compassion Center, who noted concentrations of the homeless population in the center of Gilroy, between Monterey Avenue and Highway 101, which is the R/ECAP area. Similar to comments made by the City’s Quality of Life officer, they noted that there is not much migration of the population beyond these areas into the primarily residential neighborhoods. Specifically, there are concentrations of the homeless population in Tomkins Encampment, the IOOF bridge area, Garlic Farm, San Ysidro Park, and Christmas Hill. The homeless population in this area primarily travel by biking or walking, and 70 have an Uplift pass for public transportation.
Place-based improvements in these areas include the $3.9 million grant through the California Department of Transportation’s Clean California Local Grant Program for the Historic Downtown in Gilroy. Improvements anticipated from the grant include:
• Gourmet Alley between 4th and 7th: pedestrian and bicycle-friendly markings, new signage, new benches, new trees, repaving of alley in decorative stamped asphalt, new trash enclosures and trash receptacles, additional lighting.
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• Railroad Street between 4th and 7th: pedestrian and bicycle-friendly markings, new trash receptacles for pedestrians, new signage, additional lighting, new benches, new fencing.
• Clean Up and Media Campaign: cleanup days for alleys, anti-littering campaign.
Other place-based improvements in the Downtown include:
• The Downtown Façade Improvement and Blight Removal Program, which includes providing a 50%/50% matching grant of up to $5,000 to property owners and tenants within a portion of Downtown to assist with exterior improvements to the façade, or face, of the building. These improvements may include new paint, building surface treatment, awnings, windows, doors, and other improvements that can help improve the exterior of a building. The maximum grant award amount may be increased to $10,000 if the project includes blight removal activities, approved by the City.
• The Downtown Building and Planning Permit Fee Reduction Policy. This includes a 50% rebate of up to $5,000 for all City-related building and planning fees. This is available to any downtown business or property owner that pulls a permit for buildings along Monterey Road between First and Tenth Streets.
The City is including Program G - 6 which includes educating the public on homelessness, consolidating information on resources for the unhoused population on a dedicated webpage, and restarting monthly meetings of the unhoused service providers group.
Permanent Local Housing Allocation Fund
The City had historically allocated funding for services related to housing and homelessness through its Housing Trust Fund (HTF). The City Council approved the replacement of the HTF with the Permanent Local Housing Allocation (PLHA) Fund, making more funds available for public services addressing basic needs and homelessness prevention. Although the HTF will no longer be made available for public service programs or rehabilitation purposes, it will continue to be used to partially cover staff and consulting service costs to monitor affordable rental and ownership agreements until the money is depleted.
The PLHA Fund spans a five-year period and will make available $1.4 million. The City is contracting with Santa Clara County’s Office of Supportive Housing to administer the programs under the PLHA Consortium Agreement. Table 56 displays funding approved by the City Council for FY 22-23 and FY 23-24.
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Table 56: Permanent Local Housing Allocation Funds for FYs 2022-2024 Agency Funded Services Funding
Amount
St. Joseph’s Family Center
Emergency rental assistance, utility
assistance, and other supportive
programs that help diminish the risk of
becoming homeless
$110,000
St. Joseph’s Family Center
Training and employment readiness to
prepare individuals that are homeless
or at risk of homelessness for stability
and greater self-sufficiency
$70,000
Project Sentinel
Fair housing services and investigates
complaints to address housing
discrimination for Gilroy residents
$40,000
Project Sentinel
Landlord-tenant counseling and
dispute resolution program to help
resolve housing conflict and protect
Gilroy residents from displacement
$40,000
The Health Trust
Meals to low income and homebound
seniors at risk of food insecurity,
allowing them to remain in their homes
$54,000
South County Compassion Center
Services to unhoused Gilroy residents
to meet their basic needs and to
connect them with services that can
help them attain permanent housing
$80,000
Community Agency for Resources
Advocacy and Services
Rental and deposit assistance to
prevent homelessness for Gilroy
families and individuals
$40,000
Silicon Valley Independent Living Center
Counseling for Gilroy residents with
disabilities, emergency rental
assistance, and housing search services
to obtain safe, affordable, and
accessible long-term housing
$40,000
Source: City of Gilroy, 2021.
Displacement
The Urban Displacement Project at the University of California, Berkeley, developed a map of “sensitive communities” where residents may be particularly vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost. Sensitive communities are defined based on the following set of criteria:
• The share of very low-income residents is above 20 percent.
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• The census tract must also meet two of the following criteria:
o The share of renters is above 40 percent.
o The share of people of color is above 50 percent.
o The share of very low-income households (50 percent AMI or below) that are severely rent burdened is above the county median.
o The census tract, or areas in close proximity, have been experiencing displacement pressures. Displacement pressure is defined as:
▪ The percentage change in rent in a selected census tract, divided by county median rent increases OR
▪ Median rent in a selected census tract, minus median rent for all surrounding tracts, divided by median rent for all tracts in county (rent gap).
Figure 43 shows the areas vulnerable to displacement as identified by the Urban Displacement Project. The center of the City, including the downtown area in the east, is considered vulnerable to displacement. Areas north and south of the City show similar risk.
The City is attempting to meet its RHNA without displacing existing residents by identifying vacant and underutilized sites that do not have existing residential uses. Therefore, the City’s RHNA strategy is not anticipated to exacerbate risk of displacement. Instead, it is expected to counteract this vulnerability and minimize displacement by planning for and providing new housing opportunities for all income levels in areas with greater risk of displacement.
Additionally, the City is including a displacement prevention policy (Program F - 5), adopting an inclusionary housing policy (Program A - 11), and providing multilingual tenant support to further minimize the risk of displacement in the City (Programs F - 1 and F - 2).
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Figure 43: Communities Vulnerable to Displacement
Source: HCD AFFH Data Viewer
Findings
Overall, the City of Gilroy experiences housing problems at a similar or lower rate than the region as a whole, while rates of cost burden or overpayment are higher. However, the percentage of the population experiencing overpayment has decreased over time.
Overcrowding citywide occurs at a similar rate regionally but is more prevalent in the R/ECAP area, potentially indicating a need for larger units or shared multiplexes in the R/ECAP area.
The City is including Program F - 3, a place-based improvement program, to ensure that the RHNA site selection will improve access to resources in the R/ECAP area. Primarily vacant sites were chosen in the R/ECAP area, allowing residents to find available housing in their own neighborhood and to help prevent displacement due to gentrification of older housing stock.
Additionally, Program E - 12 is included to allow stand-alone residential projects in in the Downtown Expansion District to provide further opportunities for affordable housing choices.
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Other Contributing Factors
Historic Immigration and Land Use Patterns
Gilroy got its start in 1850 as a stagecoach stop for passengers traveling to San Francisco.
During the 1850s, a nucleus of houses and small businesses were constructed along Monterey Road, the old El Camino Real. The railroads connected Gilroy with San José in 1869, and Gilroy incorporated with the State as a charter city in 1870. At that time, Gilroy had a population of 1,625 residents.
The original City began development in what is now considered the downtown area. Portions of the downtown are designated as the Downtown Historic District, which is intended to foster the historic downtown as a unique commercial resource. As is typical, these older areas and older housing tend to be lower cost than newer areas and newer housing. These older city centers also tend to have the most multifamily and rental housing as these were the most efficient land use patterns at the time of development. As a result, the older areas often have higher proportions of affordable housing without subsidies and lower-income households.
Similarly, today’s new housing will be more affordable than housing built in 10 or 20 years.
In 1936, the City of Gilroy zoned the city into five distinctive districts: Single Family Residences; Multiple Family Residences; Business Districts; Industrial Districts; and Residential-Agricultural.
The single-family district was located between Hanna, Princevalle, First, and Seventh Streets.
The multiple-family residence district, which constituted an area approximately double that designated for single- family residences, was located between Eigleberry and Hanna Streets, and First and Tenth Streets as well as a section to the east of Monterey Street between Old Gilroy and Lewis Street.27
Residential development in Gilroy during the post-war period continued in the pattern established by early subdivision developers. Like many other cities in California, Gilroy’s population continued to grow in the decade following the close of World War II, and the need for residential development required more space than the remaining undeveloped areas within the City limits could allow. To house Gilroy’s many incoming residents, annexation of new territory by the mid-1950s was essential to keep pace with the steadily rising demand for housing.
By 1960, the population of Gilroy had soared to 7,348 persons, from 4,951 persons recorded in 1950. The influx of people to the City required even more newly annexed areas devoted to residential developments as well as supporting infrastructure like schools, parks, churches, and commercial centers. In 1965, the City annexed 750 acres of land, effectively increasing the area of the City by 50 percent during that year alone.28 Many of these annexed regions were developed into modern residential neighborhoods.
27 Eugene Lewis Conrotto. The Urbanization of the Southern Santa Clara Valley: Gilroy. (Gilroy, CA: Gilroy Historical Museum, 1951).
28 San Jose Mercury-News. 1966.
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The City expanded as the agricultural industry expanded, but in the late twentieth century, the economy shifted from agriculturally based to an urban service-oriented community.29 This change in economy contributed to the growth of the City. Christmas Hill Park began construction in 1964.30 By 1970, when the population of Gilroy had nearly doubled within the decade to 12,665 persons, there were approximately 3,000 residences.31 Several single-family homes were built in the surrounding neighborhoods in the following years, leading to the highest rates of population growth in the City’s history in the 1970s and 1980s. The newer areas of the City are in the moderate resource category as the infrastructure and housing is more recently developed. The City continues to expand to the west with the recent Hecker Pass and Glen Loma Specific Plan areas.
Historically, other cities in Santa Clara County had racial covenants, which led to thriving immigrant communities settling in the City of Gilroy. This first included the Chinese population, which settled in Gilroy after immigrating to the United States to build railroads and work in gold mines, tobacco fields, and orchards.32 Since the migrations of the Chinese population to the central county, the Latino population has been largely responsible for the thriving businesses in Gilroy. Over 50 percent of Gilroy’s current population is Hispanic.
The City has taken multiple steps to encourage economic revitalization and growth in the older, downtown areas of the City. The two tracts that are designated as R/ECAPs are each classified as an Opportunity Zone by the federal government and are eligible for a number of tax-based incentives. In 2022, Gilroy was awarded a $3.9 million grant for improvements in the historic downtown area. In 2020, 2021 and 2023, the City operated a Downtown Improvement Incentive Program which included reductions on development fees and a grant to help fund minor façade improvements for businesses downtown. The City continues to partner with organizations such as Visit Gilroy, the Gilroy Downtown Business Association, and the Gilroy Chamber of Commerce to promote economic development in downtown Gilroy.
The City has also created several programs to encourage affordable housing and affordableby-design housing in the higher resource western areas of the City. Program A-10 (Missing Middle / Middle Income Housing) will allow triplexes and fourplexes on corner lots in the R-1 and R-2 districts that currently include single-family homes. Programs A - 11 (Inclusionary Policy) and A - 12 (Incentives Beyond Density Bonus State Law) will facilitate deed-restricted affordable housing opportunities in the City’s higher resource / higher income areas. Program E - 12 (Mixed-Use Corridor Flexibility) will allow flexibility for the non-residential portion of mixed-use projects that accommodate extremely low-income and Special Needs Households along the First Street Corridor. In addition, there are several programs intended to increase the number of ADUs in the higher resource western area of the City, including Program A - 6 29 A Brief History of Gilroy. https://www.cityofgilroy.org/381/History-of-Gilroy 30 The Mercury News, Gilroy Timeline. https://www.mercurynews.com/2007/02/05/gilroy-timeline/ 31 Gilroy Chamber of Commerce. “Standard Industrial Survey Report: Gilroy, Santa Clara County, California.” (Gilroy, CA: Gilroy Chamber of Commerce, March, 1969). Gilroy Historical Museum. 32 Gilroy Dispatch. https://gilroydispatch.com/immigrants-play-big-part-in-gilroy-history/
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(ADU Tracking and Monitoring), A - 7 (ADU Pre-Designed Plans), A - 8 (Financial Incentives for Affordable ADUs), A - 15 (ADU Ordinance Updates), and G - 3 (ADU Education).
Urban Growth Boundary
Per the City’s General Plan, “The Urban Growth Boundary (UGB) applies to land within the Planning Boundary/Sphere-of-Influence that is intended for urbanization at some point in the future. The UGB indicates the extent and direction of the City's future urban expansion and capital improvements planning. Lands outside the UGB are to be preserved for rural and agricultural uses.” (p. LU-15).
In 2016, voters passed Measure H, resulting in the UGB. The intent of the UGB is to protect agriculture and open space in the surrounding areas outside of the UGB. Urban development is not allowed outside of the UGB; only uses allowed in the open space designation per the General Plan are allowed. Until December 31, 2040, lands outside the UGB can only be redesignated by a vote of the people, except for the following exceptions in which “the City Council determines that doing so is necessary to comply with Sstate law regarding the provision of housing for all segments of the community” and makes each of the following findings based on substantial evidence, per the General Plan:
• That the land proposed to be brought within the UGB and/or re-designated is immediately adjacent to: (i) the existing UGB; and (ii) available water and sewer connections; and
• That the proposed development will consist primarily of low and very low-income housing pursuant to the Housing Element of this General Plan; • That there is no existing vacant or undeveloped residentially designated land within the UGB to accommodate the proposed development and it is not feasible to accommodate the proposed development by re-designating lands within the UGB for low- and very low-income housing; and
• That the proposed development is necessary to comply with State law requirements for the provision of low- and very low-income housing and the area of land within the proposed development will not exceed the minimum area necessary to comply with State law.” (p. LU-22)
An analysis by the City attorney at the time of the vote estimated that this would yield a reduction of 2,929 potential units compared to the City’s previous General Plan and 4,344 units to the draft General Plan update at the time.33
The City also has an Urban Service Area (USA). The USA is the land to which the City is committed to providing basic infrastructure and services for urban development. The USA is 33City Attorney’s Impartial Analysis of Measure H. https://sccvote.sccgov.org/sites/g/files/exjcpb1106/files/E110%20- %20Measure%20H.pdf
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generally coterminous with the UGB. The USA is reviewed and amended by the Local Agency Formation (LAFCO).
Fair Housing Issues, Contributing Factors, and Meaningful Action The City has adopted goals and actions that specifically address the contributing factors identified in the AFFH analysis. While the City views all contributing factors as important, higher priority was given to factors that limit fair housing choice and/or negatively impact fair housing, per Government Code section 65583(c)(10)(A)(iv).
Table 57 on the following page displays the identified fair housing issue, contributing factor, actions taken to address the contributing factor, and priority level for each issue. Relevant programs are referenced in the action column for each contributing factor.
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Table 57: Fair Housing Issues, Contributing Factors, and Proposed Action Identified Fair
Housing Issue
Contributing
Factor Action Priority
Disproportionate
Housing Needs
Risk of
displacement in
downtown
Lack of missing
middle housing
Lack of affordable
housing for
special needs
groups (large
households,
seniors,
farmworkers)
• ADU education targeting high resource areas (A - 6)
• Incentives for affordable ADUs (A - 8)
• Facilitate Missing Middle / Middle Income Housing (A - 10) • Coordination with Santa Clara County Office of Supportive Housing (A - 14) • Permit streamlining (B - 5)
• Incentivize micro-units (E - 5)
• Develop incentives for housing for seniors, farmworkers, and large families (E - 6) • Development and conservation of housing for farmworkers (E - 7) • Development and Rehabilitation of Housing for Persons with Disabilities (E - 10) • Housing for Extremely Low Income and Special Needs Households (E - 11) • Allow 100% Residential in the Downtown Expansion District and allow flexibility for First Street Mixed-Use Corridor projects that accommodate extremely low-income and Special Needs Households (E - 12)
• Fair housing counseling (F - 2)
• Place-based economic investments in downtown (F - 3)
• Displacement prevention ordinance (F - 5)
High
Access to
Opportunities
Presence of a
R/ECAP
Lower access to
opportunities
than the County
as a whole
• Facilitate Missing Middle / Middle Income Housing (A - 10) • Adoption of inclusionary housing policy (A - 11)
• Incentives beyond Density bonus state law (A - 12)
• SB 9 Processing (A - 16)
• Permit streamlining (B - 5)
• Source of income protection / housing mobility (F - 1) • Place-based economic investments in downtown (F - 3)
High
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Identified Fair
Housing Issue
Contributing
Factor Action Priority
Lack of missing
middle / middle
income housing
• Targeted outreach in higher resource areas (F - 4)
Integration and
Segregation
East/west income
segregation
Lack of
inclusionary
housing policy
• Incentives for affordable ADUs (A - 8)
• Facilitate Missing Middle / Middle Income Housing (A - 10) • Adoption of inclusionary housing policy (A - 11) to require development of affordable housing on the west side
• Creation of incentives beyond density bonus state law (A - 12) to encourage development of affordable housing on the west side
• Source of income protection (F - 1)
Medium
Outreach and
Enforcement
Capacity
Access to
materials in
appropriate
languages
Lack of education
and outreach in
the R/ECAP area
City staff capacity
• Fair housing counseling (F - 2)
• Targeted outreach in moderate and high resource areas (F - 4) • Interagency collaboration for lower cost housing (G - 1) • Community access to housing information program (G - 5) • Unhoused population education and outreach (G - 6)
• Bilingual engagement (G - 7)
Low
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Table 58 provides a detailed overview of actions included in Housing Element Programs that are aimed at affirmatively furthering fair housing. The table separates the actions by their identified fair housing issue and priority level. It summarizes the specific commitment, timeline, geographic targeting, and metric for each program.
Table 58: AFFH Actions Matrix
HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Disproportionate Housing Needs
A - 6: ADU
Tracking and
Monitoring and
Ordinance
Updates
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.
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.
High Resource Areas 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.
A - 8: Financial
Incentives for
Affordable ADUs
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.
If ADU production is lower than anticipated, the City will evaluate ADU impact fees as a potential constraint for affordable housing and update them as necessary to ensure the fees are consistent with regional trends and do not unreasonably constrain ADU development. This effort will complement Program A-6 (ADU Tracking and Monitoring)
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.
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.
High Resource Areas Outreach to provide information to 30 households annually.
A - 10: Facilitate
Missing Middle /
Middle Income
Housing
Amend the City Code to allow triplexes, and fourplexes to be approved ministerially on corner lots with a minimum 6,000 sf lot size in the R1 and R2 zones (approximately 1,106 lots) so long as the project complies with objective design standards.
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 highresource 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).
By end of Q4 2024. Citywide Increased production and reduced permitting time and cost for triplexes and fourplexes. Facilitate construction of 50 missing middle (duplex, triplex, quadplex) housing units over the 6 th
Cycle planning period.
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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric A - 14:
Coordination
with Santa Clara
County Office of
Supportive
Housing
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).
Continual partnership
throughout the planning period.
Anticipated completion of
project by the end of 2028.
Citywide Development of affordable housing on the 8
th and Alexander
property by the end of 2028.
B - 5: Permit
Streamlining
As a part of the 2023 comprehensive Zoning Ordinance update, the City is pursuing changes to streamline the permitting process, including but not limited to:
• Creating a ministerial use permit process; and
• Creating a more transparent and streamlined process for reviewing and approving applications involving a historic resource (e.g., residential addition).
• Streamlining the Planned Development approval process, so that projects that do not require a zoning amendment or General Plan amendment can be approved by the Planning Commission rather than requiring review and approval by both the Planning Commission and City Council.
Additionally, the City will ensure it adheres to newly passed legislation surrounding permit streamlining, such as AB 2234.
Concurrent with the
comprehensive Zoning
Ordinance update, end of Q4
2023.
Citywide Decreased permit processing time.
E - 5: Incentivize
Micro-Units
Ensure that provisions for efficiency units are consistent with AB 352 (2017), concurrent with the comprehensive Zoning Ordinance update by the end of Q4 2023.
Revise the Zoning Ordinance to establish development standards for micro-units, create incentives for micro-unit production, and remove barriers to micro-unit development, by the end of 2025.
Within one year of Housing
Element adoption By end of Q4
2023 and 2025.
Citywide Adopt the policy.
E - 6: Reduced
Parking
Requirements
for Senior
Housing
The City shall conduct a study to determine if reduced parking standards for senior housing is appropriate in Gilroy. Based on the findings of the study, the City may revise the Zoning Ordinance, as necessary, to reduce parking standards for senior housing.
The passing of AB 2097 will reduce constraints to senior housing development as it prohibits any minimum parking requirement on any residential, commercial, or other development project located within one half-mile of public transit.
Within 3 years of Housing
Element adoption By end of Q4
2026.
Citywide Conduct study and revise Zoning Ordinance, as necessary.
E - 7:
Development
and
Conservation of
Housing for
Farmworkers
In 2022, the City partnered with the Santa Clara County Office of Supportive Housing, to facilitate lower-income housing on a County owned property by waiving development impact fees for the project.
The City shall continue to partner with the Santa Clara County Office of Supportive Housing and various nonprofit organizations to explore and implement ways of providing affordable farmworker housing, including identification of state and federal funding opportunities.
At least once a year, the City will forward information about surplus City-owned land and other development opportunities to the Santa Clara County Office of Supportive Ongoing throughout planning
period
Citywide Preserve and maintain the 3 farmworker housing developments (56 units) and Ochoa Migrant Center (100 units).
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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Housing, affordable housing developers, and service providers who may be interested in developing more farmworker housing in Gilroy. The City will also provide this information at the annual developer roundtable and to individuals on the housing developer list, created through Program G - 1.
E - 10
Development
and
Rehabilitation of
Housing for
Persons with
Disabilities
As part of the 2023 comprehensive Zoning Code update, the City will evaluate reasonable accommodation standards and procedures and the permit requirements for residential care homes (i.e., group homes) in medium- and higher-density residential zones. The City will revise, as necessary, regulations that act as potential constraints to accommodating persons with disabilities.
By end of Q4 2023. Citywide Evaluate and revise as necessary reasonable accommodation standards and procedures and permit requirements for
residential care homes.
E - 11: Housing
For Extremely
Low Income and
Special Needs
Households
The City will facilitate and support affordable housing by meeting with potential affordable housing developers and homeless service providers to identify development opportunities, provide site information, assist in the entitlement processes, and consider on a case-by-case basis other incentives, including but not limited to fee deferrals and modification of standards.
As included in Program G - 1, the City will conduct proactive outreach to specifically include developers of housing for special needs and low-income households in the annual developer roundtable.
Additionally, the City will pursue funding sources, such as use of PLHA funds, to assist special needs households, such as extremely low-income households, farmworkers, large families, seniors, and persons with disabilities, including developmental disabilities. The City will consider using PLHA funding for eligible activities, including the predevelopment, development, acquisition, rehabilitation and preservation of affordable housing.
As applications are received.
Annual developer roundtable.
Pursue funding sources as they
are made available.
Citywide Outreach to affordable housing developers at least bi-annually (4 times over the planning period) when PLHA funds become available.
E - 12:
Downtown
Expansion
District and First
Street Mixed-Use
Corridor
Flexibility
The City will develop a process to allow 100% residential projects in the Downtown Expansion District. The City will also create a process that allows flexibility in the type of non-residential uses allowed in the new First Street Mixed-Use Corridor, subject to certain criteria. In exchange for this flexibility, the City may require that a certain percentage of units are dedicated to extremely low-income households, farmworkers, persons with disabilities, or other identified groups. The intent of this program is to facilitate and encourage housing for extremely low income and special needs households.
Amendments by end of Q4 2025 Downtown Expansion
District, First Street
Mixed-Use Corridor
Adopted zoning amendments. Facilitation of 100 units using the adopted process in the planning period.
F - 2: Fair
Housing
Counseling
The City shall continue to provide funds to and contract with a non-profit agency to provide fair housing assistance including landlord/tenant counseling.
The City shall disseminate information about fair housing assistance through pamphlets in City-owned buildings and other public locations (e.g., City Hall, Library, post office, other community facilities) and by posting information on the City website. Pamphlets will be made available in English and Spanish.
Annual or biennial award of
funds. Provision of pamphlets by
Q4 2024.within one year of
Housing Element adoption.
Downtown Work with Fair Housing Provider to track number of households assisted in Gilroy annual. Provide information to 30 households annually.
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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric F - 3: PlaceBased
Improvements in
Downtown
Gilroy
Develop programs and strategies to create place-based improvements through investments in the public right of way. Specific actions include:
• As part of the $3.9 million Clean California Grant, the City will renovate and beautify a portion of Gourmet Alley and Railroad Street within the downtown area with: pedestrian and bicycle-friendly markings along each block; improvements to the stormwater drainage system; additional landscaping and lighting; new benches; cleanup days for the alleys; and an anti-littering campaign.
• As a part of downtown revitalization, the City will construct a new downtown parking lot that will also serve as a community resource for a Farmers Market and community events in the downtown.
• As a part of the CIP, to support economic development in the downtown, complete Automall Parkway Pavement Rehabilitation including reconstruction of 20 curb ramps, addition of Class II bike lanes, and repair and replacement of deteriorated curb and gutter (estimated $2.4 million) • As a part of the CIP, to support pedestrian infrastructure in the DTSP area, install and upgrade ADA curb ramps in Downtown Gilroy. In March 2023 the City Council awarded a contract to conduct ADA curb ramp improvements at nine locations in and around Downtown Gilroy. • The Downtown Façade Improvement and Blight Removal Program, which includes providing a 50%/50% matching grant of up to $5,000 to property owners and tenants within a portion of Downtown to assist with exterior improvements to the façade, or face, of the building. These improvements may include new paint, building surface treatment, awnings, windows, doors, and other improvements that can help improve the exterior of a building. The maximum grant award amount may be increased to $10,000 if the project includes blight removal activities, approved by the City. • The Downtown Building and Planning Permit Fee Reduction Policy. This includes a 50% rebate of up to $5,000 for all City-related building and planning fees. This is available to any downtown business or property owner that pulls a permit for buildings along Monterey Road between First and Tenth Streets
Streetscape and infrastructure
improvements will be completed
pursuant to the City’s CIP
schedule.
The Clean California Grant
project must be completed by
June 30, 2024.
Construction of the parking lot
with community event space
should be complete by the end
of 2023.
Downtown Construction of one parking lot with a community event space; reconstruction of 20 curb ramps.
F - 5:
Displacement
Prevention
Policy
Adopt a displacement prevention policy. Organize a focus group of organizations with experience in displacement prevention policies (e.g., SV@Home) and complete an analysis of best practices in jurisdictions that are similar to Gilroy. Measures that are being considered for inclusion in the policy are “tenant option to purchase agreements” for redevelopment projects meeting specified thresholds, a just cause eviction ordinance, and relocation agreements.
Through Program B-7, the City will amend the Zoning Ordinance to require that any demolished residential units on the Sites Inventory be replaced pursuant to Government Code Section 65583.2(g).
Hold focus group and complete
analysis within two years of
Housing Element adoptionby
end of Q4 2025. Adopt policy by
end of Q4 2026.
Areas denoted above as
having vulnerability to
displacement
Adopt the policy.
Access to Opportunities
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th Cycle Housing Plan 161
HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric A - 10: Facilitate
Missing Middle /
Middle Income
Housing
Amend the City Code to allow triplexes, and fourplexes to be approved ministerially on corner lots with a minimum 6,000 sf lot size in the R1 and R2 zones (approximately 1,106 lots) so long as the project complies with objective design standards.
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 highresource 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).
By end of Q4 2024. Citywide Increased production and reduced permitting time and cost for triplexes and fourplexes. Facilitate construction of 50 missing middle (duplex, triplex, quadplex) housing units over the 6 th
Cycle planning period.
A - 11:
Inclusionary
Housing Policy
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 lowerand 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.
By the end of 2024. Citywide 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.
A - 12: Incentives
Beyond Density
Bonus State Law
Study and consider adopting a density bonus ordinance above and beyond the minimum requirements of state law. Specifically consider additional incentives for households with special housing needs such as large households, extremely low income households, and farmworkers, and households with members with intellectual or developmental disabilities. In lieu of adopting a separate 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.
Within 2 years of Housing
Element adoption By end of Q4
2025.
Citywide Adoption of Zoning Ordinance amendment; Increased housing choice and mobility for special needs households.
A - 16: SB 9
Processing
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.
By end of Q4 2024. Citywide Update SB 9 webpage; c.
Create instructions for processing SB 9 units and lot splits; h.
Hold informational meetings with building and
engineering/land development divisions.
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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric B - 5: Permit
Streamlining
As a part of the 2023 comprehensive Zoning Ordinance update, the City is pursuing changes to streamline the permitting process, including but not limited to:
• Creating a ministerial use permit process; and
• Creating a more transparent and streamlined process for reviewing and approving applications involving a historic resource (e.g., residential addition).
• Streamlining the Planned Development approval process, so that projects that do not require a zoning amendment or General Plan amendment can be approved by the Planning Commission rather than requiring review and approval by both the Planning Commission and City Council.
Additionally, the City will ensure it adheres to newly passed legislation surrounding permit streamlining, such as AB 2234.
Concurrent with the
comprehensive Zoning
Ordinance update, end of Q4
2023.
Citywide Decreased permit processing time.
F - 1: Source of
Income
Protection
Within one year, coordinate with Project Sentinel to conduct a meeting/workshop to inform residents of sources of income protection and state rent control laws such as AB 1482.
Continue to coordinate outreach efforts to inform landlords and tenants of recent changes to state law that prevent source of income discrimination, including allowance of housing choice vouchers (HCVs) to establish a renter’s financial eligibility.
Informational outreach by end
of Q4 2024
Outreach to 50 landlords or
tenants annually.
Downtown Conduct workshop with residents.
F - 3: PlaceBased
Improvements in
Downtown
Gilroy
Develop programs and strategies to create place-based improvements through investments in the public right of way. Specific actions include:
• As part of the $3.9 million Clean California Grant, the City will renovate and beautify a portion of Gourmet Alley and Railroad Street within the downtown area with: pedestrian and bicycle-friendly markings along each block; improvements to the stormwater drainage system; additional landscaping and lighting; new benches; cleanup days for the alleys; and an anti-littering campaign.
• As a part of downtown revitalization, the City will construct a new downtown parking lot that will also serve as a community resource for a Farmers Market and community events in the downtown.
• As a part of the CIP, to support economic development in the downtown, complete Automall Parkway Pavement Rehabilitation including reconstruction of 20 curb ramps, addition of Class II bike lanes, and repair and replacement of deteriorated curb and gutter (estimated $2.4 million) • As a part of the CIP, to support pedestrian infrastructure in the DTSP area, install and upgrade ADA curb ramps in Downtown Gilroy. In March 2023 the City Council awarded a contract to conduct ADA curb ramp improvements at nine locations in and around Downtown Gilroy. • The Downtown Façade Improvement and Blight Removal Program, which includes providing a 50%/50% matching grant of up to $5,000 to property owners and tenants within a portion of Downtown to assist with exterior improvements to the façade, or face, of the building. These improvements Streetscape and infrastructure
improvements will be completed
pursuant to the City’s CIP
schedule.
The Clean California Grant
project must be completed by
June 30, 2024.
Construction of the parking lot
with community event space
should be complete by the end
of 2023.
Downtown Construction of one parking lot with a community event space; rReconstruction of 20 curb ramps.
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th Cycle Housing Plan 163
HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric may include new paint, building surface treatment, awnings, windows, doors, and other improvements that can help improve the exterior of a building. The maximum grant award amount may be increased to $10,000 if the project includes blight removal activities, approved by the City.
The Downtown Building and Planning Permit Fee Reduction Policy. This includes a 50% rebate of up to $5,000 for all City-related building and planning fees. This is available to any downtown business or property owner that pulls a permit for buildings along Monterey Road between First and Tenth Streets F - 4: Housing
Mobility and
Choice in Higher
Opportunity
Areas
Improve housing mobility and choice, especially in higher opportunity areas of the City through the follow actions:
• Allow triplexes and quadplexes that meet objective design standards to be approved ministerially on corner lots in the R1 and R2 zones (Program A-10). • Adopt an inclusionary housing policy (Program A-11)
Adopt a incentives beyond density bonus state law policy to include incentives for special needs households (Program A-12)
Within 3 years of Housing
Element adoptionBy Q2 2025.
Higher Opportunity
Areas
Adopt density bonus and inclusionary housing policies.
Integration and Segregation
A - 8: Financial
Incentives for
Affordable ADUs
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.
If ADU production is lower than anticipated, the City will evaluate ADU impact fees as a potential constraint for affordable housing and update them as necessary to ensure the fees are consistent with regional trends and do not unreasonably constrain ADU development. This effort will complement Program A-6 (ADU Tracking and Monitoring)
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.
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
High Resource Areas Outreach to provide information to 30 households annually.
A - 10: Facilitate
Missing Middle /
Middle Income
Housing
Amend the City Code to allow triplexes, and fourplexes to be approved ministerially on corner lots with a minimum 6,000 sf lot size in the R1 and R2 zones (approximately 1,106 lots) so long as the project complies with objective design standards.
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 highresource 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).
By end of Q4 2024. Citywide Increased production and reduced permitting time and cost for triplexes and fourplexes. Facilitate construction of 50 missing middle (duplex, triplex, quadplex) housing units over the 6 th
Cycle planning period.
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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric A - 11:
Inclusionary
Housing Policy
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 lowerand 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.
By the end of 2024. Citywide 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.
A - 12: Incentives
Beyond Density
Bonus State Law
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.
By end of Q4 2025.Within 2
years of Housing Element
adoption
Citywide Adoption of Zoning Ordinance amendment; increased housing choice and mobility for special needs households.
F - 1: Source of
Income
Protection
Within one year, coordinate with Project Sentinel to conduct a meeting/workshop to inform residents of sources of income protection and state rent control laws such as AB 1482.
Continue to coordinate outreach efforts to inform landlords and tenants of recent changes to state law that prevent source of income discrimination, including allowance of housing choice vouchers (HCVs) to establish a renter’s financial eligibility.
Informational outreach within
one year of Housing Element
adoptionby end of Q4 2024.
Annual education and outreach
to landlords and tenants.
Downtown Outreach to 50 landlords or tenants annually.
Outreach and Enforcement Capacity
F - 2: Fair
Housing
Counseling
The City shall continue to provide funds to and contract with a non-profit agency to provide fair housing assistance including landlord/tenant counseling.
The City shall disseminate information about fair housing assistance through pamphlets in City-owned buildings and other public locations (e.g., City Hall, Library, post office, other community facilities) and by posting information on the City website. Pamphlets will be made available in English and Spanish.
Annual or biennial award of
funds. Provision of pamphlets by
end of Q4 2024within one year
of Housing Element adoption.
Downtown Annual or biennial award of funds. Provision of pamphlets by Q2 2024within one year of Housing Element adoption. Work with Fair Housing Provider to track number of households assisted in Gilroy annually. Provide information to 30
households annually.
F - 4: Housing
Mobility and
Choice in Higher
Opportunity
Areas
Improve housing mobility and choice, especially in higher opportunity areas of the City through the follow actions:
Within 3 years of Housing
Element adoptionBy Q2 2026.
Higher Opportunity
Areas
Adopt density bonus and inclusionary housing policies.
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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric • Allow triplexes and quadplexes that meet objective design standards to be approved ministerially on corner lots in the R1 and R2 zones (Program A-10). • Adopt an inclusionary housing policy (Program A-11)
• Adopt an incentives beyond density bonus state law policy to include incentives for special needs households (Program A-12)
G - 1:
Collaboration
with
Development
Community
The City shall continue to cultivate new and existing relationships, throughout the planning period, with for-profit and non-profit development companies working in the area of affordable housing, facilitating collaborative approaches to affordable housing development.
Invite affordable housing developers and developers of housing for special needs households to the annual developer roundtable meeting.
The City will create a list of housing developers, including developers of affordable and special needs housing. The list will be used for the annual developer roundtable (or equivalent), and to advertise development opportunities, funding opportunities, and other educational and engagement efforts in the City.
Collaboration with other
agencies on an annual basis.
Countywide Host an annual developer roundtable (or equivalent) meeting.
Participation of at least four developers of affordable and special needs housing in the annual meeting. Creation of developer interest list by end of Q4 2024.
G - 5: Housing
Outreach and
Information
The City shall provide information about housing assistance, fair housing, housing resources, and housing programs through a wide variety of outreach methods such as:
• Conducting workshops and webinars by partnering with community-based organizations to inform residents of housing resources, assistance programs, and funding opportunities, on a monthly basis on average. • Disseminating information about fair housing in City-owned buildings and other public locations (e.g., City Hall, Library, post office, other community facilities) and by posting information on the City website. Pamphlets will be made available in English and Spanish.
• Advertising housing assistance information on the City website, through the compilation of resources for rental assistance, down payment assistance, and other means of retaining existing housing or acquiring a new home. • Coordinating with the City’s Fair Housing Service Provider to provide resources and information at a housing resources event in the DTSP area.
Update the City website with
housing information as new
resources become available.
Annual housing event in the
DTSP area.
Conduct community outreach
workshops on housing
resources on a monthly basis on
average.
Downtown Specific Plan
Area
Provision of housing resources and information through at least three different mediums. All information made available in English and Spanish. Annual housing event in the DTSP.
Outreach with 150 households annually.
G - 6: Unhoused
Population
Education and
Outreach
The City will develop a program to educate the public on the unhoused population and homelessness as well as advertise resources that available for the unhoused population. Specifically, the program will include:
• Creation of a dedicated webpage with information on unhoused resources and efforts.
• Development of printed collateral for distribution at City Hall and by code enforcement officers in the field.
• Gathering information on resources that exist in the City and County for the unhoused population and promote the information at City Hall and on the City’s By end of Q4 202518 – 24
months after Housing Element
adoption; monthly meetings of
the unhoused service providers
group.
City-wide, Eastern Gilroy,
R/EACAP
Minimum of 3 medium of outreach. Scheduled service provider meetings throughout the planning period.
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th Cycle Housing Plan 166
HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric website. This information will also be provided through the various outreach methods in Program G - 5.
• Revamping the unhoused service providers network which consists of monthly meetings with direct unhoused service providers in the City. The network serves to increase collaboration and partnership among service providers and the City, to connect the unhoused with services. The monthly meetings serve to coordinate with service providers regarding the needs of the unhoused community, inform and coordinate with events, and collaborate on outreach efforts.
G - 7: Bilingual
Engagement
Given the City’s large Hispanic population, the City will increase Spanish language engagement within city services and through translation of outreach materials and interpretation of housing opportunities. Translation of outreach materials is included in both programs G - 3 and G - 5.
In August 2022 the City expanded its collective bargaining bilingual pay system to increase the number of bilingual staff available to assist the Spanish-speaking community. The City will advertise its collective bargaining unit bilingual pay benefits to attract new staff that can converse with the City’s Spanish speaking population.
Immediately upon adoption of
the Housing Element.
Eastern Gilroy, R/EACAP Minimum of 3 medium of outreach. Monthly service provider meetings throughout the planning period.
G - 8: Help
Center Webpage
In partnership with local nonprofit organizations, the City will develop a Housing Help Center webpage to provide a centralized resource for tenants and landlords to receive information on local laws, assistance to apply for rent relief, and legal aid.
This webpage will consolidate existing information on the City’s website with additional information provided by local service providers to best serve the needs of the Gilroy community.
By end of Q4 2024 Citywide The City will advertise the Housing Help Center to at least 100 residents each year through the City’s community outreach efforts.
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Constraints on Housing ▐
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th Cycle Housing Plan 167
CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
CONSTRAINTS ON HOUSING
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th Cycle Housing Plan 168
Constraints on Housing
There are a wide variety of factors that influence whether, where, when, how, and what type of housing is constructed. While many factors enable, guide, and even incentivize housing construction, almost all also pose some sort of limitation or constraint as well. Land use policies and regulations are necessary but, by definition, establish limits on growth and development. These limits work with, influence, and are balanced by market forces.
There are generally two types of constraints: governmental and nongovernmental.
Governmental constraints include the policies, regulations, and procedures that directly affect housing. This includes the goals, policies, and programs of the General Plan and the development standards and requirements of the Zoning Ordinance and other land use ordinances. Nongovernmental constraints include those factors that are beyond the direct control and authority of the City.
This section identifies and evaluates those factors that may pose significant constraints or burdens that may limit or constrain the production of housing to meet local and regional housing needs and the goals and objectives of the General Plan. Such constraints, particularly those that limit the construction of or fair access to affordable housing, must be addressed with clear, measurable, and timely programs.
Governmental Constraints
Governmental constraints can limit or deter the operations of the public, private, and nonprofit housing development sectors, make it difficult to meet the demand for housing, and limit housing supply in a region. Such constraints can limit access to housing mobility and housing choice or prevent lower-income segments of the population from having adequate housing opportunities. Governmental constraints may include, but are not limited to, land use controls, development standards, local processing and procedures, and permitting fees.
Land Use Controls
General Plan
The City of Gilroy adopted an updated General Plan in November 2020. The Gilroy 2040 General Plan is a comprehensive, long-range general policy document that expresses the community’s vision and establishes eight guiding principles for development. One of the guiding principles includes encouraging a mix of housing types to create diverse neighborhoods to meet the needs of all residents. Among other efforts, the Gilroy 2040 General Plan allows for an increase in housing by creating a new Mixed-Use land use designation and removing the maximum density specified for the High-Density Residential land use area. The Land Use Element of the General Plan identifies the location, distribution, density, and intensity of land use within the City. The Environmental Impact Report (EIR) for
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th Cycle Housing Plan 169
the 2040 General Plan analyzed the development potential of the plan for up to 6,477 new housing units and an additional population of 19,756.34 Figure 44: Gilroy Land Use Map
There are seven residential land use designations in the Gilroy General Plan, as follows:
• Hillside Residential (HR): This designation is generally applied to developable hillside areas with slopes of 10 percent to 30 percent. Developments in these areas must follow special design and siting criteria to preserve the sensitive hillside environment together with the views and vistas of surrounding hillsides, hilltops, and ridgelines. The permitted density is 0 to 4 dwelling units per net acre (du/ac).
The implementing zone is the Residential Hillside (RH) district. • Low Density Residential (LDR): This is the most common residential land use designation in Gilroy. It is applied to areas of predominantly single-family detached dwellings, with typical lot sizes ranging from 5,000 square feet to 7,000 square feet.
Appropriate residential uses include single-family detached homes and secondary (“accessory”) dwelling units (ADU) that comply with City standards. The permitted density is 3–8 du/ac. The implementing zones are R1 and R2. 34Final Gilroy 2040 General Plan EIR. https://www.cityofgilroy.org/DocumentCenter/View/11308/Draft-EIR---Gilroy-2040-GeneralPlan-?bidId=
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• Medium Density Residential (MDR): This designation is intended primarily for multifamily attached structures (townhomes, condominiums, and apartment buildings). Buildings are typically two to three stories tall. This designation is typically applied to transition areas between lower-density neighborhoods and higher-density developments or commercial areas. The permitted density is 8–20 du/ac. The implementing zone is R3. While the R3 zone currently only allows 8–16 du/ac, it will be updated in the comprehensive zoning update to allow for 8–20 du/ac (Program B - 2).
• High Density Residential (HDR): This designation allows higher density attached housing types (apartments and condominiums), often within walking distance of commercial areas. The predominant housing type is multifamily dwellings, such as apartments or condominiums, with buildings typically comprising two or more stories. The permitted density is 20+ du/ac, with no maximum density or floor area ratio (FAR) requirements. The implementing zone is R4. The R4 zone currently allows for 20–30 du/ac, and the upper limit will be removed in the ongoing comprehensive Zoning Ordinance update to ensure consistency with the General Plan (see Program B - 2).
• Mixed Use (MU): The purpose of this designation is to encourage a mix of retail, office, and high-density residential uses. Mixed -use could also include mixed--use commercial (e.g., retail and office). Multi-story structures and more intense uses should be located at major intersections and lower intensity uses, adjacent to neighborhoods. Street-level frontage of mixed-use projects shall be developed with pedestrian-oriented, typically commercial, uses. Residential uses can be integrated on the same site with other uses in either a vertical or horizontal design. Standalone residential uses are not allowed. The permitted density is a minimum of 20 and a maximum of 30 du/ac. The implementing zones are within the Downtown Specific Plan area and the mixed-use corridor along First Street. As a part of its comprehensive code update, the City is in the process of creating a zoning district for the mixed-use First Street corridor with the anticipated completion in 2023 (Program B - 2). Any mixed-use development within the First Street mixed-use corridor will be entitled in accordance with the development standards set forth in the Zoning Ordinance and the density allowance per the 2040 General Plan. The design of projects will be subject to the City’s existing objective development design standards until the First Street Corridor mixed-use design and development standards are adopted.
• Rural County (RC): The purpose of this designation is to preserve rural residential, hillside, and productive agriculture land uses located outside areas planned for urban development. Allowed uses include rural residential, grazing, active agricultural production, associated agricultural processing, sales, and support uses.
Typical building types include low-intensity structures associated with farming and agricultural processing and sales. One single dwelling unit per parcel is allowed. The implementing zone is RR.
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• Neighborhood District (ND High, ND Low): The purpose of these designations is to encourage compact, complete, neighborhood-style development. Traditional single-family uses will comprise a substantial portion of these districts. Commercial and medium- to high-density residential uses should be clustered to form neighborhood centers. Neighborhood District High and Low may use a Neighborhood Commercial (NC) designation to designate land in neighborhood centers to encourage low-intensity commercial uses that cater directly to residents in the immediate neighborhood. The 0–7 du/ac category is intended for singlefamily detached dwellings with varying lot sizes. The 7–9 du/ac category is intended for a combination of two-family and some single-family detached dwellings. The 9– 16 du/ac category is intended to accommodate a combination of small-lot and attached single-family dwellings, as well as multifamily dwelling options. The 16–30 du/ac category is intended to provide a variety of attached single-family and multifamily residential styles of development. The implementing zone is ND. o The Neighborhood District land use designation is generally applied to vacant land that is currently outside the City’s Urban Service Area (USA) but within the City’s Urban Growth Boundary (UGB) area. The UGB area applies to land within the Planning Boundary/Sphere-of-Influence that is intended for urbanization at some point in the future. There are two designated neighborhood districts, one in the north and one in the south, that are currently outside of the USA. The City is in the process of requesting approval from the Santa Clara County Local Agency Formation Commission (LAFCO) to bring approximately 54 acres of unincorporated county land into the City’s USA. The land is located just outside City limits to the north. The City also received a preliminary application for a USA amendment for land located just outside City limits to the south. If the USA is amended and the land is eventually annexed into the City (a lengthy two-step process), the property would be subject to the City’s inclusionary policies for the Neighborhood District.
o Each Neighborhood District development is required to construct a minimum of 15 percent of its units at affordable prices. Specific requirements regarding the level of affordability were contained in the City’s Residential Development Ordinance (RDO) policy. However, this policy is no longer in effect due to state legislation (e.g., Senate Bill [SB] 330) and the implementing ordinance will be repealed in accordance with Program B - 1. To ensure compliance with state law, and provide more comprehensive affordability benchmarks, Program A - 5 is included to review and revise the Neighborhood District Policy. Program A - 11 will include analyzing potential adoption of an Inclusionary Housing Policy that would apply to properties outside the Neighborhood District planning area. o Table 59 displays the target densities for both low and high Neighborhood District designations. Neighborhood Districts include the Hecker Pass Specific Plan area and the Glen Loma Ranch Specific Plan area, which are both under development in the planning period. The rows denote the maximum or
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minimum percentages of the land area within this land use designation that must fall within the specified density.
o Neighborhood District target densities and inclusionary requirements may act as a potential constraint to housing; however, the City has found that they do not discourage development. As a part of Program A - 5, the City is revising Neighborhood District standards to no longer rely on the RDO and is updating the Neighborhood District’s inclusionary housing policy.
Table 59: Neighborhood District Target Densities
0-7 du/ac 7-9 du/ac 9-16 du/ac 16-30 du/ac
Low 82% max. 5% min. 10% min. 3% min.
High 60% max. 5% min. 25% min. 10% min.
Source: City of Gilroy 2040 General Plan.
Hecker Pass Specific Plan
The Hecker Pass Specific Plan projects the development of 521 housing units. The Specific Plan designates three “clusters” for residential development: North Cluster (57 units), West Cluster (205 units), and East Cluster (259 units). The Specific Plan aims to provide a variety of housing types in each cluster, but offers some flexibility in how that variety is achieved. The Specific Plan gradually transitions the intensity of development from the Village Green project into the Specific Plan area, with more intensive development on the eastern side of the plan as it moves from rural to urban. The Hecker Pass Specific Plan was approved before inclusionary housing policies were adopted, and thus was not subject to the Neighborhood District Policy’s affordable housing requirement.
Glen Loma Ranch Specific Plan
The Glen Loma Ranch Specific Plan area is approximately 392 acres located between Santa Teresa Boulevard and the Uvas Creek corridor. The project includes a maximum of approximately 1,693 residential units in up to 17 neighborhoods comprising detached singlefamily residences, attached townhomes, apartments, and senior-only units. Under the Neighborhood District Policy, 15.1 percent of units will be affordable to very low-, low-, and moderate-income households.
Downtown Specific Plan
The Downtown Specific Plan contains six districts with the purpose of creating a pedestrianoriented and economically vibrant downtown. Adopted in 2005, the Downtown Specific Plan anticipated potential for development of 1,576 new residential units over 20 years. Mixed uses and residential development above the ground floor are encouraged in the Downtown Specific Plan. The Downtown Specific Plan allows 100 percent commercial use in all of its zones. Mixeduse residential is encouraged but not required and could include mixed-commercial (e.g., retail and office). Although 100 percent commercial use is allowed, City staff have not seen a demand
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for new 100 percent commercial projects. The exception to this is new commercial uses occupying existing commercial buildings that don’t require significant upgrades. Residential dwelling units are permitted by-right in all Downtown Specific Plan districts. on the second story and above.
Downtown Historic District(DHD)
This district is suitable for the improvement and maintenance of existing commercial structures or the conversion to or construction of new mixed-use development. Residential mixed-use projects are encouraged. The Downtown Historic District allows commercial and mixed-use projects, both of which have a maximum FAR of 2.5. The minimum density for the residential component of mixed-use projects is 20 du/ac. Residential units are permitted byright on the second story or above in the Downtown Historic District. A conditional use permit is required for residential uses on the first floor.
Downtown Expansion District (DED)
This district is suitable for the improvement and maintenance of existing commercial structures or the construction of or conversion to new mixed-use development. Residential mixed-use projects are encouraged. The Downtown Expansion District allows commercial and mixed-use projects, both of which have a maximum FAR of 2.5. The minimum density for the residential component of mixed-use projects is 20 du/ac. Residential units are permitted byright on the second story or above in the Downtown Expansion District. A conditional use permit is currently required for residential uses on the first floor.
Approximately 29.9 percent of the very low-income opportunity site units and approximately
44.9 percent of the moderate-income opportunity site units are located in the City’s Downtown Expansion District (20.4% and 44.9%) and First Street Corridor District (9.5% and 0%). To increase the likelihood that sufficient RHNA units are built in these two districts, the City added Program E - 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility). This Program will allow 100 percent residential projects in the Downtown Expansion District and flexibility for non-residential units in the First Street Mixed Use Corridor, should projects meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
Civic/Cultural Arts District (CCA)
This district is suitable for the development of new multi-use civic, cultural and civic-serving uses. The Civic/Cultural Arts District also allows commercial and mixed-use projects.
Residential mixed-use projects are encouraged but not required. Residential units may be allowed on the ground floor if they are located between Eigleberry Street and Church Street and behind a business. From Monterey Street to Church Street, commercial and mixed-use projects have a maximum FAR of 1.5, and from Church Street to Dowdy Street there is a maximum FAR of 1.0.
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Transitional District (TD)
This district is suitable for the conversion of existing residential structures to commercial uses and for the development of new mixed-use and stand-alone residential projects. Commercial and mixed-use projects have a maximum FAR of 1.5. Stand-alone residential projects are at most 20 du/ac.
Cannery District (CD)
This district is suitable for the development of new mixed-use and stand-alone residential projects. Commercial and mixed-use projects have a FAR of 2.0. The minimum density for the residential component of mixed-use projects is 20 du/ac. Stand-alone residential projects must develop at a density ranging from 20 to 40 du/ac.
Gateway District(GD)
This district is suitable for the development of new mixed-use and stand-alone residential projects. Commercial and mixed-use projects have a maximum FAR of 0.75. Stand-alone residential projects can be developed at 30 du/ac.
Downtown Specific Plan Development Standards
Table 60 displays the allowable densities and development standards in each of the Downtown Specific Plan districts. The districts also generally have very permissive development standards, including zero-foot minimum setbacks, and height limits of 50 feet or 4 stories in all areas not fronting Railroad Street.
The passing of Assembly Bill (AB) 2097 will reduce constraints to development as it prohibits any minimum parking requirement on any residential, commercial, or other development project located within one half-mile of high-quality public transit. Prior to the passage of AB 2097, the Downtown Specific Plan area already had lower parking requirements than other residential areas in the City. For projects not subject to AB 2097, the parking requirements for residential units are 1 space per unit and 1 guest space per 6 units for units that are up to 800 square feet. If greater than 800 square feet, the requirement is 1.5 spaces per unit and 1 guest space per 4 units. Parking standards are often a potential constraint to development.
However, in Gilroy, they are appropriate and not excessive, given Gilroy’s suburban context outside urban job centers to the north.
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175
Table 60: Downtown Specific Plan Development Standards
District
Lot
Requirements
Lot Size in
Square Feet
(min)
Yard Requirements
(Setbacks in Feet Measured from Property Line)
(min/max)
Height
Requirements
(max)
FAR Density
Building Form
Front
Side
(Adjacent
to Street)
Side (All
Other Side
Yards)
Rear Feet6 Stories7
Street Front
Building
Height
(Min Feet)
Third and
Fourth Floor
Setback
Required
Downtown
Historic
District (DHD)
N/A 0/15 0/101 0/none2 0
3 /none 50 4 2.5 20 du/ac
(min) 25 Yes
Downtown
Expansion
District (DED)
N/A 0/15 0/101 0/none2 0
3 /none 50 4 2.5 20 du/ac
(min) 25 Yes
Civic/Cultural
Arts District
(CCA)
N/A 0/none 0/none1 0/none2 0/none 50 4 - N/A8 25 Yes
Transitional
District (TD) N/A - - - - 40 3 1.55
20 du/ac
(max) N/A No
Cannery
District (CD) N/A 0/15 10/none1 0/10 0/none 50 4 2.05
20-40 du/ac
(min/max) 25 No
Gateway
District (GD) N/A 15/none 15/none 15/none 10/none 40 3 0.755 30 du/ac
(max) N/A No
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Table 61: Downtown Specific Plan Development Standards (Special Circumstances) District
Eigleberry Street to Church Street Church Street to Dowdy Street East of Eigleberry Street West of Eigleberry Street Front
Side
(Adjac
ent to
Street)
Side (All
Other
Side
Yards)
Rear Front
Side
(Adjac
ent to
Street)
Side
(All
Other
Side
Yards)
Rear Front
Side
(Adjac
ent to
Street)
Side
(All
Other
Side
Yards)
Rear Front
Side
(Adjac
ent to
Street)
Side
(All
Other
Side
Yards)
Rear
Civic/Cultural
Arts District
(CCA)
0/10 10/non
e
0/10 10/non
e
20/non
e
10/non
e
10/non
e
10/non
e
- - - - - - - -
Transitional
District (TD) - - - - - - - - 0/15 10/none
1 0/none
2 0/5 154
/none
10/non
e
5/none 10/no
ne
Source: City of Gilroy Zoning Ordinance
1 To be reviewed for vehicular sight distance.
2 To be reviewed by staff to ensure compliance with urban design principles. 3 Rear yard setback for parcels east of Monterey Street, between Lewis and Seventh is 51 feet to accommodate drive access and parking. 4 Ten-foot setback to property line allowed with a porch. 5 Use floor area ratio to determine project size for commercial and mixed-use development and use residential density to determine project size for stand-alone residential development. Residential use is only allowed as part of a mixed use development within the DHD, DED and CCA districts. Standalone (multifamily) residential development is only allowed within the CD, GD and TD districts. See Article XIV for additional specifications. 6 The planning division manager may approve architectural features such as tower elements, elevator service shafts, and roof access stairwells which extend up to 10 percent above the height limit.
7 New buildings should be no more than two stories higher or lower than neighboring buildings. If higher or lower buildings are desired, the massing should be stepped so as to create a smooth transition.
8 No min/max density. See Downtown Specific Plan for additional specifications. Residential apartments, townhomes, and live/work units above/behind ground floor are only allowed between Eigleberry Street and Church Street
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Zoning Ordinance
The Zoning Ordinance, Chapter 30 of the Gilroy City Code, is the primary tool for implementing the land use designations in the Gilroy 2040 General Plan. The Zoning Ordinance provides controls over land use. The following discussion represents standards in the Gilroy Zoning Ordinance as of April 2023. In conformance with the 2040 General Plan and current state housing law, a comprehensive update of the Zoning Ordinance is anticipated to be complete by the end of 2023. As such, some existing standards identified in this analysis will be updated with the new Zoning Ordinance and in accordance with state law. Known instances are noted and the appropriate programs are referenced. Existing residential development standards are shown in Table 62.
The City’s General Plan allows for a range of densities and housing types to meet the needs of all income levels. AB 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 and the 2020 decennial census, Gilroy is considered a “jurisdiction within a metropolitan county” with a “default” density for affordable units of 30 du/ac. Densities of at least 30 du/ac are allowed in the High-Density Residential zone and Neighborhood District. Densities of 30 du/ac are also allowed in the First Street mixed-use corridor and specified Downtown Specific Plan designations, described above.
Table 62 displays the existing residential standards as outlined in the City’s Zoning Ordinance as of April 2023. Note that there are instances where state law may supersede the current standards in the Zoning Ordinance. If there is a conflict, state law supersedes the Zoning Ordinance, and staff will process development applications accordingly. For instance, SB 9 applies to many parcels in the R1 zone and allows them to have up to four units, though the current maximum density is one dwelling unit per lot. SB 9 facilitates the creation of up to four housing units, comprised of a duplex with an ADU and a junior ADU or two primary units plus an ADU and a junior ADU. Program A - 10 provides more flexibility than SB 9, by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. This program will also encourage the development of missing middle housing throughout the City, including high-resource areas primarily comprising detached singlefamily residences. A discussion of SB 9 is located in the Senate Bill 9 section of this constraints chapter. Furthermore, the City has a dedicated webpage that provides SB 9 information (e.g., more permissive development standards) to the public and potential applicants.
Residential Densities
The Zoning Ordinance will be updated in 2023 so that development standards permit the allowed densities under the 2040 General Plan. To facilitate consistency, the consultant who prepared the City’s new General Plan is also preparing the Zoning Ordinance update.
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Planned Development Exceptions
Most single-family residential projects are approved ministerially, while, hillside residential single-family and multifamily residential projects that comply with objective development and design standards can generally be approved through an administrative staff review process, without the need for public hearings. However, applicants can request smaller lot sizes, increased height, and decreased setbacks (for example) through the Planned Development process, which is outlined in the Zoning Ordinance. The Planned Development process allows for more economical and efficient land use through diversification in development standards for buildings, structures, and open spaces. Public hearings are required in exchange for this flexibility.
Lot Size
The Zoning Ordinance will be updated in 2023 to be consistent with the lot sizes described in the 2040 General Plan. For example, the typical lot size for the low-density single-family residential land use designation in the 2040 General Plan ranges from 5,000 square feet to 7,000 square feet.
Height Limits
The City has two types of height limits in residential districts: a maximum height measured in stories and an absolute height. Height limits in the R3 zone are 3 stories or 45 feet. For the R4 zone, the height limits are 6 stories or 75 feet, whichever is less. Parking garages that are aboveground would count toward the story limit, while those that are belowground do not.
The height limits do not constrain development from reaching their prescribed General Plan densities (8-20 du/ac for medium density sites and 20+ du/ac for high density sites).
Setbacks
All residential zones have setbacks, which are the minimum distances between a structure and a lot line. Setbacks in Gilroy are largely uniform between the residential zones, with 26-foot front setbacks, 6- to 12-foot interior side setbacks, 21-foot street side setbacks, and 15-foot rear setbacks. While all setbacks reduce the amount of land that is developable on a site, the setbacks do not constrain projects from reaching the maximum housing density in a zone.
Floor Area
The City of Gilroy does not regulate residential floor area, other than for ADUs. The ADU Ordinance will be updated in 2023 (and in future years) to be compliant with current state law.
Although not required by state law, the City will increase the allowable floor area for ADUs from 1,000 square feet to 1,200 square feet through Program A - 15.
Lot Coverage
The City of Gilroy does not regulate residential lot coverage, other than restricting the amount of paving in the front yard to 50 percent maximum.
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Table 62: Residential Standards (2022)
District
Lot Requirements
Lot Size in Square
Feet (Lots Using
Street Standards
Adopted in
February 2006)1
Yard Requirements
(Minimum Setbacks in Feet. Property Lines Adjacent to Streets Measured from the Face of Curb)
Height
Requirements Density
Front
Front (Lots on
Bulb of Cul-desac)
Side
(Adjacent to
a Street)
Side (All
Other Side
Yards)
Rear
Rear (Yards
Backing onto
Street)
Feet Stories Maximum Density Units per
Acre
A1 20 acres 262 222 21 12 156 26 35 2 Maximum of one dwelling unit per lot RR 2.5 acres 262 222 21 12 156 26 30 2 Maximum of one dwelling unit per lot R1 6,660 sf 262 222 21 6
3 156 26 35 2
Maximum of one dwelling unit
per lot (not including units permitted
through SB 9)
3 – 7.25
R2 8,8804sf 262 222 21 6
3 156 26 35 2
One dwelling unit per 4,000 square
feet of land to a maximum of two
units per lot
3 – 9
R3 8,880 sf 262 222 21 12 156 26 455 3
One dwelling unit per two 2,722
square feet of lot area 8 – 16
R4 13,320 sf 262 222 21 12 156 26 755 6
One dwelling unit per 1,452 square
feet up to a maximum site area of
2,178 square feet per unit
20 – 30
HR N/A + + + + + + 30 2
Determined by the average slope
with a maximum of two acres/unit
ND* * * * * * * * * * * *
Source: Gilroy City Code Chapter 30.
1 See Zoning Ordinance for lot size requirements for lots using street standards adopted prior to 2006. 2 Garage vehicular entrances shall be set back from the property line such that they have a minimum 18-foot-long driveway measured from the back of the sidewalk. 3 For dwellings located within new subdivisions (after the effective date of the ordinance codified in this chapter), containing five or more lots, the total width of the two side yards for any one lot in an R1 or R2 district must equal 12 feet. For structures in existence on the effective date of the ordinance codified in this chapter, a 6-foot side yard setback shall be maintained, unless a smaller side yard has been allowed by a variance, planned unit development, or preexisting, nonconforming use. 4 7,000 square feet for preexisting lots created prior to September 15, 1983; 6,000 square feet for one single-family dwelling. 5 For R3 and R4 lots proposed to be developed with one single-family residence as the primary use, the height of the residential dwelling unit shall not exceed two stories and 35 feet.
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6 Rear yard setbacks may be reduced to 10 feet to accommodate a 5-foot encroachment for rear yard patio covers. * Residential site and building requirements shall be established by the master plan or specific plan for the neighborhood district area in which the property is located. + All setback requirements shall be as specified in the planned unit development (PUD) approval which shall be obtained according to the provisions of section 30.50.50.
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Parking
The provision of parking is a significant cost for all forms of development. High parking requirements reduce the potential land available for development and increase the cost of development. Table 63 displays the parking requirements for residential developments in Gilroy. Parking requirements often pose a potential constraint on development. However, construction of recent developments, including below market-rate units, demonstrate that Gilroy’s existing parking requirements are appropriate and are not an unreasonable constraint.
In addition to these minimum standards, Gilroy has a maximum parking requirement. Per Gilroy City Code Section 30.31.30 (a), the maximum parking requirement is 10 percent above those listed in the parking schedule, and any parking spaces beyond the 10 percent must be offset with an equal amount of landscaping.
Table 63: Residential Parking Standards (2022)
Type of Residential Development Required Parking Spaces (off street) Single- and two-family dwellings Two stalls per dwelling unit, one of which shall be a covered carport or garage (each space must be at least 10 feet by 20 feet).
Multiple family dwellings One and one-half stalls per one-bedroom or two-bedroom dwelling unit and two stalls for each unit having three or more bedrooms or rooms which could be used as bedrooms, plus one stall for every four units for guests. One stall for each unit shall be covered with a garage or carport.
Accessory dwelling units (detached) One stall per unit* Downtown Specific Plan Residential Parking Requirements Residential units < or equal to 800 sq. ft One space per unit plus one guest space per six units Residential units > 800 sq. ft. 1.5 spaces per unit plus one guest space per four units Source: Gilroy City Code Chapter 30.
* A parking stall will not be required for an accessory dwelling unit that meets any of the following criteria:
1. The accessory dwelling unit is created as a result of the conversion of existing area of the single-family residence or existing permitted single-family residential accessory structure.
2. An existing single-family residential garage, carport, or parking structure is converted or demolished to accommodate an accessory dwelling unit in the same location.
3. The accessory dwelling unit is within 0.5-mile walking distance of a public transit station, such as a bus stop or train station.
4. The property is in an architecturally and historically significant historic district.
5. On-street parking permits are required in the area but not offered to the occupant of the residential accessory dwelling unit.
6. A car share vehicle is located within one block of the accessory dwelling unit.
Cumulative Effect of Development Standards
The City of Gilroy has permissive standards for development, especially in its Downtown Specific Plan area. The cumulative effect of development standards is not likely to constrain the ability of developers to achieve densities on site development. This is evident in the entitled
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and pending projects analysis (see Table 79). Additionally, many recent projects have been developed at the City’s standards and were able to achieve moderate and high densities. Multifamily developments in R-4 and Downtown Specific Plan Zone areas have consistently been approved or constructed to the maximum density (or higher pursuant to state Density Bonus Law or other provisions). Recently proposed or approved developments include:
• A four-story, 120-unit affordable development on 3.4-acre parcel in the R4 zone (35 du/acre)
• A 100-unit affordable development on a 3.9-acre parcel in the R4 zone (25 du/acre) • A 75-unit development on a 1.86-acre parcel in the Gateway District in the Downtown Specific Plan (40 du/acre)
• A 120-unit development on a 3.9-acre parcel in the R4 zone (30.8 du/acre) • A 268-unit development in the Downtown Expansion District in the Downtown Specific Plan on 6.8 acres (38.7 du/acre)
• A preliminary proposal for a 94-unit affordable development in the Downtown Gateway District on 2.9 acres (32.4 du/acre)
These and other entitled and pending projects include a total of 62 very low-, 401 low-, and 3 moderate-income units.
Developers, residents, and other stakeholders participated in the public engagement process for the Housing Element Update and provided suggestions for several aspects of the City’s development standards that could be changed to facilitate the production of housing. These included removing parking minimums, rezoning nonresidential areas to allow residential development, and increased density.
In the effort to reduce and/or eliminate constraints identified in Gilroy’s land use controls, the City will study and consider adopting a density bonus above state law (A - 12), amend the Zoning Ordinance to ensure that the General Plan maximum densities are achievable by the implementing zones (B - 2), review and revise development standards to ensure objectivity (B - 6), and evaluate development standards for all zones including the Downtown Specific Plan zones for potential constraints (B - 7). Program A - 10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size. Under Program A - 15 (ADU Ordinance Updates), the City will replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County and increase the allowable ADU floor area from 1,000 square feet to 1,200 square feet. Program E - 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) was added to allow 100 percent residential projects in the Downtown Expansion District and flexibility for non-residential uses in the First Street Mixed-Use Corridor, should projects meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
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Density Bonus
California Government Code Sections 65915 through 65918, known as the density bonus law, were enacted to encourage developers to build affordable housing by requiring local governments to provide meaningful incentives in exchange for those affordable units.
The City implements density bonuses through Section 30.46.40 of the Gilroy City Code. This section of the Gilroy City Code references and incorporates the state density bonus law. The City is fully compliant with state density bonus law, and knows how to properly implement it if requested by a developer. Multiple projects have utilized the density bonus, including the Jemcor Apartments (130 units), the Hecker Pass Apartments (100 units), and the First and Kern Apartments (120 units).
The City is including Program A - 12 to study and adopt a density bonus policy beyond what is required by state law to further encourage development of affordable housing. The program will specifically consider additional incentives for households with special needs such as large households, extremely low-income households, households with developmentally disabled individuals, and farmworker households.
Providing for a Variety of Housing Types
Table 64 shows the allowed uses within residential zones in the City’s Zoning Ordinance. In some instances, state law also affects the uses that are allowed in a zone. If there is a conflict, state law supersedes the Zoning Ordinance. For instance, SB 9 applies to many parcels in the R1 zone, and allows them to have up to four units, inclusive of an ADU and a junior ADU. A discussion of SB 9 is located in the Senate Bill 9 section of this constraints chapter.
As discussed in the following section, ADUs and junior ADUs are allowed in all residential zoning districts under Section 30.54 of the City’s Zoning Ordinance. Single-family residential zoning includes four districts: A1, RR, RH, and R1. Single-family units are permitted as a matter of right in all single-family residential districts. Single-family dwellings are permitted as a matter of right in all multifamily residential districts, except for mixed-use zones in the Downtown Specific Plan area. Single-family development in the R3, R4 and RH zones has the potential to prevent the achievement of the planned densities.
Multifamily residential zoning includes the R2, R3, and R4 districts. Duplexes are permitted as a matter of right in the R2, R3, and R4 districts. Duplexes are also allowed in the R1 district on corner lots of a certain size, when meeting certain conditions; however, this existing standard has been superseded by current state law (SB 9), which is more permissive. Condominiums and townhouses are permitted as a matter of right in the R3 and R4 districts; they are also permitted in the RH district when conforming to the density limits through clustering. Multiple family buildings are permitted as a matter of right in R3 and R4 districts.
The City of Gilroy has also established a Neighborhood District zone. Land in the Neighborhood District may be used as specified by a Master Plan or Specific Plan adopted for each Neighborhood District area. In addition to including 15 percent of the units as affordable,
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each development must provide compatible uses such as parks, schools, and neighborhoodserving commercial facilities.
The City is including several programs in the Housing Element to further encourage a variety of housing types across the City. One of these programs includes adoption of an affordable housing policy to encourage and incentivize development of affordable housing (Program A - 12). Another program may incentivize the production of missing middle housing, by allowing ministerial approvals for triplexes and fourplexes on corner lots in R1 and R2, zones that comply with the City’s objective design standards (Program A - 10). SB 9 facilitates the creation of up to four housing units, comprised of a duplex with an ADU and a junior ADU or two primary units plus an ADU and a junior ADU. Program A - 10 provides more flexibility than SB 9, by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or 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. Additionally, the City is considering a program to incentivize micro-units (Program E - 5).
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Table 64: Residential Use Table (2022)
Housing Types Permitted A1 RR R1 R2 R3 R4 RH ND
Accessory Dwelling Unit1-- X X X X X X *
Condominiums -- -- -- -- X X X *
Duplex -- -- X
2 X X X -- *
Mobile Home Park -- -- C C X X -- *
Multi-Family Building -- -- -- -- X X -- *
Residential Care Homes (> 6 Residents) -- C C C C C C * Residential Care homes (≤ 6 residents) -- X X X X X X * Single-Family Dwelling or Modular Home X
4 X X X X X X *
Townhouse** -- -- -- -- X X X *
Emergency Shelters C C C C C C C *
Supportive and Transitional Housing3 X X X X X X X *
Source: City of Gilroy Zoning Ordinance, Section 11. 10.
Notes:
X = Unconditionally Permitted; C = Permitted only with conditional use permit granted by planning commission; -- Not permitted * = Refer to master plan or specific plan adopted for the neighborhood district area in which the property is located. **= Program B - 7 is included to remove reference of condominium ownership in the definition of Townhome. 1 Accessory dwelling unit(s) and/or junior accessory dwelling units may be allowed subject to compliance with the regulations prescribed in Article LIV. 2 Notwithstanding units permitted by SB 9, a duplex dwelling is permitted when all of the following conditions are met:
(a) The duplex dwelling shall be located on a corner lot only; and (b) The corner lot shall have a minimum area of 8,000 square feet and be so designated for a duplex unit on a tentative and final map; and (c) The duplex shall not increase the overall density within any given land subdivision beyond the maximum of 7.25 dwelling units per net acre. 3 Supportive and/or transitional housing that serves more than six individuals, provides on-site services, and is licensed by the state as a group home shall only be allowed upon the granting of a conditional use permit.
4 One residential dwelling unit may be permitted on an A1-zoned parcel that has a minimum size of 20 acres or more. Subdivision of land for further development is not permitted without rezoning to another zoning district that implements the General Plan land use map.
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Accessory Dwelling Units
ADUs provide additional housing opportunities for people of all ages and economic levels. The City of Gilroy permits ADUs on any residential parcel in any zoning district that permits residential or residential mixed-use development.
The City submitted its current ADU ordinance (Chapter 30.54) to the state in 2020 and worked with the state to ensure its compliance with state law at that time. The City will continue to work with the state to ensure future updates to the ADU ordinance (Program A - 15) remain in compliance when the legislature makes changes to ADU regulations (e.g., Government Code Section 65852.2).
The City is also including multiple programs to monitor, incentivize, and encourage ADU development across the City. This includes monitoring and tracking ADUs and their affordability (Program A - 6), adopting a set of pre- designed plans (Program A - 7), financial incentives for ADUs restricted to lower-income households (Program A - 8), and encouraging the development of ADUs through education and marketing (Program G - 4). In addition, through Program A - 15 (ADU Ordinance Updates), the City will replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County and increase the allowable ADU floor area from 1,000 square feet to 1,200 square feet.
Senate Bill 9
Effective January 1, 2022, SB 9 requires ministerial approval of a housing development with no more than two primary units in a single-family zone, the subdivision of a parcel in a singlefamily zone into two parcels, or both. The City adopted two objective design standard policies for SB 9 projects on December 13, 2021, and revised them effective April 4, 2022, following additional interpretation by the state. Consistent with state law, the adopted standards are purely objective in nature, providing information to property owners on the SB 9 process and associated standards in Gilroy. The City’s SB 9 2-Unit Objective Design Standards Policy and the SB 9 Lot Split Objective Design Standards Policy both closely follow state law. The City website has readily available information regarding ADU and SB 9 applicability and standards.
The City’s SB 9 Policy and website will be updated under Program A - 10 noted below.
SB 9 facilitates the creation of up to four housing units, comprised of a duplex with an ADU and a junior ADU or two primary units plus an ADU and a junior ADU. The City is including Program A - 10 to provide more flexibility than SB 9 by allowing triplexes and fourplexes as an alternative design to the traditional duplex with an ADU or a junior ADU. This program will also encourage the development of missing middle housing throughout the City, including highresource areas primarily comprising detached single-family residences.
Emergency Shelters
An emergency shelter is housing with minimal supportive services for unhoused persons that is limited to occupancy of 180 days or less per calendar year by an unhoused person. No individual or household may be denied emergency shelter because of an inability to pay.
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The City’s emergency shelter requirements are currently provided in the Performance Standards section of the Zoning Ordinance (Chapter 30.41) and the Residential Use Tables in Section 30.11.10. Current City Code does not meet state law requirements (Government Code Section 65583) and will therefore be amended through Program E - 3. These zoning amendments will be processed during the same meeting in which the City is adopting the Housing Element Update. The proposed zoning amendment will modify the definition of emergency shelters to include other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care.
Currently, emergency shelters may be permitted in any zone with a conditional use permit; however, emergency shelters in the agriculture and residential zoning districts may only serve families. Through Program E - 3, the City will allow emergency shelters by-right in the City’s R4 and new mixed-use zone along First Street by removing the conditional use permit requirement in those zones. Program E - 3 will also remove the reference to families and amend standards related to on-site management, waiting and intake areas, and parking based on the number of staff only.
Based on the 2022 Point-in-Time Count, an estimated 208 homeless persons are located in Gilroy. At 200 square feet per bed, 208 beds could be accommodated in facilities totaling approximately 41,600 square feet of floor area to accommodate the City’s estimated unsheltered need.
The City has sufficient properties in the R4 and mixed-use zones to accommodate Gilroy’s unsheltered population. The R4 zone covers just over 16 acres on 25 parcels, including five sites and 13.7 acres currently identified in the sites inventory. The R4 zone is located in the transit accessible areas of the City and is within walking distance to support services (e.g., South County Compassion Center and Saint Joseph’s Family Center Food Center). The First Street Mixed-Use zone district encompasses approximately 71 acres on 87 parcels, including four sites and 3.1 acres currently identified in the sites inventory. The mixed-use zone is located along the First Street corridor, which contains a range of services. Surrounding uses and permissive development standards in the R4 and forthcoming mixed-use zone will make it feasible to develop or convert existing structures to shelter use in these two zones. In addition to the development of vacant parcels in the R4 and mixed-use zone, adaptive reuse of existing structures is another option for establishing shelter facilities without redevelopment of the properties.
Low Barrier Navigation Centers
Low barrier navigation centers (LBNC) are service-enriched shelters that are focused on moving individuals into more permanent housing. LBNCs provide temporary housing while case managers connect individuals experiencing homelessness to shelter, public benefits, and health services. Under the Housing for Homeless Act (2019), local governments are required to allow LBNCs by-right in areas zoned for mixed uses and nonresidential zones that permit multifamily uses.
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Gilroy does not currently explicitly allow LBNCs in any zone, though this would not prevent their development if an application for one were received. Per Program E - 4, the City will amend its Zoning Ordinance pursuant to Government Code Section 65583 to allow for LBNCs by-right in areas zoned for mixed uses and nonresidential zones that permit multifamily uses.
Modular Homes
The permitting of modular, or manufactured, housing on foundations is subject to the same development standards as conventional single-family units, consistent with Government Code Section 65852.3. The City of Gilroy permits modular homes by right in all residential zones that permit single-family dwellings by right.
Transitional and Supportive Housing
Supportive or transitional housing that serves up to six individuals is allowed by right in all residential zones. Supportive or transitional housing that serves more than six individuals, provides on-site services, and is licensed by the state as a group home is allowed in any zone upon the granting of a conditional use permit. While the conditional use permit may be a potential constraint on the development of group homes with more than six residents, the City has added Program E - 13 which will amend its Zoning Ordinance pursuant to Government Code Section 65651 to allow supportive housing by-right in zones where multifamily and mixed uses are permitted. The City has also added Program E - 10 to evaluate and address the potential constraint regarding the permit requirements for group homes in medium- and higher-density residential zones. The City has objective standards for these homes to add certainty to the development process. As a part of Program B - 6, the City’s objective standards will be reviewed and modified as necessary to ensure they are purely objective in nature.
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. SROs 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 unhoused, and disabled persons. SRO units are not specifically defined or included in the City’s Zoning Ordinance; however, there is precedence for their allowance within the City.
The City of Gilroy has one SRO development, which opened in 2016. The 25-unit SRO project, the Gilroy Studios (26 units including a manager’s unit), was added to the Sobrato Transitional Apartments, aimed at serving the unhoused population in Gilroy. This project shows that there are no demonstrated constraints on the development of SROs in the City.
Residential Development Ordinance
The Residential Development Ordinance (RDO) was first established in 1979 to monitor the amount of residential growth in the City by limiting the number of dwelling units that could be built in a 10-year period. The RDO is a potential constraint on development; however, it has been made null by provisions of SB 330 and SB 8, both effective through 2030. The RDO
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limitations are not currently utilized by the City and will not be included in the City’s new zoning ordinance, and thus do not pose a constraint to development. Program B - 1 requires the removal of the RDO as a part of the comprehensive zoning update.
Affordable Housing Policy
The City does not have an inclusionary policy in effect for the whole City. Although the City currently has an inclusionary housing requirement for developments in its Neighborhood District areas, the policy is limited to property with a Neighborhood District land use designation. The Neighborhood District Policy requires developments to construct a minimum of 15 percent of its units at affordable prices. Incentives for constructing affordable housing in the Neighborhood Districts include density bonuses, reduction in City standards (including zero-lot line developments, clustered housing on smaller lots, and smaller unit sizes), and reduction in road widths. All affordable units must be developed on-site and there is no option for an in-lieu fee. The lack of an in-lieu fee is a constraint to development and does not comply with Government Code Section 65850(g). Program A - 5 is included to revise the Neighborhood District Policy to ensure it is fully compliant with state law.
Similarly, though the Residential Development Ordinance (RDO) growth limits are no longer in effect due to state law, the RDO Exemption Policy was an effective tool for incentivizing affordable restrictions in a development. Portions of the RDO Exemption Policy were set up similarly to an inclusionary housing ordinance, by including resale controls and rental price controls for a minimum of 55 or 30 years, respectively, and specifying a minimum percentage of units for different affordability categories, as follows:
• At least 40% of units affordable to households below 60% of the AMI • At least 15% of units affordable to households between 60% and 80% of the AMI • At least 15% of units affordable to households between 80% and 100% of the AMI • No more than 30% of the units affordable to households between 100% and 120% of the AMI
Both the Neighborhood District Policy and the RDO affordability standards can be used as a benchmark for an affordable housing policy adopted by the City (Program A - 11). The City also understands that inclusionary housing often raises the cost of development by mandating a price subsidy. An inclusionary housing policy is a potential constraint on development.
Urban Growth Boundary and Urban Service Area
Per the City’s General Plan, “The Urban Growth Boundary (UGB) applies to land within the Planning Boundary/Sphere-of-Influence that is intended for urbanization at some point in the future. The UGB indicates the extent and direction of the City's future urban expansion and capital improvements planning. Lands outside the UGB are to be preserved for rural and agricultural uses.”
In 2016, voters passed Measure H, resulting in the UGB. The intent of the UGB is to protect agriculture and open space in the surrounding areas outside of the UGB. Urban development
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is not allowed outside of the UGB; only uses allowed in the open space designation per the General Plan are allowed. Until December 31, 2040, lands outside the UGB can only be redesignated by a vote of the people, except for the following exceptions in which the City Council determines that doing so is necessary to comply with state law regarding the provision of housing for all segments of the community and makes each of the following findings based on substantial evidence, per the General Plan:
• That the land proposed to be brought within the UGB and/or redesignated is immediately adjacent to (i) the existing UGB; and (ii) available water and sewer connections; and
• That the proposed development will consist primarily of low- and very low-income housing pursuant to the Housing Element;
• That there is no existing vacant or undeveloped residentially designated land within the UGB to accommodate the proposed development and it is not feasible to accommodate the proposed development by redesignating lands within the UGB for low- and very low-income housing; and
• That the proposed development is necessary to comply with state law requirements for the provision of low- and very low-income housing and the area of land within the proposed development will not exceed the minimum area necessary to comply with state law.
An analysis by the City attorney at the time of the vote estimated that this would yield a reduction of 2,929 potential units compared to the City’s previous General Plan and 4,344 units to the draft General Plan update at the time.35
The City also has an Urban Service Area (USA). The USA is the land to which the City is committed to providing basic infrastructure and services for urban development. The USA is generally coterminous with the UGB. The City accepts applications for USA modifications in the month of July only. The USA is reviewed and amended by the Local Agency Formation (LAFCO) if desired by the City. At the time of the drafting of this document, the City is currently waiting for LAFCO’s decision on an USA amendment application for property north of Gilroy. The City also received an applicant request to amend the USA boundary south of Gilroy. These applications are a good indication of developer interest in Gilroy. The USA acts as a potential constraint to development within City boundaries, which has more permissive development standards than the unincorporated County. Despite this potential constraint, the City has capacity for new housing within the USA and UGB, and has increased residential densities in the Gilroy 2040 General Plan to accommodate any capacity lost under Measure H.
Furthermore, the UGB does not restrict the number or timing of permits within the USA or UGB.
35City Attorney’s Impartial Analysis of Measure H. https://sccvote.sccgov.org/sites/g/files/exjcpb1106/files/E110%20- %20Measure%20H.pdf
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Development Review and Permitting Procedures
The efficiency and timing of a jurisdiction’s processes for review and approval of residential development has a significant impact on the amount and pace of housing construction. The procedures for development review and permitting in the City of Gilroy are described below.
Permit Processing
The requirements of the permit processing procedure have the potential to act as a constraint to the development of housing. The time and uncertainty of the review and revision cycle can contribute significantly to the overall cost of the project, ability to obtain and maintain funding, and the cost of each dwelling unit. Certainty and consistency in permit processing procedures and reasonable processing times are important to ensure that the developmental review and approval process does not act as a constraint to development by adding excessive costs or discouraging housing development.
In 2020, the City awarded a contract to Tyler Technologies for the purchase and implementation of a Land Management System. The Land Management System helps to manage land development applications, special event permits, code enforcement cases, and fire prevention/pre-treatment/hazardous materials management. The City began configuring the system in 2021 and intends to “go live” with the public by the end of 2023. This Land Management System will modernize the City's application processes by allowing online application submittals and coordinated digital plan review. The system will automate many steps in the existing permitting process and help mitigate potential constraints caused by a lengthy permitting process. Applicants will be able to check the status of their permit online and staff will have greater control over the workflow.
Development Community Stakeholder Outreach
The City evaluates its permitting and processing procedures biannually. It consults builders and other parties engaged in housing development activities to identify concerns and potential constraints in the permit processing procedure. The City will continue to hold meetings to maintain a dialogue with the development community. Topics discussed at previous roundtable meetings have included bicycle parking, objective design standards, and a potential update to the City's Downtown Specific Plan. Meetings were held virtually in 2020 and 2021, and will be held in person or virtually in the future, to accommodate a wide variety of participants.
Zoning Ordinance Streamlining
In 2021, the City began a comprehensive update of the City's Zoning Ordinance to ensure that it is compliant with the 2040 General Plan. Updates will include changes to help streamline the permit process, including but not limited to creating an administrative use permit process, as currently all use permits require a public hearing before the Planning Commission. City staff is also recommending a more transparent and streamlined process for reviewing and approving applications involving a historic resource (e.g., residential additions). Staff will also be recommending streamlined processing for planned development projects that do not require
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a zoning amendment or General Plan amendment. Program B - 5 includes the above changes to streamline the permitting process.
Planning Permit Processing Procedure
The typical planning permit process follows the steps below.
1. Optional Pre-Application Submittal Meeting
2. Application Submittal
3. Input from Other Departments
4. Status Letter to Applicant
5. Plan Revision, as needed (if yes, return to Step 2)
6. Planning Staff Analysis
7. Project Decision, including conditions of approval if applicable The project decision may be appealed, which would result in project review by either the Planning Commission or City Council, depending on the permit.
Administrative versus Discretionary Planning Permits
As discussed previously, most single-family residential projects can be approved ministerially.
Single-family hillside homes and multi-family residential projects that comply with objective development and design standards are approved through an administrative planning staff review process, without the need for public hearings, unless another entitlement tied to the project would require a public hearing.
However, if an applicant wants to change the zoning or land use designation of a particular property, the project will require review and approval by the Planning Commission and City Council, respectively, at separate public hearings. Similarly, if an applicant wants to request flexible development standards through the Planned Development process, the application currently requires public hearings before the Commission and Council. Under Program B-5, the Zoning Ordinance update will include a recommendation by staff to streamline the Planned Development approval process, so that projects that do not require a zoning amendment or General Plan amendment can be approved by the Planning Commission rather than requiring review and approval by both the Planning Commission and City Council. This streamlined process would reduce the review time by approximately two months.
Permit Processing Time
The processing time needed to obtain development permits and required approvals can act as a constraint to development and contribute to the high cost of housing. Permit processing times are partially dependent on the number of staff available to review projects. When staffing levels drop due to attrition (e.g., voluntary termination) or cutbacks (e.g., layoffs), permit processing times increase. In 2017, the City hired Management Partners to complete an organizational review of the Community Development Department, including
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recommended staffing levels. Many of the report’s recommendations, such as over-thecounter plan checks, were implemented to reduce permit processing times. The report also recommends that the City reevaluate staffing levels on a regular basis to determine when additional staff resources are needed to meet service demand.
The permit processing times for various permits are shown in Table 65. The level of project review depends on the type of project. Most single-family projects require only a zoning clearance from the Planning Department as part of the ministerial building permit process.
Single-family residential hillside projects can be approved by planning staff through an administrative architecture and site review permit. Similarly, most multifamily (no subdivision map), commercial, industrial, and professional office projects can be approved administratively. These staff-level discretionary planning projects typically take three to six months (depending on application completeness) to obtain planning entitlements, while applications for building permits take another three to four months. Projects that require a tentative subdivision map require Planning Commission review and City Council approval. The subdivision review and approval process typically takes approximately one year to complete, depending on the required California Environmental Quality Act (CEQA) documentation. Once final maps are recorded, building permit applications may be filed, which typically takes another three to four months for approval.
Table 65: Permit Processing Time (2022)
Permit Type Length of
Approval Approval Body
Building Permit 3-4 months* Issued by Building and Safety Division Conditional Use Permit 3-4 months Planning Commission
Variance 3-4 months Planning Commission
Zone Change / Zoning
Amendment
6-12 months City Council
General Plan Amendment 6-12 months City Council
Architecture and Site Review 3-6 months Community Development Director (or designee)
Planned Unit Development 6-9 months City Council
Tentative Tract Map 6-9 months City Council
Negative Declaration 6-9 months Same as project approval body Environmental Impact Report 12 months Same as project approval body Final Subdivision Map 2-4 months City Council
Parcel Map 1-2 months City Council
Source: City of Gilroy, 2022
*Pursuant to AB 2234, must determine whether a post-entitlement phase permit application is complete within 15 business days of submittal. Furthermore, the City must approve a post-entitlement phase permit application or return a full set of written
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comments to the applicant: (1) within 30 business days of the application being deemed complete if the housing development project has 25 or fewer units; or (2) within 60 business days if the project has more than 25 units, unless otherwise exempted by law.
The Santa Clara County Planning Collaborative collected data through a survey to provide a regional comparison of permit processing times for jurisdictions across the County. Table 66 displays the permit processing time in months for various types of residential permits. Gilroy has similar or slightly quicker processing times, compared to other County jurisdictions for most permits. For example, the City has a shorter processing time on discretionary permits that go to City Council (5–6 months) than all jurisdictions except two.
Table 66: Permit Processing Time, Months, Regional Comparison (2021-2022) Jurisdiction ADU
Process
Ministerial
By-Right
Discretionary
By-Right
Discretionary
(Hearing
Officer if
Applicable)
Discretionary
(Planning
Commission)
Discretionary
(City Council)
Gilroy 1 - 2 1 - 2 2 - 4* N/A 4 - 5 5 - 6
Campbell 1 1 3 N/A 5 8
Cupertino 1 - 3 1 - 6 2 - 4 2 - 4 3 - 6 6 - 12
Los Altos Hills 1 - 2 0.5 - 2 2 - 3 3 - 4 4 - 6 5 - 8
Los Gatos N/A 1 - 2 1 - 2 2 - 4 4 - 6 6 - 12
Milpitas 1 - 3 1 - 3 2 - 4 3 - 4 4 - 6 6 - 12
Monte Sereno 0.75 0.75 1 1 - 2 1 - 2 1 - 2
Morgan Hill 1 - 2 1 - 2 2 - 3** 2 - 3 4 - 6 4 - 6
Mountain View 3 - 5 4 - 6 2 - 3 6 – 18** N/A 12 - 24
San Jose 2 1 - 3 7 7 7 - 11 5 - 12
Santa Clara 0 - 1 0 - 1 0 - 3 4 - 9 6 - 9 6 - 12
Saratoga 1 1 - 2 2 - 3 N/A 4 - 6 6 - 12
Sunnyvale 1 - 3 1 - 3 3 - 6 6 - 9 9 - 18 9 - 18
Unincorporated
County 4 - 6 6 - 8 9 - 12 12 - 15 15 - 18 15 - 18
Source: Cities Association of Santa Clara County, Planning Collaborative. 2022. *Gilroy does not have "discretionary by-right" permits This timeline represents "Discretionary (Staff)”. This timeline also depends on level of CEQA review.
**Entitlements only
Under Program B - 5 the City will consider streamlining the Planned Development approval process, so that projects that do not require a zoning amendment or General Plan amendment can be approved by the Planning Commission rather than requiring review and approval by both the Planning Commission and City Council. This should reduce the permit processing time by approximately two months.
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Objective Design Standards Policy
In October 2021, the City of Gilroy adopted the Mixed-use Residential and Multi-Family Residential Objective Design Standards Policy. The objective design standards were created to ensure the City’s compliance with the Housing Accountability Act. The objective design standards apply to residential projects that are multifamily or mixed-use. Consistent with state law, the standards are purely objective in nature. The objective design standards are also intended to increase consistency in decision making, minimize applicant delays, better utilize limited staff resources, and promote good design principles that help ensure that Gilroy is an attractive place to live and visit.
Program A - 10 will incentivize the production of middle-income housing by allowing ministerial approval of triplexes and quadplexes, on corner lots in the R1 and R2 zones, that meet objective design standards.
Planning, Building, and Development Impact Fees
Housing developments are typically subject to three types of fees: planning permit fees, building permit fees, and development impact fees. The fees are charged by the City and other agencies to cover administrative processing costs associated with development and help ensure the provision of adequate services.
Fees vary based on the type of application necessary for project approvals. The processing fees are typically recouped through the rent or sales price, so excessive fees may ultimately affect the affordability of housing. It is best practice to periodically conduct user fee studies to ensure the City is recouping the cost of providing services in areas for which fees apply. In May 2022, the City completed a Comprehensive User Fee Study to update the City’s user fees schedule, which had been last updated and adopted in 2014. City staff advertised the proposed fee increases to the City’s list of development professionals, including local builders and contractors. Following community meetings and public hearings with the City Council, a new fee schedule was adopted, effective August 1, 2022. There was no public opposition to the proposed fees, which may be an indication that the fees remain reasonable. The most current fee schedule is available on the City’s website. Planning related fees for the City of Gilroy are shown in Table 67.
Table 67: Planning Related Fees (August 2022)
Applications Fee
Annexation $19,632 + actual attorney fees
Architectural Site Review – Residential
New Construction
$8,294/first lot + $592/additional flat land tract plan + $1,203/additional hillside lot
New Hillside Lot - SFD $4,532
Additions $2,648
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Applications Fee
Development Agreement $19,081 minimum deposit (hourly rate invoiced against initial deposit, plus $10,000 deposit for attorney fee)
Environmental
Categorical Exemption $536.00
Initial Study/ND/MND, non-complex project
(Staff Review)
$12,113.17 (minimum)
Environmental Impact Report (staff review) $23,739.79 (minimum) EIR/MND/Initial Study (Consultant Contract)
Actual contract cost plus 15% of contract cost + 15% staff review + 10% contingency
General Plan Map Amendment $15,604/first 10 acres + $150/each additional 10 acres, plus attorney fees and publishing costs
Planned Unit Development $16,203
Tentative Parcel Map $10,253 (up to 4 lots), plus publishing Tentative Tract Map $19,036/(5-12 lots) + $302/additional flat land lot + $877/additional hillside lot, plus publishing costs
Urban Service Area Extension $29,188/first 10 acres + $423/each additional 10 acres + publishing1 + LAFCO fees
Variance $5,470, plus attorney fees and publishing costs Zoning Map Amendment $11,884/first 10 acres + $150/each additional 10 acres, plus attorney fees and publishing costs
Source: City of Gilroy. Effective August 1, 2022. (https://www.cityofgilroy.org/DocumentCenter/View/12973/2022-- Comprehensive-User-Fee-Schedule-Effective-August-1-2022)
1. For those projects involving multiple public hearing applications, the publication costs will be reduced to a single charge when it is determined, and reasonably possible, that the public-hearing applications can be processed together.
The City of Gilroy Public Works Department provides a fee schedule for development impact fees. Impact fees are updated each fiscal year. The 2022 impact fee schedule, which runs from July 1, 2022, to June 30, 2023, was updated to reflect the fees adopted as part of the 2022 Comprehensive User Fee Study discussed above. Development impact fees add to the cost of residential development; however, they can be a cost-effective mechanism for financing the new infrastructure (e.g., water, sewer, roads) 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 of Gilroy imposes a number of development impact fees, including for public facilities, sewer development, storm development, traffic, and water development. Typically, fees per unit for high-density residential are lower than fees per unit for low-density residential.
Development fees for the City of Gilroy are shown in Table 68.
In 2022, the development impact fee was $15.82 per square foot for ADUs that are greater than 750 square feet. Thus, the maximum impact fee for a 1,000-square-foot ADU would be $15,820. In 2022, ADU costs range from approximately $50,000 (conversion of habitable, already-finished space) to $120,000 (new construction). In this case, the impact fee represents 13 percent ($120,000) to 31 percent ($50,000) of the total cost of development. Comparatively,
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Gilroy’s impact fee is 34 percent less than the City of Morgan Hill, which charges $21,209 for the same size (1,000 square foot) detached ADU. 36
The impact fees for ADUs in Gilroy are calculated proportionately in relation to the ADU square footage and the square footage of the primary dwelling unit; however the fees may still create a constraint on ADU production. The City will review ADU impact fees as a potential constraint for affordable housing through Program A - 8.
Table 68: Development Impact Fees (2022)
Fee Type Fee
Public Facilities Impact Fees
Residential – Low Density $22,617/unit
Residential – High Density $19,028/unit
Sewer Development Impact Fees
Residential – Low Density $13,262/unit
Residential – High Density $7,176/unit
Storm Development Impact Fees
Residential – Low Density $598/acre
Residential – High Density $940/acre
Traffic Impact Fees
Residential – Low Density $13,012/unit
Residential – High Density $10,548/unit
Water Development Impact Fees
Residential – Low Density $4,556/unit
Residential – High Density $1,843/unit
ADUs ADU impact fees are not assessed for the first 750 square feet. Any floor area above 750 square feet will be assessed an impact fee of $15.82/square foot
Source: City of Gilroy. Fees to Build Effective July 1, 2022.
In late 2021/early 2022, the Santa Clara County Planning Collaborative collected data through a countywide survey to provide a regional comparison of fees for different types of development. Total fees per unit for single-family, small multifamily, and large multifamily collected at that time are shown in Table 69. Generally, Gilroy’s fees are comparable to the region. For single-family fees, Gilroy was the sixth least expensive of the thirteen jurisdictions with listed fees. For small multifamily units, Gilroy was seventh of the twelve listed fees, and for large multifamily Gilroy was eighth of twelve listed fees. 36 https://www.morganhill.ca.gov/DocumentCenter/View/42497/Detached-ADU-checklist-for-Morgan-Hill---FINAL-with-ImpactFees?bidId=
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Table 70 displays a regional comparison of fees as a percentage of total development costs. At the time of comparison, Gilroy's single-family fees (1.5 percent of total development) rank sixth least expensive out of fourteen jurisdictions listed. For small multifamily fees, Gilroy ranks seventh out of twelve jurisdictions listed (5.3 percent), and for large multifamily fees, Gilroy is eighth of the twelve jurisdictions listed (5.6 percent).
Table 69: Total Fees per Unit, Regional Comparison (2021-2022) Jurisdiction Single-Family Small Multifamily Large Multifamily Gilroy $69,219 $40,195 $39,135
Campbell $72,556 $20,599 $18,541
Cupertino $136,596 $77,770 $73,959
Los Altos Hills $146,631 N/A N/A
Los Gatos $32,458 $5,764 $3,269
Milpitas $77,198 $74,326 $59,740
Monte Sereno $33,445 $4,815 $4,156
Morgan Hill $55,903 $41,374 $36,396
Mountain View $90,423 $69,497 $82,591
San Jose $9,919 $23,410 $23,410
Santa Clara $72,034 $7,299 $3,048
Saratoga $64,272 $17,063 $15,391
Sunnyvale $133,389 $126,673 $98,292
Source: Santa Clara County Planning Collaborative. 2022.
Table 70: Fees as Percentage of Total Development Costs, Regional Comparison (2021-2022) Jurisdiction Single-Family Small Multifamily Large Multifamily Gilroy 1.5% 5.3% 5.6%
Campbell 2.6% 2.7% 2.6%
Cupertino 2.9% 10.3% 10.5%
Los Altos Hills 3.1% N/A N/A
Los Gatos 1.2% 0.8% 0.5%
Milpitas 2.8% 9.8% 8.5%
Monte Sereno 0.7% 0.6% 0.6%
Morgan Hill 2.0% 5.5% 5.2%
Mountain View 3.3% 9.2% 11.8%
San Jose 0.4% 3.1% 3.3%
Santa Clara 2.6% 1.0% 0.4%
Saratoga 1.4% 2.3% 2.2%
Sunnyvale 4.8% 16.8% 14.0%
Unincorporated County 0.9% N/A N/A
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Source: Santa Clara County Planning Collaborative. 2022.
On average, Gilroy’s fees are comparable to surrounding jurisdictions in Santa Clara County.
Fees may represent a barrier to the construction of housing as they increase the minimum cost of development for a dwelling unit and may be passed onto the purchaser or renter.
However, the City’s fees are not excessive and do not constitute unreasonable constraints on the production of housing, as the City has seen robust housing production during the 5th RHNA Cycle.
School Fees
In addition to the costs above, the Gilroy Unified School District charges development fees.
The entirety of Gilroy is served by the Gilroy Unified School District. As of 2018, the residential development fees for the school district were $3.79 per square foot.37 The City does not have control over these fees, but the fees have not constrained the development of housing in recent years.
Transparency of Development Standards
The City of Gilroy provides its development standards on the City website. The Gilroy City Code, General Plan, permit and development fees, affordability requirements, and zoning maps can all be accessed on the City’s website. This includes the most recent Comprehensive User Fee Study. City staff are available to assist applicants or interested parties that do not have internet access. The City is in compliance with requirements set forth in AB 1483.
Under Program B - 4 (Public Fees, Standards, and Plans Online) and 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).
SB 35 Approval Procedure
SB 35 (2017) requires a Streamlined Ministerial Approval process for developments in jurisdictions that have not made sufficient progress towards their Regional Housing Needs Allocation. Program B - 3 establishes and implements expedited permit processing for qualifying affordable housing projects, pursuant to SB 35 and SB 330.
As of August 2022, the City of Gilroy has not received an SB 35 application. If the City were to receive an SB 35 application, it would follow state law procedure. The following permitting procedure that the City will follow is from the Streamlined Ministerial Approval process guidelines outlined by HCD.
After receiving a notice of intent from the applicant intending to submit an application for a Streamlined Ministerial Approval process, the following steps must occur:
37 Gilroy Unified School District. Developer Fee Justification Study. 2018. https://resources.finalsite.net/images/v1529100379/gusdk12caus/qszb2awtcdnj2lpzxcc8/DeveloperFeeJustificationStudy.pdf.
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1. The City will complete the tribal consultation process outlined in Government Code Section 65913.4(b) prior to accepting an application for a Streamlined Ministerial Approval process.
2. Once the tribal consultation process is complete, the City will begin processing the submitted application for a Streamlined Ministerial Approval process.
3. The City will perform a determination of consistency with regard to objective zoning, subdivision, and design review standards.
4. The City will perform a determination of consistency with density requirements.
5. The City will complete the design review within the following timeline, following acceptance of the application in item #2 above:
• Within 60 calendar days of submittal of the application to the City if the development contains 150 or fewer housing units.
• Within 90 calendar days of submittal of the application to the City if the development contains more than 150 housing units.
6. The City will determine whether the application for Streamlined Ministerial Approval complies with all applicable requirements, and will approve or deny the application, within the following timeline:
• Within 90 calendar days of submittal of the application to the City if the development contains 150 or fewer housing units.
• Within 180 calendar days of submittal of the application to the City if the development contains more than 150 housing units.
Under Program B - 3 (SB 35 Permit Processing and SB 330 Compliance), the City will establish and implement expedited permit processing for qualifying affordable housing projects, pursuant to SB 35 and SB 330 and create checklists and instructions for reviewing and approving SB 35 and SB330 projects. The City will also amend the Zoning Ordinance to require that any demolished residential units located on a Sites Inventory property be replaced pursuant to Government Code Section 65915(c)(3) and Government Code Section 65583.2(g).
The City will also add information regarding the expedited permit process on the City’s website.
Housing for Persons with Disabilities
The US Census Bureau defines persons with disabilities as those with a long-lasting physical, mental, or emotional condition. Certain conditions affect a person’s housing choices, whether it creates a need for accessibility, living spaces for caretakers, transit access, or other.
Under Program E - 10 (Development and Rehabilitation of Housing for Persons with Disabilities), the city will evaluate and revise as necessary the permit requirements for residential care homes (i.e., group homes) in medium- and higher-density residential zones.
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Reasonable Accommodation Procedures
The City of Gilroy has a Reasonable Accommodation Procedure adopted in 2014 outlined in Section 30.50.23 of the Zoning Ordinance. A request for reasonable accommodation may be made by any person with a disability, their representative, or any entity when the application of a zoning law or other land use regulation, policy, or practice acts as a barrier to fair housing opportunities.
Requests for reasonable accommodation shall be reviewed by the Community Development Director or their designee if no other approval is sought. Requests for reasonable accommodation submitted for concurrent review with another discretionary land use application shall be reviewed by the authority responsible for reviewing the discretionary land use application, in conjunction with that application. The written decision to approve or deny a request for reasonable accommodation shall be based on consideration of the following factors:
• Whether the housing will be used by a disabled individual. • Whether the request for reasonable accommodation is necessary to make specific housing available to an individual with a disability.
• Potential impact on surrounding uses.
• Physical attributes of the property and structures.
• Alternative accommodations which may provide an equivalent level of benefit. • 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.
The reviewer must make a written determination within 45 days of receipt of a complete application and either approve, approve with modifications, or deny a request for reasonable accommodation.
The City provides Community Development Block Grant (CDBG) funding to Rebuilding Together Silicon Valley to help provide accessibility improvements to very low-income households.
The City supports equal access to housing for persons with disabilities and will evaluate its reasonable accommodation standards and procedures as a potential constraint to accommodating persons with disabilities (Program E - 10).
Definition of Family
The Gilroy City Code defines family as “one (1) 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.
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Building Code
The City of Gilroy has adopted the 2022 California Building Code, adopted from the 2021 International Building Code, with local amendments. When development plans are submitted for plan check, they are reviewed by the Building and Safety Division for compliance with the California Building Code. The local amendments were adopted with recommendation by the City of Gilroy chief building official. Modifications and changes are reasonable and necessary due to local climactic, geological, or topographical conditions or are otherwise permitted by state law. Most notably, the City has incorporated electric vehicle (EV) charging requirements for new construction, roofing requirements in Wildland-Urban Interface Fire Areas, and grading requirements for erosion control. While these requirements may add to the cost of construction of residential units, they are necessary to help mitigate the risk of damage by wildfire and contribute to sustainability goals.
Local amendments to the building code can be found in Gilroy City Code Chapter 6, Article II, Section 6.7. Amendments are minor changes, and no modifications pose constraints to development.
Under Program B - 9 (Building Department webpage), the City will update the Building Department webpage to include information required pursuant to AB 2234, including but not limited to specific information required for an application to be considered complete; example of a complete, approved application; and example of a complete set of post-entitlement phase permits for accessory dwelling units, duplexes, multifamily projects, mixed-use projects, and townhomes. This should help reduce applicant time and cost and increase certainty in the building permit process.
Code Enforcement
The City’s Code Enforcement staff responds to potential violations of the Gilroy City Code.
There are two code enforcement officers. Code enforcement is reactive and officers respond to complaints reported by residents. Common violations include abandoned or dangerous buildings, blighted property and maintenance concerns, unsafe living conditions, construction without land use/zoning permits, and illegal tree removal. The City provides CDBG funding to Rebuilding Together Silicon Valley to operate and expand the Home Repair and Accessibility Modification program in Gilroy.
On- and Off-Site Improvement Requirements
The City requires on- and off-site improvements for new developments, which are intended to meet health and safety requirements of the community. Residential developers are responsible for constructing road, water, sewer, and storm drainage improvements on new housing sites. The City’s General Guidelines for development were last updated in August 2014. They include local street rights-of-way and curb-to-curb widths, sanitary sewer and storm drainage lines, street lighting, erosion control, landscaping, and easements.
Notably, all streets must be designed in accordance with accepted engineering principles and conform to the design standards, the standard details, and the complete streets resolution
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approved by City Council. All exceptions to the General Guidelines must be approved by the City Engineer prior to the approval of a tentative map. These requirements are similar to those of other jurisdictions and are not considered an unreasonable constraint on development.
Although requirements for on- and off- site improvements do add to the overall cost of the development, they are necessary to ensure provision of vital infrastructure services to residents. Based on the recent entitled and pending housing types (see Table 79), the City’s site improvement requirements do not create an undue constraint on development.
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The following example highlights the requirements for a 29-unit single-family redevelopment project, approved in 2020, which was previously an office park. ▪ Street Trees: The applicant shall plant street trees along the project frontage to match the City of Gilroy’s Street Tree Plan in effect at the time of construction. The street tree plans shall be per City Standard Drawings and will include City Standard tree grates. ▪ Tree Grates: The applicant shall install City Standard Tree Grates as specified in the approved plans. Tree grates shall be 4’x6’, model OT-T24 by Urban Accessories, and shall be black power coated. The tree grates shall be shown on the improvement plans to be located at the back of curb to the approval of the City Engineer and shall be installed with the street trees prior to the first occupancy. ▪ Street Markings: The applicant shall install necessary street markings of a material and design approved by the City Engineer and replace any that are damaged during construction. These include but are not limited to all pavement markings, painted curbs, and handicap markings. All permanent pavement markings shall be thermoplastic and comply with Caltrans Standards. Color and location of painted curbs shall be shown on the plans and are subject to approval by the City Engineer. Any existing painted curb or pavement markings no longer required shall be removed by grinding if thermoplastic, or sand blasting if in paint. ▪ Sidewalk: The applicant shall replace to existing City standards all sidewalk surrounding the project site. The actual amount of sidewalk to be replaced shall be determined by the Public Works Construction Inspector in the field prior to construction. Sidewalk replacement shall be constructed per the City Standard Drawings.
▪ Curb Ramp(s): The applicant shall construct 4 curb ramps in accordance with the latest Caltrans State Standard Drawing at the Princevalle & W 6th St intersection. The actual ramp "Case" shall be identified on the plans and shall be to the approval of the City Engineer.
▪ Curb and Gutter: At the time of the A&S application was filed, a minimum of 450-ft linear feet of curb and gutter will need to be replaced. This figure is provided only to determine minimum bonding requirements for the encroachment permit. The actual amount of curb and gutter to be replaced shall be determined by the Public Works Construction Inspector in the field prior to construction. New curb and gutter shall be constructed per the City Standard Drawing STR-12.
▪ Driveway Approaches: The applicant shall install driveway approaches as shown on the approved plans. The new residential driveway approaches shall be constructed per the City Standard Drawing.
▪ Driveway Removal: The applicant is to remove the existing driveway approaches located along the project frontage as shown on the approved A&S application plans, and replace them with sidewalk, curb, and gutter per the City Standard Drawing.
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▪ Sewer Lateral: The applicant shall install as a minimum a four (4) inch City Standard sewer lateral connection from the property line to the sewer main located in the street right-of-way for each proposed lot. The installation shall be done in accordance with the City Standard Drawing SWR-6 including a 6" property line clean-out. ▪ Sewer Clean-Out: The applicant shall install a sewer lateral clean-out at the property line for each proposed lot in accordance with the City Standard Drawing SWR-6. ▪ Sanitary Sewer Manholes: The applicant shall install standard sanitary sewer manholes, per approved plans and in accordance with the City Standard Drawing. ▪ Storm Water Catch Basins: The applicant shall install standard storm water catch basins, in accordance with the City Standard Drawing.
▪ Street Lights: The applicant shall provide and install standard aluminum electrolier street lights per City Standard Drawing EL-1 to EL-5. The applicant is responsible for all PG&E service fees and hook-up charges. Any new service point connection required to power the new lights shall be shown on the construction drawings along with the conduit, pull boxes and other items necessary to install the street lights. An Isometric lighting level needs to be provided by the designer/contractor. A separate light study may be required by the City Engineer. The new street light shall have 32’ mounting height per Standard Drawing EL-3, with mounting arm length per Standard Drawing EL4, the Fixture shall be Leotek GC1 or GC2 series in an approved configuration per detail EL-2 or approved equal. The arm shall be installed at the location as shown on the approved plans.
▪ Fire Hydrants: The applicant shall install new fire hydrants along the project frontage.
Spacing shall meet City and Fire Marshall requirements.
Based on the recent proposals submitted and entitled citywide for a range of housing types, the City’s site improvement requirements do not create an undue constraint on development.
Nongovernmental Constraints
Requests to Develop Below the Anticipated Density
In some regions, market factors such as the demand for single-family housing or larger highend condominiums can lead to properties being developed below the maximum allowable density. Requests to develop housing at densities below those anticipated in the Housing Element act as a potential constraint to housing development. However, the City does not generally receive any requests to develop below densities anticipated. For example, one of the low-income sites identified in the 2015-2023 Housing Element (LI-4) developed above the anticipated density identified in the 2015-2023 RHNA sites inventory. The site was projected for 78 low-income units and was constructed with 120 low-income units for a surplus of 42 units.
The 11 entitlement projects noted in Table 76 had densities between 13.4 and 40.3 du/ac with an average yield percentage of approximately 111 percent. Out of this total, 8 entitlement
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projects analyzed developed above the anticipated density (72 percent). Entitled projects largely exceed the density assumptions made in the 5th RHNA cycle. For example, in the Downtown Specific Plan Area (excluding the Cannery District), the R4 zone, and the Neighborhood District, the average base densities of actual projects were all higher than assumed.
Projects developed at a lower density than previously assumed, were primarily located in the R3 zone. Sites in this district are typically smaller and under separate ownership, and therefore more constrained. In addition, projects in the R3 zone are typically infill or small additions to existing structures, which would characteristically yield a lower density.
Consistent with the 2040 General Plan, the City will amend the Zoning Ordinance to increase the maximum density in the R3 zone and remove the maximum density in the R4 zone. This will help ensure adequate baseline capacity to meet RHNA targets and achieve Housing Element compliance (B - 2).
Land Costs
Land costs have a demonstrable influence on the cost and availability of affordable housing.
Land prices are determined by numerous factors, most important of which are land availability and permitted development densities. As land becomes less available, the price of land increases. The scarcity of adequate housing opportunities in northern Santa Clara County have influenced upward pressure on land and housing costs in Gilroy.
The price of land varies depending on a number of factors, including size, location, the number of units allowed on the property, and access to utilities. Vacant land sales (in early 2022) are shown by cost and acreage in Table 71. The price ranges from $1.80 to $9.69 per square foot, with an average price of $6.75 per square foot (or $293,843 per acre). The City has little control over land costs, which can pose a constraint to development.
Table 71: 2022 Vacant Lot Sales in Gilroy
Acreage Land Cost Cost per sq. ft. Date Sold
7.34 $3 million $9.38 2/28/2022
1.26 $335,000 $6.10 2/18/2022
13.11 $1.03 million $1.80 2/15/2022
7.67 $900,000 $2.69 2/11/2022
1.14 $400,000 $8.06 2/1/2022
2.38 $985,000 $9.50 1/5/2022
1.09 $460,000 $9.69 1/4/2022
Source: Zillow.com, 2022
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Construction Costs
Construction costs include the cost of materials and labor. Materials costs include the cost of building materials (wood, cement, asphalt, roofing, pipe, glass, and other interior materials), which vary depending on the type of housing being constructed and amenities provided. In general, construction costs can be lowered by increasing the number of units in a development, until the scale of the project requires a different construction type that has a lower cost per square foot.
One indicator of construction costs is Building Valuation Data, compiled by the International Code Council (ICC). The unit costs compiled by the ICC include structural, electrical, plumbing, and mechanical work, in addition to interior finish and normal site preparation. The data are national and do not account for regional differences, nor include the price of the land upon which the building is built. The Building Valuation Data, dated August 2021, reports the national average for development costs per square foot for apartments and single-family homes as follows:
• Residential Multifamily: $136.73 to $203.34 per square foot • Residential One- and Two-Family Dwelling: $148.33 to $189.34 per square foot • Residential Care/Assisted Living Facilities: $172.87 to $240.35 per square foot California building costs tend to be higher than national levels. A 2020 study by the Berkeley Terner Center noted that construction costs in the state are highest in the Bay Area and reached more than $380 per square foot in 2018.38
Financing Availability
Interest rates affect homeownership opportunities throughout the City. In August 2022, Freddie Mac’s primary mortgage market survey listed interest rates on home loans at 5.55 percent on a 30-year fixed-loan rate. While low interest rates are expected to prolong the availability of financing, low housing inventory can create competition among potential homebuyers, especially for first-time homebuyers. The sales price of housing is typically adjusted for changes in mortgage rates. The Housing Trust of Silicon Valley administers the Santa Clara County Empower Homebuyers First Time Homebuyer Loans and HELP for Homebuyers programs.
Table 72 displays the number of loan applications received in 2020 for the purpose of purchasing a home in the San Jose-Sunnyvale-Santa Clara metropolitan statistical area, which includes the City of Gilroy. Specifically, the table provides the number of total applicants, the number of loans originated, the number of applications that were approved but not accepted by the applicant, and the number of applications denied across various types of loans. 38 Terner Center for Housing Innovation. The Hard Costs of Construction: Recent Trends in Labor and Materials Costs for Apartment Buildings in California. March 2020. https://ternercenter.berkeley.edu/wpcontent/uploads/2020/08/Hard_Construction_Costs_March_2020.pdf
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Table 72: Disposition of Home Loans, 2020
Loan Type Total
Applicants Originated
Approved
Not
Accepted
Denied Withdrawn /
Other
Conventional
Purchase 24,691 15,660 644 1,942 6,445
Government Backed
Purchase 1,879 986 71 138 684
Home Improvement 5,206 2,998 165 961 1,082
Refinance 41,117 21,078 1,208 5,930 12,901
Total 72,893 40,722 2,088 8,971 21,112
Source: lendingpatternslite.com, 2020
Federal and State Programs
There is limited funding available for housing assistance programs from the state and federal governments. For the 2021-2022 and 2022-2023 fiscal years, the City of Gilroy allocated approximately $440,000 each year in CDBG funds from the US Department of Housing and Urban Development. The CDBG program aims to support activities that benefit low-income households, aid in the prevention of slums or blight, or meet an urgent community need, through grants for eligible activities.
For the 2022-2023 and 2023-2024 fiscal years, the City also allocated $237,000 (each year) in Permanent Local Housing Allocation Fund funds for services related to homelessness, fair housing, and special needs, such as persons with disabilities.
Additional information on these funds is included in the Housing Element Accomplishments chapter.
Environmental and Infrastructure Constraints
Environmental hazards affecting housing units include geologic and seismic conditions, soil conditions, flood risk, vegetation and wildlife habitat, toxic and hazardous waste, fire hazards, noise levels, and preservation of agricultural lands. In Gilroy, seismic hazards provide the greatest threat to the built environment. Infrastructure constraints include the availability and cost of water and sewer services. The following hazards may impact future development of residential units in the City and can pose a potential constraint to housing development.
Environmental Constraints
Seismic Hazards
The topography of Santa Clara County consists of three principal geologic features: the Santa Clara Valley, the Santa Cruz Mountains, and the Diablo Range. The area is dominated by a complex system of faults associated with motion between the Pacific and North American
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plates. The most significant fault is the San Andreas Fault. The area is seismically active and includes other major, active strike-slip faults, including the Calaveras Fault, as well as active folding and thrust faulting. The Sargent Fault, northeast of the City of Gilroy, has significant potential to cause seismic shaking.
Soils
The soils in the Gilroy area consist of gravel, silt, and clay that are often poorly drained with flooding and deposition occurring along the major streams. Because these soils exhibit sitespecific properties, site-specific studies should be completed at the project design stage to characterize the suitability and behavior of soil for specific development applications.
Flooding
The City of Gilroy area lies within two major watersheds: the Uvas Creek watershed and the Llagas Creek watershed. The City of Gilroy Flood Plain Management Ordinance was updated in 2016 to adopt regulations designed to promote public health, safety, and general welfare.
The standards require all new developments in the 100-year floodplain, regardless of project size, to develop a base flood elevation in areas without a determined base flood elevation.
Vegetation and Wildlife Habitat
Vegetation and wildlife habitat within the Gilroy area include both developed and natural areas. Developed areas include urban and agricultural land. Natural communities include annual grassland, coastal oak woodland, and valley foothill riparian habitat.
The 2040 General Plan includes policies aimed at protecting sensitive communities from urban development, in-stream capital projects, and in-stream operations and maintenance. These sensitive communities include wetlands and waterways (including associated freshwater marsh vegetation and riparian corridor habitats), serpentine rock formations that support native species, and native oak woodlands.
Toxic and Hazardous Wastes
Hazardous waste management in Gilroy includes three areas: control of production, control of disposal, and control of transportation of hazardous waste. A limited number of hazardous materials are produced in the City. Among those produced by point sources are waste oil, antifreeze, solvents, x-ray solutions, and materials associated with graphic design. Hazardous wastes associated with non-point sources include waste oil, antifreeze, and other pollutants associated with motorized vehicles. The City of Gilroy’s Hazardous Materials Specialists and Pretreatment Inspectors and the County Public Health Department regularly inspect activities that store and/or use hazardous materials. Regular inspections and monitoring help ensure compliance with local, state, and federal regulations and help reduce the risks associated with the use and handling of hazardous materials and waste.
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Fire Hazards
The City of Gilroy receives fire protection from the Gilroy Fire Department. The areas outside the City are under the jurisdiction of the South Santa Clara County Fire Protection District. The two jurisdictions have a mutual aid agreement that allows reciprocal aid to be provided on an as-needed basis during major emergencies. High Fire Hazard (or “Mutual Threat Zones”) areas are designated by the district. These include much of the hillsides on the western boundary of the City. The City of Gilroy Fire Department has in place a hazard (weed) abatement program.
The City’s Hillside Development Guidelines contain policies relating to fire hazards.
Noise
One of the primary noise sources in the Gilroy area is traffic on local roadways, primarily the result of tire noise on the road surface and the Union Pacific Railway line. Other typical noise sources, as in all suburban areas, include construction, barking dogs, children playing, industry, and recreational activities. Overflying aircraft are also occasionally audible in the Gilroy area.
These sources are not significant compared to the noise produced by the dominant transportation sources.
The City is responsible for evaluating noise impacts as part of the review and approval process for new discretionary project proposals. Project approval may include conditions to mitigate noise levels for project occupants and nearby neighbors. There is no noise impact fee. The cost of construction, as well as maintenance of noise mitigation measures, is borne by the developer. The City of Gilroy aims to buffer residential areas from sources of noise pollution through appropriate zoning wherever possible (e.g., locating commercial uses between residential uses and light industrial uses).
Agricultural Lands
To protect and preserve agricultural land, the City of Gilroy adopted an Agricultural Mitigation Policy. The policy was adopted in 2004 and revised in 2016. CEQA requires all feasible mitigation for significant unavoidable impacts. Upon certification of the City’s General Plan EIR, the City Council established the Agricultural Mitigation Policy to implement the mitigation measures identified in the 2020 General Plan EIR and 2040 General Plan EIR for loss of agricultural lands. Therefore, significant agricultural impacts as determined under CEQA would be subject to the City’s Agricultural Mitigation Policy. The policy establishes the criteria for determining when mitigation would be required and what lands are acceptable for preservation. The policy requires mitigation for the conversion of agricultural lands to urban uses at a 1:1 replacement ratio. Mitigation may be accomplished with one of two options and the options shall include all costs to cover program administration, monitoring and management of established easements as outlined in the policy.
The policy established a preferred area for the preservation of agricultural lands. This area is located within the City’s Sphere of Influence and outside the General Plan 20-year boundary, east of Highway 101 and south of Masten Avenue. At the time the map was created in 2004, this area contained the greatest concentration of “Prime” and “Statewide Important” farmland
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remaining in south Santa Clara County. The policy requires new developments to establish a minimum of 150 feet for an agricultural buffer adjacent to permanent agricultural and open space areas. This applies only to a few areas in the City and would aim to reduce potential conflicts between agricultural and non-agricultural uses.
The Agricultural Mitigation Policy poses a potential constraint to development, but also allows for certain exemptions from the 1:1 mitigation ratio as follows:
• Up to 100 feet in width of a permanent agricultural buffer area; • Public facilities established in the City’s General Plan or Parks Master Plan; and • Lands dedicated for public rights-of-way that service the overall community, not just the specific development.
Infrastructure Constraints
Water
The Llagas Basin Aquifer serves as Gilroy’s potable water source for most residential, municipal, industrial, and agricultural land uses. It is estimated that the municipal demand will increase to 53,000 acre-feet per year by 2040.
The City depends solely on local groundwater from wells for its water supply. Currently, there are 15 active wells that serve three water pressure zones. The City’s water supply system relies on well pumping from dispersed sources to supply system pressures in areas of lower elevation during peak demand conditions. Gilroy will continue to meet its future demands through its 2020 Urban Water Management Plan.
Sewer
The City sewer collection system consists of approximately 162 miles of 3-inch through 48-inch diameter sewers. The system consists of trunk sewers that convey the collected wastewater flows to the Wastewater Treatment Plant. The plant, operated by the South County Regional Wastewater Authority, treats the collected wastewater from the City.
During dry weather conditions, the maximum day and peak wastewater hour flows from the City are 2.8 million gallons per day (mgd) and 5.4 mgd, respectively. During wet weather conditions, the maximum day and peak wastewater hour flows from the City are 6.6 mgd and 20 mgd, respectively.
According to the City’s Sanitary Sewer Master Plan, the existing system was well planned to meet the needs of existing customers. In anticipation of future growth, the City has planned and constructed sewer facilities in conjunction with new street construction. Some project improvements in the master plan will mitigate flows caused by infiltration and inflows that occur during significant storm events.
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Energy Conservation
Energy Conservation State law (Government Code §65583(a)(7)) requires a Housing Element to provide an analysis of opportunities for energy conservation in residential development.
Not only do such energy conservation measures reduce consumption of non-renewable or limited resources, but they can also substantially lower housing maintenance costs.
The Bay Area Regional Energy Network (BayREN) is a coalition of the Bay Area’s nine counties that partners to promote resource efficiency at the regional level, focusing on energy, water and greenhouse gas emissions reductions. BayREN offers rebates, funding, and technical assistance to help residents, property owners, business owners, and local governments improve the resource efficiency and carbon footprint of their buildings. They include additional programs and incentives for lower-income households.
Pacific Gas and Electric (PG&E) provides electrical and gas service for the City. As of January 1, 2020, the State of California began requiring solar on newly constructed low-rise residential buildings (single-family homes, duplexes, and townhouses of 3 stories or less, including ADUs) through the 2019 California Building Standards Energy Code (Title 24, Part 6). The City of Gilroy adopted and implemented the code. PG&E also provides several programs, incentives, and rebates for qualified renters and homeowners to save energy and money. The City provides links to these PG&E programs as well as listing energy-saving measures for residents on the City’s website for energy conservation.
In November 2022, the City adopted the 2022 California Building Code with local amendments.
On January 1, 2023, the codes became effective citywide. Among the codes, Gilroy adopted the 2022 California Green Building Standards Code with reach code amendments that further reduce greenhouse gas emissions. The reach code amendments were based on the model code amendment initiated by Silicon Valley Clean Energy and incorporated adjustments resulting from outreach and stakeholder input from the local community. The reach code amendments provide a higher percentage of charging infrastructure in new construction through a combination of Level 2 electric vehicle supply equipment (EVSE) and Low Power Level 2 Electric Vehicle (EV) Charging Receptacle with varying readiness. The reach code amendments help reduce greenhouse gas emissions, save on future retrofit costs, and stimulate the use of electric vehicles in the Gilroy community.
In addition, in the reach code amendments, the inclusion of the long-term bicycle parking standards for multifamily buildings and long-term bicycle parking for hotels and motels will include more bicycle parking availability and promote the use of bicycles as an affordable sustainable method of transportation. The California Green Building Standards Code, with reach code amendments, help increase access to renewable energy and reduce fossil fuel consumption, greenhouse gas emissions, and our communities’ carbon footprint.
The City of Gilroy participated in the Silicon Valley Clean Energy reach code grant offering, which provided $10,000 for presenting reach codes to the City Council for consideration.
Silicon Valley Clean Energy also offers incentives and rebates to residents and businesses to help advance clean, electric buildings and transportation.
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In summer 2022, the City of Gilroy started a pilot program with Solar Automated Permit Processing Plus (SolarAPP+) and completed the public launch in early 2023. This online platform offers a portal that simplifies and accelerates rooftop solar photovoltaic (PV) permitting processes, allowing residential solar photovoltaic systems to be installed quicker, which helps decrease our community’s nitrogen and carbon emissions footprint and provides clean energy. SolarAPP+ permits PV contractors to upload qualifying solar photovoltaic system specifications. It reviews the submission for code compliance and verifies code-compliant systems. Furthermore, SolarAPP+ increases access to renewable energy, helps reduces fossil fuel consumption, and helps reduce our communities’ carbon footprint, particularly carbon dioxide (CO2), and improves air quality.
These programs, along with smart growth strategies which the City of Gilroy is promoting and implementing as part of the Housing Element, will further local and statewide energy conservation goals.
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214
CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
HOUSING SITES AND RESOURCES
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Housing Sites and Resources
Land Inventory
This section of the Housing Element addresses resources available for the development, rehabilitation, and preservation of housing in Gilroy. It provides an overview of available land resources and residential sites for future housing development and evaluates how these resources can work toward satisfying future housing need. The financial and administrative resources available to support affordable housing are also discussed.
Housing Allocation
As discussed in the Needs Chapter, California General Plan law requires that a community plan for an adequate number of sites to allow for and facilitate production of its share of the regional housing need. Each jurisdiction must identify “adequate sites” to determine whether that jurisdiction has sufficient land to accommodate its share of regional housing needs for each income level. As defined under California Government Code Section 655839(c)(1), adequate sites are those with appropriate zoning and development standards, and with services and facilities to encourage and provide for the development of a variety of housing for all income levels. As shown in Table 73, Gilroy’s RHNA for the 2023-2031 (6th Cycle) planning period is 1,773 units. Broken down by income level, the allocation is 669 very low-, 385 low-, 200 moderate-, and 519 above-moderate units.
Table 73: 2023–2031 RHNA
Very Low Income Low Income Moderate
Income
Above Moderate
Income Total
RHNA 669 385 200 519 1,773
Source: Regional Housing Needs Allocation, ABAG, 2023-2031. *Note: Pursuant to AB 2634, local jurisdictions are also required to project the needs of extremely low-income households (0– 30% of AMI). The projected extremely low-income need can be assumed as 50 percent of the total need for the very low-income households.
As shown in Table 74, the pipeline projects and projected ADUs have already met and exceeded the low- and above moderate RHNA for Gilroy by 11% and 48%, respectively.
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Table 74: Pipeline Projects and ADUs Progress Towards RHNA Very Low
Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
A RHNA 669 385 200 519 1,773
B Pipeline Projects 76 387 3 756 1,222
C ADUs 42 42 42 14 140
D
Surplus / (Deficit)
of RHNA
(551) 44 (155) 251 -
E
Percent Surplus Met by
ADUs and Pipeline
Projects
- 11% - 48% -
Target Sites Capacity – 15% No Net Loss Buffer
Changes to state law require jurisdictions to continually maintain adequate capacity in their site inventories. In the event that a site is developed below the anticipated density or at a different income level than projected in the Housing Element, the City must still have adequate sites available to accommodate the remaining balance of the RHNA. Alternatively, the City may identify new sites or rezone sites to continue to accommodate the remaining need. A buffer is not required for RHNA income categories that have been met by pipeline projects or projected ADUs. For this reason, the City is including a buffer of 15 percent above the unmet RHNA in each income category. Table 75 identifies the total target capacity based on the RHNA plus 15 percent of any unmet RHNA. As shown, the pipeline projects (Row B) and projected ADUs (Row C) are subtracted from the RHNA (Row A) to determine the unmet RHNA (Row D). The unmet RHNA of 551 very low- and 155 moderate-income units is multiplied by 15 percent (Row E).
Note that because the RHNA has been met for the low- and above moderate-income categories, there is no unmet RHNA and no target buffer for these income levels. Row F sums the RHNA (Row A) and the 15 percent of the unmet RHNA (Row E) to show the total target sites capacity.
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Table 75: Target Sites Capacity (15% No Net Loss Buffer of Unmet RHNA) Very Low
Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
A RHNA 669 385 200 519 1,773
B Pipeline Projects 76 387 3 756 1,222
C ADUs 42 42 42 14 140
D
Unmet RHNA
(A-B-C)
551 - 155 - 706
E
Target Buffer (15% of Unmet RHNA)
(D*0.15)
83 -
23 -
106
F
Unmet RHNA + Target Buffer
(D+E)
634
-
178
-
812
Realistic Capacity
State law requires that a jurisdiction project realistic estimates for housing capacity on its RHNA sites. The realistic capacity of sites may be calculated using recent project history, a minimum density, or other methods. As a majority of growth is expected to take the form of multifamily housing, recently constructed multifamily projects were reviewed to understand and establish historical trends for multifamily housing development in the City. The realistic capacity calculation also takes into account recent inquiries and permits for uses in zones that allow mixed-use or stand-alone commercial uses.
The Downtown Specific Plan allows 100 percent commercial in all six of its zones. Three Downtown Specific Plan districts allow 100 percent residential uses, and mixed-use residential is encouraged in all zones. Mixed -use could also include mixed -commercial (e.g., retail and office). Residential uses are unconditionally permitted on the second story and above in all Downtown Specific Plan zones. Any time these uses are proposed for the ground level or first floor (sidewalk level), a conditional use permit is required. This has been taken into account through both site selection and a reduction from maximum yield.
Approximately 29.9 percent of the very low-income opportunity site units and approximately
44.9 percent of the moderate-income opportunity site units are located in the City’s Downtown Expansion District (20.4% and 44.9%) and First Street Corridor District (9.5% and 0%). To increase the likelihood that sufficient RHNA units are built in these two districts, the City added Program E - 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility). This Program will allow 100 percent residential projects in the Downtown Expansion District and flexibility for non-residential units in the First Street Mixed Use Corridor, should projects meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
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Local Data
To understand development trends in the City, recent inquiries and permit applications were reviewed. In discussions with City staff, including one planner who has worked for the City of Gilroy for over 30 years, staff noted that inquiries coming into the City are primarily for 100 percent residential or mixed-use. Although 100 percent commercial use is allowed, City staff has not seen a demand for new 100 percent commercial projects. The exception to this is new commercial uses occupying existing commercial buildings that don’t require significant upgrades. When mixed use is required, staff stated that developers typically propose a minimal amount of commercial square footage, citing concerns over the viability of commercial uses outside the downtown core. In cases where the likelihood of commercial vacancies is high, staff is generally supportive of amending the zoning to allow 100 percent residential uses.
Inquiries and submittals have included residential uses on upper stories, applications for adaptive reuse of existing historic buildings (i.e., tenant improvements), new commercial uses (e.g., new restaurant) in existing buildings, and new construction and redevelopment (e.g., adding new square footage). For example, the City is currently processing a preliminary application to add two new stories of residential uses to an existing two-story building located at 7541 Monterey Road in the City’s Downtown Historic District.
Development inquiries and proposals illustrate the trend of maximizing residential and minimizing commercial uses in mixed-use zones. Additionally, as noted above Program E - 12 would allow stand-alone residential projects in the Downtown Expansion District and flexibility for non-residential uses in the First Street Mixed-Use Corridor, should the projects meet certain criteria to provide housing for special needs groups.
Multifamily developments in the City have had success in meeting the densities allowed by the zoning ordinance. Recent projects in multifamily zones, their land uses, zones, and densities are shown in Table 76. Eight of the eleven recent projects have achieved a yield over 100 percent of the maximum density. The average of these yields is 125 percent, suggesting that most developments are able to meet the maximum density, or in the case of zones with no maximum density, a density of at least 30 dwelling units (du) per acre. For projects in zones that allow densities of up to or greater than 30 du/acre, the average density of recent projects is 33.1 du/acre. Three of these recent projects utilized density bonuses: the JEMCOR apartments, Hecker Pass apartments, and the First and Kern apartments.
The Cannery Apartments project yields a noticeably lower percentage of the maximum density than the other projects on the list. This is due to an environmental constraint and easement.
Miller Slough runs through the northern part of the parcel and there was also a homeless encampment within the upper Miller Slough drainage channel which separates the Forest Park single-family development from the Cannery development. Accordingly, there is an “Easement, Joint Use and Maintenance Agreement” encumbering this development. Disregarding the Miller Slough on the northern portion of the parcel, the yield is closer to 70%.
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Table 76: Example Multifamily Project Densities
Project Land Use Zoning
Project
Density
Number
of Units
Max
Density
Yield
Percentage
The Cannery
Apartments
Cannery District
DTSP CD 21.1 104 40 53%
Cantera
Commons
Mixed-Use Apts
Downtown
Expansion
District DTSP
DED 34.5 10 N/A* 115%
Alexander
Station Apts
Downtown
Expansion
District DTSP
DED 38.7 263 N/A* 129%
Monterey/Gilroy
Gateway Apts
Gateway
District DTSP GD 40.3 75 30 134%
Kern Ave Apts Low Density R3 13.7 27 16 86%
Royal Way
Townhomes
(proposed)
Medium
Density R3 13.4 45 16 83%
Hecker Pass Apts Medium
Density R3 26.2 100 16 164%
Gurries Duets Medium
Density R3 17.4 4 16 109%
Gurries
Townhomes
Medium
Density R3 21.1 4 16 132%
JEMCOR Apts High Density R4 30.8 120 30 103%
Harvest Park
Apts
Neighborhood
District ND 35.2 81 30** 117%
Source: City of Gilroy.
* The DED district in the Downtown Specific Plan has no maximum density. As such, a maximum density of 30 was used to ensure suitability for low-income development per HCD guidelines. ** The ND designation has a variety of densities within the designation, and there is no one maximum density for the zone.
Table 77 shows the assumed yields for higher density zones in the City. The yields were determined based on recent multifamily trends and development standards assessed in the constraints section. Though recent projects suggest that most projects in Gilroy are achieving the maximum, or close to the maximum, density on sites, conservative yields were assumed for the purposes of RHNA projection. The simple average yield is 101 percent, and the weighted average based on the number of units is 109 percent. All of the assumed yields in Table 77 are significantly below the observed yields and averages. For example, recent multifamily projects in the DED and DHD zones have been developed at densities of 34.5, 38.7, and 40.3 du/acre. Although the DED and DHD districts do not have maximum densities, the
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yield was conservatively assumed at 100 percent of 30 du/acre. The five R3 sites averaged 92 percent yield versus the assumed yield of 70 percent.
Table 77: Assumed Yields
Zone Maximum Density Yield Estimated Yield
Density
R3 20 du/acre 70% 14 du/acre
R4 30 du/acre 80% 24 du/acre
CD 40 du/acre 70% 28 du/acre
DED 30 du/acre* 100% 30 du/acre
DHD 30 du/acre* 100% 30 du/acre
GD 30 du/acre 80% 24 du/acre
Mixed-Use Corridor 30 du/acre 70% 21 du/acre
* The DED and DHD districts have no maximum density.
Assumed Affordability
Density
The California Government Code states that if a local government has adopted density standards consistent with the population-based criteria set by the state, then HCD must accept sites with those density standards as appropriate for accommodating the jurisdiction’s share of lower-income units. For Gilroy, this density is 30 du/acre. The selected RHNA sites within the R4 zone, mixed-use corridor on First Street, and CD, DED, DHD, and GD districts in the Downtown Specific Plan meet the requirements of Government Code Section 65583.2(c)(3)(B).
Table 78 shows the income levels, densities, and their implementing zones in Gilroy.
Moderate-income housing can be accommodated through medium- and higher-density zones, with maximum densities ranging from 15 to 30+ du/ac. These densities support a variety of multifamily housing typologies, including townhomes and garden-style apartments, which may be affordable to moderate-income households. Above moderate-income housing needs may be met through lower-density, single-family typologies, typically in the 0 to 15 du/ac range.
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Table 78: Densities, Affordability, and Implementing Zones Income Density Range (du/acre) Gilroy Implementing Zone Above
Moderate 0-15 RH, LDR, RR, ND
Moderate 15-30 MDR, ND, TD, DHD, DED, TD, CD, GD, R3, R4 Low 30+ HDR, MU, ND, DHD, DED, CD, GD, R4
Very Low 30+ HDR, MU, ND, DHD, DED, CD, GD, R4
Size
Pursuant to state law, RHNA sites accommodating lower-income units must have areas between 0.5 and 10 acres, regardless of allowed density. The identified RHNA sites for lowerincome units meet these criteria. Sites that may otherwise meet the 30 du/ac default density but are smaller than 0.5 acres are presumed to be affordable to moderate-income households.
The exception to this is one 0.49-acre vacant parcel in the mixed-use corridor. The site is part of a cluster of three vacant sites in the First Street mixed-use corridor (APNs: 790 39 019, 790 39 029, and 70 39 030). It is anticipated that this site could be developed together with the two other sites, which have acreages of 0.55 and 0.97. Even if the site is developed on its own, the
0.49-acre site is functionally the same as a 0.5-acre site for the purpose of its development.
Environmental and Infrastructure Constraints
The Opportunity site inventory analysis takes into consideration any environmental constraints such as habitat, flood, noise hazards, and steep slopes, among others. Any environmental constraints that would lower the potential yield (e.g., steep slopes) have already been accounted for in the site/unit capacity analysis. In general, the deductions in yield from the maximum will cover and accommodate any reductions in site capacity due to environmental constraints.
Local Data
The 2005 Downtown Specific Plan IS/MND analyzed 416 parcels and approximately 160 acres, and identified one contaminated site at 7301-7363 Monterey Road. A Phase I Environmental Site Assessment was completed in 2016, and cleanup was deemed not necessary. The following are two examples of recent projects that completed an environmental analysis. ▪ The ROEM development was submitted with a Phase I Environmental Site Assessment in August 2022. The study did not identify evidence of Recognized Environmental Conditions or Controlled Recognized Environmental Conditions in connection with the property; however, the report recommended subsurface investigation due to the historical use of the property as an auto dismantling storage yard from approximately
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1963 to 2014. The applicant did not reduce the capacity of the project due to these contaminants and has not asked for any concessions related to the contaminants. ▪ An initial study / Mitigated Negative Declaration (MND) was prepared for the Monterey Gateway projects and identified no significant adverse effects on the environment.
There are no RHNA sites with known contamination, and no sites were identified as having contamination in either the 2040 Gilroy General Plan EIR or the Downtown Specific Plan MND.
Flooding
Portions of Gilroy fall into flood hazard zones as defined by the Federal Emergency Management Agency (FEMA). The City has been a participating community in the National Flood Insurance Program since August 1, 1980. Figure 45 displays the special flood hazard areas in Gilroy. The northern part of the City falls into flood zone “X”, which has a 0.2 percent annual chance of flooding; these areas are not subject to special standards. The large majority of the City has some amount of flood risk.
The southeast portion of the City is within the “AH” flood zones, which indicate areas that are subject to inundation by 1 percent annual chance of shallow flooding. Seven sites located along Monterey Street are within this zone, including three proposed for low-income development.
The City’s standards for development in the identified flood areas were adopted in 2016.39 The City allows for residential development within its floodplains, provided mitigating strategies and design choices are made to ensure safety and limit flood damage. In ”A“ flood zones, the construction must be elevated to or above the base flood elevation and the lowest floor must be elevated at least one foot above the base flood elevation. While the requirements for floodplain development may act as minor constraints to housing production, they are not expected to reduce development yields or preclude new housing production in general. Most of the recent and pipeline projects that are not a part of the Hecker Pass or Glen Loma Specific Plans are located in a flood zone. This includes the Cannery apartments, First and Kern apartments, Harvest Park apartments, and JEMCOR apartments.
The City does not have any RHNA sites within floodways, which is a water channel that directly conveys stormwater and experiences rapid velocities during wet weather events. 39 City of Gilroy Floodplain Ordinance. https://ca-gilroy.civicplus.com/DocumentCenter/View/6324/Gilroy-Flood-OrdinanceUpdate?bidId=
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Figure 45: Gilroy Special Flood Hazard Areas
Source: Federal Emergency Management Agency.
Fire
Although the City of Gilroy does not have any areas identified by the state as very high fire severity zones, the City has identified properties for potential fire risk through its own Wildland Urban Interface (WUI) area map, as shown in Figure 46. According to FEMA, the adoption and effective implementation of up-to-date building codes is the most effective community mitigation measure. Furthermore, the City’s development standards recommend that people living in the WUI areas prepare for wildfires by maintaining adequate defensible space around their property, hardening their home by using building materials and installation techniques that increase resistance to heat, flames, and embers, and having a pre-evacuation plan prepared in the event of a wildfire and subsequent evacuation orders. The majority of the Gilroy Designated WUI is zoned for open space, Residential Hillside (RH, areas with 10%–30% slopes), R1, and the Hecker Pass Special Use District. None of the RHNA sites are within the WUI areas.
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Figure 46: Gilroy Wildland Urban Interface Areas
Source: City of Gilroy.
Infrastructure
The City has enough capacity to accommodate the entire RHNA site inventory within the Urban Service Area, where the City is committed to providing basic infrastructure services for urban development. Full urban-level infrastructure services, including water and sewer, are available throughout the City and to the sites in the RHNA inventory. Program E - 1 states that the City will work with public service providers to ensure there is the prioritization of services to housing developments serving lower-income households.
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Entitled and Pending Pipeline Projects
Per the HCD Sites Inventory Guidebook, the City may credit sites that have been proposed, approved, or given a certificate of occupancy since the beginning of the RHNA projected period.40 Table 79 includes pipeline projects (proposed, entitled, permits issued) that had not received certificates of occupancy as of June 30, 2022. The City has approved or received multiple applications for housing developments in the City. Pipeline project unit counts were based on City approved entitlements, building permits issued, and submitted applications. The City has reviewed the pipeline projects and there are no known barriers to development, phasing, or other relevant factors that would prohibit the pipeline projects from being completed. Any phasing or build-out horizons are considered in unit counts.
All of the lower income units identified in Table 79 are (or will be) deed restricted for a period of 55 years.
• The First and Kern and Hecker Pass apartments are both density bonus projects that are deed restricted for 55 years. The First and Kern and Hecker Pass apartments affordable units were under construction in April 2023 with final occupancy anticipated in spring 2023. • The Glen Loma Apartment Project is subject to the 15 percent affordable unit requirement under the Neighborhood District Policy and has a 55-year regulatory agreement. Final occupancy of the Glen Loma affordable units is also anticipated in spring 2023. • The 94-unit affordable project at 6630 -6680 Monterey Street was under review by the Planning Department in April 2023. The environmental review and planning entitlements are anticipated to be complete by the end of 2024. Assuming a two-year construction timeline, this project would potentially be occupied in 2026.
City staff anticipates that the City’s allocation of above-moderate income units will be completed and exceeded during the 2023-2031 planning period.
All pipeline project units are anticipated to be completed in the planning period. The City will monitor the actual units constructed and income/affordability when the pipeline projects are developed as a part of Program A - 1. If the pipeline projects are not developed or are developed with fewer RHNA units than anticipated, the City will identify additional RHNA sites needed to make up the loss. Sites will be identified from the No Net Loss Inventory List created through Program A - 1.
40 HCD Sites Inventory Guidebook https://www.hcd.ca.gov/community-development/housingelement/docs/sites_inventory_memo_final06102020.pdf
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Table 79: Pipeline Projects Counted in 6th Cycle (Proposed, Entitled, Permits Issued) PIPELINE PROJECTS Status Very
Low Low Moderate Above Moderate Total
JEMCOR First & Kern
Apts.
975 First Street
Building Permits
Issued on 4-21-2021 36 83 1 - 120
JEMCOR Village at Santa
Teresa Apartments
1520 Hecker Pass
Building Permits
Issued 04-12-2022 20 79 1 - 100
Glen Loma BMR
Apartments
1301-1345 Luchessa
Ave
Building Permits
Issued 06-11-2020 - 152 - - 152
Glen Loma, Royal Way,
and Gurries
Townhomes
Various stages of
review/issuance - - - 326 326
7888 Monterey MixedUse ProjectBuilding Permit
Applied 09-22-21 - - - 10 10
108 Chickadee Lane
Mixed-Use Project
Submitted to Planning
05-24-22 - - - 12 12
6630-6680 Monterey
Street Affordable
Housing Project
Submitted to Planning
12-07-22 20 73 1 - 94
Single Family Homes,
Subdivisions
Various stages of
review/issuance - - - 408 408
Total 76 387 3 756 1,222
Source: City of Gilroy.
Accessory Dwelling Units (ADUs)
The City of Gilroy has seen the number of ADU permits increase over recent years. A section of the City website is dedicated to ADU information, including FAQs, links to helpful resources, required documents, and the template to deed-restrict ADUs and junior ADUs. Table 80 displays ADU development trends in Gilroy. Based on the average number of building permits for ADUs in the last four years (15.75), the City is conservatively projecting 140 ADUs over the 2023–2031 6th cycle. The City is not relying heavily on projected ADUs to meet its RHNA (less than 7 percent of the RHNA plus the buffer).
The City is including Programs A - 6 (ADU Tracking and Monitoring), A - 7 (ADU Pre-Designed Plans), A - 8 (Financial Incentives for Affordable ADUs), Program A - 15 (ADU Ordinance Updates), and G - 3 (ADU Education) to incentivize and specifically facilitate ADU construction
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for lower-income households per California Government Code Section 65583(c)(7).
Furthermore, Program A - 6 (ADU Tracking and Monitoring) requires an update to the ADU strategy if annual production and affordability rates fall below the estimates.
Table 80: ADUs Toward the RHNA
Year # of ADUs
2018 7
2019 16
2020 13
2021 27
Average 15.75
Source: City of Gilroy.
Assumed Affordability
The levels of affordability assumed for the 140 ADUs projected during the 6th Cycle period is based off the ABAG affordability survey data.41 The study allocated 30 percent of ADUs in each of the very low-, low-, and moderate-income categories, and the remaining 10 percent in the above moderate-income category. Table 81 displays the assumed affordability and projected number of ADUs in each income category.
Table 81: ADU Affordability Assumptions
Percent Income Category # of ADUs
30% Very Low 42
30% Low 42
30% Moderate 42
10% Above Moderate 14
140 ADUs (total)
Source: ABAG ADU Technical Assistance Memo, City of Gilroy.
Ability to Meet the RHNA
As shown in Table 82, the City has identified sufficient capacity to meet Gilroy’s RHNA, in addition to a 15 percent buffer, without rezoning. California Government Code Section 65583.2 (c) states that cities must have a program to facilitate by-right approval for projects that include at least 20 percent of the units for lower-income housing on rezoned low-income sites. The 41 ABAG ADU Technical Assistance Memo. https://abag.ca.gov/sites/default/files/documents/2022-03/ADUs-Projections-Memofinal.pdf
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City of Gilroy is not rezoning any sites to meet the RHNA. Thus, this provision is not applicable to the RHNA sites inventory for Gilroy.
Table 82: RHNA Capacity and Buffer
Category
Very
Low Low Moderate
Above
Moderate Total
A RHNA Assessment 669 385 200 519 1,773
B Pipeline Projects (Table 79) 76 387 3 756 1,222
C ADUs (Table 80) 42 42 42 14 140
D Unmet RHNA (A - B - C) 551 - 155 - 720
E Vacant Opportunity Sites (Table 84) 324 - 116 - 440
F Non-Vacant Opportunity Sites (Table 85) 329 - 62 - 391 G Opportunity Site Capacity (E + F) 653 - 178 - 831
H Total Capacity (B + C + G) 771 429 223 770 2,193
J Surplus of RHNA (H - A) 102 44 23 251 420
K % Buffer Above Unmet RHNA ((G – D) / D) 19% - 15% - - Lower Income Capacity
Government Code Section 65583.2(g)(2) states that housing elements relying on non-vacant sites for greater than 50 percent of its lower-income households need to demonstrate that the existing use does not constitute an impediment to additional residential development. Fifty percent of the 1,054 lower-income RHNA is 527 units. The requirements of Government Code Section 65583.2(g)(2) do not apply to Gilroy, since only 31.2 percent of the proposed lowerincome RHNA sites (including the buffer) are met through non-vacant sites (329/1,054 = 31.2%).
The remaining lower-income (low and very low) RHNA units are met through pipeline projects, ADUs, and vacant sites, as illustrated elsewhere in this chapter.
Table 83: Lower Income RHNA Capacity
Category
Lower Income Capacity
(VLI + LI)
% of Lower Income RHNA
(1,054 Units)
Pipeline Projects (Table 79) 463 (76 + 387) 43.9%
ADUs (Table 80) 84 (42 + 42) 8.0%
Vacant Opportunity Sites
(Table 84)
324 (324 + 0) 30.7%
Non-Vacant Opportunity
Sites (Table 85)
329 (329 + 0) 31.2%
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Category
Lower Income Capacity
(VLI + LI)
% of Lower Income RHNA
(1,054 Units)
Total Lower Income Sites 1,200 (771 + 429) 113.9%
There are enough pipeline projects to fully meet the above moderate and the low-income RHNA categories, as shown in Table 74. There is also sufficient capacity with pipeline projects, ADUs, and opportunity sites to meet the City’s RHNA for all income categories with a 15 percent buffer for the unmet RHNA, as shown in Table 82.
Zoning for Moderate and Above Moderate Households
Pursuant to Government Code Section 65583.2(c)(4), at least 25 percent of the remaining moderate and above moderate RHNA sites are zoned for at least four units of housing (e.g., fourplex or greater). As shown in Table 82, above moderate sites are met entirely through pipeline projects and ADU projections (756 and 14 units, respectively). The 770 units exceed the above moderate RHNA allocation (519) by 251 units. There is no remaining above moderate RHNA that needs to be identified.
There is a remaining need of 155 moderate units after pipeline projects and projected ADUs.
The Opportunity Sites Inventory identifies 178 moderate-income RHNA opportunity site units.
Of these, 167 are on sites that allow for at least four units of development. Only 11 moderate units are identified on sites that allow for less than four units of housing. Thus, the City is compliant with Government Code Section 65583.2(c)(4). The allocation of moderate units on a site-by-site basis is shown in Appendix B.
Market Demand
The following inquiries for residential development act as indicators for potential development throughout the City:
• Inquiries from two different parties to redevelop property located at 7744 and 7740 Eigleberry Street with residential uses
• Inquiry on upzoning the vacant parcel at 820 Sunrise Drive to higher density residential • 7050 Monterey Road (and the two non-vacant parcels on either side of it) • 1355 First Street
• 1440 Ponderosa - large vacant site on west side
• 8955 Monterey Road
• APN 841-13-022 - vacant Pacific Railroad / future High Speed Rail site • APN 790 36 012 - car lot, Church/Howson northeast corner, west of Church, east of Monterey
• APN 790-35-001 and 790-36-02 -– two vacant parcels, west of Church, east of Howson / Monterey
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Opportunity Site Details
The Opportunity Site selection process examined zoned capacity, existing uses, and recent development trends to determine which parcels to include to meet the remaining RHNA after considering pipeline projects and ADUs. Both vacant and non-vacant sites are included in the Opportunity Sites Inventory. The opportunity site selection process took site characteristics, surrounding uses, and development constraints into consideration when evaluating each site’s development potential. To meet the RHNA for lower-income households, the Opportunity Sites Inventory relies on sites with densities that allow for at least 30 du/acre. To meet the RHNA for moderate-income households, the inventory relies on sites zoned for up to 20 du/acre in the medium density General Plan land use category. In addition, smaller sites (< 0.5 acres), zoned for up to and greater than 30 du/acre, may be suitable for moderate-income households. For a detailed analysis of the sites as they relate to affirmatively furthering fair housing, see the Affirmatively Furthering Fair Housing chapter.
Vacant Sites
A portion of the RHNA will be met on vacant land that is zoned for residential use. Per HCD’s Housing Element Sites Inventory Guidebook, a vacant site is one “without any houses, offices, buildings, or other significant improvements […] or structures on a property that are permanent and add significantly to the value of the property.”42 Table 84 displays the capacity of residentially zoned vacant sites included in the Opportunity Sites Inventory. A total of 440 lower- and moderate-income units can be accommodated with currently vacant residentially zoned land. This includes 324 very low units and 116 moderate- income units.
Table 84: Residential Vacant Sites Capacity
Zone Capacity
First Street Mixed-Use Corridor 30
Downtown Specific Plan 171
Neighborhood District 31
R3 6
R4 202
Total 440
Non-Vacant Sites
As shown in Table 82 and Table 83, only 329 (31.2%) of the 1,054 lower-income RHNA units will be met by non-vacant RHNA opportunity sites. When considering both lower-income (329 units) and moderate income (62 units), 391 units are accommodated through non-vacant 42 HCD Housing Element Sites Inventory Guidebook. https://www.hcd.ca.gov/community-development/housingelement/docs/sites_inventory_memo_final06102020.pdf
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opportunity sites. Table 85 summarizes the capacity of non-vacant sites included to meet the RHNA broken down by their existing General Plan use. As shown in Table 85, the 391 nonvacant site units are located in the First Street mixed-use corridor (32 units), the R4 zone (109 units), Downtown Specific Plan areas (229 units), and the Public Facility zone (21 units).
Table 85: Non-Vacant Site Capacity
Existing GP Use Capacity
First Street Mixed-Use Corridor 32
Downtown Specific Plan 229
R4 109
PF 21
Total 391
Source: City of Gilroy.
Non-Vacant Site Details
Local Data
The City has seen recent interest in redevelopment of non-vacant sites for affordable and market-rate housing. This includes a project proposed in 2022 for a 94-unit, 100 percent lowerincome project on three parcels in the Gateway District in the Downtown Specific Plan area.
Current uses on these parcels include a two-story office building, multiple single-story commercial structures, and their paved parking areas. Another project proposed on a nonvacant site includes the development of an affordable housing project on land owned by Santa Clara County that currently consists of four large structures. The City of Gilroy and the Santa Clara County Office of Supportive Housing entered into a Memorandum of Understanding in October 2022 regarding the development of 57 units for households earning less than 80 percent of AMI. This project is not included in RHNA projections since a formal proposal has not yet been received. The City has also received interest in developing market-rate housing from a developer for a parcel that includes a car dealership in Downtown.
These projects demonstrate the viability and interest in redeveloping non-vacant sites in downtown Gilroy, including for both affordable and market-rate housing. These sites have similar zoning and characteristics to the proposed RHNA sites and therefore demonstrate the strong likelihood of meeting the projected construction of units within the next 8 years.
The following section provides further detail on each of the non-vacant sites identified in the inventory. The non-vacant sites were selected based on their existing uses, capacity for residential redevelopment, and their high potential for short-term redevelopment. Landimprovement ratios were also calculated and considered in site selection. The comparison of assessed values for land and improvements (land-improvement ratios) is a reliable indicator of whether and to what extent sites are utilized. Typically, a newly improved site will have a
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ratio of well under 0.2, or where the improvements are valued at five times the value of the land.
R4 Northern Cluster
The parcels at 8985, 8955, and 8915
Monterey Road are all R4 zoned sites
adjacent to one another, which provides an
opportunity for consolidation. There are no
existing residential uses on the sites. Their
combined acreage is 3.59 acres. The
combined realistic capacity for these sites
is 86 lower-income units. The northern and
central buildings were built prior to 1956.
There is no maximum FAR and no
maximum density in the R4 zone.
8985 Monterey Road (R4 High Density)
The 0.80-acre site at 8985 Monterey Road is currently occupied by a preschool and day care center. More than half of the lot is a parking lot and is underutilized relative to its potential under the current zoning. It is located in the center of an existing residential community, making this site optimal for further residential development. The site is near several restaurants and gyms, as well as a large park and a grocery store, which provide necessary resources for residents. The land-improvement ratio for this site is 1.05. The realistic capacity for this site is 19 units. The site could be developed to retain the existing use in either existing or new buildings as part of new residential development. 8955 Monterey Road (R4 High Density)
The 2.05-acre site at 8955 Monterey Road is currently occupied by a church, a closed commercial building that was formerly the office of a general contractor, and several storage containers.
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Commercial structures on the lot are single story, while the church is partially two stories.
Approximately half the site is used for parking or vehicle access. It is located in the center of an existing residential community, making this site optimal for further residential development. There is potential for partial redevelopment of the site, on the western portion of the site, which could maintain some of the existing uses during redevelopment. The site is near several restaurants and gyms, as well as a large park and a grocery store, which provide necessary resources for residents. The assessor data did not provide a value for improvements on this parcel so the land-improvement ratio could not be calculated. The realistic capacity for this site is 49 units. It may be possible to achieve this capacity while maintaining some of the existing uses, specifically the church.
8915 Monterey Road (R4 High Density)
The 0.74-acre site at 8915 Monterey Road is currently occupied by a used car sales lot. It is located in the center of an existing residential community, making this site optimal for further residential development. The site is near several restaurants and gyms, as well as a large park and a grocery store, which provide necessary resources for residents. It is nearly all surface parking, with no expensive or modern permanent structures that would preclude redevelopment. The land-improvement ratio for this site is 19.01. The realistic capacity for this site is 18 units.
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R4 Northern Cluster Description
APNs 790-14-025 790-14-075 790-14-091
Size (Ac) 2.05 0.74 0.80
Zoning R4
General Plan Designation High Density Residential
Current Use Commercial Commercial Preschool
Land Improvement Ratio N/A 19.01 1.05
Within 1 mile of:
Daycare Yes - Little Blue Star Daycare, 826 Mantelli Dr Grocery Yes - Lopez Produce Market, 8655 Monterey Hwy
School Yes - Vine Academy, 8455 Wren Ave
Income Category Lower
Total Units 49 18 19
Monterey Cluster 1 (Downtown Expansion District)
The parcels at 7191, 7161, 7121 Monterey
Street and Monterey Street (west side),
north of W Ninth Street are all adjacent to
one another, which provides an
opportunity for a larger moderate-income
residential community. The sites are near
several restaurants, a grocery store, and a
train station, which provide necessary
resources for residents. Their combined
acreage is 1.32 acres. The combined
realistic capacity for these sites is 40 units.
Mixed-use projects have a maximum FAR of
2.5 and a minimum residential density of 20 du/ac. There is no maximum density. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
7191 Monterey Street (Downtown Expansion District)
The 0.34-acre site at 7191 Monterey Street is currently partially occupied by a vacant singlestory office space. More than half of the lot is a parking lot or for vehicle access and is underutilized land. It is adjacent to an existing residential community, making this site optimal for further residential development and potential lot consolidation. The land-improvement ratio for the site is 0.64. The realistic capacity for this site is 10 moderate-income units. Under
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Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
7161 Monterey Street (Downtown Expansion District)
The 0.32-acre site at 7161 Monterey Street is currently partially occupied by a small plumbing and auto sales office that was built in 1930 (non-historic). More than half of the lot is parking for the used cars being sold by the dealer. It is adjacent to an existing residential community, making this site optimal for further residential development and lot consolidation. The landimprovement ratio for this site is 1.90. The realistic capacity for this site is 10 moderate-income units. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
Monterey Street(west side), north of W Ninth Street(Downtown Expansion District) The 0.30-acre site at Monterey Street is currently entirely used as a parking lot or for the used cars being sold by the auto dealer on the adjoining parcel. Redevelopment of this site would benefit the community as its single level use as a parking lot renders the land underutilized and below its zoning potential. It is adjacent to an existing residential community, making this site optimal for further residential development and lot consolidation. The assessor data did not provide a value for improvements on this parcel so the land-improvement ratio could not be calculated. The realistic capacity for this site is 9 moderate-income units. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential
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uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
7121 Monterey Street (Downtown Expansion District)
The 0.36-acre site at 7121 Monterey Street is currently half occupied by a seafood restaurant with some outdoor dining spaces. More than half of the lot is a parking lot or for vehicle access and is underutilized land. It is adjacent to an existing residential community, making this site optimal for further residential development and lot consolidation. The land-improvement ratio is 1.24. The realistic capacity for this site is 11 moderate-income units. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
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Monterey Cluster 1 Description
APNs 799-10-033 799-10-034 799-10-048 799-10-049
Size (Ac) 0.34 0.32 0.30 0.36
Zoning DED – Downtown Expansion District
General Plan Designation Downtown Specific Plan
Current Use Commercial Commercial Parking Lot Commercial Land Improvement Ratio 0.64 1.90 N/A 1.24
Within 1 mile of:
Daycare Yes - Hunny Bunny Daycare, 7361 Eigleberry St
Grocery Yes - Gilroy Valley Market, 7237 Monterey Hwy #6921 School Yes - Glen View Elementary School, West 8th St
Income Category Moderate
Total Units 10 10 9 11
Monterey Cluster 2 (Gateway/ Downtown Expansion District) The parcels at 6790 and 6620 Monterey
Road are both in Gateway District zoned
sites adjacent to one another in the
Downtown Specific Plan area. 6920
Monterey Road in the Downtown
Expansion District and is also included in
this group of sites. These sites provide an
opportunity for a larger residential
community and a potential for lot
consolidation. The sites are near several
restaurants, a bulk grocery store, and a
high school, which provide necessary
resources for residents. These sites all
have high land-improvement ratios
indicating strong potential for redevelopment. These sites are adjacent to a proposed project located at 6730, 6630, and 6680 Monterey Street, which are denoted with a crosshatch in the aerial above. Their combined acreage is 2.61 acres and the combined realistic capacity is 73 units. This cluster of sites spans two districts. Mixed- use projects in the Downtown Expansion District have a maximum FAR of 2.5 and a minimum residential density of 20 du/ac (there is no maximum density). Mixed-use projects in the Gateway District have a maximum FAR of
0.75, while stand-alone residential projects have a maximum 30 du/ac density. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential
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uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
6920 Monterey Road (Downtown Expansion District)
The 1.69-acre site at 6920 Monterey Road is currently about two-thirds underutilized vacant lot, with the only building being a permanently closed furniture store. It is adjacent to an existing residential community, making this site optimal for further residential development.
The site has a land-improvement ratio of 0.81. The realistic capacity for this site is 51 lowerincome units. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income). 6790 Monterey Road (Gateway District)
The 0.39-acre site at 6790 Monterey Road currently has an electric company building occupying about 25 percent of the parcel, while the large majority of the site is an underutilized surface parking lot. It is adjacent to an existing residential community, making this site optimal for further residential development. The site has a land-improvement ratio of 2.37. The realistic capacity for this site is 9 moderate-income units. It is possible these units could be built without displacing the existing use.
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6620 Monterey Road (Gateway District)
The 0.53-acre site at 6620 Monterey Road is currently almost all parking lot and vehicle access, with a small commercial construction building. It is adjacent to an existing residential community, making this site optimal for further residential development. The site has a landimprovement ratio of 3.33. The realistic capacity for this site is 13 lower-income units.
Monterey Cluster 2 Description
APNs 841 14 006 841 14 081 841 14 083
Size (Ac) 0.39 0.53 1.69
Zoning
GD – Gateway District GD – Gateway District DED – Downtown Expansion District
General Plan
Designation Downtown Specific Plan
Current Use Commercial Industrial Parking
Land Improvement
Ratio 2.37 3.33 0.81
Within 1 mile of:
Daycare Yes - Clever Kidz Home Daycare, 295 London Dr
Grocery Yes - Smart & Final Extra!, 250 E 10th St
School Yes - Glen View Elementary School, West 8th St
Income Category Moderate Very Low Very Low
Total Units 9 13 51
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Monterey Cluster 3 (Gateway District)
The parcels at 6320, 6470, and 6380 Monterey Road are all adjacent to one another in the Downtown Specific Plan area, which
provides an opportunity for a larger
residential community and lot
consolidation. The sites are near a
park, a school, and a grocery outlet,
which provide necessary resources
for residents. Their combined
acreage is 2.06 acres and the
combined realistic capacity is 48
units. Mixed use projects in the
Gateway District have a maximum
FAR of 0.75, while stand-alone
residential projects have a maximum
30 du/ac density.
6320 Monterey Road (Gateway District)
The 0.55-acre site at 6320 Monterey Road is currently occupied by a single-family home and a permanently closed hardware store. Half of the parcel is an underutilized empty lot, making this site optimal for further residential development. The land-improvement ratio for the site is 0.87. The realistic capacity for this site is 12 lower-income units. 6380 and 6470 Monterey Road (Gateway District)
The 0.77- and 0.74-acre sites at 6380 and 6470 Monterey Road are currently an unoccupied former lumber yard and associated buildings. The majority of the parcels are vacant and underutilized. They are adjacent to an existing residential community, making these sites optimal for further residential development. The land-improvement ratio for these sites is 1.25 and 22.52, respectively. The realistic capacity for each site is 18 lower-income units.
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Monterey Cluster 3 Description
APNs 841 14 015 841 14 036 841 14 037
Size (Ac) 0.55 0.74 0.77
Zoning GD – Gateway District
General Plan
Designation Downtown Specific Plan
Current Use Single - Family
Residential Industrial Industrial
Land Improvement
Ratio 0.87 22.52 1.25
Within 1 mile of:
Daycare Yes - Clever Kidz Home Daycare, 295 London Dr
Grocery Yes- Smart & Final Extra!, 250 E 10th St
School Yes - Gilroy High School, 750 W 10th St
Income Category Very Low
Total Units 12 18 18
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Monterey Cluster 4 (Downtown Expansion District)
The parcels at 7780, 7760, and 7700 Monterey Road are all adjacent to one another in the Downtown Specific Plan
area, which provides an opportunity for a larger residential community and lot consolidation. The sites are near
multiple schools and a grocery store, which provide
necessary resources for residents. Their combined
acreage is 1.75 acres. The combined realistic capacity for these sites is 52 units. Mixed use projects in the Downtown Expansion District have a maximum FAR of 2.5 and a
minimum residential density of 20 du/ac (there is no
maximum density). Under Program E - 12 (Downtown
Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
7780 Monterey Road (Downtown Expansion District)
The 0.44-acre site at 7780 Monterey Road is currently occupied by a single-story office space and a small shed. About 25 percent of the parcel is an underutilized surface lot. Businesses that occupy the site seem to have limited hours, which may eliminate the need for an office space. There is also the possibility for a mixed-use development without displacement of existing businesses. The assessor data did not provide a value for improvements on this parcel so the land-improvement ratio could not be calculated. The realistic capacity for this site is 13 moderate-income units. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income). 7760 Monterey Road (Downtown Expansion District)
The 0.7-acre site at 7760 Monterey Road is currently occupied by a single-story strip mall that includes a restaurant and a window tinting business. About 75 percent of the parcel is an underutilized surface lot with vehicle access both in front of and behind existing businesses.
Development without displacement of existing businesses is possible. The land-improvement
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ratio for the site is 1.35. The realistic capacity for this site is 21 lower-income units. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
7700 Monterey Road (Downtown Expansion District)
The 0.61-acre site at 7700 Monterey Road is currently occupied by a single-story small office park. Over half the site is underutilized lot and vehicle access. The land-improvement ratio for the site is 0.75. The realistic capacity for this site is 18 lower-income units. Under Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
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Monterey Cluster 4 Description
APNs 841 04 018 841 04 019 841 04 020
Size (Ac) 0.61 0.70 0.44
Zoning DED – Downtown Expansion District
General Plan
Designation Downtown Specific Plan
Current Use Office Commercial Office
Land Improvement
Ratio 0.75 1.35 N/A
Within 1 mile of:
Daycare Yes - Forget Me Not Day Care, 7661 Rosanna St
Grocery Yes- El Charrito Market, 7638 Monterey Hwy
School Yes - Gilroy Prep School, 277 IOOF Ave
Income Category Very Low Moderate
Total Units 18 21 13
Monterey Street south of Ninth Street (Downtown Expansion District) The 0.5-acre site is adjacent to a parking lot
and railway and is surrounded by residential,
industrial, and commercial land uses. This
parcel is currently a storage yard for trucks
and is a large, paved parking area. Existing
uses are not expected to preclude
development of this site. The site has a landimprovement ratio of 0 as there are no structures on-site. The realistic capacity for
this site is 16 lower-income units. The zoning
allows a density range of up to 30 du/net acre
in the Downtown Expansion District within
the Downtown Specific Plan Area. Under
Program E - 12 (Downtown Expansion District Flexibility), the City would allow 100 percent residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
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Monterey St., south of Ninth
St (Downtown Expansion
District)
Description
APNs 841 14 001
Size (Ac) 0.5
Zoning DED – Downtown Expansion District
General Plan Designation Downtown Specific Plan
Current Use Storage
Land Improvement Ratio 0
Within 1 mile of:
Daycare Yes – Hunny Bunny Daycare, 7361 Eigleberry St.
Grocery Yes – Grocery Outlet, Smart & Final; E. 10th St.
School Yes – Glen View Elementary School, 600 W 8th St
Income Category Very Low
Total Units 16
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Other Zoning Districts and Designations
880 Sunrise Drive (PF)
The 1.98-acre site at 880 Sunrise Drive is
currently two-thirds occupied by a City of
Gilroy fire station. The remainder of the
site is vacant. The PF zone permits all
facilities owned or leased, operated, or
used by the City or other governmental
agencies on the site. It is located in the
center of an existing residential
community in a higher resource area of
the City, making this site optimal for
further residential development. The site
is near several schools and a daycare
center, which provide necessary resources for residents. The assessor data did not provide a value for improvements on this parcel so the land-improvement ratio could not be calculated.
The realistic capacity for this site is 21 lower-income units on the vacant land and parking lot portions of the site, while retaining the existing fire station.
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880 Sunrise Drive Description
APNs 783 20 050
Size (Ac) 1.98
Zoning PF – Park/Public Facilities District
General Plan Designation Low Density Residential
Current Use Fire Station
Land Improvement Ratio N/A
Within 1 mile of:
Daycare Yes - Kool Kids Day Care, 1030 Cheyenne Dr
Grocery No - Safeway, 905 First St (2.2 miles)
School Yes - Christopher High School, 850 Day Rd
Income Category Very Low
Total Units 21
1335 First Street (First Street Mixed-Use Corridor)
The 0.55-acre site is adjacent to two
vacant parcels also listed on the sites
inventory, with strong potential for
redevelopment of all three parcels.
This lot is currently occupied by a twostory commercial building which includes a dental care office and a
permanently closed pregnancy
resource center. The building was built
between 1968 and 1980. The site has a
land-improvement ratio of 0.50. Existing uses are not expected to preclude development of this site. The realistic capacity for this site is 12 lower-income units. The General Plan allows a density range of 20-30 du/net acre in the Mixed-Use land use designation. There are no floor area standards for the residential portion of mixed-use projects. Under Program E - 12 (First Street Corridor Mixed-Use District Flexibility), the City would allow flexibility for the nonresidential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
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th Cycle Housing Plan 248
1335 First Street Description
APNs 790 39 029
Size (Ac) 0.55
Zoning C3 – Shopping Center Commercial District
General Plan Designation Mixed Use
Current Use Office
Land Improvement Ratio 0.5
Within 1 mile of:
Daycare Yes - Sunnyside Daycare, 7962 Westwood Dr A305
Grocery Yes - Safeway, 905 First St
School Yes - Rod Kelley Elementary School, 8755 Kern Ave Income Category Very Low
Total Units 12
1395 First Street(First Street Mixed-Use Corridor)
The 0.97-acre site is adjacent to two vacant
parcels and one other non-vacant parcel also
listed on the sites inventory, with strong
potential for redevelopment of all four
parcels. This lot is currently occupied by a
one-story building, which contains a martial
arts studio, and a large surface parking lot.
The building was built between 1987 and
1998. Existing uses are not expected to
preclude development of this site. The site
has a land-improvement ratio of 0.45. The
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th Cycle Housing Plan 249
realistic capacity for this site is 20 lower-income units. The General Plan allows a density range of 20-30 du/net acre in the Mixed-Use land use designation. There are no floor area standards for the residential portion of mixed-use projects. Under Program E - 12 (First Street Corridor Mixed-Use District Flexibility), the City would allow flexibility for the non-residential uses on this site should the project meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
1395 First Street Description
APNs 790 39 020
Size (Ac) 0.97
Zoning C3 – Shopping Center Commercial District
General Plan Designation Mixed Use
Current Use Office
Land Improvement Ratio 0.45
Within 1 mile of:
Daycare Yes - Sunnyside Daycare, 7962 Westwood Dr A305
Grocery Yes - Safeway, 905 First St
School Yes - Rod Kelley Elementary School, 8755 Kern Ave Income Category Very Low
Total Units 20
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th Cycle Housing Plan 250
8897 Monterey Road (R4)
The 0.95-acre site is adjacent to a vacant parcel and is surrounded by residential and commercial land uses. This parcel is
currently occupied by four single-story
buildings that comprise a Budget Motel
and a large paved and unpaved parking
area. The primary buildings were built in
1952 and the last building was
constructed between 1968 and 1980.
Existing uses are not expected to
preclude development of this site. The
site has a land-improvement ratio of
2.09. The realistic capacity for this site is
23 lower-income units. The zoning
allows a density range of up to 30 du/net
acre in the R4 High Density Residential
zone.
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th Cycle Housing Plan 251
8897 Monterey Road Description
APNs 790 15 041
Size (Ac) 0.95
Zoning R4 – High Density Residential
General Plan Designation General Services Commercial
Current Use Commercial
Land Improvement Ratio 2.09
Within 1 mile of:
Daycare Yes - Tiny Tots Preschool & Daycare, 8985 Monterey Hwy Grocery Yes - Lopez Produce Market, 8655 Monterey Hwy
School Yes - Rod Kelley Elementary School, 8755 Kern Ave Income Category Very Low
Total Units 23
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th Cycle Housing Plan 252
Financial Resources
The Housing Element serves, in part, to identify what actions can be taken to support the production of housing. Through collaboration with City staff, service providers, and the community, the City’s Housing Element identifies financial resources that support housing production.
Countywide Programs
2016 Measure A – Affordable Housing Bond
In November 2016, Santa Clara County voters approved Measure A, the $950 million affordable housing bond. The housing bond provides the County with an unprecedented opportunity to partner with cities, residents, and the affordable and supportive housing community to significantly address the housing needs of the community’s poorest and most vulnerable residents. It provides affordable housing for vulnerable populations, including veterans, seniors, the disabled, low- and moderate-income individuals or families, foster youth, victims of abuse, homeless persons, and individuals suffering from mental health or substance abuse illnesses. The bond proceeds would contribute to the creation and/or preservation of approximately 4,800 affordable housing units in Santa Clara County.
The housing bond will enhance the County’s ability to achieve its housing priorities which include:
• Increasing the scope and breadth of supportive housing for special needs populations, including homeless and chronically homeless persons;
• Increasing the supply of housing that is affordable to extremely low-income households; and
• Improving coordination and collaboration among the County, the cities, other governmental agencies, and the affordable housing community.
About $7.5 million in Measure A funds was used to develop the Monterey Gateway Senior Apartments, a 75-unit affordable housing complex for low-income seniors that was constructed in Gilroy in 2020.
MHSA Housing Program
The California Department of Mental Health, the California Housing Finance Agency, and the County Mental Health Directors Association announced a new housing program in 2016 under which $400 million in Mental Health Services Act (MHSA) funds were made available to finance the capital costs associated with development, acquisition, construction, and/or rehabilitation of permanent supportive housing for individuals with mental illness and their families, especially including unhoused individuals. The new MHSA Housing Program, and funds for capitalized operating subsidies, are included in the $400 million that has been designated for the program.
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This program will serve persons with serious mental illness who are currently unhoused or at risk of homelessness and who meet the MHSA Housing Program target population description. Santa Clara County’s allocated amount is $19,249,300, of which $6,416,400 can be used for capitalized operating subsidies. MHSA funding pays only for housing units designated to qualified consumers.
The Sobrato Transitional Apartments is an MHSA housing project in Gilroy. The Sobrato Transitional Apartments, developed and constructed by South County Housing Corporation, provides 35 single-occupancy studio units in Gilroy for unhoused individuals with incomes below 30 percent of the area median income (AMI). The South County Housing Corporation will set aside 17 units for individuals that are currently unhoused or at risk of becoming homeless due to mental illness.
U.S. Department of Housing and Urban Development (HUD) Grants HOME
The HOME Program is federally funded by HUD to provide decent affordable housing to lowerincome households. The HOME Program is administered on behalf of the Santa Clara County Urban County cities, which includes Gilroy.
Community Development Block Grant
The City of Gilroy is an entitlement jurisdiction participating in HUD’s Community Development Block Grant (CDBG) Program. A requirement of receiving CDBG funds is the City having a fiveyear Consolidated Plan, which identifies local community development needs and sets forth a strategy to address these needs over a five-year period. The City’s current 5-Year Consolidated Plan spans July 1, 2020 – June 30, 2025.
Developing an Annual Action Plan (AAP) for each of the fiscal years within the Consolidated Plan is also required. AAPs program the use of federal funding for their respective fiscal year by outlining which specific projects or programs will receive funding from the annual allocation. Funding available for housing assistance programs from the state and federal governments is extremely limited. The AAP, which gives a complete breakdown of public service descriptions and use of funds, is available on the City’s website.
For the 2021-2022 and 2022-2023 fiscal years, the City of Gilroy allocated approximately $440,000 (each year) in CDBG funds from HUD. The CDBG program aims to support activities that benefit low-income households, aid in the prevention of slums or blight, or meet an urgent community need, through grants for eligible activities. A breakdown of CDBG-funded agencies are listed below:
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City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 254
Table 86: CDBG Funded Agencies
Activity Name 2020/2021
Entitlement
2021/2022
Entitlement
2022/2023
Entitlement
Program Administration $97,250 $87,874 $87,635
Gilroy Youth Center $38,452 $38,452 $38,452
Rebuilding Home Repair Program $144,364 $140,000 $140,000 Gilroy Compassion Center $16,318 - -
Live Oak Adult Day Care $11,549 $8,560 $10,000
Meals on Wheels - $8,643 -
Community Outreach PREP - $10,250 -
Boys & Girls Club - Core Enrichment - - $8,500
C.A.R.A.S - Ryse Up Program - - $8,500
Cherry Blossom Rehab - $81,475 -
Monterey Gateway Improvements - $70,592 -
Code Enforcement $7,700 - -
Sidewalk / Curb Ramp CIP Project $156,155 - $145,090
Source: City of Gilroy, 2022
CDBG CARES ACT-Coronavirus (CDBG-CV) Funds
CDBG-CV funds were specifically made available for programming that would address the impacts resulting from the COVID-19 pandemic, and include the following programs:
Table 87: CARES Act CDBG-CV Funds
Activity Name Entitlement
St. Joseph’s Rental Assistance $150,000
Small Business Assistance $125,486
Small Business Assistance $100,000
St. Joseph's Rental Assistance $137,309
YMCA Healthy Food Delivery $100,359
Source: City of Gilroy, 2022.
Rental Assistance/Subsistence Program
The St. Joseph’s Rental Assistance program utilizes CARES Act funding for Gilroy residents needing rental assistance. Rent relief is provided to persons and households directly affected by the COVID-19 pandemic.
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th Cycle Housing Plan 255
Small Business Relief Grant Program
The Small Business Assistance Program, originally developed in 2020, includes $435,000 in professional support for local businesses with processing applications for federal and state loans/grants. This program aligns with the purpose of the CARES Act to provide small grants ($5,000 to $10,000) to help local businesses cope with the COVID-19 related economic downturn by providing funds needed for working capital that will result in low-income jobs being retained and/or created.
Housing Trust Fund
The City had historically allocated funding for services related to housing and homelessness through its Housing Trust Fund (HTF). The City Council replaced the HTF with the Permanent Local Housing Allocation (PLHA) Fund, making more funds available for public service programs addressing basic needs and homelessness prevention. The HTF will continue to be used to partially cover staff and consulting service costs to monitor affordable rental and ownership agreements, until the money is depleted.
Permanent Local Housing Allocation Fund
The PLHA Fund spans a five-year period and will make available $1.4 million. The City is contracting with Santa Clara County’s Office of Supportive Housing to administer the programs under the PLHA Consortium Agreement. The following agencies were approved by the City Council for FY 22-23 and FY 23-24:
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Sites and Resources ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 256
Table 88: Permanent Local Housing Allocation Funds for FYs 2022-2024 Agency Funded Services Funding
Amount
St. Joseph’s Family Center
Emergency rental assistance, utility assistance, and
other supportive programs that help diminish the
risk of becoming homeless
$110,000
St. Joseph’s Family Center
Training and employment readiness to prepare
individuals that are homeless or at risk of
homelessness for stability and greater selfsufficiency $70,000
Project Sentinel Fair housing services and investigates complaints to address housing discrimination for Gilroy residents $40,000 Project Sentinel
Landlord-tenant counseling and dispute resolution
program to help resolve housing conflict and protect
Gilroy residents from displacement
$40,000
The Health Trust
Meals to low income and homebound seniors at risk
of food insecurity, allowing them to remain in their
homes
$54,000
South County
Compassion Center
Services to unhoused Gilroy residents to meet their
basic needs and to connect them with services that
can help them attain permanent housing
$80,000
Community Agency for
Resources Advocacy and
Services
Rental and deposit assistance to prevent
homelessness for Gilroy families and individuals $40,000 Silicon Valley
Independent Living
Center
Counseling for Gilroy residents with disabilities,
emergency rental assistance, and housing search
services to obtain safe, affordable, and accessible
long-term housing
$40,000
Source: City of Gilroy, 2023.
Housing Choice Voucher Program
The Housing Choice Voucher (HCV) program is a rental assistance program that helps very lowincome families to live in market-rate housing units rather than public housing. Households are provided with vouchers that are paid to private market-rate landlords, who are then reimbursed by HUD. In addition to the regular voucher program, Santa Clara County Housing Authority (SCCHA) administers special housing programs. These programs include the Veterans Affairs Supportive Housing (VASH) Program, Mainstream Program, and Emergency Housing Vouchers (EHV).
• The VASH Program is for homeless veterans with severe psychiatric or substance abuse disorders. The Veterans Affairs Palo Alto and SCCHA have partnered to provide rental
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vouchers and supportive services to eligible veterans. The veteran must demonstrate to the VA Medical Center that they are homeless (has been living outdoors, in a shelter, in an automobile, etc.) before being evaluated for this program. • The Mainstream Program is designed to provide assisted housing to persons with disabilities to enable them to rent suitable and accessible housing in the private rental market. Mainstream applicants are offered a voucher as allocations become available.
Applicants must be participating in programs of rehabilitation and/or support services within the community that are directly related to their disability. • The EHV program is available through the American Rescue Plan Act. Through EHV, HUD provided SCCHA with 664 housing vouchers to assist individuals and families who are homeless, at risk of homelessness, were recently homeless or have a high risk of housing instability; or who are fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking.
Project-Based Voucher Program
The Project-Based Voucher Program provides rental assistance to households living in specific housing sites. Because the rental assistance is tied to a particular unit, a family cannot retain the assistance if they move (voluntarily or through eviction). The Housing Authority administers different waiting lists by bedroom size for each project-based housing site. These housing sites are either multifamily or senior housing developments.
Statewide Resources
There are a variety of statewide programs and resources available. The City receives regular notification regarding state and federal funding and grant opportunities. Additionally, the City pursues grants on a programmatic and project basis for active programs and projects in Gilroy.
Senate Bill 2 (SB 2) Grant. In 2020, the City was awarded $160,000 in SB 2 grant funding to create and adopt objective design standards for mixed-use and multifamily residential projects in Gilroy. The City also used the funding to create and adopt objective design standards for SB 9 projects. The project was eligible for funding under the SB 2 Policy Priority Area Objective Design and Development Standards. The goal of the project was to create objective design standards that would increase consistent decision making; minimize applicant delays; better utilize staff resources; and promote/require good design principles in Gilroy to help ensure that housing development projects conform to the City’s minimum design expectations.
Local Early Action Planning (LEAP) Grant. In 2020, the City was awarded $150,000 in LEAP grant funding. A portion (or potentially all) of the funding will be used to help supplement costs associated with preparation of the 2023-2031 Housing Element.
Regional Early Action Planning (REAP) Grant. In 2021, the City was awarded $32,603 in REAP grant funding to further supplement costs associated with preparation of the 2023-2031 Housing Element.
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th Cycle Housing Plan 258
The No Place Like Home Program
The No Place Like Home Program provides loans to eligible counties to acquire, design, construct, rehabilitate, and/or preserve permanent supportive housing for persons who are experiencing homelessness or chronic homelessness, or who are at risk of chronic homelessness, and who need mental health services. Projects funded through this program must be apartment complexes of five or more units.
Administrative Resources
The City of Gilroy’s Community Development Department consists of the Housing and Community Development (HCD) Division, the Planning Division, and the Building and Safety Division which includes code enforcement. The Community Development Department helps implement several of the programs outlined in this Housing Element with the help of the City’s HCD Technician. The Community Development Director manages the City’s Housing and Community Development program and administers the CDBG funds, the City's PLHA Fund, and the former HTF. The Planning Division reviews land-use entitlement applications and is responsible for the implementation of the General Plan, Zoning Ordinance, and adopted specific plans. The Building and Safety Division processes and issues building permits, conducts plan reviews, conducts building inspections, and resolves land-use related violations through Code Enforcement.
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259
CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
HOUSING GOALS, POLICIES, AND PROGRAMS
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Housing Goals, Policies, and Programs
The section of the Housing Element outlines the City of Gilroy’s goals, policies, and implementation programs for the preservation, conservation, improvement, and production of housing for the 2023 – 2031 planning period. The goals, policies, programs, and quantified objectives are designed to help ensure housing opportunities for all existing and future residents of the community.
Housing Production
Goal 1
HOUSING PRODUCTION
Provide adequate residential sites to accommodate projected housing needs and encourage the production of a variety of housing types Policy 1.1: The City shall encourage the provision of a variety of housing options for Gilroy residents.
Policy 1.2: The City shall strive to ensure adequate land is available at a range of densities to meet Gilroy’s existing and projected housing needs.
Policy 1.3: The City shall encourage the provision of new affordable housing.
Policy 1.4: The City shall encourage partnerships between non-profit and for-profit housing developers to encourage affordable housing production.
Policy 1.5: The City shall continue to implement the Downtown Specific Plan and encourage and coordinate activities with Downtown stakeholders.
Policy 1.6: The City shall support the development of workforce housing to enable the workforce to live in the community.
Removal of Governmental Constraints
Goal 2
REMOVAL OF GOVERNMENT CONSTRAINTS
Remove or reduce governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible.
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Policy 2.1: The City Shall periodically review City regulations, ordinances, permitting processes, and residential fees to ensure that they do not unreasonably constrain housing development and are consistent with State law.