Gilroy City Council
June 2, 2025

City of Gilroy
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If so, what economic development initiatives are you undertaking that may be coordinated with the Consolidated Plan? If not, describe other local/regional plans or initiatives that impact economic growth.

Goal 4 in the Economic Prosperity chapter of the General Plan specifically addresses regional collaboration including interagency collaboration between the City and nonprofits, coordination with the County and public/private partnerships. Stakeholders from Gilroy interviewed for this Consolidated Plan indicated a need for more coordination and collaboration across the many nonprofit service providers and the City for greater impact on addressing the critical needs of the community while avoiding duplicated efforts.

Discussion
Economic development information is readily available on the City website. This includes documents detailing demographic information, economic development guiding principles, economic growth statistics, economic incentives policy, and a quality-of-life housing market analysis.

City of Gilroy
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MA-50 Needs and Market Analysis Discussion
Are there areas where households with multiple housing problems are concentrated? (include a definition of "concentration")
Concentration is defined as a group that is at least 20 percentage points higher than the citywide average. Cost burden and severe cost burden are the most common housing problems in Gilroy. As shown in the map below, census tracts in the eastern section of Gilroy and downtown have high concentrations of renters who are cost burdened.

Supplemental Figure 19: Renter Cost Burden by Census Tract

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Source: California Department of Housing and Community Development, Affirmatively Furthering Fair Housing (AFFH) Data Viewer.

Are there any areas in the jurisdiction where racial or ethnic minorities or low-income families are concentrated? (include a definition of "concentration") Minority concentration is defined as a delineated geography where the percentage of individuals of a particular racial or ethnic minority group is at least 20 percentage points higher than the citywide average. Minority refers to all racial or ethnic groups other than non-Hispanic/Latina/Latino white. As the City of Gilroy is 59% Hispanic/Latina/Latino according to 2023 American Community Survey 5-year estimates, only three census tracts meet this definition: 5126.03, 5126.04 and 5125.13.

LMI concentration is defined as one of the following: a census tract in which the median household income is less than or equal to 80 percent of the statewide median family income, in which the median family income is less than or equal to 80 percent of the metropolitan area’s median family income, or in which the federal poverty rate is 20 percent or greater.

There are LMI concentrationsin censustracts 5125.05, 5125.08, 5125.13, 5126.02, 5126.03, and 5126.04.

City of Gilroy
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What are the characteristics of the market in these areas/neighborhoods? All census tracts are dense with residential housing except for 5126.02, which is mainly industrial/warehouses as well as the Gilroy Premium Outlets. Most homes were built prior to 2000, approximately 47% are occupied by homeowners. Census tract 5126.03 has the lowest homeownership at 17%.

There are enough schools, parks, and shopping centers available.

Are there any community assets in these areas/neighborhoods? Census tract 5125.05 includes one affordable housing complex and one transitional housing complex.

Census tract 5125.08 includes three affordable housing complexes 5126.02 includes the Gilroy Premium Outlets, Pacheco Plaza shopping center, and an industrial area that holds many other businesses and warehouses. The retail trade is the number one occupation in Gilroy and additionally brings a great amount of tax revenue to the area. 5126.03 includes the Gilroy Golf Course which was built in 1923 by local farmers and businessmen. 5126.04 includes parts of downtown Gilroy and features a mix of residential and commercial uses. It also includes many of the nonprofit service providers that offer vital services to City residents. This area also includes an adult school and Head Start preschool.

Are there other strategic opportunities in any of these areas? Gilroy has two Census tracts that are designated as Opportunity Zones; Census tracts 5126.03 and 5126.04 which are the only two Racially/Ethnically Concentrated Areas of Poverty (R/ECAPs) in the city. Opportunity Zones are designated census tracts that encourage investment within those areas. Investments made by individuals in these zones through Qualified Opportunity Funds would be allowed to defer or eliminate federal taxes on capital gains in three ways:
• Temporary Deferral: A temporary deferral of inclusion for capital gains reinvested into a Qualified Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is disposed of or December 31, 2026. • Step-Up In Basis: A step-up in basis for capital gains reinvested in a Qualified Opportunity Fund. The basis is increased by 10% if the investment in the Qualified Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation.
• Permanent Exclusion: A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a Qualified Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an opportunity fund.

City of Gilroy
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MA-60 Broadband Needs of Housing occupied by Low- and Moderate- Income Households - 91.210(a)(4), 91.310(a)(2)
Describe the need for broadband wiring and connections for households, including low- and moderateincome households and neighborhoods.

The city is surrounded by wooded areas, including the Soquel Demonstration State Forest and Henry W. Coe State Park. The city is more isolated than others in the County, which presents fewer options than other cities.

According to American Community Survey 2023 5-year estimates, only 82% of households making less than $20,000 annually and 93% of households making between $20,000-$75,000 have some type of broadband subscription in the City of Gilroy indicating a need for low cost or free broadband services for these households.

In the past, Gilroy residents with lower and mid-level incomes could qualify for the federal Affordable Connectivity Program (ACP) for a $30 service discount with qualification up to 200% of the federal poverty line, however this program has expired. Discounted programs for lower income households do exist through AT&T and Xfinity (Comcast), however these providers are not available to all households based on data from the Federal Communications Commission Broadband Map.

Broadband connectivity is not just a modern convenience but a critical component of household safety, emergency preparedness, and community resilience. The need for reliable broadband wiring and connections is especially urgent for low- and moderate-income (LMI) households, which are often the most vulnerable during emergencies yet have the least access to vital communications infrastructure.

To truly build resilient communities, we must treat broadband connectivity as essential emergency infrastructure—on par with roads, electricity, and clean water. Ensuring that every household, regardless of income or ZIP code, has access to reliable, high-speed internet is fundamental to achieving equity in emergency preparedness, response, and recovery. Prioritizing broadband installation and access in underserved neighborhoods will directly reduce disaster vulnerability, save lives, and accelerate equitable recovery.

Internet connection is also vital to accessing basic resources, applying for assistance, workforce development and educational attainment.

Describe the need for increased competition by having more than one broadband Internet service provider serve the jurisdiction.

According to Highspeedinternet.com, zip code 95020 in Gilroy has 7 residential broadband providers. According to the FCC Broadband Map data, however, only 3 providers have 100% coverage in Gilroy. With the expiration of the federal Affordable Connectivity program and limited discounted programs available as previously referenced, increased internet and broadband competition would give residents more choices for services and cost, given the few opportunities for low-cost broadband service.

City of Gilroy
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MA-65 Hazard Mitigation - 91.210(a)(5), 91.310(a)(3)
Describe the jurisdiction’sincreased natural hazard risks associated with climate change.

Per HUD guidance, all Consolidated Plans submitted after January 1, 2018, must assess risks of natural hazard associated with climate change to low-and moderate-income residents. As part of the 2023 County of Santa Clara’s Operational Area Hazard Mitigation Plan Update – a county wide plan that identifies risks from natural and man-made disasters and how to minimize damage – the City of Gilroy developed a city-specific annex to this plan through which it has reviewed and evaluated a set of potential natural hazards to help identify the top hazards threatening the area.

Due to rising temperatures as a result of climate change, natural hazard risks have become more severe for the area. Most notably, the prevalence of wildfires in the region is a concern for the city. Gilroy is surrounded by large, wooded areas, including multiple state forests and parks. Therefore, the city is vulnerable to wildfires in its immediate vicinity. As such, the City has recently adopted a Community Wildfire Protection Plan in addition to the Local Hazard Mitigation Plan.

The city is also vulnerable to earthquakes. According to risk indexes on USA.com, the risk in the city for earthquakes is more than twice as high as the rest of the state.

Lastly, a potentially catastrophic natural hazard associated with climate change is heavier rain; since the city is vulnerable to floods, heavy rains may also lead to mudslides and landslides. South Gilroy is predominantly a FEMA 100-year floodplain which also has a high percentage of LMI households making this area particularly vulnerable to climate change- related flooding, and potential displacement.

The table below shows the number of critical facilities present by jurisdiction indicating the level of preparedness to respond to natural hazard events in a timely manner. Relative to population, the City of Gilroy has a high number of critical facilities, however, given that the city is remotely located compared to other jurisdictions in the county, it has lower accessibility to the combined resources available in North County.

Additionally, ten of Gilroy’s critical facilities are located within the 10% annual chance of flood hazard area.

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Supplemental Figure 21: Santa Clara County Critical Facilities by Jurisdiction.

Source: County of Santa Clara’s Operational Area Hazard Mitigation Plan, 2023.

Regional Hazard Mitigation Planning. Santa Clara County faces growing risks from natural hazards as a direct result of climate change. The Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) identifies climate change as a key factor contributing to worsening year-round wildfire seasons, rising temperatures, and shifting precipitation patterns, all of which heighten the risks of drought, flash flooding, and infrastructure failure. As climate-driven hazards intensify, they require a coordinated response to mitigate their long-term impacts on communities across the county. These hazards, including wildfires, deteriorating air quality, extreme heat, drought, and flooding, are increasing in frequency and severity, threatening public safety, infrastructure, and economic stability.

Wildfires pose an escalating threat, particularly in areas where dense vegetation meets urban development.

Rising temperatures, prolonged dry conditions, and increased fuel loads are intensifying wildfire frequency, spread, and destructiveness. Without proactive mitigation efforts, these conditions can continue to drive more frequent and severe wildfires. While not all residents may be directly exposed to wildfire, secondary impacts, such as smoke and deteriorating air quality, will affect a much larger portion of the population.

Vulnerable groups—including older adults, low-income residents, and individuals with pre-existing health conditions—are at the highest risk of experiencing respiratory complications and other long-term public health effects. As wildfire events become more frequent and severe, these secondary impacts will become an increasing concern for the county’s public health and emergency response efforts.

Extreme heat events affect public health, infrastructure, and energy demand. In high-density urban areas, particularly those with limited green space and inadequate cooling infrastructure, the urban heat island effect exacerbates already high temperatures, placing vulnerable populations at increased risk. Without

City of Gilroy
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proper mitigation, heat waves can lead to heat-related illnesses, increased strain on healthcare systems, and disruptions to energy infrastructure.

Flooding remains a persistent concern, particularly in low-lying areas and neighborhoods near major waterways. Climate change is increasing the frequency and intensity of extreme storm events.

Recognizing the growing impact of climate change on natural hazards, Santa Clara County incorporates climate adaptation into its emergency planning efforts. By aligning infrastructure investments, emergency preparedness programs, and land-use policies with climate change projections and community vulnerability assessments, the county is proactively enhancing resilience and protecting communities from future disasters.

Describe the vulnerability to these risks of housing occupied by low- and moderate-income households based on an analysis of data, findings, and methods.

Typically, LMI households are present in floodplains more often than other types of households. Therefore, they become more vulnerable to extreme flooding events, as well as subjected to higher flood insurance costs. According to the City’s Hazard Mitigation Plan, large portions of the city are subject to flood hazards due to seasonal runoff along Llagas Creek and Uvas Creek. This problem is particularly acute in the eastern agricultural areas, which is attributed to the richness of the soil there. However, these eastern areas of the city also have concentrations of LMI and Hispanic/Latina/Latino households. The City’s LMI populations are less vulnerable to wildfire risks, as western hillside areas represent the areas of highest risk. LMI populations are also present in areas of the city with the highest potential for damage from earthquakes, according to the CA Department of Conservation, whereas the city’s western tracts have a lower risk.

The Social Vulnerability Index of the Centers for Disease Control provides a visual representation of the potential negative effects on communities that natural hazards or other external stresses have on human health. The map below shows Gilroy’s social vulnerability index as high across the city relative to the county except for San Jose.

City of Gilroy
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Supplemental Figure 22: Social Vulnerability Index by Census Tract Source: County of Santa Clara’s Operational Area Hazard Mitigation Plan, 2023.

Regional Vulnerability. A truly resilient community is one where all residents have the opportunity to thrive, maintain their well-being, and enjoy a high quality of life. However, systemic barriers—including limited access to healthcare, housing insecurity, and financial instability—disproportionately affect low- and moderateincome households, leaving them more vulnerable to climate-related hazards. The escalating impacts of climate change, such as extreme heat, wildfires, flooding, and shifting weather patterns, can deepen these inequities. Those most at risk include older adults, individuals with disabilities, outdoor workers, linguistically isolated households, and those lacking adequate healthcare or financial resources, all of whom face heightened challenges in adapting to climate-driven hazards.

For many low- and moderate-income residents, housing conditions significantly influence their exposure to climate risks. A large portion of this population lives in older or substandard housing, which often lacks modern structural protections against extreme weather events. These deficiencies leave residents more vulnerable to displacement, property damage, and long-term housing instability. Wildfire exposure is a particular concern in high-risk zones, often adequate defensible space is difficult to achieve. The financial burden of retrofitting these homes or establishing evacuation plans is often prohibitive for low-income households, leaving them at greater risk during wildfire events.

Extreme heat disproportionately impacts renters with limited financial resources, especially those living in older buildings with poor insulation and inadequate ventilation. High energy costs make it difficult for many households to maintain safe indoor temperatures, increasing the risk of heat-related illnesses and other

City of Gilroy
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health complications. To address these challenges, the Sustainability Master Plan (SMP) emphasizes the need for community cooling programs, urban tree-planting initiatives, and housing retrofits to create safer and more resilient living conditions.

Flooding hazards can disproportionately affect lower-income households living in flood-prone areas. Without flood insurance or financial savings, disaster recovery is far more difficult. The MJHMP stresses the need for expanded stormwater management and flood mitigation programs to reduce these risks.

Recognizing these increasing hazards, Santa Clara County is actively integrating climate resilience into its hazard mitigation planning. Climate change projections and community vulnerability assessments are shaping investments in infrastructure, emergency preparedness programs, and land-use policies to ensure long-term resilience and adaptability.

City of Gilroy
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STRATEGIC PLAN
SP-05 Overview
Strategic Plan Overview
The Strategic Plan identifies the five-year goals that the City of Gilroy expects to achieve during the 2025- 2030 Consolidated Plan cycle. These goals are aligned with HUD’s objectives and outcomes and are achieved through the Annual Action Plan, which divides up the five-year goalsinto annual targets. The City has identified six high-need categories through the Needs Analysis, Market Analysis, and Community Outreach portions of the Consolidated Plan. The Strategic Plan then identifies goals that are aligned to address most of those needs.

Not every need identified in the plan can be met and sufficiently addressed in the next five years. Some of the needs are not feasible, some require much more funding than the City currently receives, and some are simply too large to be addressed in just five years.

The Strategic Plan includes goals to address basic needs, supportive services, youth and senior services, economic development, housing services, and infrastructure improvements.

City of Gilroy
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SP-10 Geographic Priorities – 91.215 (a)(1)
Geographic Area
The City of Gilroy does not have geographic priorities and will continue to utilize CDBG funding to support citywide efforts that meet the needs of the community.

The city as a whole falls just under the citywide LMA (Low-and Moderate-Income Area) definition of 51% of the population falling within the Low-and Moderate-Income category. All public services and housing activities will serve LMI households citywide.
.

City of Gilroy
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SP-25 Priority Needs - 91.215(a)(2)
Priority Needs. The 5-year Consolidated Plan priority needs were developed through community input in meetings and a community survey; stakeholder consultation through interviews and focus groups; and the data analysis conducted for the Needs Assessment and Market Analysis sections of Five-year Consolidated Plan. 1 Priority Need Name Affordable Housing
Priority Level High
Extremely Low-Income, Low-Income
Moderate-Income Families with Children
Elderly
Frail Elderly
Persons with Disabilities
Geographic Areas Affected
Citywide
Associated Goals Support and Preserve Affordable Housing Description Permanent affordable rental housing with services Home rehabilitation for lower income residents for safety and accessibility improvements
Basis for Relative Priority Data Analysis, Citizen Participation, Stakeholder Consultation 2 Priority Need Name Homelessness Response and Prevention Priority Level High
Population Extremely Low-Income households at risk of homelessness Chronically homeless residents
Homeless residents
Special populations currently or at risk of homelessness Geographic Areas Affected
Citywide
Associated Goals Prevent and Reduce Homelessness
Description Transitional and shelter housing, particularly for families (including those fleeing domestic violence) and older adults
Safe parking sites (longer term)
Supportive services for the unhoused
Basis for Relative Priority Data Analysis, Citizen Participation, Stakeholder Consultation

City of Gilroy
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3 Priority Need Name Supportive Services
Priority Level High
Population Extremely Low-Income and low-income households Moderate-Income households
Frail elderly
Elderly
Persons with disabilities
Youth and families
Foster youth
Geographic Areas Affected
Citywide
Associated Goals Increase Supportive/Public Services for Special Populations:
.

Description A resource/navigation center to connect people with resources, including migrant/agricultural/seasonal workers
Youth activities, especially out of school time (after school, summer) More staffing for consistent programming and resources at the senior center
Affordable childcare
Mental health services
Services for foster youth, seniors, and people with disabilities Basis for Relative Priority Data Analysis, Citizen Participation, Stakeholder Consultation 4 Priority Need Name Community Development and Public Improvements Priority Level High
Population Extremely Low-Income and low-income households Moderate-Income
Frail elderly
Elderly
Persons with disabilities
Foster youth
Youth and families
Geographic Areas Affected
Citywide

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Associated Goals Invest in Community Development and Neighborhood Revitalization
Description Street, sidewalk, and lighting improvements especially around affordable housing (roads, bike lanes)
Additional or higher quality childcare centers and youth recreation centers
Improvements to parks and recreation centers
Public facilities improvements
Basis for Relative Priority Data Analysis, Citizen Participation, Stakeholder Consultation Table 37 – Priority Needs Summary
Narrative (Optional)

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SP-35 Anticipated Resources - 91.215(a)(4), 91.220(c)(1,2)

1. Introduction
Table 39: Anticipated Resources
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied.

HUD allocations are critical to overcoming barriers; however, they are not sufficient to address all the needs of LMI households. Therefore, the City will continue to leverage other funding sources, including Permanent Local Housing Allocation (PLHA) from the state of California, to provide services to populations in need.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.

The City’s 2023-2031 Housing Element identified two publicly owned property sites with potential for development:
• 8th and Alexander: The City is partnering with the Santa Clara County Office of Supportive Housing (County owned land) regarding the development of affordable housing at the publicly owned property at 8th and Alexander. • 880 Sunrise Drive: This 1.98-acre site is partially occupied by a City of Gilroy fire station, with the remainder being vacant. The site is zoned PF (Park/Public Facilities District), which permits City or other governmental agency facilities. The realistic capacity for this site is 21 lower-income units on the vacant land and parking lot portions, while retaining the fire station. This site is included in the RHNA sites inventory as an opportunity site and is publicly owned.

The City of Gilroy is actively considering and utilizing its publicly owned land for affordable housing development and is committed to complying with regulations regarding surplus lands. In May of 2025, city staff will meet with developers and discuss affordable housing opportunities, housing element goals, and opportunity sites.

Program Source
of
Funds
Uses of Funds
Expected Amount Available Year 1 Expected Amount
Available Remainder
of Consolidated Plan
$
Narrative
Description Annual
Allocation: $
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG
Public -
Federal
Admin and Planning
Economic
Development
Affordable Housing
Public Improvements
Public Services
$400,000 $80,000 $480,000 $TBD
-

City of Gilroy
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SP-40 Institutional Delivery Structure – 91.215(k)
Explain the institutional structure through which the jurisdiction will carry out its consolidated plan including private industry, non-profit organizations, and public institutions.

Table 39 – Institutional Delivery Structure
Assessment of Strengths and Gaps in the Institutional Delivery System Availability of services targeted to persons experiencing homelessness and persons with HIV and mainstream services
Responsible
Entity
Responsible Entity
Type Role Geographic Area Served
City of Gilroy Government
Homelessness
Non-homeless special needs
Neighborhood improvements
Public facilities
Public services
Citywide
Homelessness Prevention
Services
Available in the
Community
Targeted to
Homeless
Targeted to People
with HIV
Homelessness Prevention Services
Counseling/Advocacy X X
Legal Assistance X
Mortgage Assistance
Rental Assistance X X
Utilities Assistance X
Street Outreach Services
Law Enforcement X X
Mobile Clinics X
Other Street Outreach Services X
Supportive Services
Alcohol & Drug Abuse X
Child Care X
Education X
Employment and Employment
Training X
X
Healthcare X X

HIV/AIDS X X
Life Skills X X
Mental Health Counseling X
Transportation X
Other
Other
Table 40: Availability of Services Targeted to Homeless and Persons with HIV/AIDS

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2025-2030 Consolidated Plan │ 144
Describe how the service delivery system including, but not limited to, the services listed above meet the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth)
There are limited services available within the city to meet the needs of individuals experiencing homelessness.

Furthermore, there are no services available to those living with HIV and their families.

Describe the strengths and gaps of the service delivery system for special needs population and persons experiencing homelessness, including, but not limited to, the services listed above Strengths
Low- to moderate-income residents benefit from the robust coordination of county and local resources, however, most of these resources are concentrated in San Jose with few resources available in South County.

The Santa Clara County Homeless Prevention System (HPS), managed by the County Office of Supportive Housing, includes 19 nonprofit organizations that offer financial assistance and case management targeted to clients’ needs. Partner agencies include:
• Sacred Heart Community Services (San Jose)
• Bay Area Community Health (San Jose) - there is Gilroy outreach • Amigos de Guadalupe Center (San Jose)
• HomeFirst Services (San Jose)- run shelter in Gilroy
• Community Services Agency (Mountain View)
• Housing Choices (San Jose)
• ICAN (San Jose)
• Latinas Contra Cancer (San Jose)
• LifeMoves (Palo Alto) -
• Salvation Army (San Jose) - Gilroy location – 2 of them • St. Joseph’s Family Center (Gilroy)
• Sunnyvale Community Services (Sunnyvale)
• West Valley Community Services (Cupertino)
• Family Supportive Housing (San Jose)
• Law Foundation of Silicon Valley (San Jose)
• Asian Americans for Community Involvement (San Jose)
• Community Solutions (Gilroy)
• Next Door Solutions to Domestic Violence (San Jose)
• YWCA Silicon Valley (San Jose)
• South County Compassion Center (Gilroy)
• Pit Stop (Gilroy)
• Abode Services – outreach in Gilroy
• St. Stephens Episcopal Church - Gilroy
• Gardener Health Services - outreach in Gilroy
• Goodwill – Gilroy
• Valley Medical Homeless Healthcare - Gilroy outreach
• Silicon Valley Independent Living Center – Gilroy
• Catholic Charities (Gilroy)

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Low-income residents and those at high risk of experiencing homelessness (in unsafe housing, unable to pay upcoming rent, or have received an eviction notice) can contact HPS to receive a referral to partner agencies throughout the county. HPS streamlines resources for individuals in crisis and ensures that clients are referred to the most convenient and appropriate organization.

Additionally, United Way of Silicon Valley operates the Emergency Assistance Network (EAN) that connects residents in need with one-time rent and mortgage payment assistance, move-in costs for rental deposits, and one-time utility assistance. Member agencies include Community Services Agency, LifeMoves, Sacred Heart Community Services, St. Joseph’s Family Center, Sunnyvale Community Services, the Salvation Army, and West Valley Community Services.

Gilroy has several local organizations that aim to prevent homelessness, provide outreach and supportive services to unhoused residents, and promote workforce development. These include the Work2Future Job Center, La Isla Pacifica Domestic Violence Shelter, the South County Reentry Resource Center, Project Sentinel Fair Housing Center, Arturo Ochoa Migrant Center, St. Joseph’s Food Pantry, and South County Compassion Center. These local sources enable residents to receive face-to-face support and immediate housing relief in emergency shelters. Beginning July 1, 2025, St. Joseph’s Family Center and the South County Compassion Center are merging their programs under the new name South County Community Services with the goal of consolidating their operations, administrative functions, and collective resources to strengthen and expand the services provided to those experiencing poverty.

Gaps
The largest challenges in the provision of resources in Gilroy are funding and capacity. Resources meant to prevent homelessness and support unhoused residents do exist in the city, but do not meet the demand. Gilroy is also geographically farther away from the resource hubs in San Jose that provide additional family shelter spaces and case management for clients across the county. Public transit options from Gilroy take about an hour and a half to get to San Jose, thus accessing resources require intensive planning around work or school schedules.

To systematically evaluate the institutional structure of services in Gilroy, gaps were ranked by service category:
• “Critical” ratings signify that there is a substantial service missing at the local or regional level or the service is extremely hard to access based the services’ point of access (i.e. service only available inperson outside of Gilroy) and on stakeholder feedback. • “Moderate” ratings were given if resources existed in the area but were considered constrained and unable to adequately meet demand.
• “Manageable” ratings were given if there were resources available and accessible at the local level that mostly met demand.

The tables titled “Homeless Prevention and Street Outreach Services Gaps Assessment” and “Supportive Services for Individuals Experiencing Homelessness and Special Populations Gaps Assessment” summarize these ratings, point of access for individuals in need of these services, and factors that were considered when rating the gaps.

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Provide a summary of the strategy for overcoming gaps in the institutional structure and service delivery system for carrying out a strategy to address priority needs The City continues to engage in strategic partnerships with nonprofits to meet the basic needs of the City’s residents experiencing homelessness and leverage other funding sources to effectively use CDBG funds. South County Compassion Center, St. Joseph's Family Center Street Team, and City of Gilroy Quality of Life Officers connect the unsheltered homeless individuals with resources. Additionally, the South County Compassion Center and Valley Health Mobile offer healthcare tailored to the needs of unsheltered unhoused individuals.

PitStop and other local non-profits provide food, clothing, and other necessities to unsheltered unhoused individuals.

In addition to the factors listed in the table above, there is currently a higher demand for short-term rental assistance but a greater amount of longer-term rental assistance available. .

Gaps Assessment Point of Access Factors in Gap Assessment Homeless Prevention Services
Online and phone for rental
and utility assistance
In-person case management
via the South County
Compassion Center and St.

Joseph's in Gilroy
Referral from County EAN or
HPN
Gilroy offers rental assistance through the
Emergency Assistance Network partner
agencies, including Gilroy-based St. Joseph's
Family Center's Homeless Prevention and
safety net services. Stakeholders report that
demand for such services is exceeding
supply of available assistance.

Street Outreach Services
Outreach providers make
initial contact
St. Joseph's Family Center Street Team, the
Gilroy Street Team, and law enforcement
connect unsheltered homeless individuals
with resources. Additionally, the South
County Compassion Center and Health
Mobile offer healthcare tailored to the
needs of unsheltered homeless individuals. Page 402 of 546 City of Gilroy
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SP-45 Goals Summary – 91.215(a)(4)
Table 41 – Goals Summary
Sort
Order Goal Name Start
Year
End
Year Category Geographic
Area
Needs
Addressed Funding Goal Outcome Indicator
1 Support and Preserve
Affordable Housing
2025 2030 Affordable
housing
Citywide
TBD
2 Prevent and Reduce
Homelessness
2025 2030 Homelessness Citywide TBD
3 Increase
supportive/public
services for special
populations
2025 2030 Supportive
Services
Citywide TBD
4 Invest in community
development and
neighborhood
revitalization
2025 2030 Community
Development
Citywide TBD

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Goal Descriptions
Goal Descriptions
Table 41-B – Goal Descriptions
Estimate the number of extremely low-income, low-income, and moderate-income familiesto whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2)
The City does not receive HOME funds directly as it participates in the Santa Clara County HOME Consortium. 1 Goal Name Support and Preserve Affordable Housing
Goal Description - Permanent affordable rental housing with services - Home rehabilitation for lower-income residents for safety and accessibility improvements 2 Goal Name Prevent and Reduce Homelessness
Goal Description - Transitional and shelter housing, particularly for families (including those fleeing domestic violence) and older adults
- Safe parking sites (longer term)
- Supportive services for the unhoused
3 Goal Name Increase Supportive/Public Services for Special Populations Goal Description - A resource/navigation center to connect people with resources, including migrant/agricultural/seasonal workers
- Youth activities, especially out of school time (after school, summer) - More staffing for consistent programming and resources at the senior center - Affordable childcare
- Mental health services
-
- Services for foster youth, seniors, and people with disabilities 4 Goal Name Invest in Community Development and Neighborhood Revitalization Goal Description -
- Street, sidewalk, and lighting improvements especially around affordable housing (roads, bike lanes) - Additional or higher quality childcare centers and youth recreation centers - Improvements to parks and recreation centers
- Public facilities improvements

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SP-50 Public Housing Accessibility and Involvement – 91.215(c) Need to Increase the Number of Accessible Units (if Required by a Section 504 Voluntary Compliance Agreement)
Not applicable.

Activitiesto Increase Resident Involvement
SCCHA conducts resident surveys every three years to determine needs, experiences, and program suggestions of voucher participants across the county. Additionally, two residents are on the SCCHA Board.

Isthe public housing agency designated as troubled under 24 CFR part 902? No.

Plan to remove the “troubled” designation
Not applicable

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SP-55 Barriers to affordable housing – 91.215(h)
Barriers to Affordable Housing
Negative effects of public policies on affordable housing and residential investment 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 pose some sort of limitation or constraint, as well. There are generally two types of constraints: governmental and nongovernmental. Governmental constraints include policies, regulations, and procedures that directly affect housing, such as land use controls, development standards, local processing and procedures, and permitting fees. Nongovernmental constraints, such as construction costs, land costs, or availability of financing, are beyond the direct control and authority of the City but still have an impact on housing development.

As part of its 2023-31 Housing Element update, the City conducted an analysis of several potential constraints to the development, maintenance, and improvement of housing and affordable housing. The findings are summarized below.
• General Plan. This plan constitutes the highest-level policy document for the City and contains several items that can affect the development and distribution of housing, such as land use classifications, and density and intensity standards. In general, the Plan does not constrain housing development. • Zoning Ordinance. The City partially completed a comprehensive update of its Zoning Ordinance in 2023 to conform with its 2040 General Plan and current state housing law. As identified in several of the City’s Housing Element programs, the Zoning Ordinance will continue to be revised and updated to remove constraints to housing development.
• 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. • Parking requirements. Parking requirements often pose a potential constraint on development. However, the construction of recent developments in Gilroy, including 100% Affordable Apartment developments, demonstrates that the City’s existing parking requirements are appropriate and are not an unreasonable constraint.
• Residential Development Ordinance. Established in 1979, the City’s Residential Development Ordinance (RDO) monitored 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 was a potential constraint on development prior to the passage of SB 330 and SB 8, which has made the RDO null through 2030. • Affordable Housing Policy. The City does not have an affordable policy in effect for the whole city and is working to develop a framework.
• 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. 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.
• Planning, Building and Development Impact Fees. Housing developments are typically subject to three

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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. 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. 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.

Nongovernmental constraints.
• Requests to develop below the anticipated density. In some regions, market factors such as the demand for single-family housing or larger high-end 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 the densities anticipated. • Land costs. Land costs have a demonstrable influence on the cost and availability of affordable housing.

Land prices are determined by numerous factors, the 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 has influenced upward pressure on land and housing costs in Gilroy.
• 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. • Financing availability. Interest rates affect homeownership opportunities throughout the city. In January 2025, Freddie Mac’s primary mortgage market survey listed interest rates on home loans at 6.95 percent on a 30-year fixed-loan rate.
• Federal and state programs. There is limited funding available for housing assistance programs from the state and federal governments.
• Environmental 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, which may impact future development of residential units in the city and can pose a potential constraint to housing development.

Strategies to remove or ameliorate the barriers to affordable housing The City has identified the following goals, policies, and programs to remove or ameliorate barriers to affordable housing in its 2023-2031 Housing Element, including:

Goal 1. Housing Production. Provide adequate residential sites to accommodate projected housing needs and encourage the production of a variety of housing types.

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• 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.

Goal 2. Removal of Government Constraints. Remove or reduce governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible. • 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.
• Policy 2.2. The City shall continue to provide individuals with disabilities reasonable accommodation through flexibility in the application of land use or zoning when necessary to eliminate barriers to housing opportunities.
• Policy 2.3. The City shall consider the development of single-room occupancy units, studio apartments, micro-units, and other similar unit types that are affordable to extremely low-income residents in higherdensity areas of the city.

Programs to reduce barriers to affordable housing development:
• In Progress - Surplus lands are documented in the Annual Progress Report, which is presented to the City Council annually in March and subsequently provided to HCD annually on or before April 1st. City staff has begun the process to determine if additional city-owned sites could be declared as surplus and will complete the process by the end of the 2025 calendar year. • In Process - The City is working on revising the Neighborhood District Policy by Fall 2025 to remove reference to the Residential Development Ordinance (RDO) and update target densities in the 2040 General Plan. The City is collaborating with the Santa Clara County Planning Collaborative and Strategic Economics to complete a Grand Nexus/Affordable Housing Study, which includes a Residential Feasibility Study, an Affordable Housing Analysis, a Residential Nexus Analysis (for small developments), and a Commercial Nexus Study and Feasibility Analysis. Upon completion of the study and implementation of prescribed affordable housing standards, the City will update the Neighborhood District policy to include relevant affordable housing standards adopted by the Council. The Grand Nexus/Affordable Housing Study is estimated to be completed by fall 2025, and implementation of prescribed affordable housing standards will occur by June 2026.
• Program A-10. Facilitate Missing Middle/Middle Income Housing. A Zoning Amendment implementing this program was adopted on June 3, 2024. Ordinance No. 2024-01. • Program A-11. Inclusionary Housing Policy. In process - In 2023, the City hired a consultant who conducted an Inclusionary Housing Feasibility Analysis and recommended that an Inclusionary Housing Policy for both ownership and rental projects be future-tested and planned for improved economic conditions. The City pivoted and joined the Santa Clara Community Planning Collaborative's Grand Nexus/Affordable Housing study to work on a Commercial Nexus Study and Feasibility Analysis, to study the collection of fees for affordable housing. In response to changing economic times, the City has added the Residential Feasibility Study, Affordable Housing Analysis, and Residential Nexus Analysis (for small developments) to its work.

The Grand Nexus/Affordable Housing Study is expected to be completed by fall 2025, and the City

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anticipates implementing the prescribed inclusionary housing standards by June 2026. • Program A-12. Incentives Beyond Density Bonus State Law. In process - In 2023, the City hired a consultant who conducted an Inclusionary Housing Feasibility Analysis and recommended that an Inclusionary Housing Policy for both ownership and rental projects be future-tested and planned for improved economic conditions. The City pivoted and joined the Santa Clara Community Planning Collaborative's Grand Nexus/Affordable Housing study to work on a Commercial Nexus Study and Feasibility Analysis, to study the collection of fees for affordable housing. In response to changing economic times, the City has added the Residential Feasibility Study, Affordable Housing Analysis, and Residential Nexus Analysis (for small developments) to its work. The Grand Nexus/Affordable Housing Study is expected to be completed by fall 2025, and the City anticipates implementing the prescribed inclusionary housing standards by June 2026. • Program B-1. Residential Development Ordinance (RDO) Removal. In progress - The RDO will be removed, with a draft zoning ordinance implementing the Housing Element being presented to the Planning Commission and City Council during the summer of 2026, with adoption anticipated by the end of Summer 2026.
• Program B-2. Zoning and General Plan Densities. In Progress – a draft zoning ordinance implementing the Housing Element is being presented to the Planning Commission and City Council during the summer of 2026. Regardless, submitted projects will be processed in compliance with state law, both prior to and following the adoption of the code amendment.
• Program B-5. Permit Streamlining - In Progress - A draft zoning ordinance implementing this program is being presented to the Planning Commission and City Council during the summer of 2026, with adoption anticipated by the end of summer 2026. The Building Division website includes an example residential permit in compliance with AB2234.
• Program B-6. Objective Standards - In Process - A draft zoning ordinance implementing this program is being presented to the Planning Commission and City Council during the summer of 2026, with adoption anticipated by the end of summer 2026. The City will also evaluate design guidelines per this program prior to the end of the 2026 calendar year. Affordable Housing project objective standards will be updated upon adoption of an Affordable Housing Ordinance by June 2026. • Program B-7. Zoning Ordinance Update. In Progress - The Zoning amendment adopted by the City Council on 6/3/2024 (Ordinance No. 2024-01) includes a requirement for the replacement of demolished units on RHNA site units and a clarification regarding FAR in mixed-use projects. The remaining items will be considered by the City Council during the summer of 2026, with adoption anticipated by the end of Summer 2026.
• Program B-8. Entitlement Road Webpage. Completed - Complete and posted on city website. • Program B-9. Building Department Webpage. Completed - The Building Division website was updated in 2023 to include example residential permits in compliance with AB2234. The website includes plan submittal checklists (for application completeness), and example permits that received a final building permit approval. The example permits include accessory dwelling units, duplexes, multifamily / mixed-use projects, townhomes, custom single-family home, and single-family tract home. • Program B-10. Zoning Code Annual Updates. In Progress - The City updated the Accessory Dwelling Unit Ordinance in 2023, created a webpage with a list of properties that can be approved ministerially pursuant to Government Code Section 65583.2, and will be completing a comprehensive update of the entire Zoning Ordinance in 2026 to implement state laws described in other Housing Element programs. • Program C-1. Monitoring of Units At Risk of Converting to Market Rate - Ongoing - The City reviews

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affordable housing term expirations as part of its annual monitoring program. In the Fall of 2024, the city began collaborating with the County of Santa Clara Office of Supportive Housing to implement a Pilot Below-Market-Rate preservation Program. The SCCBOS has approved their portion of the pilot, and the City of Gilroy Council approved the program in March of 2025. The City is collaborating with the SCCPC and Strategic Economics to conduct a comprehensive Grand Nexus/Affordable Housing Study, which will encompass a Residential Feasibility Study, an Inclusionary Analysis, a Residential Nexus Analysis (focused on small developments), and a Commercial Nexus Study and Feasibility Analysis. The Grand Nexus/Affordable Housing study is expected to be completed by fall 2025, and the implementation of the prescribed affordable housing standards is scheduled for June 2026. The city of Gilroy continues to be open to allocating city CDBG funding towards the rehabilitation of naturally occurring affordable housing for lowincome residents and for the rehab of and continued affordability of 100% affordable units. • Program C-2. Housing Rehabilitation. Ongoing - In FY 22-23 Rebuilding Together Silicon Valley was awarded a CDBG grant for $140,000. In FY 23-24 Rebuilding Together Silicon Valley was awarded a CDBG grant for $258,000. In FY 24-25 Rebuilding Together was awarded a CDBG grant for $179,942.32. The City will facilitate TEFRA hearings, as needed.
• Program C-4. Resale Control on Owner Occupied Below Market -Rate Units. Ongoing - Annually, the BMR Program Administrator conducts compliance monitoring for BMR portfolio homes. In FY24, the City BMR Administrator and city staff conducted a community meeting to answer questions and explain resale restriction agreements to current homeowners. In FY24, the city's BMR Program Administrator conducted a compliance certification via mail to confirm that residents were complying with their resale agreement and restrictions. City staff has collaborated with the Santa Clara County Office of Supportive Housing to create a Pilot BMR Preservation Program - see C-1 above. • Program C-5 – Resale Control on Rental Below Market Rate Units. Ongoing - For renter-occupied units in 100% Affordable developments, the BMR Program Administrator sends information to property owners regarding resale restrictions outlined in their Regulatory, Loan, or Density Bonus Agreements and conducts an annual compliance audit. In January 2024, the city BMR Administrator completed outreach and administered the annual re-certification procedures for 100% Affordable Housing developments to confirm compliance with city and other regulatory agreements.
• Program C-6 – Identification and Preservation of At-Risk Units. Ongoing - The City’s BMR Program Administrator continues to update the City’s inventory of BMR units. City staff have collaborated with the Santa Clara County Office of Supportive Housing to create a Pilot BMR Preservation Program (see C-1 above). This process provides an opportunity to allow one currently for-sale (as of October 2024) lowincome BMR unit to remain in the program and remain affordable for an additional 30 years. When units become available for resale, the new program will enable the city to purchase them and maintain affordability for other low-income households.
• Program D-2- Funding Sources to Assist Homeownership. Ongoing - The City’s Housing and Community Services webpage includes information on homebuyer assistance, including Santa Clara County Empower Homebuyers Down Payment Assistance Program, California Housing Finance Agency (CalHFA) First Mortgage Programs and Down Payment Assistance Programs, and CalHFA’s Accessory Dwelling Unit (ADU) Grant Program. In FY 24, the City conducted workshops in English and Spanish with over 150 attendees to inform the community of these resources. The city has BEGIN and CalHome ReUse Down Payment Assistance available for low-income households and is planning to use a portion of this assistance for the Pilot BMR Preservation Program - see C-1 above.
• Program D-4 – Pursue Funding for Affordable Housing. Ongoing - Permanent Local Housing Allocation (PLHA) funding from the State through application and partnership with Santa Clara County will be applied

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for in the Fall of 2025, and 40% of the funding will be allocated towards affordable homeownership activities. The city continues to receive annual CDBG funding and supports two 100% affordable developments with 0% interest rate CDBG loans, allowing them to refinance and rehabilitate the properties.

The City's Housing and Community Services Staff will apply for Federal Housing Trust Fund funding if available in the fall of 2025. The City is participating in the SCCPC Grand Nexus/Affordable Housing Study, which may suggest Housing In Lieu fees as part of a possible Affordable Housing Ordinance. See A-11 above.

The City has been working in collaboration with the SCC Office of Supportive Housing and the Santa Clara County Housing Authority to plan the potential affordable housing development at 8th and Alexander Streets in Gilroy. City staff directs developers to the city's opportunity sites and will host a Developer Roundtable in May of 2025.
• Program E-1 – Priority Water and Sewer Service for Affordable Housing Developments - Ongoing - This policy is currently in place and used in standard practice. The City has not identified a need to update the Policy. The City of Gilroy provides sewer and water services to all residents. The 2023-2031 Housing Element has been posted on the City’s website. The City’s water and sewer service website also provides information on the Low-Income Household Water Assistance Program.
• Program E-2 - Zoning to Encourage and Facilitate Single-Room Occupancy Units. Completed - A Zoning Amendment implementing this program was adopted on 06/03/2024. Ordinance No. 2024-01 • Program E-5 - Incentivize M-Units. In Progress - A draft zoning ordinance that amends regulations for efficiency units is being presented to the Planning Commission and City Council during the summer of 2026, with adoption anticipated by the end of Summer 2026. Regardless, submitted projects will be processed in compliance with state law, both prior to and following the adoption of the code amendment. • Program E-6 - Parking Requirements for Senior Housing. In Progress - There is nothing to report for the 2024 calendar year. The city will conduct a study by the end of 2025 to determine if updated senior parking standards should be included in the Zoning Ordinance update. The implementation status will be updated in future years in accordance with this Program.
• Program E-10 – Development and Rehabilitation of Housing for Persons with Disabilities. A Zoning Amendment including streamlining the permit process for residential care homes was adopted on 06/03/2024. Ordinance No. 2024-01. The modified reasonable accommodation findings will be considered by the City Council in 2025.
• Program E-11 - Housing for Extremely Low Income and Special Needs Households. The City received Permanent Local Housing Allocation (PLHA) funding from the State through application and partnership with Santa Clara County. The City's Housing and Community Services Division will apply for Federal Housing Trust Fund funding, if available, in the fall of 2025. The City is participating in the SCCPC Grand Nexus/Affordable Housing Study that may prescribe Housing In Lieu fees as part of a possible Affordable Housing Ordinance. See A-11 above. City has been working in collaboration with SCC Office of Supportive Housing and the Santa Clara County Housing Authority to plan the potential affordable housing development at 8th and Alexander Streets in Gilroy. This development is anticipated to contain a minimum of 57 units, with 100% of the units restricted to occupants earning 80% or less of the area median income (AMI), with 25% of the units restricted to households earning 30% AMI or less and 25% of the households earning 50% AMI or less. The fully entitled ROEM 100% Affordable development will provide at least 21 restricted to households earning 50% AMI or less. May 2025 will be the first Developer Roundtable of the planning period. Developer Roundtables are planned for a minimum annually each May. The Pilot BMR Preservation program will have the opportunity to provide housing for low-income seniors and other lowincome households. See C-1 above for BMR Preservation Program.

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• Program E-13- Permanent Supportive Housing - A Zoning Amendment implementing this program was adopted on 06/03/2024. Ordinance No. 2024-01 The City amended the code to allow supportive housing uses by-right in zones where multi-family and mixed-use are permitted and permit transitional and supportive housing as a residential use in all zones allowing residential uses, subject to restrictions that apply to other residential dwellings of the same type in the same zone • Program F-4 - Housing Mobility and Choice in Higher Opportunity Areas - An update on each program is identified under their respective program number. See A-10, A-11, and A-12 above • Program G-1 – Collaboration with Development Community. In Progress - Community Development staff created a list of Gilroy Developers over the 2023 & 2024 FYs while conducting outreach for CDBG Consolidated Plan, the initial Inclusionary Housing Feasibility Study, the Grand Nexus/Affordable Housing Study, and High Speed Rail outreach, and through permit applications with the Building and Planning Department. The first Developer Roundtable will be hosted in May of 2025. • Program G-. - ADU Education. In progress - The City Building and Planning Department's ADU webpages have been consolidated, with a link to pre-approved ADU plans. HCS staff tracks ADU permit issuance and will collaborate with other city department staff to create an ADU marketing program, and will encourage residents to participate in the SCC ADU loan program established in February 2025.

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SP-60 Homelessness Strategy – 91.215(d)
Reaching out to homeless persons (especially unsheltered people) and assessing their individual needs Homeless outreach is conducted weekly in the City of Gilroy, all of which is currently conducted by law enforcement though the City intends to create a dedicated street outreach team in Gilroy to reach out to Individuals experiencing homelessness and families. The goal is to establish a street outreach team to create relationships and trust and make individuals more open to accessing services. Abode Services, which is funded by Santa Clara County, also conducts weekly homeless outreach in Gilroy with additional outreach services conducted during the cold weather season (November to April).

The South County Compassion Center (SCCC) also contributes to Gilroy’s strategic plan goals by providing access to the services and resources that support unhoused persons and families and by conducting community outreach activities to assess and meet the individual needs of people experiencing homelessness. Community outreach conducted by the SCCC includes activities and programming such as:
• An innovative mobile outreach team which provides basic need items, critical resources, and case management services. Basic need items include food, supplies, access to showers and laundry, and clothing. The mobile team conducts outreach to residents at local encampments throughout the South County.
• Twice weekly “Unhoused Popup Markets” which provide access to services including a medical van, weekly food boxes, drinking water refills, USPS Mail pickup, hygiene kits, socks and underwear, garbage bags, toilet buckets and seats, case management services, and hot meals. • Shower and laundry services which are provided in partnership with the Salvation Army Gilroy twice per week on Monday and Wednesday mornings from 8:30am to 11am. Hot meals are also provided after showering.

Homeless needs are also assessed through the CoC’s Vulnerability Index—Service Prioritization Decision Assistance Tool (VI-SPDAT) which assigns scores to individuals who participate in the County’s Coordinated Entry System (CES) by answering a set of questions about their current housing situation and service needs. A score is provided based on the length of homelessness and the type of services needed which allows the CoC to prioritize households for programs. The South County Re-Entry Resource Center supports residents in completing VI-SPDAT survey assessments and provides case management services, mental health services, substance use assessment and referrals, referrals to the Public Defender’s Record Clearance Program, probono legal advice, and referrals to the County’s shelter system.

As part of the Housing Element Update, the City of Gilroy adopted strategies and action items to develop education and outreach programs for the unhoused population including advertisements on the resources available for unhoused persons in Gilroy. Specifically, Gilroy’s education and outreach program included: the creation of a dedicated webpage with information on unhoused resources and efforts; continuance of the unhoused service providers network which consists of monthly meetings with service providers working

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directly with people experiencing homelessness in Gilroy. The city is in the process of the development of printed collateral to distribute at City Hall and by code enforcement officers.

Addressing the emergency and transitional housing needs of homeless persons The City of Gilroy offers several options for emergency and transitional housing to meet the needs of people experiencing homelessness in the city, which includes Santa Clara County’s CoC Rapid Re-Housing (RRH) programs. The County’s RRH programs rapidly connect families and individuals experiencing homelessness to permanent housing through tailored packages of assistance that include the use of time-limited financial assistance and targeted supportive services. These components include housing identification, rent and movein assistance, RRH case management, and supportive services. A comprehensive list of Gilroy’s transitional housing and emergency housing options is provided below. • Community Solutions operates transitional housing programs for single men experiencing homelessness including El Invierno Transitional Housing and Walnut Lane Home Transitional Housing.

These programs are only available to men currently experiencing homelessness. • Glenview Way Home and Maria Way are shared housing programs run by Community Solutions that provide housing and supportive services for single men experiencing chronic homelessness. • Gilroy Sobrato Studios is operated by Eden Housing to provide housing and supportive services for eight individuals experiencing chronic homelessness. The program also offers individuals mental health services.
• InnVision Transitional Housing is operated by LifeMoves to provide families with children (under 18 years) with emergency and transitional housing.
• The City of Gilroy also has three group homes with 60 beds to provide social, psychological, and behavioral programs for troubled youth. (Group homes are facilities that provide 24-hour non-medical care and supervision to children in a structured environment.) The goals, policies, and strategies established and adopted by the City’s most recent Housing Element will contribute to and build on the efforts highlighted above—and address the concerns expressed by Gilroy residents and by the Lived Experience Advisory Board (LEAB) during the engagement conducted for the City’s Consolidated Plan. One of the primary concerns City staff heard during engagement was the lack of housing options available to support people experiencing homelessness and families including those at-risk of experiencing homelessness—specifically a lack of permanent supportive housing, transitional housing programs, and year-round shelters for families with children.

Helping people experiencing homelessness (especially individuals experiencing chronic homelessness individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for individuals experiencing homelessness and families to affordable housing units, and preventing individuals and families who were recently experiencing homelessness from experiencing homelessness again.

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Helping persons and families make the transition to permanent housing, and homelessness prevention, is a central component of the City’s homeless strategy. For example, the Silicon Valley Independent Living Center (SVILC) provides low-income residents with disabilities (and their families) in Gilroy with education and training on how to search for and obtain permanent housing that is safe, affordable, and accessible.

Additionally, to prevent episodes of homelessness and to prevent individuals who formerly experienced homelessness and families from entering homelessness again, Santa Clara County established the Homeless Prevention System (HPS) which includes 13 agencies that offer financial assistance and supportive services targeted to the unique needs of clients. (The Office of Supportive Housing is the HPS program manager.) Other partner agencies include five local victim service providers to assist families who are fleeing unsafe housing situations; the Law Foundation of Silicon Valley for eviction prevention services; CalWORKs and Supportive Services for Veteran Families (SSVF) which provides financial assistance, case management, referrals to benefits, and job training; and the Bill Wilson Center which works with homeless liaisons and trains school staff to identify at-risk families to refer to HPS.

Gilroy has set a goal to increase access to decent and suitable housing for residents with special housing needs including seniors, persons with disabilities (including developmental disabilities), unhoused persons, large households, single female-headed households, and farmworkers. To achieve this goal, the City will implement the following policies over the plan period: 1) encourage housing opportunities for special needs groups; 2) encourage the development, rehabilitation, and preservation of affordable and market-rate housing for seniors, particularly in neighborhoods that are accessible to public transit, commercial services, and health and community facilities; 3) support efforts to provide emergency shelter, transitional housing, and permanent supportive housing for unhoused persons and persons at risk of experiencing homelessness; 4) support the development of permanent and seasonal farmworker housing; 5) encourage affordable housing developments to include units that can accommodate large households of five or more; and 6) encourage the development and maintenance of housing accessible to people with disabilities including people with developmental disabilities.

The City’s Housing Element also includes homeless prevention strategies, policies, and goals including a Displacement Prevention Policy in which the City plans to adopt a formal policy by the end of 2025 with a midterm evaluation of the policy two years after adoption. To inform policy design and implementation, the City will 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 similar to Gilroy. As noted in the Housing Element, the City is considering measures including “tenant option to purchase agreements” for redevelopment projects, a just cause eviction ordinance, and relocation agreements. To facilitate access to affordable housing, the City of Gilroy is committed to maintaining the City’s affordable ownership and rental housing units through the implementation of resale controls on owner-occupied and renter-occupied units that are designated as below market-rate. The BMR Program Administer will be responsible for implementing these controls to ensure that affordable units provided through public assistance or public action are retained per the terms specified in the affordable housing agreement (30 years) as designated affordable housing.

Additionally, the City is planning to develop a system to prioritize the occupancy of affordable for-sale and forrent units in Gilroy for income-eligible residents and/or individuals working in the city. The City expects to

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determine how to weigh specific factors and to develop a process for priority tenures while also affirmatively furthering fair housing by the end of 2024.

Help low-income individuals and families avoid becoming homeless, especially extremely low- income individuals and families who are likely to become homeless after being discharged from a publicly funded institution or system of care, or who are receiving assistance from public and private agencies that address housing, health,socialservices, employment, education or youth needs The County’s homelessness prevention program (HPS) includes 13 agencies that offer financial assistance and supportive services that are targeted to client’s needs. Supportive services may include working with a housing specialist to retain housing or possibly relocate. OSH is the HPS program manager. Other partner agencies include five local victim service providers to assist families fleeing unsafe housing; the Law Foundation of Silicon Valley for eviction prevention services; CalWORKs and Supportive Services for Veteran Families (SSVF) to provide financial assistance, case management, connections to benefits, and job training; and the Bill Wilson Center to work with school district homeless liaisons and train school staff to identify at-risk families to refer to HPS. HPS tracks data and outcomes in order to continually evaluate system outcomes. HPS has had successful outcomes; in the first two years of the program, 92% of participants remained housed one year after assistance.

The City of Gilroy is committed to supporting and helping low-income individuals and families avoid experiencing homelessness after being discharged from institutions or systems of care including individuals and families who receive assistance from public and private agencies. The one-year and five-year strategic goals included in this plan will further these ongoing efforts. For example, the Valley Homeless Healthcare Program (VHHP) manages a Medical Respite program for individuals experiencing homelessness discharged from hospitals and the County conducts daily outreach at jails and Veteran Affairs (VA) psychiatric facilities throughout Santa Clara County (including Gilroy) to ensure that veterans who are discharged from institutions are not discharged to the street. Similarly, the South County Reentry Resource Center provides services to individuals who were previously incarcerated and to people experiencing homelessness upon release. Services include referrals to drug treatment programs, housing assistance, food assistance, counseling, and other benefits. The Resource Center also serves South County residents (including those living in Gilroy) by hosting VHHP every Tuesday, assisting with the completion of VI-SPDAT survey assessments, providing pro-bono legal advice, and by offering referrals to the Public Defender’s Record Clearance Program and/or referrals to the County’s shelter system.

Additionally, residents exiting institutions and systems of care in Gilroy can be referred to Catholic Charities Inmate Support and Reentry which provides employment services to justice-involved individuals through the Right Directions Program. The program offers adults access to case management, job readiness, resume writing, interview prep and skills, tattoo removal, job retention and coaching, and staff conduct follow up support for 90 days after job placement. Residents are also connected to other Catholic Charities services and programs to ensure long-term stability. Cathedral Social Ministries provides services to unhoused persons who were previously incarcerated and provide access to the following programs, services, and facilities. • The Window provides a place where persons experiencing homelessnessreleased from criminal justice institutions and facilities can receive mail, phone services to make appointments and receive messages, food, referrals to the Re-entry Center, help navigating documentation requirements, and connections to community resources and programs.

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• The Healthcare Center for Uninsured provides free primary healthcare to persons experiencing homelessness, migrant workers, and individuals without health insurance. The clinic provides primary healthcare assessments and treatment, preventative health services and education, immunization, flu shots, COVID tests, mental health referrals, substance recovery support, and pharmacy prescriptions. • Faith Based Resource Center: Bridges of Hope was launched by the Santa Clara Mental Health Department (SCCMHD), Catholic Charities of Santa Clara County, and the Cathedral Basilica of St.

Joseph to create the resource center which focuses on the provision of reentry services and case management for individuals and families healing from the effects of incarceration.

While these strategies and resources have been crucial in helping residents and families avoid homelessness, it is important to note that the members of the Lived Experience Advisory Board (LEAB) identified Gilroy as having significantly higher rates of recidivism due to the criminalization of homelessness and a lack of resources to support individuals once they exit incarceration. Members strongly recommend that Gilroy work with the County to design a system where individuals are connected to transitional housing and services before they exit jail. They also hope to see the City implement strategies and priorities that result in more emergency and interim housing options for all populations including persons with criminal backgrounds.

SP-65 Lead-based Paint Hazards – 91.215(i)
Actionsto address LBP hazards and increase access to housing without LBP hazards The City provides information about lead-based paint hazards at the Community Development counter and inspects properties being rehabilitated or acquired for affordable housing.

How are the actions listed above related to the extent of lead poisoning and hazards? As discussed in MA-20, there are approximately 5,984 housing units in the City of Gilroy built before 1980 with

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possible lead-based paint hazard and children present. Children under six years of age are vulnerable to leadbased paint hazards.

How are the actions listed above integrated into housing policies and procedures? The City complies with HUD lead-based paint testing requirements and tests housing developed prior to 1978.

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SP-70 Anti-Poverty Strategy – 91.215(j)
Jurisdiction Goals, Programs and Policies forreducing the number of Poverty-Level Families Each goal and program identified above helps address poverty directly or indirectly. Additional programs currently operating within the City include:
• Work2future – operates a -One-Stop Career Center in the City of Gilroy • SCCHA Family Self Sufficiency Program – participants can access job training and other services and are required to maintain employment or school enrollment. The goal of the program is to ultimately increase a household’s income and direct them to buying a house. • Sacred Heart Community Services – provides financial training, family services, emergency assistance loans, job search assistance, and essential services.
• Beginning July 1, 2025, St. Joseph’s Family Center and the South County Compassion Center will have merged their programs under the new name South County Community Services. The program proposes to alleviate poverty in the community, reduce food and housing insecurity, strengthen the safety net for the most vulnerable residents, and provide essential support to unhoused individuals.

How are the Jurisdiction poverty reducing goals, programs, and policies coordinated with this affordable housing plan
The City will continue to implement the 2023-2031 Housing Element to provide housing opportunities to Gilroy residents and will implement the goals identified above to provide housing and supportive services to low-income households and special needs populations in Gilroy.

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SP-80 Monitoring – 91.230
Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements As a recipient of federal CDBG funds, the City of Gilroy is responsible for managing the day-today operations of all CDBG-funded activities and ensuring that CDBG funds are used within all applicable requirements. Monitoring is the primary tool to ensure that this happens.

The two primary goals of monitoring are:

1. Subrecipient and grantee compliance with all regulations governing their administrative, financial, and programmatic operations; and

2. Attainment of the performance objectives identified in the subrecipient and grantee agreement on schedule and within budget.

Annually, at the start of each program year, City staff will conduct a risk assessment, identify monitoring needs, create a monitoring plan, develop a strategy, establish a schedule, and use a monitoring checklist and workbook to track each monitoring effort for grant recipients and subrecipients.

At a minimum, all recipients and subrecipients will also receive a desktop review during the program year.
• All programs will receive remote technical assistance in October to identify and resolve potential issues early in the program year.
• After quarter 4, all newly funded subrecipients, grant recipients, new programs, or high-risk subrecipients/grant recipients require annual remote or on-site (at City staff’s discretion) monitoring of the preceding program year.
• All agencies continuously receiving a CDBG grant that are identified to be low-risk and/or more experienced grant recipients, may require a remote, narrowly focused, monitoring visit (at City staff’s discretion) to review aspects of their operations that may be affected by changes in regulations or clarifications of regulations issued by HUD, and/or operational changes recommended in prior monitoring visits.

Effective monitoring strategies may include:
• Desktop Review - appropriate for all grant recipients. • Pre-monitoring - An informal discussion on the monitoring process and potential areas of non-compliance. May include technical assistance or training. Appropriate for new or higherrisk grant recipients. • Monitoring - A formal monitoring visit – held remotely or on-site- to evaluate program

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compliance. May include interviews, inspections, and document review. Appropriate for at-risk grant recipients and those City staff has not recently visited.

This multi-tiered monitoring system ensures compliance with CDBG requirements.

Prior to signing contracts (grant agreements) City staff provides new subrecipients and grantee staff with a CDBG orientation. Technical assistance will be provided throughout the program year regarding benchmarks, reporting, and record keeping. This assistance will be repeated in the ensuing years covered by the Consolidated Plan if there are new subrecipients/grantee staff responsible for the administration of the Gilroy activity.

Staff will monitor multifamily properties rehabilitated through past CDBG loans annually, in accordance with the terms of the loan agreements.

ANNUAL ACTION PLAN
AP-15 Expected Resources – 91.420(b), 91.220(c)(1,2)
Introduction
For PY 2025-26, the City was allocated $380,083 in CDBG entitlement funds. In addition, prior years’ resources are being committed from projects/programs that were either cancelled or completed under budget. The following amounts from “from prior years’ resources” will be included in this Action Plan: 2023 - $70,888.98; 2024 - $7,940.33.

Program Source
of Funds
Uses of
Funds
Expected Amount Available Year 1 Expected
Amount
Available
Remainder
of Con
Plan
$
Narrative
Annual Description
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG Public –
federal
Acquisition
Admin and
Planning
Housing
Public
Improvements
Public Services
$380,083 $0.00 $78,829.31 $458,912
.31
$1,600,000
This is the
first year of
the 5-year
Consolidated
Plan
Table 1: Expected Resources
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied.

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The City of Gilroy does not have a match requirement.

There are additional federal grant programs the City can leverage to fund community development activities and increase the project efficiencies and benefits from economies of scale. These programs include:
• Housing Choice Voucher Program;
• Section 202;
• Section 811; and
• Affordable Housing Program through the Federal Home Loan Bank.

These programs would not be provided to the City, but rather the SCCHA, and affordable housing developers.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.

The City of Gilroy is partnering with Santa Clara County to develop affordable and supportive housing on a County-owned property located at the corner of 8th Street and Alexander Street in Gilroy. The project is anticipated to deliver a mixed-income community, containing units at extremely low- and very low-income levels, and focusing on farmworker housing. The site is centrally located and is close to schools, parks, medical services, grocery stores, transit, and other services.

The City’s 2023-2031 Housing Element includes goals and policies that support the development of permanent and seasonal farmworker housing in the City. In particular, the City has a goal to produce a minimum of 50 farmworker housing units. Farmworker housing will also help the City meet the regional housing needs for 335 extremely low-income and 334 very low-income dwelling units in Gilroy.

The City and County have conducted initial joint community engagement and are collaborating on the development path. The County plans to issue a Request for Offer to select a development partner among the County’s affordable housing developer qualified pool. The City is not planning to allocate CDBG funding toward this development. To facilitate the development, the City Council expressed support for waiving impact fees. The City will also provide support through the entitlement and permitting process, including review and approval of entitlement, California Environmental Quality Act (CEQA), and building permits.

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City of Gilroy
AP-20 Annual Goals and Objectives–91.420, 91.220(c)(3)&(e) Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Increase
Supportive/Public
Services for Special
Populations
2025 2026 NonHomeless
Special
Needs
Citywide Public Services for
Vulnerable
Populations
CDBG:
$57,012.45
Public service activities other than
Low/Moderate Income Housing
Benefit: 149 persons
2 Invest in
Community
Development and
Neighborhood
Revitalization
2025 2026 Non-Housing
Community
Development
Citywide Community
Development and
Public Facilities
CDBG:
$325,883.26
Public Facility or Infrastructure
Activities other than Low/Moderate
Income Housing Benefit: TBD based on
project location. Will occur in LMI
qualifying area.

Table 2: Goals Summary

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City of Gilroy
Goal Descriptions
1 Goal Name Increase Supportive/Public Services for Special Populations Goal Description - A resource/navigation center to connect people with resources, including migrant/agricultural/seasonal workers - Youth activities, especially out of school time (after school, summer) - More staffing for consistent programming and resources at the senior center - Affordable childcare
- Mental health services- Services for foster youth, seniors, and people with disabilities 2 Goal Name Invest in Community Development and Neighborhood Revitalization Goal Description - Street, sidewalk, and lighting improvements especially around affordable housing (roads, bike lanes) - Additional or higher quality childcare centers and youth recreation centers - Improvements to parks and recreation centers
- Public facilities improvements
Table 3: Goals Descriptions

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PROJECT SUMMARY
AP-35 Projects – 91.420, 91.220(d)
Introduction
For PY 2025-26, the City was allocated $380,083 in CDBG entitlement funds. In addition, $78,829.31 of prior years’ resources are being committed from projects/programs that were either cancelled or completed under budget.

PY 2025-26 will be a one-year funding cycle for the proposed activities and represents the first year of the City’s 2025-2030 Consolidated Plan.

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs One of the greatest challenges in meeting the underserved needs of low- and moderate-income persons is having limited financial resources. Public service dollars are always in high demand, but with limited funding, it is difficult to fund these programs to their fullest potential while staying within HUD parameters. The City continues to utilize its CDBG monies to the greatest extent possible to serve as many underserved needs as they are able in each program year.

Allocation priorities are determined based on the needs identified by analyzing data from HUD, ACS, and other sources and soliciting feedback from community members and local stakeholders. The City awards CDBG funds to organizations to provide public services and housing for low-income and special needs households.

Additionally, the City leverage in the form of its HTF funds to fill necessary gaps in funding to offer programs that address additional priority programs that otherwise may not be addressed during the program year Table 4 – Project Information
HUD requires that 70 percent of all CDBG funds be spent on activities that would benefit low- to moderate income (LMI) households, which are those making 0-80% of AMI. The City allocates its CDBG funds to projects and programs that will primarily benefit 0-50% AMI households, persons experiencing homelessness, and special needs populations.
# Project Name
1 Advocacy Program for Foster Youth in Gilroy
2 Adult Day Care
3 Meals on Wheels
4 Fair Housing
5 Transit Service
6 Housing Assistance for Gilroy Residents with Disabilities 7 Sidewalk Curb Ramp Project
8 City of Gilroy Program Administration

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Project Summary
CDBG PY2025-2026 Proposed Projects/Programs and Allocations Category Organization Project/Program Formula
Funds
($380,083)
Prior Years’
Resources
($78,829.31)
Allocation (May
5, 2025 Council
Direction)
Public
Service
Child Advocates of Silicon
Valley
Advocacy Program for Foster
Youth in Gilroy
$9,502.07 $0 $9,502.07
Public
Service
Live Oak Adult Day Services Adult Day Care $9,502.07 $0 $9,502.07 Public
Service
Loaves and Fishes Family
Kitchen
Meals on Wheels $9,502.07 $0 $9,502.07
Public
Service
Project Sentinel Fair Housing $9,502.08 $0 $9,502.08
Public
Service
Sourcewise Transit Service $9,502.08 $0 $9,502.08
Public
Service
Silicon Valley Independent
Living Center
Housing Assistance for Gilroy
Residents with Disabilities
$9,502.08 $0 $9,502.08
Public Services Subtotal $57,012.45 $0 $57,012.45
NonPublic
Service
City of Gilroy Public Works Sidewalk/Curb/Ramp $247,053.95 $78,829.31 $325,883.26 NonPublic
Service
Rebuilding Together Silicon
Valley
Repair and Accessibility
Modification Program for LowIncome Homeowners
$0 $0 $0
NonPublic
Service
Bay Area Community Health Gilroy Tenant Improvement Suite 110
$0 $0 $0
Non-Public Services Subtotal $247,053.95 $78,829.31 $325,883.26 Program
Admin.

City of Gilroy Program Administration $76,016.60 $0 $76,016.60 Program Admin. Subtotal $76,016.60 $0 $76,016.60
Total $380,083.00 $78,829.31 $458,912.31

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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
The City will continue to utilize CDBG funding to support citywide efforts that meet the needs of the community.

Geographic Distribution
Target
Area
Percentage of
Funds
Citywide 100
Table 4 - Geographic Distribution
Rationale for the priorities for allocating investments geographically The city falls just under the citywide LMA (Low-and Moderate-Income Area) definition of 51% of the population falling within the Low-and Moderate-Income category. All public services and housing activities will serve LMI households citywide.

Discussion
See above.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons(especially unsheltered persons) and assessing their individual needs The 2025-2030 Consolidated Plan identifies providing basic needs and supportive services to homeless persons as a high priority need. The 2023 PIT Count indicated that 1,048 persons are experiencing homelessness in the City and 9,903 persons are experiencing homelessness countywide. The City participates in the County of Santa Clara Continuum of Care (CoC), which is administered by the Santa Clara County Office of Supportive Housing.

The CoC has the primary responsibility to address homelessness regionally.

The Santa Clara County Office of Supportive Housing conducts biennial Point in Time (PIT) counts to estimate the prevalence of homelessness in the jurisdictions in Santa Clara County, including Gilroy. The CoC includesthe results of the PIT count and survey reports to HUD in its annual application for funding to provide housing services, including homeless services. Currently, the Santa Clara County CoC receives approximately $26 million annually in federal funding. The most recent PIT count took place in January 2023.

Every five years, the CoC prepares a community plan focused on ending homelessness in Santa Clara County.

The current plan is for the five-year period starting in 2020. The plan was developed through a series of community summits addressing specific homeless populations in the County.

The CoC conducts extensive community engagement with the homeless populations in the development of both the PIT count and the strategic plan.

Addressing the emergency shelter and transitional housing needs of homeless persons The City currently operates a temporary congregate cold weather shelter for six months out of the year, the County operates a small year-round family shelter, and the Ochoa Cold Weather Shelter. Community Solutions offers two transitional housing programs. The Gilroy Compassion Center offers year-round case management to provide basic needs to persons experiencing homelessness, such as portable restrooms delivered to encampments, additional case management and resource referrals, showers, laundry, food, and clothing available at twice weekly pop-ups. The Compassion Center strives to provide case management and administer the VISPDAT to as many individuals experiencing homelessness so that those individuals may be able to address and overcome barriers that prevent them from obtaining permanent housing and also become eligible for rapid rehousing or permanentsupportive housing with local nonprofits throughout the County once they are entered into the Coordinated Entry System. Below is an inventory of the homeless facilities located within or adjacent to Gilroy City limits by type, target population, and total capacity.

Homeless Facilities
Type of Housing Name of Program Beds Available Population Served Transitional Housing El Invierno TH Gilroy 12 Single Adults Transitional Housing Walnut Lane Home TH 8 Single Adults

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Recognizing the critical role of support services to prevent and reduce homelessness, the City provides funding through the Permanent Local Housing Allocation (PLHA) California grant program, and provides some services targeted to persons experiencing homelessness and families, including programming targeted toward persons experiencing homelessness with special needs and chronically experiencing homelessness residents. Services provided with the help of PLHA funds:
• South County Compassion Center (SCCC)– Provides access to the services persons experiencing homelessness need to survive, become stable, and lead self-sufficient lives. SCCC is committed to meeting our unhoused community and providing for their needs, right where they live. • St. Joseph’s Family Center – Homeless Prevention & Streets Team • Silicon Valley Independent Living Center – Housing and Emergency Services for Persons with Disabilities Program
• CARAS – Homeward Bound
The City of Gilroy also provides the following services targeted to persons experiencing homelessness and families, including programming targeted toward persons experiencing homelessness with special needs and to persons who are chronically experiencing homelessness. • Cold Weather Shelter: Upon declaration of an Inclement Cold Weather event by the National Weather Service and Santa Clara County, the City of Gilroy activates the Senior Center in Gilroy as a warming shelter The shelter is typically activated during the months of November – March, and open for overnight sheltering from 9 PM to 7 AM. Walk in’s are welcome. • Additionally, in 2021, The City Council authorized the City of Gilroy Quality-of-Life (QOL) Officers Program, which was approved as a permanent program by the City Council on July 22, 2024. The Quality-of-Life Officer’s duties include but are not limited to, responding to calls for service related to persons experiencing homelessness and/or encampments, following up on new or ongoing complaints, working with property owners to resolve QOL–related problems, building relationships and collaborating with community and faith-based organizations who work with the persons experiencing homelessness community, collaborating with local unhoused service providers to survey and provide resources to persons experiencing homelessness , and community outreach and education on the issues and challenges affecting the Gilroy community.

Emergency Shelter GilroyNightly Shelter
Inclement Weather
beds
5 Single Adults – seasonal
beds
Emergency Shelter Gilroy Nightly Shelter 100
Single Adults –
seasonal beds
Emergency Shelter Ochoa Winter Family
Shelter
100 Families – seasonal beds
Emergency Shelter La Isla Pacifica 14 Families with children, DV survivors and children

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Local services and facilities in Gilroy offered by nonprofit organizations include:
• The Gilroy Shelter (formerly the Armory), operated by HomeFirst, funded by Santa Clara County, and operated on state-owned property, is a 24/7 emergency shelter. The shelter offers services, including mobile laundry, showers, food, and light case management. Case Management is offered by the SCCC. • Ochoa Seasonal Cold Weather Shelter (December – March) is coordinated by St. Joseph’s Family Center and can house up to 35 households (100 individuals total) that have at least one minor dependent.
• La Isla Pacifica is Community Solutions’ emergency confidential shelter for adult survivors of domestic violence/intimate partner abuse or human trafficking and their minor children. This program provides supportive services to promote independent living, case management, counseling, transportation, danger assessment and safety planning, legal advocacy, life skills, education, goal planning, referral, and linkage to additional services and resources.
• Pit Stop Outreach –The program provides the following services to persons experiencing homelessness in Gilroy: volunteers work in partnership with persons experiencing homelessnessin Gilroy,to improve safety, health, and well-being, and to meet basic needs. • Valley Homeless Healthcare Program (VHHP)—On Fridays, the South County Mobile Health Center is provided at two sites in Gilroy to residents experiencing homelessness. The Backpack Homeless Healthcare Program (BHHP) team reaches the most vulnerable persons experiencing homelessness in Gilroy, where they live, while carrying backpacks filled with medicines and medical equipment to locations such as encampments, railroad tracks, etc.

Lastly, Gilroy has the following future projects in the planning stages and will support the needs of persons experiencing homelessness, including families and households with special needs:
• St. Joseph’s Family Center’s “Our New Place” intends to add four Permanent Supportive Housing units to its scattered site program. Currently, this program consists of 25 units for persons experiencing homelessness, and survivors of domestic violence.
• The Housing and Community Services Division has a Safe Parking program on its work plan for the 2025/26 fiscal year.

Discussion
Please see above.

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AP-75 Barriers to Affordable Housing – 91.220(j)
Introduction
Negative effects of public policies on affordable housing and residential investment 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 pose some sort of limitation or constraint, as well. There are generally two types of constraints: governmental and nongovernmental. Governmental constraints include policies, regulations, and procedures that directly affect housing, such as land use controls, development standards, local processing and procedures, and permitting fees. Nongovernmental constraints, such as construction costs, land costs, or availability of financing, are beyond the direct control and authority of the City but still have an impact on housing development.

As part of its 2023-31 Housing Element update, the City conducted an analysis of several potential constraints to the development, maintenance, and improvement of housing and affordable housing. The findings are summarized below.
• General Plan. This plan constitutes the highest-level policy document for the City and contains several items that can affect the development and distribution of housing, such as land use classifications, and density and intensity standards. In general, the Plan does not constrain housing development. • Zoning Ordinance. The City partially completed a comprehensive update of its Zoning Ordinance in 2023 to conform with its 2040 General Plan and current state housing law. As identified in several of the City’s Housing Element programs, the Zoning Ordinance will continue to be revised and updated to remove constraints to housing development.
• 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. • Parking requirements. Parking requirements often pose a potential constraint on development. However, the construction of recent developments in Gilroy, including 100% Affordable Apartment developments, demonstrates that the City’s existing parking requirements are appropriate and are not an unreasonable constraint.
• Residential Development Ordinance. Established in 1979, the City’s Residential Development Ordinance (RDO) monitored 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 was a potential constraint on development prior to the passage of SB 330 and SB 8, which has made the RDO null through 2030.
• Affordable Housing Policy. The City does not have an affordable policy in effect for the whole city and is working to develop a framework.
• 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. 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.
• Planning, Building and Development Impact Fees. Housing developments are typically subject to three types

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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. 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. 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.

Nongovernmental constraints.
• Requests to develop below the anticipated density. In some regions, market factors such as the demand for single-family housing or larger high-end 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 the densities anticipated.
• Land costs. Land costs have a demonstrable influence on the cost and availability of affordable housing. Land prices are determined by numerous factors, the 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 has influenced upward pressure on land and housing costs in Gilroy.
• 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. • Financing availability. Interest rates affect homeownership opportunities throughout the city. In January 2025, Freddie Mac’s primary mortgage market survey listed interest rates on home loans at 6.95 percent on a 30-year fixed-loan rate.
• Federal and state programs. There is limited funding available for housing assistance programs from the state and federal governments.
• Environmental 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, which may impact future development of residential units in the city and can pose a potential constraint to housing development.

Strategies to remove or ameliorate the barriers to affordable housing The City has identified the following goals, policies, and programs to remove or ameliorate barriers to affordable housing in its 2023-2031 Housing Element, including:

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.

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• 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.

Goal 2. Removal of Government Constraints. Remove or reduce governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible. • 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. • Policy 2.2. The City shall continue to provide individuals with disabilities reasonable accommodation through flexibility in the application of land use or zoning when necessary to eliminate barriers to housing opportunities. • Policy 2.3. The City shall consider the development of single-room occupancy units, studio apartments, microunits, and other similar unit types that are affordable to extremely low-income residents in higher-density areas of the city.

Programs to reduce barriers to affordable housing development:
• In Progress - Surplus lands are documented in the Annual Progress Report, which is presented to the City Council annually in March and subsequently provided to HCD annually on or before April 1st. City staff has begun the process to determine if additional city-owned sites could be declared as surplus and will complete the process by the end of the 2025 calendar year.
• In Process - The City is working on revising the Neighborhood District Policy by Fall 2025 to remove reference to the Residential Development Ordinance (RDO) and update target densities in the 2040 General Plan. The City is collaborating with the Santa Clara County Planning Collaborative and Strategic Economics to complete a Grand Nexus/Affordable Housing Study, which includes a Residential Feasibility Study, an Affordable Housing Analysis, a Residential Nexus Analysis (for small developments), and a Commercial Nexus Study and Feasibility Analysis.

Upon completion of the study and implementation of prescribed affordable housing standards, the City will update the Neighborhood District policy to include relevant affordable housing standards adopted by the Council. The Grand Nexus/Affordable Housing Study is estimated to be completed by fall 2025, and implementation of prescribed affordable housing standards will occur by June 2026. • Program A-10. Facilitate Missing Middle/Middle Income Housing. A Zoning Amendment implementing this program was adopted on June 3, 2024. Ordinance No. 2024-01. • Program A-11. Inclusionary Housing Policy. In process - In 2023, the City hired a consultant who conducted an Inclusionary Housing Feasibility Analysis and recommended that an Inclusionary Housing Policy for both ownership and rental projects be future-tested and planned for improved economic conditions. The City pivoted and joined the Santa Clara Community Planning Collaborative's Grand Nexus/Affordable Housing study to work on a Commercial Nexus Study and Feasibility Analysis, to study the collection of fees for affordable housing. In response to changing economic times, the City has added the Residential Feasibility Study, Affordable Housing Analysis, and Residential Nexus Analysis (for small developments) to its work. The Grand Nexus/Affordable Housing Study is expected to be completed by fall 2025, and the City anticipates implementing the prescribed inclusionary housing standards by June 2026.
• Program A-12. Incentives Beyond Density Bonus State Law. In process - In 2023, the City hired a consultant who conducted an Inclusionary Housing Feasibility Analysis and recommended that an Inclusionary Housing Policy for both ownership and rental projects be future-tested and planned for improved economic conditions. The

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City pivoted and joined the Santa Clara Community Planning Collaborative's Grand Nexus/Affordable Housing study to work on a Commercial Nexus Study and Feasibility Analysis, to study the collection of fees for affordable housing. In response to changing economic times, the City has added the Residential Feasibility Study, Affordable Housing Analysis, and Residential Nexus Analysis (for small developments) to its work. The Grand Nexus/Affordable Housing Study is expected to be completed by fall 2025, and the City anticipates implementing the prescribed inclusionary housing standards by June 2026. • Program B-1. Residential Development Ordinance (RDO) Removal. In progress - The RDO will be removed, with a draft zoning ordinance implementing the Housing Element being presented to the Planning Commission and City Council during the summer of 2026, with adoption anticipated by the end of Summer 2026. • Program B-2. Zoning and General Plan Densities. In Progress – a draft zoning ordinance implementing the Housing Element is being presented to the Planning Commission and City Council during the summer of 2026.

Regardless, submitted projects will be processed in compliance with state law, both prior to and following the adoption of the code amendment.
• Program B-5. Permit Streamlining - In Progress - A draft zoning ordinance implementing this program is being presented to the Planning Commission and City Council during the summer of 2026, with adoption anticipated by the end of summer 2026. The Building Division website includes an example residential permit in compliance with AB2234.
• Program B-6. Objective Standards - In Process - A draft zoning ordinance implementing this program is being presented to the Planning Commission and City Council during the summer of 2026, with adoption anticipated by the end of summer 2026. The City will also evaluate design guidelines per this program prior to the end of the 2026 calendar year. Affordable Housing project objective standards will be updated upon adoption of an Affordable Housing Ordinance by June 2026.
• Program B-7. Zoning Ordinance Update. In Progress - The Zoning amendment adopted by the City Council on 6/3/2024 (Ordinance No. 2024-01) includes a requirement for the replacement of demolished units on RHNA site units and a clarification regarding FAR in mixed-use projects. The remaining items will be considered by the City Council during the summer of 2026, with adoption anticipated by the end of Summer 2026. • Program B-8. Entitlement Road Webpage. Completed - Complete and posted on the City website. • Program B-9. Building Department Webpage. Completed - The Building Division website was updated in 2023 to include example residential permits in compliance with AB2234. The website includes plan submittal checklists (for application completeness), and example permits that received a final building permit approval.

The example permits include accessory dwelling units, duplexes, multifamily / mixed-use projects, townhomes, custom single-family home, and single-family tract home. • Program B-10. Zoning Code Annual Updates. In Progress - The City updated the Accessory Dwelling Unit Ordinance in 2023, created a webpage with a list of properties that can be approved ministerially pursuant to Government Code Section 65583.2, and will be completing a comprehensive update of the entire Zoning Ordinance in 2026 to implement state laws described in other Housing Element programs. • Program C-1. Monitoring of Units At Risk of Converting to Market Rate - Ongoing - The City reviews affordable housing term expirations as part of its annual monitoring program. In the Fall of 2024, the city began collaborating with the County of Santa Clara Office of Supportive Housing to implement a Pilot Below-MarketRate preservation Program. The SCCBOS has approved their portion of the pilot, and the City of Gilroy Council approved the program in March of 2025. The City is collaborating with the SCCPC and Strategic Economics to conduct a comprehensive Grand Nexus/Affordable Housing Study, which will encompass a Residential Feasibility Study, an Inclusionary Analysis, a Residential Nexus Analysis (focused on small developments), and a Commercial

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Nexus Study and Feasibility Analysis. The Grand Nexus/Affordable Housing study is expected to be completed by fall 2025, and the implementation of the prescribed affordable housing standards is scheduled for June 2026.

The city of Gilroy continues to be open to allocating city CDBG funding towards the rehabilitation of naturally occurring affordable housing for low-income residents and for the rehab of and continued affordability of 100% affordable units.
• Program C-2. Housing Rehabilitation. Ongoing - In FY 22-23 Rebuilding Together Silicon Valley was awarded a CDBG grant for $140,000. In FY 23-24 Rebuilding Together Silicon Valley was awarded a CDBG grant for $258,000. In FY 24-25 Rebuilding Together was awarded a CDBG grant for $179,942.32. The City will facilitate TEFRA hearings, as needed.
• Program C-4. Resale Control on Owner Occupied Below Market -Rate Units. Ongoing - Annually, the BMR Program Administrator conducts compliance monitoring for BMR portfolio homes. In FY24, the City BMR Administrator and city staff conducted a community meeting to answer questions and explain resale restriction agreements to current homeowners. In FY24, the city's BMR Program Administrator conducted a compliance certification via mail to confirm that residents were complying with their resale agreement and restrictions. City staff has collaborated with the Santa Clara County Office of Supportive Housing to create a Pilot BMR Preservation Program - see C-1 above.
• Program C-5 – Resale Control on Rental Below Market Rate Units. Ongoing - For renter-occupied units in 100% Affordable developments, the BMR Program Administrator sends information to property owners regarding resale restrictions outlined in their Regulatory, Loan, or Density Bonus Agreements and conducts an annual compliance audit. In January 2024, the city BMR Administrator completed outreach and administered the annual re-certification procedures for 100% Affordable Housing developments to confirm compliance with City and other regulatory agreements.
• Program C-6 – Identification and Preservation of At-Risk Units. Ongoing - The City’s BMR Program Administrator continues to update the City’s inventory of BMR units. City staff have collaborated with the Santa Clara County Office of Supportive Housing to create a Pilot BMR Preservation Program (see C-1 above). This process provides an opportunity to allow one currently for-sale (as of October 2024) low-income BMR unit to remain in the program and remain affordable for an additional 30 years. When units become available for resale, the new program will enable the city to purchase them and maintain affordability for other low-income households. • Program D-2- Funding Sources to Assist Homeownership. Ongoing - The City’s Housing and Community Services webpage includes information on homebuyer assistance, including Santa Clara County Empower Homebuyers Down Payment Assistance Program, California Housing Finance Agency (CalHFA) First Mortgage Programs and Down Payment Assistance Programs, and CalHFA’s Accessory Dwelling Unit (ADU) Grant Program. In FY 24, the City conducted workshops in English and Spanish with over 150 attendees to inform the community of these resources. The city has BEGIN and CalHome ReUse Down Payment Assistance available for low-income households and is planning to use a portion of this assistance for the Pilot BMR Preservation Program - see C-1 above.
• Program D-4 – Pursue Funding for Affordable Housing. Ongoing - Permanent Local Housing Allocation (PLHA) funding from the State through application and partnership with Santa Clara County will be applied for in the Fall of 2025, and 40% of the funding will be allocated towards affordable homeownership activities. The city continues to receive annual CDBG funding and supports two 100% affordable developments with 0% interest rate CDBG loans, allowing them to refinance and rehabilitate the properties. The City's Housing and Community Services Staff will apply for Federal Housing Trust Fund funding if available in the fall of 2025. The City is participating in the SCCPC Grand Nexus/Affordable Housing Study, which may suggest Housing In Lieu fees as part of a possible Affordable Housing Ordinance. See A-11 above. The City has been working in collaboration with the SCC Office of Supportive Housing and the Santa Clara County Housing Authority to plan the potential

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affordable housing development at 8th and Alexander Streets in Gilroy. City staff directs developers to the city's opportunity sites and will host a Developer Roundtable in May of 2025. • Program E-1 – Priority Water and Sewer Service for Affordable Housing Developments - Ongoing - This policy is currently in place and used in standard practice. The City has not identified a need to update the Policy. The City of Gilroy provides sewer and water services to all residents. The 2023-2031 Housing Element has been posted on the City’s website. The City’s water and sewer service website also provides information on the Low-Income Household Water Assistance Program.
• Program E-2 - Zoning to Encourage and Facilitate Single-Room Occupancy Units. Completed - A Zoning Amendment implementing this program was adopted on 06/03/2024. Ordinance No. 2024-01 • Program E-5 - Incentivize M-Units. In Progress - A draft zoning ordinance that amends regulations for efficiency units is being presented to the Planning Commission and City Council during the summer of 2026, with adoption anticipated by the end of Summer 2026. Regardless, submitted projects will be processed in compliance with state law, both prior to and following the adoption of the code amendment. • Program E-6 - Parking Requirements for Senior Housing. In Progress - There is nothing to report for the 2024 calendar year. The city will conduct a study by the end of 2025 to determine if updated senior parking standards should be included in the Zoning Ordinance update. The implementation status will be updated in future years in accordance with this Program.
• Program E-10 – Development and Rehabilitation of Housing for Persons with Disabilities. A Zoning Amendment including streamlining the permit process for residential care homes was adopted on 06/03/2024. Ordinance No. 2024-01. The modified reasonable accommodation findings will be considered by the City Council in 2025. • Program E-11 - Housing for Extremely Low Income and Special Needs Households. The City received Permanent Local Housing Allocation (PLHA) funding from the State through application and partnership with Santa Clara County. The City's Housing and Community Services Division will apply for Federal Housing Trust Fund funding, if available, in the fall of 2025. The City is participating in the SCCPC Grand Nexus/Affordable Housing Study that may prescribe Housing In Lieu fees as part of a possible Affordable Housing Ordinance. See A-11 above. The City has been working in collaboration with SCC Office of Supportive Housing and the Santa Clara County Housing Authority to plan the potential affordable housing development at 8th and Alexander Streets in Gilroy. This development is anticipated to contain a minimum of 57 units, with 100% of the units restricted to occupants earning 80% or less of the area median income (AMI), with 25% of the units restricted to households earning 30% AMI or less and 25% of the households earning 50% AMI or less. The fully entitled ROEM 100% Affordable development will provide at least 21 restricted to households earning 50% AMI or less. May 2025 will be the first Developer Roundtable of the planning period. Developer Roundtables are planned for a minimum annually each May. The Pilot BMR Preservation program will have the opportunity to provide housing for low-income seniors and other low-income households. See C-1 above for the BMR Preservation Program. • Program E-13- Permanent Supportive Housing - A Zoning Amendment implementing this program was adopted on 06/03/2024. Ordinance No. 2024-01 The City amended the code to allow supportive housing uses by-right in zones where multi-family and mixed-uses are permitted and permit transitional and supportive housing as a residential use in all zones allowing residential uses, subject to restrictions that apply to other residential dwellings of the same type in the same zone
• Program F-4 - Housing Mobility and Choice in Higher Opportunity Areas - An update on each of these programs is identified under their respective program number. See A-10, A-11, and A-12 above • Program G-1 – Collaboration with Development Community -. In Progress - Community Development staff created a list of Gilroy Developers over the 2023 & 2024 FYs while conducting outreach for CDBG Consolidated

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Plan, the initial Inclusionary Housing Feasibility Study, the Grand Nexus/Affordable Housing Study, and High Speed Rail outreach, and through permit applications with the Building and Planning Department. The first Developer Roundtable will be hosted in May of 2025.
• Program G-. - ADU Education. In progress - The City Building and Planning Department's ADU webpages have been consolidated, with a link to pre-approved ADU plans. HCS staff tracks ADU permit issuance and will collaborate with other City department staff to create an ADU marketing program and will encourage residents to participate in the SCC ADU loan program established in February 2025.

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AP-85 Other Actions - 91.420, 91.220(k)
Introduction
Actions planned to address obstacles to meeting underserved needs The Needs Assessment and Market Analysis of the 2025-2030 Consolidated Plan helped develop the City’s priority needs for LMI persons, persons experiencing homelessness, special needs populations, and community service needs.

Actions planned to foster and maintain affordable housing No entitlement CDBG funding beyond public services is planned to be allocated for affordable housing; these actions will be accomplished through other funding sources (e.g., LIHTC).

Actions planned to reduce lead-based paint hazards
The City provides information about lead-based paint hazards at the Community Development counter for properties being rehabilitated or acquired for affordable housing.

Actions planned to reduce the number of poverty-level families The City works to reduce the number of poverty-level families through all projects by making the projects available to LMI households citywide. Some projects were created to address the need of expanding economic opportunities for lower-income people and others may offer additional benefits in reducing poverty, simply by way of design.
• The Live Oak Adult Day Services’ Adult Day Care Program provides recreation and socialization for persons who are unable to live independently. This program allows their caretakers to go to work during the hours that the program is open. Were it not for this program, the caretaker may not be able to earn an income for the household because the person using the day program does not have anywhere else to go during that time.
• Loaves and Fishes Meals on Wheels Program will focus on providing meals and wellness checks to those individuals who are at or below the poverty line and typically home bound. • SVILC projects to serve 60 unduplicated low-income Gilroy residents with disabilities. All persons have at least one of the following disabilities: physical, mental/behavioral, sensory, developmental or cognitive disabilities. The Project also meets the HUD Priorities for Public Service Activities by providing Housing services that benefit low- or extremely-low income persons with all disabilities of all ages, including seniors and youth with disabilities.
• Sourcewise will provide free transit rides to seniors and/or disabled adults to local medical appointments, pharmacies, grocery stores, and to socialize at the Senior Center. • Child Advocates of Silicon Valley is responsible for operating the Court Appointed Special Advocate (CASA) program in Santa Clara County, which entails recruiting, training and supporting CASA volunteers for foster youth. All children served are low-income, as they are all children in the Santa Clara County foster care

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system, and are, therefore, dependents of the Court.
• Project Sentinel provides services to address the incidence of illegal housing discrimination by:
investigating complaints, administering systemic audits, conducting community outreach and education, and seeking redress for victims of such discrimination. The agency also educates housing providers in an effort to prevent fair housing complaints.

Actions planned to develop institutional structure
The City is financially constrained and cannot meet all the needs identified in the Needs Assessment; however, the City continues to enter partnerships with nonprofits to strategically meet some needs of the community. An especially pressing issue is meeting the needs of the City’s growing unhoused population.

The City will continue to provide a platform for the City and service providers to increase collaboration and partnership to connect unhoused individuals and families with services, through the monthly Unhoused Service Providers Network meetings. In addition, the City provides unhoused resources and efforts on its website at https://www.cityofgilroy.org/unhoused.

Actions planned to enhance coordination between public and private housing and social service agencies
Local nonprofits are partnering with the City of Morgan Hill to operate a Safe Parking Program for the South County.

The city is partnering with the Office of Supportive Housing and the SCCHA to develop a 100% affordable housing project at 8
th and Alexander. The project will provide housing for extremely low, very low, and low income people, including dedicated units to Agricultural workers. The city will waive impact fees and provide community outreach and engagement.

Discussion
See discussion above.

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AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
The City will continue to collect additional revenue to support the actions noted in the Annual Action Plan. Program Income is collected from various sources to include repayment of past rehabilitation loans. The City does not anticipate receiving any program income in PY 2025-26.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of lowand moderate-income. Overall Benefit - A consecutive period of one, two, or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100% Discussion
The City will attempt to meet an overall benefit of 100% for this Annual Action Plan which will be for one year. The overall benefit will be measured for PY 2025-26.

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Appendix A.

Citizen Participation and Stakeholder
Consultation.

Residents of Gilroy and stakeholders working in the city were given the opportunity to provide feedback on critical housing and community development needs through a variety of events held in Fall 2024.
• Community Open House Event on November 4, 2024, from 4:00 - 8:00 PM at the Gilroy Public Library with approximately 30 residents participating; • Individual stakeholder interviews: Root Policy conducted four interviews with stakeholders from Gilroy throughout the month of January 2025; • Stakeholder Virtual Workshops on December 5, 11, and 17; and • Resident Virtual Workshops on November 14 and 21 in the evening.

Additionally, a resident and stakeholder survey were open for submission in fall 2024, with full analysis provided in Appendix B.

Gilroy Community Open House
The event comprised a 4-hour Open House to collect feedback from Gilroy and South Bay community members with a variety of activities with the goal of getting feedback on how federal funds should be spent in their community. Approximately 30 residents participated from Gilroy, San Jose, Morgan Hill, Santa Cruz, and Millbrae attended.

Figure A-1.

Gilroy and South
County Open House
Promotional Flyer


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Activities Overview
• Demographic Survey
• Community Survey
• Activity 1: What are the Greatest Needs? (Comment Boards) • Activity 2: Prioritizing Outcomes
• Children’s Activity: Your Favorite Place in the Neighborhood Coloring Sheet Comment Boards. Residents were asked to post comments on boards with their thoughts on housing, community development and economic development needs in Gilroy.

Examples of the boards are below. Responses were recorded and are summarized below.

Figure A-2.

Gilroy Open House
Comment Boards

Housing. Community members stressed the importance of affordable housing solutions, including very low-income units, supportive housing, and shelters, alongside programs for homeownership and rental assistance. They also noted a few policy actions to help support housing challenges such as stronger tenant protections, enforcement against housing discrimination and unsafe rentals, creative solutions like tiny homes and safe parking, and expanded resources for farmworkers and the unhoused.

Public Services. Community members noted the need for expanded mental health services, substance abuse programs, and accessible healthcare, along with better support for food security and childcare. They also prioritized affordable and reliable transportation, safe parking for unhoused individuals, climate-resilient shelters, and resources to assist with rental and deposit challenges.

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Community Development. Community members listed the need for investments in youth centers, affordable recreational opportunities, and partnerships with nonprofits to expand services and build community resilience. They also prioritized infrastructure improvements like fixing potholes, improving street lighting, and creating safer, more accessible roads.

Climate-related activities were mentioned such as developing an urban forest, investing in creek-rise mitigation, and developing a climate resilience plan.

Economic Development. Community members highlighted the need for gainful local employment opportunities, union jobs, and training programs particularly for youth and the homeless. They also emphasized support for small businesses through low-cost loans, entrepreneurship programs, and policies to help street vendors operate.

Prioritizing Outcomes Activity. Jars were provided, each representing different community development and housing activities. Resident participants were each given 10 tickets and asked to drop tickets into the jars to indicate prioritization of funding for the types of activities provided.

1. Residents experiencing homelessness/housing instability have more permanent housing options.

2. First-time homebuyers, low-income residents have more opportunities to buy an affordable home.

3. Residents have access to new parks and/or recreation centers in their neighborhood(s).

4. (Tie) Seniors have several housing options to downsize.

5. (Tie) Residents experiencing homelessness/housing instability have more access to shelters that meet their needs.

6. Residents experiencing homelessness benefit from increased access to services that address their housing needs.

7. (Tie) Residents have more access to job training programs or job training centers in their community.

8. Residents have more access to employment opportunities in their community

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Individual Stakeholder Interviews
Gilroy City staff provided contact information for nonprofit service providers specifically working in Gilroy in the areas of housing and homelessness, supportive services and community development. Four interviews were conducted, and the following feedback and recommendations were provided:

Housing. Stakeholders emphasized the critical need for housing that is affordable for residents who have incomes that are less than 30%AMI as the basis for preventing homelessness in Gilroy. They also identified an extreme shortage of emergency and transitional housing with only roughly 100 beds available, and 10 safe parking spots.

Seniors are overrepresented in the homeless population in Gilroy. Additional populations who are particularly vulnerable in Gilroy are domestic violence survivors, monolingual Spanish speakers and undocumented residents, people with disabilities, people with chronic health issues and people struggling with mental illness. Gaps in referral services were identified as a considerable barrier to connecting people with the services needed in Gilroy as related to homelessness and health needs. VI-SPDT data show that 83% of homeless residents are from Gilroy and not coming from the North County. South County lacks sufficient services compared to North County.

Community Development. Youth and seniors were most frequently referenced as groups needing access to improved services and activities in the community. Improvements to park and recreation centers such as the Wheeler Center that would facilitate more space and staff for after school activities and skill building opportunities for youth while parents are working was recommended. Additionally, more space and staffing for senior activities so that programming can be more consistent was indicated as a high need for socialization and physical activity. Lastly, a navigation center that can provide individualized case management that connects people to needed services was referenced as a critical need in Gilroy including housing, healthcare, food, childcare, job opportunities / workforce development, document assistance, with services available in Spanish. Recommendations were made for the City to more actively connect all of the nonprofit service providers in the community which could be accomplished through the establishment of a navigation center.

Regional Resident and Stakeholder Virtual Workshops
Regional stakeholder virtual workshops were held on December 5, 11, and 17, 2024 and resident workshops were held on November 14 and 21. The workshops provided an overview of the Consolidated Plan process, interactive activities to identify broad themes of interest to the community, gaps in services and institutional delivery structure and geographic priorities. Attendees were assigned to small breakout room discussions which facilitated the opportunity for more detailed feedback and engagement with other

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participants. Detailed discussion notes from the citizen and stakeholder virtual events follow Appendix B.

Figure A-3.

Stakeholder Workshop Information and Registration Page, Let’s Talk Housing SCC Website
Source: https://www.letstalkhousingscc.org/orgs
Primary findings from these workshops specific to Gilroy and South County are summarized below.

Housing. South County and Gilroy stakeholders placed a priority on addressing the shelter and service gaps faced by migrant farmworkers. Many county-level stakeholders and South County residents recommended allowing and funding safe parking areas as an interim solution.

South County and Gilroy residents also put a very high priority on permanent supportive housing for people who are out of homelessness.

South County and Gilroy residents were also unique for their prioritization of first-time homeownership activities—something that other areas of the County did not prioritize due to the remarkably high cost of homes in their areas. Except for deed-restricted, Below Market Rate homeownership products, homebuying assistance programs are not realistic.

Participants emphasized the need for senior housing options where caregivers and recipients can live in the same place. Currently, live-in caregivers become homeless when

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the recipient dies. Helping caregivers to live in separate apartments in the same building as the recipient would allow for better care to the recipient and greater stability and privacy for the caregiver. Need is geographically widespread. A Lawyer with SALA expressed that there’s been an increase in difficulty aging in place in rental housing. There’s a need to support older adults in their rental housing. They are not aware of their rights around accessibility modifications, and needing accessibility modifications makes it hard to find places to live. Examples of programs that help the low-income homeowners keep their home safe include home rehabilitation programs, and access to financing for home improvements through low or no interest rate loans to make improvements.

Public Services. Immigrants and residents with limited English proficiency—who are most concentrated in the South County—need language services and classes, citizenship classes, assistance with housing and navigating public transportation systems, and legal help to become economically self-sufficient—and find that many service providers cannot accommodate them.

Residents are often unfamiliar with the services available to them or do not know how to access services. Further, supportive services are difficult to navigate independently: clients must locate relevant organizations, submit multiple (often complicated) applications to various organizations and navigate long waitlists. Special needs populations face additional barriers to accessing services. Case management— where available in the county—is sporadic and insufficient due to lack of funding and high turnover among poorly paid case workers. High turnover leads to low institutional knowledge among case managers and nonprofit service providers, diminishing the quality of service available. Case management is especially critical for foster care youth, immigrants, and unhoused individuals who may be navigating support systems for the first time.

Participants recommended that the County fund case management services and a consolidated search platform or drop-in centers; that cities and nonprofits collaborate more frequently and fully; and that service providers design and adopt a single, straightforward application accepted by multiple organizations Community Development. Residents frequently reported a need for new, accessible community centers with recreational, cultural, and educational programming, access to services, reservable common spaces, and potentially subsidized meals. Residents also recommended providing community spaces with engagement opportunities in new housing developments. Multiple stakeholders reported that social isolation is a common problem for the county’s seniors and recommended increased provision of senior recreational programming and facilities such as an indoor walking track. One stakeholder reported that many senior centers are run down and need renovation. Multiple stakeholders offered ideas for how to increase community and combat loneliness through “communal social centers” and free events; this was mentioned frequently in

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Gilroy.

Participants consistently reported gaps in the availability of childcare options and youth programming including after school programs, youth sports, and teen programming, advocating for the construction of new youth centers and enhanced City collaboration with youth-serving nonprofits. One stakeholder recommended home daycares as a communityembedded, potentially affordable alternative to commercial daycares. There is also a lack of safe spaces for LGBTQ+ teens and foster care youth moving into adulthood in the county.

Residents and stakeholders frequently reported that accessible, well-connected public transportation is essential for connecting residents with employment opportunities, essential services, and grocery stores. Bus service is inconsistent, bus stops are limited, and transit is difficult to navigate. There are needs for new bus stops, improvements to existing bus stops, greater reliability and frequency, improved accessibility for residents with mobility differences, an app to keep commuters updated on VTA service, and translation of navigation materials into multiple languages.

Broader infrastructure improvements are also needed. There was very widespread concern that bike lanes and pedestrian infrastructure such as sidewalks and street crossings are nonexistent, unsafe, or non-ADA compliant in areas across the county, including near essential public facilities. Bike lane safety could be improved with public education on bike lane use. Road improvements including streetlight and intersection improvements are also needed across the county.

Participants also called for improvements to trails and outdated parks, with a focus on providing safer parks with better lighting. While these needs are countywide, infrastructure improvements have not kept up with housing development especially in the South County:
residents report the need to fill potholes, improve sidewalks, and resolve frequent electricity and internet outages.

Several participants, including South County and Gilroy residents, expressed a need for climate resilience planning, creek rise mitigation, tree planting, and expanding access to solar energy. Other miscellaneous needs discussed include new community pools, general recreation opportunities, speed bumps in residential areas, and cultural and arts facilities. As a general solution to community development needs, stakeholders recommended that the County provide jurisdictional planning departments with a centralized list of grant opportunities and capacity building resources.

Economic development. Stakeholders and residents reported significant needs for adult education, job training, and skills development across the county and especially in East San Jose and the South County. Workforce development programs are critical to the economic mobility of residents of all ages seeking higher paying jobs, and participants noted that they are particularly important for youth entering the workforce and unhoused

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residents seeking gainful employment. Residents recommended trade education, and several stakeholders reported that youth would benefit from paid internship or trade apprenticeship opportunities. Workforce development programs should be offered outside of regular business hours and in English and Spanish where possible, especially in areas with large monolingual Spanish populations like the South County. There is also a need for marketing existing programs: one low-income resident expressed interest in skills development, but did not know of any programs in the county.

Many participants expressed concern that essential workers cannot afford to live in the county, emphasizing that affordable rental and homeownership options are essential to workforce development and retention. Some participants recommended building designated workforce rental housing near employment centers, increasing access to vouchers, offering down payment assistance, and exploring innovative homeownership solutions including community land trusts, sweat equity programs, and limited equity housing cooperatives. Others emphasized a need for creation of and access to higher paying jobs.

Participants consistently reported that access to affordable childcare and reliable, accessible public transportation—currently gaps in the county, discussed in “community development needs” above—are needed to promote economic mobility of low- to moderate- income households.

Stakeholders and South County residents reported that immigrants struggle to access skills training and small business development resources due to immigration status and/or language needs, resulting in needs for immigration support and expanded access to English language training. South County residents with limited English proficiency reported immigration-related employment discrimination and poor working conditions. Other participants noted that domestic violence survivors need trauma-informed employment opportunities, recommending training for employers on the impact of trauma and support policies like flexible work hours and affordable childcare for survivors.

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Appendix B.

Gilroy Survey Analysis
Santa Clara County conducted the 2024 Santa Clara County Housing and Community Needs Survey to better understand the greatest housing, community development, and economic development needs of its residents. The survey was administered to both residents and stakeholders to gain an in-depth understanding of concerns from those who deliver services and those who may receive them. This analysis focuses specifically on residents and stakeholders based in Gilroy.

Primary Findings
Housing needs and outcomes
Most respondents in Gilroy selected low- or moderate-income families as the group with the greatest challenges finding and keeping housing (57%), followed by persons with mental illness (46%), persons who are currently unhoused (45%), seniors/elderly persons (36%), and persons with disabilities (35%);
Sixty percent of Gilroy respondents selected homeownership opportunities for low- or moderate-income residents as the most needed housing activity. Renters, Hispanic/Latina/Latino respondents, households with income less than $49,999, unemployed respondents, large households, and families with children selected homeownership opportunities and more rental housing for low-income households at the highest rates;
More affordable homeownership was the most frequently selected housing outcome (45%), followed by more affordable rental housing (45%), better distribution of affordable housing (44%), supportive housing for unhoused (34%), seniors/persons with disabilities are able to live independently (33%), and increased shelter capacity (33%). Compared to Santa Clara County, respondents in Gilroy selected affordable homeownership at a substantially higher rate (45% versus 37%); and Precariously housed respondents selected better distribution of affordable housing as a housing outcome at the highest rate (58%), followed by renters (55%).

Funding priorities
Respondents were asked to rank items from 1, indicating strong disagreement for funding, to 10, indicating strong agreement that the item should be funded. Starter homes for first-time buyers received the highest average rating, followed by housing affordable to residents living on fixed income, housing affordable to residents working in public services like public safety, librarians, and teachers, and housing for youth exiting the foster care system; and

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Hispanic/Latina/Latino respondents who took the survey in Spanish rated apartments appealing to seniors, housing for downsizing, housing for those who are losing mobility, housing for larger households, housing for multigenerational households, and permanent supportive housing for unhoused individuals substantially higher than other racial or ethnic groups—including Hispanic/Latina/Latino respondents who took the survey in English.

Homelessness and displacement
Eleven percent of survey respondents in Gilroy reported that they are currently or had been unhoused in the past year. Seventeen percent of those who identified as Hispanic/Latina/Latino and took the Spanish survey had been unhoused in the past year, as were 15% who were Hispanic/Latina/Latino and took the English survey.

Fifteen percent of large households, 19% of households reporting a disability, and 22% of single parents experienced being unhoused in the past year; and Twenty-two percent of respondents in Gilroy reported that they had experienced displacement in the past year. The most common reason for displacement identified by respondents in Gilroy was rent increasing more than ability to pay (47%).

Hispanic/Latina/Latino respondents who took the Spanish survey identified landlords renting to someone else after the lease ended as a reason for displacement at higher rates than Hispanic/Latina/Latino respondents who took the survey in English (16% compared to 3%) and reported unsafe housing (e.g. domestic violence) at higher rates than Hispanic/Latina/Latino respondents who took the survey in English (11% versus 5%).

Accessibility needs
Twenty-seven percent of respondents in Gilroy reported that they or someone in their household have a disability. Of those with a disability or those living with a household member who has a disability, 33% currently live in a home or apartment that does not meet their accessibility needs; and
Forty-four percent of respondents whose home needed modifications said they needed grab bars in the bathroom. This was followed by 38% who needed a walk or roll-in shower, 34% who needed a reserved accessible parking spot by the entrance, 30% who needed a service or emotional support animal in the home, 24% who needed ramps, and 24% who needed an alarm to notify if a non-verbal child has left the home.

Community and economic development needs and outcomes
Youth activities were the most selected community and economic development need by respondents in Gilroy (48%), followed by affordable childcare (45%), mental health services (42%), job training programs (38%), services for unhoused (38%), and community centers (37%);

City of Gilroy
2025-2030 Consolidated Plan │ 195
Compared to Santa Clara County overall, respondents in Gilroy selected youth activities, job training programs, community centers, neighborhood cleanups, and developed parks as community development needs at substantially higher rates; A new or improved community center was the most frequently selected community development outcome by respondents in Gilroy (42%), followed by sidewalk and streetlight improvements (40%), more recreational opportunities for youth/special populations (40%), additional and/or higher quality childcare centers (37%), improvements to parks and recreation centers (35%), and improved access to fresh food (35%);
Sixty-six percent of Hispanic/Latina/Latino Spanish survey takers selected sidewalk and street improvements as a community development outcome—the highest rate of any group and more than twenty percentage points higher than Hispanic/Latina/Latino English survey takers; and
Respondents in Gilroy selected job training programs as the most desired economic development outcome (46%), followed by more opportunities for small or startup businesses (40%), center for seasonal and day laborers (39%), improved transportation to areas with job opportunities (35%), and revitalization of neighborhood businesses or commercial areas (34%).

Stakeholder perspectives
Stakeholders in Gilroy rated advocacy and counseling for people with HIV/AIDS, law enforcement to help low-income households, transportation services for low-income families, and life skills training as the resources hardest to access and rated advocacy and counseling for homeless at-risk youth, healthcare for people experiencing homelessness, advocacy for people experiencing homelessness, and childcare and education services for low-income families as the easiest to access; and Compared to stakeholders in Santa Clara County overall, stakeholders in Gilroy generally rated resources as less accessible. The only resources Gilroy stakeholders rated as more accessible than Santa Clara County stakeholders overall were counseling services and advocacy for at-risk youth, childcare and education services targeted at homeless and low-income families, healthcare for people experiencing homelessness, and transportation targeted to people experiencing homelessness.

Methodology and Sample
The survey was available online in English, Spanish, Arabic, Chinese, French, Portuguese, Russian, Somalian, and Vietnamese. Paper surveys were also administered throughout Santa Clara County in English and Spanish. The survey was advertised on social media platforms, the county’s online hub for information on the Consolidated Plan (www.letstalkhousingscc.org), stakeholder lists, and county staff email lists.

City of Gilroy
2025-2030 Consolidated Plan │ 196
563 people responded to the survey in Gilroy. 519 were residents only and 44 were both residents and stakeholders who work for an organization or agency that serves county or city residents. Stakeholder perspectives are included at the end of this report. The survey was promoted in Gilroy through the following activities:
• Tabeling at many local community events, including the Gilroy Senior Center, San Ysidro Park Spooky Night, Cafecito, and food distribution, Nueva Vida Community Flu shot clinic, Salvation Army event, St. Mary Parish Masses, Santa Clara County Cooking Experience, Salvation Army food distribution, and La Ofrenda community event.
• Flyer stations were set up at the City of Gilroy Library, City Hall, and the Senior Center
• Flyers were distributed at the South County Collaborative meeting, Neon Exchange, Rebekah’s Children’s Center, Mobile Home parks, Victory Outreach Center, and to unhoused residents via case management efforts by South County Compassion Center.
• Flyers were emailed to and distributed by Project Sentinel, CARAS, Catholic Charities, the Gilroy Unified School District, 100% Affordable Apartment Property Managers, the Faith Based Community, Sourcewise, OnLok, the Gilroy Downtown Association, Gilroy Chamber of Commerce, Gilroy Foundation, Carry the Vision, Gilroy Housing Association, Silicon Valley Independent Living Center, Live Oak Day Care Center, The Health Trust – Meals on Wheels, via YMCA meal delivery, the Unhoused Service Providers Network, Department of Rehabilitation, South County Reentry Center, Rebuilding Together Silicon Valley, Gilroy Day Care providers, and Community Solutions.
• Promoted electronically via the City Housing Block Grant webpage, website “Newsflash”, weekly Email Express Newsletter, social media, the City Recreation Newsletter, and Nextdoor.
• Promoted both in print and electronically via the Gilroy Dispatch

City of Gilroy
2025-2030 Consolidated Plan │ 197
Figure B-1.

Survey Promotion on Let’s Talk Housing Santa Clara County Source: Let's Talk Housing Santa Clara.

City of Gilroy
2025-2030 Consolidated Plan │ 198
Figure B-2.

Placeholder for
Social Media
Adverts
 Note:
 City of Gilroy website

 Source:
 City of Gilroy Newsflash.

Sampling note. The survey respondents do not represent a random sample of the Gilroy’s population. A true random sample is a sample in which each individual in the population has an equal chance of being selected for the survey. The self-selected nature of this survey prevents the collection of a true random sample.

City of Gilroy
2025-2030 Consolidated Plan │ 199
When considering the experience of members of certain groups in Gilroy, some sample sizes are too small (n<40 respondents) to express results quantitatively. In these cases, we describe the survey findings as representative of those who responded to the survey, but the magnitude of the estimate may vary significantly in the overall population (i.e., large margin of error). Survey data from small samples are suggestive of an experience or preference, rather than conclusive.

Explanation of terms.
 “Precariously housed” includes residents who are staying with friends and family but not on a lease (“couch surfing”), are staying in shelters, transitional housing, rapid rehousing, hotels or motels, and sleeping on the street or in a car.  “Hispanic – English Survey” indicates that a respondent identified as Hispanic/Latina/Latino/ and took the survey in English while “Hispanic/Latina/Latino– Spanish Survey” indicates that a respondent identified as Hispanic/Latina/Latino and took the survey in Spanish. Hispanic/Latina/Latino respondents were separated this way to explore how needs and opinions differ based on potential language barriers.  “Disability” indicates that the respondent or a member of the respondent’s household has a disability of some type—physical, mental, intellectual, developmental.  “Single parents” are respondents living with their children without a spouse or partner.  “Large households” are made up of five or more people in one housing unit.  “Older adult” is a respondent older than 65.

Demographics
Almost half (46%) of respondents in Gilroy were homeowners. Thirty-six percent were renters, and 13% identified as precariously housed. Eighteen percent of respondents identified as non-Hispanic/Latina/Latino White and 46% identified as Hispanic/Latina/Latino. Respondents with household income less than $49,999 made up the highest proportion of any income bracket (29%). Thirty-two percent of respondents were employed full-time, 16% were retired, and 7% were unemployed. By household type, 27% of respondents reported a disability in the household, 17% were older adults, 23% were large households, and 17% were renters with household income less than $49,999.

Twenty-eight percent of respondents were a couple with children and 9% were single parents.

City of Gilroy
2025-2030 Consolidated Plan │ 200
Figure B-3.

Respondent Demographics,
Gilroy
 Note:
 n = 563.

 Source:
 Root Policy Research from the 2024 Santa Clara
County Housing and Community Needs Survey.
n
Total Responses 563 100%
Respondent Type
Stakeholder and Resident 44 8%
Resident Only 519 92%
Tenure
Homeowner 259 46%
Renter 203 36%
Precariously housed 76 13%
Race and Ethnicity
Non-Hispanic White 102 18%
Other Race 44 8%
Hispanic - English Survey 153 27%
Hispanic - Spanish Survey 107 19%
Household Income
Less than $49,999 162 29%
$50,000 up to $99,999 94 17%
$100,000 up to $149,999 51 9%
$150,000 or more 64 11%
Employment Status
Employed Full-Time 182 32%
Employed Part-Time 48 9%
Retired 92 16%
Unemployed 37 7%
Household Characteristics
Large Households (5 or more) 130 23%
Older Adult (Over 65) 93 17%
Disability 151 27%
Renter with Income < $49,999 93 17%
Family Type
No Children 356 63%
Couple with Children 157 28%
Single Parent 50 9%
%

City of Gilroy
2025-2030 Consolidated Plan │ 201
Housing Needs
Groups with the greatest housing challenges. Respondents in Gilroy were asked to identify the groups with the greatest challenges finding and keeping housing in Santa Clara County. Most respondents selected low- or moderate-income families (57%), followed by persons with mental illness (46%), persons who are currently unhoused (45%), seniors/elderly persons (36%), and persons with disabilities (35%).

Figure B-4 shows the groups respondents in Gilroy and Santa Clara County identified as having the greatest housing challenges. Compared to Santa Clara County respondents overall, respondents in Gilroy selected low- or moderate-income families, seniors, and immigrants without documentation at a higher rate.

Figure B-5 through B-9 break down the top five groups with the greatest housing challenges selected by Gilroy respondents by tenure, race and ethnicity, household income, employment status, selected household characteristics, and family type:

Renters selected low- or moderate-income families at the highest rate (70%), while homeowners selected persons with mental illness at the highest rate (58%).

Precariously housed respondents selected seniors and persons with disabilities at the highest rates (45% and 42%, respectively);
Seventy-seven percent of Hispanic/Latina/Latino respondents who took the survey in Spanish selected low- or moderate-income families—the highest of any racial or ethnic group. This was followed by 65% of Hispanic/Latina/Latino respondents who took the survey in English. Hispanic English survey takers selected persons with mental illness and persons who are currently unhoused at higher rates than Hispanic/Latina/Latino Spanish survey takers;
By household income, households with income less than $49,999 selected low- or moderate-income families and seniors at the highest rates. Selection of these groups decreased as income increased;
By employment status, retired respondents unsurprisingly selected seniors as having the greatest housing challenges at the highest rate (59%) while unemployed individuals selected persons who are currently unhoused at the highest rate (54%); Seventy-seven percent of renters with household income less than $49,999 selected low- or moderate-income families—the highest of any household group. Fifty-seven percent of respondents with a disability selected persons with a mental illness as a group with the greatest housing challenges; and
Single parents selected persons with disabilities at the highest rate (42%) while couples with children selected low- or moderate-income families at the highest rate (67%).

City of Gilroy
2025-2030 Consolidated Plan │ 202
Forty-nine percent of respondents with no children selected persons with mental illness—higher than groups with children.

Figure B-4.

Groups with the Greatest Challenges Finding and Keeping Housing, Gilroy and Santa Clara County
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 203
Figure B-5.

Top Five Groups with Greatest Housing Challenges, Tenure, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-6.

Top Five Groups with Greatest Housing Challenges, Race and Ethnicity, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 204
Figure B-7.

Top Five Groups with Greatest Housing Challenges, Household Income, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-8.

Top Five Groups with Greatest Housing Challenges, Employment Status, Gilroy
Note: n = 563.

City of Gilroy
2025-2030 Consolidated Plan │ 205
Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-9.

Top Five Groups with Greatest Housing Challenges, Selected Household Characteristics, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-10.

Top Five Groups with Greatest Housing Challenges, Family Type, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 206
Most needed housing activities. Responses for the most needed housing activities aligned with the results regarding groups with the hardest time finding and keeping housing: The most needed housing activities were homeownership opportunities for low- or moderate-income residents (60%), followed by rental housing for low-income renters (50%), supportive housing for unhoused residents (37%), emergency shelters (36%), and rental housing for seniors (35%).

Gilroy respondents selected homeownership opportunities and housing rehabilitation for low-income owners at noticeably higher rates compared to respondents in Santa Clara County overall. Respondents in Gilroy also selected the need for emergency shelters at a slightly higher rate (36% versus 35%).

Figure B-11 through B-17 break down the top five most needed housing activities selected by Gilroy residents by tenure, race and ethnicity, household income, employment status, selected household characteristics, and family type:

Renters selected homeownership opportunities for low- to moderate-income residents and rental housing for low-income renters at the highest rates (71% and 59%, respectively).

Rental housing for seniors was selected by homeowners at the highest rate (38%) and the lowest by precariously housed respondents (29%);
Homeownership opportunities for low- to moderate-income residents and rental housing for low-income renters were selected at the highest rates by Hispanic/Latina/Latino respondents who took the Spanish survey and closely followed by Hispanic/Latina/Latino respondents who took the survey in English; Households with income less than $49,999 selected rental housing for low-income renters at the highest rate (62%). Selection for low-income renters decreased as income increased. Conversely, selection of rental housing for seniors increased as income increased;
Seventy percent of unemployed respondents selected rental housing for low-income renters—the highest of any employment status. Retired respondents selected emergency shelters and rental housing for seniors at the highest rates (48% and 49%, respectively);
Seventy-five percent of large households selected homeownership opportunities for lowto moderate-income residents—the highest of all household groups. Older adults selected emergency shelters at the highest rate (52%); and Couples with children and single parents rated homeownership opportunities and rental housing for low-income renters at substantially higher rates than those without children.

City of Gilroy
2025-2030 Consolidated Plan │ 207
Figure B-11.

Most Needed Housing Activities, Gilroy and Santa Clara County Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 208
Figure B-12.

Top Five Most Needed Housing Activities, Tenure, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-13.

Top Five Most Needed Housing Activities, Race and Ethnicity, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 209
Figure B-14.

Top Five Most Needed Housing Activities, Household Income, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-15.

Top Five Most Needed Housing Activities, Employment Status, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 210
Figure B-16.

Top Five Most Needed Housing Activities, Selected Household Characteristics, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-17.

Top Five Most Needed Housing Activities, Family Type, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 211
Housing Outcomes
Respondents were asked to select housing outcomes. These outcomes aligned with the top housing needs selected in the previous section (low-income housing for renters and affordable homeownership for low- to moderate-income households): More affordable homeownership was selected most frequently (45%), followed by more affordable rental housing (45%), better distribution of affordable housing (44%), supportive housing for unhoused (34%), seniors/persons with disabilities are able to live independently (33%), and increased shelter capacity (33%).

Compared to Santa Clara County, respondents in Gilroy selected affordable homeownership at a substantially higher rate (45% versus 37%). Forty-four percent of Gilroy respondents selected a better distribution of affordable housing compared to 36% of Santa Clara County respondents overall. Better condition of rental housing was also selected at a higher rate in Gilroy than Santa Clara County overall—32% compared to 23%.

Figure B-18 through B-24 display the top five housing outcomes by county location, tenure, race and ethnicity, household income, household characteristics, and family type:

Precariously housed respondents selected better distribution of affordable housing at the highest rate (58%), followed by renters (55%);
More affordable rental housing was selected by Hispanic/Latina/Latino English survey takers and White respondents at the highest rates while more affordable homeownership was selected by both Hispanic/Latina/Latino groups at the highest rates;
Households with income less than $49,999 selected better distribution of affordable housing at the highest rate (61%). Rates of selection for this item decreased as income increased. Similarly, seniors/persons with disabilities able to live independently was selected at the highest rate by households with income less than $49,999 and rates decreased as income increased;
Unemployed respondents selected more affordable homeownership, more affordable rental housing, and better distribution of affordable housing at the highest rates.

Forty-nine percent of retired respondents selected seniors/persons with disabilities able to live independently—the highest of any employment status; and Couples with children selected more affordable homeownership at a higher rate (64%) than single parents (56%) and respondents with no children (35%). Single parents selected more affordable rental housing at the highest rate (60%).

City of Gilroy
2025-2030 Consolidated Plan │ 212
Figure B-18.

Housing Outcomes, Gilroy and Santa Clara County
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 213
Figure B-19.

Top Five Housing Outcomes, Tenure, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-20.

Top Five Housing Outcomes, Race and Ethnicity, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 214
Figure B-21.

Top Five Housing Outcomes, Household Income, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-22.

Top Five Housing Outcomes, Employment Status, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 215
Figure B-23.

Top Five Housing Outcomes, Selected Household Characteristics, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-24.

Top Five Housing Outcomes, Family Type, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 216
Funding Priorities
Respondents were asked to rank items from 1, indicating strong disagreement for funding, to 10, indicating strong agreement that the item should be funded. Starter homes for firsttime buyers received the highest average rating, followed by housing affordable to residents living on fixed income, housing affordable to residents working in public services like public safety, librarians, and teachers, and housing for youth exiting the foster care system. Figure B-25 to B-30 analyze average rankings by county location, tenure, race and ethnicity, household income, employment status, selected household characteristics, and family type:

Funding for starter homes for first time buyers and apartments appealing to young adults working or starting families received the highest average ratings from renters while precariously housed respondents rated housing for multigenerational households; Hispanic/Latina/Latino respondents who took the survey in Spanish rated apartments appealing to seniors, housing for downsizing, housing for those who are losing mobility, housing for larger households, housing for multigenerational households, and permanent supportive housing for unhoused individuals substantially higher than other racial or ethnic groups—including Hispanic/Latina/Latino respondents who took the survey in English;
Households with income less than $49,999 rated housing for larger households, housing for multigenerational households, housing for people with a criminal record, transitional housing for people recovering from addiction, and permanent supportive housing for unhoused individuals the highest out of all income brackets; Unemployed respondents rated housing for larger households, housing for multigenerational households, transitional housing for people recovering from addiction, and permanent supportive housing for unhoused individuals the highest of all employment groups. Retired individuals rated apartments appealing to seniors the highest;
Older adults rated funding support for housing affordable to people on fixed incomes the highest of all household groups. Renters with household income less than $49,999 rated housing for people losing mobility, permanent supportive housing for unhoused individuals, and those with mental or physical disabilities the highest of all household groups; and
Couples with children rated starter homes for first-time buyers higher than single parents and respondents with no children. Single parents rated housing for larger households, more shelter beds, housing for people with criminal records, housing for those with mental illness, transitional housing for people recovering from addiction, and permanent supportive housing higher than couples with children and respondents with no children.

City of Gilroy
Figure B-25.

Average Rating of Importance for Funding, Gilroy and Tenure Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
Figure B-26.

Average Rating of Importance for Funding, Race and Ethnicity, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
Figure B-27.

Average Rating of Importance for Funding, Household Income, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
Figure B-29.

Average Rating of Importance for Funding, Employment Status, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
Figure B-29.

Average Rating of Importance for Funding, Selected Household Characteristics, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
Figure B-30.

Average Rating of Importance for Funding, Family Type, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 223
Homelessness and Displacement
Homelessness. People experiencing homelessness can be difficult to pick up in surveys, as they face barriers to internet access, language challenges, and are moving in and out of shelters frequently. Despite these challenges, 62 individuals in Gilroy responded that they are or have been unhoused in the county within the past year. The figure below breaks down the demographics of this population. Seventeen percent of those who identified as Hispanic/Latina/Latino and took the Spanish survey had been unhoused in the past year, as were 15% who were Hispanic/Latina/Latino and took the English survey. Thirty percent of unemployed people were unhoused in the past year. Those with household income less than $49,999 reported being unhoused at the highest rate of any income bracket (23%). Fifteen percent of large households and 19% of households reporting a disability were unhoused in the past year and 22% of single parents experienced being unhoused in the past year.

City of Gilroy
2025-2030 Consolidated Plan │ 224
Figure B-31.

Are you currently or
have you been
unhoused in Santa
Clara County in the
past year?
 Note:
 n = 563.

 Source:
 Root Policy Research from the
2024 Santa Clara County Housing
and Community Needs Survey.

Respondents who have experienced homelessness provided input on shelters that would most meet their needs. Answers from Gilroy respondents included:
“A supportive shelter for women and
children.”
“A stable place with a restroom.”
“Safe family shelters with private rooms.”
“More than just the Armory for shelter.”
“Refugio de apoyo no colectivo como
iglesias.” Non-collective support shelter
such as churches.
“Safe parking."

City of Gilroy
2025-2030 Consolidated Plan │ 225
Respondents in Gilroy also gave input on shelters that are most needed in Santa Clara County in general:
“A year-round shelter with proper care for
the mentally unstable.”
“Addiction recovery resources.”
“Domestic abuse shelter.”
“Emergency shelters for short-term and noncongregate supportive shelter for longer-term.”
“RV facility for those that live out of their
RVs/cars until more housing assistance
can be provided.”
“Refugio para personas con
discapacidades.” Shelter for people
with disabilities.
“Transitional temporary housing to stop
sweeps while people wait for housing
Displacement experiences. To better understand the precursors to homelessness, residents were asked if they have had to move from their home or apartment in the last five years when they did not want to. Twenty-two percent of respondents reported that they had experienced displacement. Precariously housed respondents had the highest rate of displacement (43%)—an unsurprisingly high rate given the nature of their current housing situation. They were followed by 40% of single parents, 36% of households with income less than $49,999, 35% of Hispanic/Latina/Latino respondents who took the Spanish survey (compared to 25% of Hispanic/Latina/Latino respondents who took the survey in English), and 34% of renters with household income less than $49,999.

The most common reason for displacement identified by respondents in Gilroy was rent increasing more than ability to pay (47%), followed by landlords selling the apartment (25%), poor condition of property (19%), lost job/ reduced hours (16%), and personal reasons (16%). Hispanic/Latina/Latino respondents who took the Spanish survey identified landlords renting to someone else after the lease ended as a reason for displacement at higher rates than Hispanic/Latina/Latino respondents who took the survey in English (16% compared to 3%) and reported unsafe housing (e.g. domestic violence) at higher rates than Hispanic/Latina/Latino respondents who took the survey in English (11% versus 5%).

City of Gilroy
2025-2030 Consolidated Plan │ 226
Figure B-32.

Percent
Experiencing
Displacement
 Note:
 n = 563.

 Source:
 Root Policy Research from the
2024 Santa Clara County Housing
and Community Needs Survey.

Accessibility Needs
Twenty-seven percent of respondents in Gilroy reported that they or someone in their household have a disability. Of respondents who reported a disability, the most common types were moderate physical disabilities (47%), followed by mental disabilities (37%), medical disabilities (27%), and developmental disabilities (15%).

Of those with a disability or those living with a household member who has a disability, 33% currently live in a home or apartment that does not meet their accessibility needs.

City of Gilroy
2025-2030 Consolidated Plan │ 227
Figure B-33.

Does your home or apartment meet your accessibility needs? Note: n = 152.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

When asked what improvements or modifications they needed to better meet their household needs, 44% of respondents whose home needed modifications said they needed grab bars in the bathroom. This was followed by 38% who needed a walk or roll-in shower, 34% who needed a reserved accessible parking spot by the entrance, 30% who needed a service or emotional support animal in the home, 24% who needed ramps, and 24% who needed an alarm to notify if a non-verbal child has left the home.

City of Gilroy
2025-2030 Consolidated Plan │ 228
Figure B-34.

Improvements and Modifications Needed
Note: n = 50.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Community and Economic Development Needs
Community and economic development needs questions asked respondents to examine non-housing related services and resources that were missing from Gilroy that bolster community and economic activity. Figure B-35 shows the most frequently selected critical community and economic development needs by all survey respondents in Gilroy and Santa Clara County overall. Youth activities were the most selected community and economic development need by respondents in Gilroy (48%), followed by affordable childcare (45%), mental health services (42%), job training programs (38%), services for unhoused (38%), and community centers (37%). Compared to South Clara County overall, respondents in Gilroy selected youth activities, job training programs, community centers, neighborhood cleanups, and developed parks at substantially higher rates.

City of Gilroy
2025-2030 Consolidated Plan │ 229
Figure B-35.

Most Critical Community and Economic Development Needs, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 230
Figures B-36 through B-41 break down the top community and economic development needs by county location, tenure, race and ethnicity, household income, employment status, selected household characteristics, and family type:

By tenure, precariously housed respondents in Gilroy selected affordable childcare, mental health services, and services for unhoused at the highest rates (60%, 46%, and 51%, respectively);
Both Hispanic /Latino/Latina respondents who took the survey in English and Spanish selected youth activities and affordable childcare at the highest rates. Spanish survey takers selected mental health services, job training programs, and services for unhoused at slightly higher rates than Hispanic/Latina/Latino English survey takers; By household income, affordable childcare was selected at higher rates by income brackets under $150,000. Mental health services were selected at the highest rate by households with income higher than $150,000 (66%);
Sixty-eight percent of unemployed respondents in Gilroy selected affordable childcare, 59% selected job training programs, and 68% selected youth activities—the highest rates of any employment status;
Sixty-six percent of large households selected youth activities—the highest rate of all household groups. Large households also selected affordable childcare and job training programs at the highest rates;
Respondents with children (both as a couple and single parent) selected all items at higher rates than those without children.

City of Gilroy
2025-2030 Consolidated Plan │ 231
Figure B-36.

Top Five Most Critical Community and Economic Development Needs, Tenure, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-37.

Top Five Most Critical Community and Economic Development Needs, Race and Ethnicity, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 232
Figure B-38.

Top Five Most Critical Community and Economic Development Needs, Household Income, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-39.

Top Five Most Critical Community and Economic Development Needs, Employment Status, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
2025-2030 Consolidated Plan │ 233
Figure B-40.

Top Five Most Critical Community and Economic Development Needs, Selected Household Characteristics, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-41.

Top Five Most Critical Community and Economic Development Needs, Family Type, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Community and Economic Development Outcomes
Desired community and economic development outcomes were selected by respondents.

Outcomes reflect the tangible services or resources needed to meet the community and economic development needs specified in the previous section.

Community development outcomes. A new or improved community center was the most frequently selected community development outcome by respondents in Gilroy (42%), followed by sidewalk and streetlight improvements (40%), more recreational opportunities for youth/special populations (40%), additional and/or higher quality childcare centers (37%), improvements to parks and recreation centers (35%), and improved access to fresh food (35%).

Figure B-42 through B-48 break down community development outcomes by county location, tenure, race and ethnicity, household income, selected household characteristics, and family type:

Renters selected more recreational opportunities for youth/ special populations at the highest rate (47%) while precariously housed respondents selected additional and/or higher quality childcare centers at the highest rate (49%); Sixty-six percent of Hispanic/Latina/Latino Spanish survey takers selected sidewalk and street improvements—the highest rate of any group and more than twenty percentage points higher than Hispanic/Latina/Latino English survey takers; New/ improved community centers, more recreational for youth/special populations, and improvements to parks were selected by households with income more than $150,000 at the highest rates;
Half (50%) of respondents employed part-time and 49% of unemployed respondents selected additional and/or higher quality childcare centers—higher than respondents employed full-time or retired;
Older adults selected more recreational opportunities for youth/special populations at the lowest rate (34%) while 55% of larger households and renters with income less than $49,999 selected this option; and
Households with children selected all items at higher rates than those without children.

Couples with children and single parents selected community development outcomes at similar rates except for additional childcare centers where 50% of couples with children selected this item compared to 44% of single parents.

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Figure B-42.

Top Community Development Outcomes, Gilroy and Santa Clara County Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Figure B-43.

Top Five Community Development Outcomes, Tenure, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-44.

Top Five Community Development Outcomes, Race and Ethnicity, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Figure B-45.

Top Five Community Development Outcomes, Household Income, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-46.

Top Five Community Development Outcomes, Employment Status, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Figure B-47.

Top Five Community Development Outcomes, Selected Household Characteristics, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-48.

Top Five Community Development Outcomes, Family Type, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Economic development outcomes. Respondents selected job training programs as the most desired economic development outcome (46%), followed by more opportunities for small or startup businesses (40%), center for seasonal and day laborers (39%), improved transportation to areas with job opportunities (35%), and revitalization of neighborhood businesses or commercial areas (34%). Gilroy respondents selected job training programs, more opportunities for small businesses, center for seasonal and day laborers, and improved transportation to areas with job opportunities at higher rates than respondents in Santa Clara County overall.

Figure B-49 to B-55 breaks down the top five economic development outcomes by county location, tenure, race and ethnicity, household income, employment status, selected household characteristics, and family type:

Precariously housed respondents selected a center for seasonal and day laborers at the highest rate (51%), followed by renters (46%) and homeowners (32%). Homeowners selected more opportunities for small businesses and revitalization of neighborhood businesses at the highest rates;
Seventy percent of Hispanic/Latina/Latino respondents who took the survey in Spanish selected a center for seasonal and day laborers as a desired economic outcome compared to 51% of Hispanic/Latina/Latino English survey takers, 41% of those who identified as other or multiple races, and 34% of White respondents; Respondents with household income $150,000 or more selected revitalization of neighborhood businesses at the highest rate (66%). Rates of selection for this item decreased with income. Respondents with household income less than $49,999 selected a center for seasonal and day laborers and job training programs at the highest rate;
Seventy percent of respondents who were unemployed selected job training programs as a desired outcome. This group also selected improved transit to areas with job opportunities at the highest rate (65%) and center for seasonal and day laborers at the highest rate (62%);
Job training programs were selected at the highest rates by renters with income less than $49,999 (65%) and large households (62%). These groups also selected a center for seasonal and day laborers at the highest rates (58%); and Single parents selected improved transit to areas with job opportunities at the highest rate (46%)—higher than couples with children (39%) and respondents with no children (32%). Job training programs, more opportunities for small businesses, and revitalization of neighborhood businesses were selected at the highest rate by couples with children.

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Figure B-49.

Top Economic Development Outcomes, Gilroy and Santa Clara County Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-50.

Top Five Economic Development Outcomes, Tenure, Gilroy
Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Figure B-51.

Top Five Economic Development Outcomes, Race and Ethnicity, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-52.

Top Five Economic Development Outcomes, Household Income, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Figure B-53.

Top Five Economic Development Outcomes, Employment Status, Gilroy Note: n = 563.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Figure B-54.

Top Five Economic Development Outcomes, Selected Household Characteristics
Note: n = 1,582.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Figure B-55.

Top Five Economic Development Outcomes, Family Type
Note: n = 1,582.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

Stakeholder Perspectives
This survey included a stakeholder-specific section for service providers, city and county staff, and developers who reside in Gilroy.

Stakeholder demographics. The figure below shows the industries stakeholder respondents represented. Thirty-six percent selected a government-related industry, followed by 14% who worked in K-12 or higher education, 14% who selected another, nonlisted industry, and 9% who selected supportive services for unhoused residents.

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Figure B-56.

Stakeholder Industries,
Gilroy
 Note:
 n = 44.

 Source:
 Root Policy Research from the 2024
Santa Clara County Housing and
Community Development Survey.
n %
Affordable housing advocacy 3 7%
Affordable housing development 0 0%
Affordable housing provision 2 5%
Business owner/manager 1 2%
Civil rights 2 5%
Criminal justice 0 0%
Disability rights/advocacy 1 2%
Economic development 1 2%
K-12 or higher education 6 14%
Environmental justice 2 5%
Fair housing 3 7%
Food provision 1 2%
Government 16 36%
Services to unhoused populations 2 5%
Homeownership counseling or services 1 2%
Insurance 1 2%
Land use planning 1 2%
Landlord/tenant services 0 0%
Legal aid 1 2%
Lending 1 2%
Market rate housing development 0 0%
Owner of rental property 2 5%
Property management 1 2%
Public housing authority 0 0%
Regional planning 1 2%
Residential appraisals 0 0%
Rural development 0 0%
Home sales 1 2%
Services for businesses 0 0%
Supportive services for residents 4 9%
Transit provider 0 0%
Transportation planning 0 0%
Other 6 14%Page 500 of 546
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Access to resources. Stakeholders rated resource access from 1 (resource does not exist) to 10 (resource is easy to access). Figures B-57 and B-58 display average ratings. The resources receiving the lowest average ratings and therefore regarded as the most sparse and difficult to access were advocacy and counseling for people with HIV/AIDS, law enforcement to help low-income households, transportation services for low-income families, and life skills training. The resources with the highest average ratings, and therefore rated easiest to access, were advocacy and counseling for homeless at-risk youth, healthcare for people experiencing homelessness, advocacy for people experiencing homelessness, and childcare and education services for low-income families.

Compared to stakeholders in Santa Clara County overall, stakeholders in Gilroy generally rated resources as less accessible. The only resources Gilroy stakeholders rated as more accessible than Santa Clara County stakeholders overall were counseling services and advocacy for at-risk youth, childcare and education services targeted at homeless and lowincome families, healthcare for people experiencing homelessness, and transportation targeted at people experiencing homelessness.

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Figure B-57.

Average Rating of Resource Access, Stakeholders, Gilroy and Santa Clara County Note: n = 44.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

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Figure B-58.

Average Rating of Resource Access, Stakeholders, Gilroy and Santa Clara County Note: n = 44.

Source: Root Policy Research from the 2024 Santa Clara County Housing and Community Needs Survey.

City of Gilroy
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Appendix C.

Public Comments Received
The City of Gilroy accepted comments on the Draft 2025-2030 Consolidated Plan and Draft 2025-2026 Action Plan at the May 5, 2025, City Council public meeting and in written form during the 30-day public comment period, April 11, 2025, through May 11, 2025.

At the May 19, 2025, City Council public meeting, the City Council accepted public comments on items not on the agenda.

On June 2, 2025, the City Council will accept public comments prior to considering approval of the Plans. Both the meeting and the hearing will occur in City Hall, which is accessible to persons with disabilities; interpretation is provided through a Wordly AI screen.

This section details the comments received during the public meeting and in written form during the public comment period. Public comments from the June 2 public hearing will be included in the approved Plan.

Public Comments Received during May 5 Public Meeting
Four attendees spoke at the public meeting to provide comments on the Draft Consolidated Plan and Action Plan. Two comments were delivered in Spanish; two were delivered in English.

Commenter 1:

Commenter 1 spoke as a Gilroy resident. She said she supported the 2025-2030 Consolidated Plan and 2025-2026 Annual Action Plan and urged the Council to adopt the plans and allocate the funds strategically to maximize the economic benefits.

Commenter 1 highlighted the economic benefits these plans bring the community, and the benefits affordable housing brings. She noted how the lack of affordable housing contributes to homelessness, which has a significant economic cost for the community. She emphasized that affordable housing is not just a basic need—but an investment in Gilroy’s economic future. Affordable housing has the ability to bring in workers and businesses, which strengthens the local economy.

Commenter 1 noted the high share of Gilroy renter households who are cost burdened, paying more than 30% of their household income in housing costs. She said that when families don’t spend such a large portion of their income on housing, they have more resources to invest in education, health and other areas that drive economic growth. She also noted that, in 2023, 75% of the unhoused population in Santa Clara County, which

City of Gilroy
2025-2030 Consolidated Plan │ 249
includes Gilroy, did not have shelter. By reducing homelessness, we can reduce spending on emergency services and improve the quality of life for all residents.

Commenter 1 urged the City Council to adopt these plans and allocate the funds strategically to maximize these economic benefits.

Commenter 2:

Commenter 2 spoke as a nonprofit volunteer who works with individuals and families who live in poverty and are at risk of becoming homeless. She has firsthand knowledge of the needs and challenges of residents living on poverty.

Commenter 2 expressed her strong support for the plans and believes the assistance that the funding would provide can make a difference in the lives of those at risk of losing their housing. She also views addressing homelessness as an economic benefit, noting that addressing the needs of unhoused residents—ensuring that they are not living on the streets, in commercial areas, or in parks—has a positive impact on the community.

Commenter 2 also noted the benefits of rental assistance during periods of rising rent costs. She says it is a very challenging time for renters in Gilroy.

Commenter 3:

Commenter 3 spoke as a Gilroy resident and shared a personal story about housing needs.

She started with a statement of her support for the 2025-2030 Consolidated Plan and 2025-2026 Annual Action Plan and how the funding the plans provide can be transformative for a community.

Commenter 3 described affordable housing as an urgent need in Gilroy because many families struggle to pay for housing and other essential expenses given that the local minimum wage is $16.00 per hour. She also noted that lack of affordable housing contributes to homelessness and a large share of unhoused residents in Gilroy are unsheltered. More affordable housing is needed to reduce homelessness and provide a safe and stable environment for everyone. She said that the allocation of CDBG funds must be strategic to support projects that truly benefit Gilroy residents, especially in terms of affordable housing and community services.

Commenter 3 shared that her mom was renting a room in 2021 when her work hours were reduced. Going to court as a result of not being able to maintain her rent was a sad and stressful experience for her mother. It is essential that affordable housing be available to and accessible to all residents, as affordable housing not only alleviates financial stress, but it also improves residents’ quality of life and the overall economic stability of the Gilroy community.

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2025-2030 Consolidated Plan │ 250
Commenter 3 urged the City Council to adopt the 2025-2030 Consolidated Plan and the 2025-2030 Annual Action Plan. She feels these plans are essential to building a more inclusive and equitable Gilroy. She thanked the Council for their time and consideration.

Commenter 4:

Commenter 4 offered clarification for the electronic interpretation provided during two of the prior commenters’ testimonies. He said the point that one commenter was making was that affordable housing is an investment in Gilroy’s economic future (v. meeting a basic need). He also clarified what a commenter meant when referring to overcrowding in housing.

Written Comments Received during the 30-day Public
Comment Period
Three written public comments were received during the 30-day public comment period.

Those written comments are attached. The comments all concerned the allocation of CDBG among projects.
▪ The Chief Executive Officer of Sourcewise, a nonprofit that provides supportive services and transportation to elderly residents and residents with disabilities, emphasized the need for the City to support free transit for low-income older adults and residents with disabilities in Gilroy—especially since demand has increased. The organization anticipates it will provide more than 240 door-todoor one-way rides to low-income Gilroy residents to access non-emergency medical and dental appointments, pharmacies, grocery stores, and the Gilroy Senior Center. Demand has already been very high during the program year. The organization kindly requests that City Council fund public services for the City’s aging population based on the Evaluation of Services method presented by City staff—noting that it is only fair to support organizations based on the quality of services provided and which meet the needs of the most vulnerable residents in Gilroy.
▪ The Executive Director of Rebuilding Together Silicon Valley noted that her organization has proudly served Gilroy for many years, repairing and rehabilitating homes of residents with disabilities and homes of low-income families. Their work is life-changing, allowing residents to live with dignity, avoid displacement, and improve their health outcomes—and their work also increases neighborhood stability. Affordable housing is a high priority in the new Consolidated Plan, and that Plan specifically calls for funding rehabilitation activities for low-income residents. The commenter thanked the Council for their ongoing commitment to the City of Gilroy and residents. ▪ The Development Specialist at Bay Area Community Health (BACH) respectfully requested that the City Council reconsider their decision not to fund BACH’s

City of Gilroy
2025-2030 Consolidated Plan │ 251
improvement project. The commenter emphasized BACH’s significant investment in Gilroy in the form of a local health care clinic that serves very low-income residents; school-based clinic at Glen View Elementary School; and specialized outreach at Christopher Ranch and the Arturo Ochoa Migrant Center.

The commenter noted that funding rehabilitation would:
➢ Reduce emergency room visits,
➢ Improve management of chronic conditions,
➢ Provide preventative care that reduces overall health care costs, ➢ Supports mental health and substance abuse treatment, and ➢ Enable residents to remain employable and productive. ▪ The commenter concluded by noting that moving funding into City Public Works projects contradicts City staff recommendations and does a disservice to the community. The commenter asked City Council to take a more balanced approach and fund public works at a reasonable level and allocate funding to rehabilitation of the healthcare facility. This would serve both critical needs within the community.

Public Comments Received during May 19 Public Meeting for items not on the agenda
Commenter 1:

Commenter 1 spoke on behalf of Rebuilding Together Silicon Valley, which has served Gilroy for many years through its low-income home repair, rehabilitation and modification program, to express sincere regret for not being present at the May 5 Council discussion on CDBG funds. She reaffirmed the organization’s commitment to the city, seniors, veterans, and individuals with disabilities who rely on their services.

Commenter 1 cautioned that the reallocation of nonpublic service funds may not be feasible under HUD guidelines if the funds are shifted to projects that aren’t fully compliant or ready to be spent quickly, putting the project at risk if the funds aren’t spent by the deadline.

Commenter 1 noted they are on track to complete repairs for 15 Gilroy households by the end of June, have turned away more than 17 eligible families living in unsafe conditions due to a lack of resources, and will be forced to turn away many families in need, educators, older adults and others next year without a CDBG allocation. She urged the council to reconsider the funding allocation at the upcoming June 2nd meeting and to continue supporting their critical work that is aligned with Gilroy’s top affordable housing priorities.

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Commenter 2:

Commenter 2 spoke on behalf of Rebuilding Together Silicon Valley, which helps Gilroy residents access critical home repairs that keep them safe and housed. She described what is at stake if their program loses CDBG support. The 17 households that were turned away are dealing with major issues such as living with no hot water, damaged flooring causing falling hazards, or electrical and plumbing failures that could displace them and pose serious health risks. Without CDBG, there will be no program residents in need can turn to beginning July 1. The work directly supports the City’s affordable housing objective #1, outlined in the Consolidated Plan based on resident’s input on preserving affordable housing, especially for low-income homeowners.

Commenter 2 made the case that every dollar spent on home repair prevents costly outcomes from emergency room visits after a fall, to code enforcement responses to homelessness, making it a smart, compassionate investment for long-term stability in the community. They ask the Council to reconsider its funding allocation recommendation at the June 2 council meeting and allow them to continue doing essential work for Gilroy residents.

Commenter 3:

Commenter 3 spoke as a native Gilroy resident and board member for Rebuilding Together Silicon Valley (RTSV), an organization that provides critical repairs for some of Gilroy’s most vulnerable residents. She confirmed that Rebuilding Together Silicon Valley stands with the city of Gilroy in prioritizing housing by providing repairs that allow residents to stay in their homes. During this housing crisis, Rebuilding Together Silicon Valley not only provides repairs that are critical to prevent displacement, but they also bring hope, a sense of belonging, a sense of pride, create neighborhoods, and cross social/cultural boundaries.

Commenter 3 invited the council and mayor to attend a lunch and learn at SynerG Coworking this Thursday to learn more about how Rebuilding Together Silicon Valley contributes to the success of the community. She encouraged the council to drive around the mobile parks in town and see the wheelchair ramps, elevators provided to the residents free of charge which in some cases enable them to remain in their homes. RTSV benefits low-income people such as veterans and former educators by assisting with maintaining their homes because they may not be able to afford to buy another home if the current one deteriorates. A final thought she offered is “Just because we can do something doesn’t mean we should do something.”

City of Gilroy

STAFF REPORT
Agenda Item Title: Receive Draft Community Development Block Grant (CDBG) 2025-2030 Consolidated Plan and Program
Year (PY) 2025-2026 Annual Action Plan and Provide
Direction on PY 2025-2026 Funding Allocations
Meeting Date: May 5, 2025
From: Jimmy Forbis, City Administrator
Department: Community Development
Submitted By: Sharon Goei, Community Development Director Prepared By: Sharon Goei, Community Development Director STRATEGIC PLAN GOALS Promote Safe Affordable Housing for All

RECOMMENDATION

1. Receive report and public comments on the draft CDBG 2025-2030 Consolidated Plan and PY 2025-2026 Annual Action Plan.

2. Provide direction on CDBG PY 2025-2026 funding allocations.

EXECUTIVE SUMMARY
The City is preparing the draft 2025-2030 Consolidated Plan (Con Plan) for the CDBG program with extensive community engagement efforts. The Consolidated Plan is a fiveyear strategic plan that addresses priority housing and community development needs and goals. As part of the Consolidated Plan, the City is also preparing the draft PY 2025-2026 Annual Action Plan (AAP), which is the first year of five program years covered by the 2025-2030 Consolidated Plan period. The year one AAP is contained within the Con Plan document. The AAP outlines the funding allocations for the program year.

For CDBG PY 2025-2026 (July 1, 2025 – June 30, 2026), the City anticipates receiving an estimated $400,000 in CDBG entitlement funding from the U.S. Department of Housing and Urban Development (HUD). This estimate is derived from the PY 2024- 2025 allocation of $389,601. Based on an estimated allocation of $400,000, the funding

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 2 of 10 May 5, 2025
available for public services is $60,000 (capped at 15%) and $80,000 (capped at 20%) for program administration, leaving $260,000 available for non-public service activities.

In addition to the annual allocation, staff has identified $78,829.31 in unused CDBG prior years’ resources that will also be included in the draft PY 2025-2026 AAP, which must be allocated to qualified non-public service activities. Due to the limited funding available and the number of applications requesting funding, staff is presenting the City Council with funding approaches/options to seek input and direction on the final activities to be included in the draft AAP.

Staff recommends that the Council receive the draft 2025-2030 Con Plan and PY 2025- 2026 AAP, receive public comments, and direct staff to proceed with the preferred funding option provided in this report, or an alternative option proposed by the City Council. Upon direction from the City Council, staff will update the draft 2025-2026 AAP to incorporate the funding recommendations.

When HUD releases the actual amount of PY 2025-2026 formula funds, which is expected to be on May 14, 2025, staff will adjust the proposed allocation for each application proportionally to align with the Council's direction. Staff will also incorporate such adjustments in the AAP.

Staff will return to the City Council on June 2, 2025, for the Council to consider approval and adoption of the Con Plan, AAP, and funding allocations, prior to staff’s submission to HUD.

BACKGROUND
The primary objective of the CDBG program is to develop viable urban communities by providing decent housing and a suitable living environment, principally for persons with low- and moderate-income (LMI), defined as families, households, and individuals whose incomes do not exceed 80% of the County area median income (AMI), adjusted for family or household size. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended.

Annually, the City of Gilroy receives CDBG funds from the U.S. Department of Housing and Urban Development (HUD). As an “entitlement jurisdiction” receiving these block grant funds, the City is required to prepare and update the Consolidated Plan every five years, to identify the City’s priority affordable housing and community development needs and goals. The community needs and goals data are gathered through citizen participation and stakeholder consultations, focus groups, individual interviews, community meetings, and a resident/stakeholder survey.

The Con Plan is carried out through five (5) Annual Action Plans. To receive grant funds, the City is required to submit the five-year Con Plan as well as a one-year AAP outlining the projects and programs that will be undertaken during the program year to address the priority needs and goals identified in the Con Plan.

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 3 of 10 May 5, 2025
Eligible Activities
The CDBG program requires that each activity, except for program administration, must meet one of three national objectives:
• Benefit low-and moderate-income persons
• Aid in the prevention or elimination of slums and blight • Urgent Need – address a particular urgency that poses serious and immediate threat to the health and welfare of the community.

Gilroy’s CDBG funded activities meet the national objective of benefiting low- and moderate-income persons. The CDBG program is flexible in the types of activities that are eligible for funding.

The CDBG program allows, but is not limited to, the following activities:
• Acquisition of real property
• Relocation and demolition
• Rehabilitation of residential and non-residential structures • Construction of public facilities and improvements, such as streets and neighborhood centers
• Public services
Generally, the following types of activities are ineligible:
• Acquisition, construction, or reconstruction of buildings for the general conduct of government
• Political activities

ANALYSIS
The City’s CDBG program has been guided by the 2020-2025 Con Plan, which ends June 30, 2025, and will transition to a new five-year plan beginning July 1, 2025. To achieve cost savings and optimize community input, the City joined in a coordinated effort and partnered with Santa Clara County and other local governments in the County, utilizing the same consulting services in the development of the draft 2025- 2030 Con Plan.

The Con Plan identifies the City’s priority affordable housing and community development needs and goals. The draft Con Plan includes the needs assessment of the housing and supportive service needs of low- and moderate-income populations, the strategic plan which outlines the five-year goals, and the PY 2025-2026 AAP. The five-year Con Plan is implemented through five AAPs, which identify how annual funding is allocated to achieve the priority needs and goals.

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 4 of 10 May 5, 2025
2025-2030 Con Plan Community Participation and Stakeholder Engagement City staff conducted robust outreach to Gilroy residents and stakeholders who provided input on priorities for CDBG funding through the following methods:
• A resident and stakeholder paper and online survey open from October through December 2024, with 563 respondents from Gilroy, out of 1634 total responses Countywide
• A Gilroy open house event on November 4, 2024, with approximately 30 attendees
• Two regional resident virtual workshops in November 2024 • Three regional stakeholder virtual workshops in December 2024 • Individual nonprofit service provider interviews in January 2025 • Public comment and Con Plan information through the Let’s Talk Housing website
• Extensive City staff outreach through social media, City website and weekly Email Express newsletter, e-mail campaigns to housing and community services listservs, Gilroy Dispatch newspaper, South County Collaborative, Unhoused Service Providers Network; in-person engagement at San Ysidro Park activities, regional meetings, events with the Gilroy Senior Center, downtown events, community spaces, nonprofits, faith-based organizations, and Gilroy Unified School District; distribution at mobile home parks; and providing survey availability at Gilroy City Hall and Library
Primary findings from the resident survey were consistent with feedback from residents and stakeholder engagement events and include the following prioritization of needs:
• For housing outcomes, more affordable homeownership and more affordable rental housing were selected equally most frequently (45%), followed by better distribution of affordable housing (44%), supportive housing for unhoused (34%), seniors/persons with disabilities can live independently (33%), and increased shelter capacity (33%).
• The top community development outcomes selected by Gilroy respondents were a new or improved community center (42%), followed equally by sidewalk and streetlight improvements (40%) and more recreational opportunities for youth/special populations (40%), additional and/or higher quality childcare centers (37%), improvements to parks and recreation centers (35%), and improved access to fresh food (35%).

Draft 2025-2030 Consolidated Plan Goals
Based on the data analysis and community input throughout the Con Plan process, the following are the priority goals for the 2025-2030 Con Plan:

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 5 of 10 May 5, 2025
Support and Preserve Affordable Housing
• Permanent affordable rental housing with services
• Home rehabilitation for lower-income residents for safety and accessibility improvements
Prevent and Reduce Homelessness
• Transitional and shelter housing, particularly for families (including those fleeing domestic violence) and older adults
• Safe parking sites (longer term)
• Supportive services for the unhoused
Increase Supportive/Public Services for Special Populations • A resource/navigation center to connect people with resources, including migrant/agricultural/seasonal workers
• Youth activities, especially out of school time (after school, summer) • More staffing for consistent programming and resources at the senior center • Affordable childcare
• Mental health services
• Services for foster youth, seniors, and people with disabilities Invest in Community Development and Neighborhood Revitalization • Street, sidewalk, and lighting improvements, especially around affordable housing (roads, bike lanes)
• Additional or higher quality childcare centers and youth recreation centers • Improvements to parks and recreation centers
• Public facilities improvements
Draft PY 2025-2026 Annual Action Plan
The draft PY 2025-2026 AAP is the first of five program years of the 2025-2030 Con Plan cycle. The PY 2025-2026 AAP will be for a one-year funding cycle that describes the specific CDBG activities and resources that will be used to implement the Con Plan priority needs and goals. The year one AAP is contained within the Con Plan document.

Available PY 2025-2026 Funding
For CDBG PY 2025-2026, the City anticipates receiving an estimated $400,000 in CDBG entitlement funding from HUD. While CDBG funds may be used for a variety of activities, due to HUD’s funding caps, the City is limited to only utilizing 15% of the estimated $400,000 annual allocation, or $60,000, on activities that fall under the public service grant category, the most requested application category received each year.

Due to HUD’s funding cap, 20% of the grant, or $80,000, can be allocated to program administration, leaving $260,000 for non-public service activities.

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 6 of 10 May 5, 2025
In addition to the annual allocation, staff has identified $78,829.31 in unused CDBG prior years’ resources that will also be included in the draft PY 2025-2026 AAP and allocated to qualified activities. Due to HUD’s public service and program administration expenditure limits, unexpended prior years’ resources must be committed toward nonpublic service activities. The following table summarizes the available funding and eligible uses for PY 2025-2026.

Funding Amount
Eligible Uses
Public Service
(15% Cap)
Non-Public
Service
Program
Administration
(20% Cap)
2025-2026 Formula
Funds (Estimate) $400,000 $60,000 $260,000 $80,000
Prior Years’ Resources $78,829.31 -- $78,829.31 --
PY 2025-2026 Total $478,829.31 $60,000 $338,829.31 $80,000 CDBG Applications
The City is responsible for developing a process to disperse its annual CDBG funds to the community. To facilitate this process, the City conducts public outreach and releases a Notice of Funding Availability (NOFA) for each funding cycle that allows interested parties to apply for these funds.

The NOFA for PY 2025-2026, including application materials, eligibility criteria, and submittal requirements, was published and released to the public on January 17, 2025.

Staff held a public hearing on January 29, 2025, to review the NOFA and application process, answer applicants’ questions, and receive public comments on the CDBG program. Prior to application submittal, as described in the application, application instructions, and throughout the public hearing presentation, first-time applicants or applicants with new projects/programs were required to meet with City staff to discuss whether their proposed project/program complies with CDBG eligibility requirements.

For this funding cycle, staff utilized a simplified application approach to decrease the burden of information and documentation required at the time of application submittal.

The simplified application gathered critical information to determine eligibility and expedited the application process. Those projects/programs recommended for funding will be required to submit a full application prior to the start of the program year to ensure compliance with local and federal requirements.

Applications were due February 13, 2025. Staff received nine applications. A summary of each application’s proposed activity and requested funding is provided in the second attachment to this staff report.

Staff reviewed applications and supporting documents, determined eligibility based on the project description, conducted HUD research, and analyzed a variety of approaches

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 7 of 10 May 5, 2025
and options to arrive at the funding recommendations. To facilitate analysis, staff identified applications as either “public service” or “non-public service” based on the funding restrictions.

Public Service Applications
Staff received a total of six (6) public service applications for CDBG funding, with funding requests totaling $76,851.74. These applications are competing for the estimated $60,000 public service funding pool.

The options and approaches listed below include all six public service applications, as they are all considered eligible for funding.
➢ Equal Distribution Option – Fund all public service applications equally with funds available. This is staff’s recommendation for the public service allocations.

Result: Fund the six eligible public service applications at $10,000 per application (City’s grant minimum is $7,500 per application).

Based on this option, the total amount available would be evenly distributed among the six applicants, allowing for the allocation of $10,000 per applicant. As most applicants requested grant amounts of or close to $10,000, this would be the most equal distribution of funds.

This option provides funds to meet a variety of priority needs in the community.

Therefore, it is staff’s recommendation as the preferred option for allocation.

Please refer to the “Equal Distribution Option” column for Public Service in the second attachment.
➢ Evaluation-Based Option – Fund the public service applications with the highest evaluations their full grant request until funds are exhausted.

Result: Funds would be allocated based on assessment. Under this method, the top five evaluated applications are prioritized and would receive their full request, while the lowest-rated application would receive the remaining funds.

The evaluation method utilizes the evaluation criteria that were provided in the application packet and focuses the limited dollars available on those applications that were rated the highest. The evaluation method focuses on the following criteria:
• Meeting Con Plan priority needs
• Experience of the agency providing proposed/similar service • Efforts to collaborate with other agencies to augment rather than duplicate services
• Program performance/meeting goals in current City funded programs

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 8 of 10 May 5, 2025
Based on the evaluation criteria above, staff reviewed each application. The evaluation rating is listed below from high to low:

1. Advocacy Program for Foster Youth in Gilroy

2. Housing Assistance for Gilroy Residents with Disabilities

3. Adult Day Care; Transit Service

4. Meals on Wheels

5. Fair Housing
Staff acknowledges how important all these services are for the community and how deserving all applicants are for these funds. Based on this option and methodology, staff would recommend allocating the amounts requested by the applicants based on their evaluation until all funds are depleted. This option prioritizes the applications with the highest evaluation. It provides them with the most financial support to maximize their programs’ capacity and consequently achieve the greatest positive impact within the community. In this case, five of the six applicants would be awarded their funding requests, with the lowest evaluated applicant receiving the remainder.

Please refer to the “Evaluation Based Option” column for Public Service in the second attachment.

Non-Public Service Applications
An estimated $260,000 is available from the PY 2025-2026 entitlement funds for nonpublic services, derived from an estimated $400,000 in funding, minus $60,000 for public services and $80,000 for program administration. In addition to $260,000, staff recommends allocating prior years’ resources of $78,829.31 to non-public service activities.

Three (3) applications were received that fell outside of the public service category. As indicated in the second attachment, the three applicants requested a total of $573,359.12 in funding, versus an estimated $338,829.31 in funding available for nonpublic services.

The options and approaches listed below include all three non-public service applications, as they are all considered eligible for funding. ➢ Proportional Distribution Option – Fund all non-public service applications proportional to application amount with funds available. This is staff’s recommendation for the non-public service allocations.

Result: Fund the three non-public service applications at the same percentage across the board based on their request versus what is available. This would result in applicants receiving approximately 59% of their requests.

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 9 of 10 May 5, 2025
This option provides funds to meet a variety of priority needs in the community.

Therefore, it is staff’s recommendation as the preferred option for allocation.

Please refer to the “Proportional Distribution Option” column for Non-Public Service in the second attachment.
➢ Evaluation-Based Option – Fund the non-public service applications with the highest evaluations their full grant request until funds are exhausted.

Result: Full funding would be allocated to the Repair and Accessibility Modification Program for Low-Income Persons by Rebuilding Together Silicon Valley, and the remaining two applications would divide the remaining dollars evenly.

Based on the evaluation criteria above, staff reviewed each application. The evaluation rating is listed below from high to low:

1. Repair and Accessibility Modification Program for Low-Income Persons

2. Gilroy Health Care Clinic Tenant Improvement; Sidewalk and Curb Ramp Please refer to the “Evaluation Based Option” column for Non-Public Service in the second attachment.

Summary
Staff has presented the City Council with two public service and two non-public service funding approaches/options to seek input and direction on the final activities to be included in the draft 2025-2026 AAP. In the funding allocation attachment, staff has provided a summary of each applicant’s proposed activity, requested funding, and the proposed allocation under each option.

Staff recommends that the Council receive the draft 2025-2030 Con Plan and PY 2025- 2026 AAP, receive public comments, and direct staff to proceed with the “Equal Distribution Option” for the public service applications and the “Proportional Distribution Option” for the non-public service applications, or an alternative option proposed by the City Council. Upon direction from the City Council, staff will update the draft 2025-2026 AAP to incorporate the funding recommendations.

When HUD releases the actual amount of PY 2025-2026 formula funds, which is expected to be on May 14, 2025, staff will adjust the proposed allocation for each application proportionally to align with the Council's direction. Staff will also incorporate such adjustments in the AAP.

Staff will return to the City Council on June 2, 2025, for the Council to consider approval and adoption of the Con Plan, AAP, and funding allocations, prior to staff’s submission to HUD.

Receive Draft CDBG 2025-2030 Consolidated Plan and Program Year (PY) 2025-2026 Annual Action Plan and Provide Direction on PY 2025-2026 Funding Allocations City of Gilroy City Council Page 10 of 10 May 5, 2025

ALTERNATIVES
The City Council may choose not to utilize any of the funding options recommended in this report and allocate the funds as it deems appropriate while staying within the maximum percentages (caps) required by HUD.

FISCAL IMPACT/FUNDING SOURCE
CDBG funds are allocated by HUD on an annual basis and will be added to the City’s line of credit once the draft 2025-2026 AAP and draft 2025-2030 Con Plan are approved by HUD.

The CDBG resources are budgeted and expended from the City’s CDBG Fund (Fund 245). The resources and funding recommendations will be included in the City’s budget update.

The City’s share of cost for the preparation of the 2025-2030 Consolidated Plan is $56,445, which has been funded out of the Housing Trust Fund (250). The City achieved cost savings by collaborating with the County and jurisdictions within the County in utilizing the same consulting services to prepare the Con Plan.

PUBLIC OUTREACH
A public comment period from April 11 – May 11, 2025, is being held for the draft 2025- 2030 Con Plan and draft PY 2025-2026 AAP to seek community input, as well as a public hearing that will take place on June 2, 2025.

NEXT STEPS
Upon direction by the City Council, staff will update the draft 2025-2026 AAP and Con Plan with the funding recommendations. When HUD releases the actual amount of PY 2025-2026 formula funds, which is expected to be on May 14, 2025, staff will adjust the proposed allocation for each application proportionally to align with the Council's direction. Staff will return to the City Council on June 2, 2025, for the Council to consider approval and adoption of the draft Con Plan and AAP, which will include the funding allocations.

Attachments:

1. Draft 2025-2030 Consolidated Plan, including draft PY 2025-2026 Annual Action Plan

2. Draft PY 2025-2026 Application Funding Allocation

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF GILROY AMENDING THE BUDGET FOR
THE CITY OF GILROY FOR THE 2025-2026 FISCAL
YEAR
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2025-2026 and 2026-2027, and the City Council carefully examined, considered, and adopted the same on June 2, 2025; and WHEREAS, City Staff has prepared and submitted to the City Council a proposed amendment to the budget for Fiscal Year 2025-2026 (FY26) for the City of Gilroy in the staff report dated June 2, 2025, for the Community Development Block Grant (CDBG) Program Year 2025-2026 Funding Allocations.

NOW, THEREFORE, BE IT RESOLVED THAT the revenue and expenditure appropriations for Fiscal Year 2025-2026 in Fund 245 – CDBG Fund shall be increased by $58,912.

PASSED AND ADOPTED this 2nd day of June 2025 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Greg Bozzo, Mayor
ATTEST:
_______________________
Bryce Atkins, Interim City Clerk

City of Gilroy

STAFF REPORT
Agenda Item Title: Introduce an Ordinance to Adopt by Reference the Mapping of Fire Hazard Severity Zones as Issued by
the California Department of Forestry and Fire
Protection
Meeting Date: June 2, 2025
From: Jimmy Forbis, City Administrator
Department: Community Development
Submitted By: Sharon Goei, Community Development Director Prepared By: Isaias Lona, Senior Hazardous Materials Inspector Jonathan Crick, Fire Marshal
STRATEGIC PLAN GOALS Not Applicable

RECOMMENDATION

1. Motion to read the ordinance by title only and waive further reading; and

2. Introduce an ordinance to adopt by reference the mapping of fire hazard severity zones, as issued by the California Department of Forestry and Fire Protection.

EXECUTIVE SUMMARY
The City of Gilroy is initiating an ordinance to adopt Fire Hazard Severity Zone maps, as mandated by California state law. This action is in response to Government Code sections 51177 to 51179 which require the local agency to either adopt published maps or increase the fire hazard severity zones within 120 days of receiving the maps from the State. The Local agency is also required to make the maps public within 30 days and solicit questions and comments.

The maps categorize fire hazard severity in Local Responsibility Areas, into moderate, high, and very high zones. The maps evaluate fire hazard, which is the likelihood and expected fire behavior.

City of Gilroy City Council Page 2 of 3 June 2, 2025
1 8
The Gilroy Fire Prevention Division made the maps public on March 7, 2025. The current map indicates that Gilroy has "High and Moderate" zones on its western edge, and no "Very High" zones. The proposed ordinance is the final step in complying with State law.

BACKGROUND
Following the devastating 1991 Oakland wildland fire, California enacted the Bates Bill (Government Code sections 51175 et seq.) and Public Resources Code section 4202.

This legislation mandated that the California Department of Forestry and Fire Protection (CAL FIRE) map all very high fire danger areas within both State Responsibility Areas (SRA) and Local Responsibility Areas (LRA) statewide. LRAs are areas where local governments, like the City of Gilroy, have primary fire protection responsibility.

Subsequent amendments in 2021 required the State Fire Marshal to also identify moderate and high fire severity zones. Local agencies are now legally obligated to designate these fire hazard severity zones (FHSZ) within their jurisdictions based on the State Fire Marshal's recommendations. Pursuant to Government Code section 51179, a local agency is prohibited from decreasing the level of fire hazard severity zone identified by the State Fire Marshal. A local agency may in its discretion increase the severity level of areas within its jurisdiction.

The State Fire Marshal clarifies that these FHSZ maps evaluate fire "hazard" — the likelihood and expected behavior of fire over a long period based on physical conditions, without considering mitigation efforts. This differs from "risk," which is the potential damage considering existing conditions and mitigation. These hazard maps, similar to flood zone maps, trigger various legal requirements beyond standard building codes, including disclosure requirements (Civil Code sections 1102.6f and 1102.19), insurance requirements (Insurance Code section 10094.2), and school safety plans (Education Code section 32282).

ANALYSIS
According to Government Code Sections 51177 to 51179, the California State Fire Marshal must prepare and release recommended maps delineating fire hazard severity zones. Upon receiving the recommendations from the State Fire Marshal, local agencies are required to make the information public within 30 days. The local agency must then either adopt the proposed fire hazard severity map or exercise its discretion to increase proposed fire hazard severity zones within 120 days after receiving these recommendations.

The Gilroy Fire Prevention Division received the most recent mapping from the State Fire Marshal on February 24, 2025. The map along with educational information were published and made available for public comment on the Fire Prevention website on March 7, 2025. An email link to the Gilroy Fire Marshal’s office was included to solicit

City of Gilroy City Council Page 3 of 3 June 2, 2025
1 8
questions and comments. Questions and comments received were related to where the inquirers’ homes and fire stations are in relation to the hazard severity zones.

The map (Ordinance Exhibit A) indicates that there are no very high Fire Hazard Severity Zones (FHSZ) within the City of Gilroy. However, the western edge of the City into the hills is shown as “High and Moderate” zones. Attachment 2 provides further information on the differences between moderate, high, and very high FHSZs.

This ordinance is the final requirement established under existing State law regarding the designation of fire hazard severity zones in Local Responsibility Area (LRA) as mandated by the California State Fire Marshal.

ALTERNATIVES
The City could designate more extensive or increased fire severity zones.

This would allow the City of Gilroy to engage more stringent regulations regarding fire protection applicable to homes and structures in designated areas.

Residents and property owners may be required to make significant adjustments to current properties and structures.

Staff does not recommend this alternative. Staff can find no rationale or justification to extend or increase the mapping designation from the State. Historically, Gilroy has significantly mitigated fire risk through development controls of hillside development, stricter fire protection construction in the hillside, annual reduction of fuel loading through the weed abatement program, and engagement of public education.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact to introduce this ordinance.

PUBLIC OUTREACH
The public hearing for the proposed ordinance was noticed in the Gilroy Dispatch on May 23, 2025.

NEXT STEPS
The ordinance to adopt by reference the mapping of fire hazard severity zones as issued by the California Department of Forestry and Fire Protection is tentatively scheduled to be adopted by the City Council on June 16, 2025.

Attachments:

1. Draft Ordinance Adopting Mapping of Fire Hazard Severity Zones

2. Fire Hazard Severity Zones FAQs

ORDINANCE 2025-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY

ADOPTING BY RFERENCE THE MAPPING OF FIRE HAZARD SEVERITY ZONES

AS ISSUED BY THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE

PROTECTION
WHEREAS, in 1992, the California Legislature adopted the Bates Bill, codified as Government Code sections 51175, et seq., to prevent and control wildfires in the State, and reduce the intensity of uncontrolled fires, in order to protect life and property within the State; and
WHEREAS, as stated in Section 51176 of the Government Code, the purpose of the Bates Bill is to classify lands in the State in accordance with whether a very high fire hazard is present so that public officials are able to identify measures that will retard the rate of spread, and reduce the potential intensity, of uncontrolled fires that threaten to destroy resources, life, or property; and
WHEREAS, Section 51178 of the Government Code requires the State Fire Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas, including based on fuel loading, slope, fire weather, winds, and other relevant factors; and
WHEREAS, Section 51181 of the Government Code requires the State Fire Marshal to periodically review the areas in the state identified as very high fire hazard severity zones and, as necessary, make recommendations relative to very high fire hazard severity zones, including every five years if possible; and WHEREAS, Section 51179 of the Government Code requires local agencies by ordinance to designate moderate, high, and very high fire hazard severity zones within their jurisdictions following receipt of updated recommendations from the State Fire Marshal. In making this determination, local agencies may, upon specified findings, add to or increase the areas within their jurisdictions recommended for designation as moderate, high, and very high fire hazard severity zones but may not decrease the level of fire hazard severity zones as identified by the State Fire Marshal. Changes made by a local agency to the recommendations made by the State Fire Marshal shall be final and shall not be rebuttable by the State Fire Marshal; and
WHEREAS, by transmittal dated February 24, 2025, the City received from the State Fire Marshal a map entitled “City of Gilroy – Santa Clara County Local Responsibility Area Fire Hazard Severity Zones,” copy of which is attached hereto as Exhibit A, which provides recommendations pursuant to Section 51178 of the Government Code for designation of fire hazard severity zones within the City of Gilroy; and
WHEREAS, consistent with Section 51178.5 of the Government Code, the City within 30 days after receiving this transmittal, made this transmittal, the proposed map, and all information contained therein available for public review and comment in a

Ordinance No. 2025-XX
Mapping of Fire Hazard Severity Zones Ordinance
City Council Regular Meeting | June 2, 2025

format that was understandable and accessible to the general public, including through posting on the City of Gilroy Website; and
WHEREAS, consistent with Section 511795 of the Government Code, the City Council now within 120 days of receiving this transmittal intends to approve and adopt by ordinance the most recent Fire Hazard Severity Zone Map recommended by the State Fire Marshal.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I
RECORD AND BASIS FOR ACTION: The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the public, and other materials and evidence submitted or provided to the City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION II
ADOPTION OF FIRE HAZARD SEVERITY ZONES MAP: As reflected in the map entitled “City of Gilroy – Santa Clara County Local Responsibility Area Fire Hazard Severity Zones,” a copy of which is attached hereto as Exhibit A and incorporated herein, the City of Gilroy, by and through the Gilroy City Council, hereby designates the Fire Hazard Severity Zones as recommended by the State Fire Marshal pursuant to Section 51178 of the Government Code. Said map shall be kept on file in the Office of the Gilroy City Clerk and will also be made accessible through the Gilroy Fire Prevention Division and as practical through the City of Gilroy Website.

SECTION III
APPLICABILITY: Materials and construction methods for exterior wildfire exposure applying to the design and construction of new buildings as found in the California Building Code and the mitigation strategies to reduce risk associated with wildland fires, exemptions, disclosure requirements and violation and penalty provisions pursuant to Sections 51182 through 51189 of the Government Code, Section 1102.6f and 1102.19 of the Civil Code, Section 10094.2 of the Insurance Code, Section 32282 of the Education Code, and such other laws as are made applicable by reference to state and local fire hazard severity maps adopted pursuant to the Bates Bill shall apply to those areas identified in the map entitled “City of Gilroy – Santa Clara County Local Responsibility Area Fire Hazard Severity Zones,” a copy of which is attached hereto as Exhibit A.

Ordinance No. 2025-XX
Mapping of Fire Hazard Severity Zones Ordinance
City Council Regular Meeting | June 2, 2025

SECTION IV
TRANSMITTAL: Consistent with Section 51179(c) of the Government Code, the Gilroy Fire Marshal shall transmit a copy of this Ordinance to the State Board of Forestry and Fire Protection within thirty (30) days of adoption.

SECTION V
SEVERABILITY: The provisions of this Ordinance are separable, and the invalidity of any phrase, clause, provision, or part shall not affect the validity of the remainder.

SECTION VI
EFFECTIVE DATE AND POSTING: In accordance with Section 36937 of the Government Code of the State of California, this Ordinance shall take effect thirty (30) days from and after the date of its passage. The City Clerk of the City of Gilroy shall cause this Ordinance or a summary thereof to be published in accordance with Section 36933 of the Government Code of the State of California.

PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the _____ day of June 2025 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Greg Bozzo, Mayor
ATTEST:
_______________________
Bryce Atkins, Acting City Clerk
Attachment:

1. Exhibit ‘A’: City of Gilroy – Santa Clara County Local Responsibility Area Fire Hazard Severity Zones

Ordinance No. 2025-XX
Mapping of Fire Hazard Severity Zones Ordinance
City Council Regular Meeting | June 2, 2025

CERTIFICATE OF THE CLERK
I, BRYCE ATKINS, Acting City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2025-XX is an original ordinance, or true and correct copy of a City Ordinance, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on Monday, June __, 2025, with a quorum present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Date.
____________________________________
Bryce Atkins
Acting City Clerk of the City of Gilroy
(Seal)

City and County boundaries as of 10/22/24 (CA Board of Equalization) CAL FIRE State Responsibility Areas (SRA25_1)
CAL FIRE Fire Hazard Severity Zones (FHSZSRA23_3, FHSZLRA_25_1) Data Sources:

Daniel Berlant, State Fire Marshal, CA Department of Forestry and Fire Protection Joe Tyler, Director/Fire Chief, CA Department of Forestry and Fire Protection Wade Crowfoot, Secretary for Natural Resources, CA Natural Resources Agency The State of California and the Department of Forestry and Fire Gavin Newsom, Governor, State of California Protection make no representations or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. and other relevant factors including areas where winds
have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State Fire
Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent Waterbody
Unzoned LRA
Incorporated City
Projection: NAD 83 California Teale Albers
Scale: 1:47,000 at 11" x 17"
Km 0 1 2 3
Mi 0 1 2
Very High High Moderate
High Moderate
Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA), as Identified by the State Fire Marshal
Gilroy
101
152

UNINCORPORATED
SANTA CLARA CO.

February 24, 2025
As Identified by the
State Fire Marshal
Local Responsibility Area
Fire Hazard Severity Zones
CITY OF GILROY – SANTA CLARA COUNTY
Fire Hazard Severity Zones in State Responsibility
Area (SRA), Effective April 1, 2024
Exhibit A

CAL FIRE – December 18, 2024
2024 FAQ Page 1
• What is a “Fire Hazard Severity Zone,” or FHSZ?
o Answer: Public Resource Code 4202; The State Fire Marshal shall classify lands within state responsibility areas into fire hazard severity zones. Each zone shall embrace relatively homogeneous lands and shall be based on fuel loading, slope, fire weather, and other relevant factors present, including areas where winds have been identified by the department as a major cause of wildfire spread. Government Code 51178; The State Fire Marshal shall identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, and other relevant factors including areas where winds have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
• Why are fire hazard severity maps being updated?
o Answer: The hazard maps are being updated to more accurately reflect the zones in California that are susceptible to wildfire. The hazard mapping process will incorporate new science in local climate data and improved fire assessment modeling in determining hazard ratings.
• What do Fire Hazard Severity Zones measure?
o Answer: The Fire Hazard Severity Zone map evaluates “hazard,” not “risk”. The map is like flood zone maps, where lands are described in terms of the probability level of a particular area being inundated by floodwaters, and not specifically prescriptive of impacts. “Hazard” is based on the physical conditions that create a likelihood and expected fire behavior over a 30 to 50-year period without considering mitigation measures such as home hardening, recent wildfire, or fuel reduction efforts. “Risk” is the potential damage a fire can do to the area under existing conditions, accounting for any modifications such as fuel reduction projects, defensible space, and ignition resistant building construction.
• Where do Fire Hazard Severity Zones apply?
o Answer: Fire Hazard Severity Zones are found in areas where the state has financial responsibility for wildfire protection and prevention, called the State Responsibility Area.

More than 31 million acres are in this area. Under Senate Bill 63 (Stern, 2021) Government Code 51178 was amended to add the Moderate and High Fire Hazard Severity Zones with the Very High in local jurisdictions.
• What are the uses of Fire Hazard Severity Zones?
o Answer: The zones are used for several purposes including to designate areas where California’s defensible space standards and wildland urban interface building codes are FREQUENTLY ASKED QUESTIONS ABOUT:
2024 Fire Hazard Severity Zones
Fire Hazard Severity Zones Explained

CAL FIRE – December 18, 2024
2024 FAQ Page 2
required. They can be a factor in real estate disclosure, and local governments may consider them in their general plan.
• Is there an easy way to determine the Fire Hazard Severity Zone of my property? o Answer: You can search by address to find your current designation on the web at:
osfm.fire.ca.gov/FHSZ
• What are the key elements of the Fire Hazard Severity Zone model? o Answer: The fire hazard severity model for wildland fire has two key elements: probability of an area burning and expected fire behavior under extreme fuel and weather conditions.

The zones reflect areas that have similar burn probabilities and fire behavior characteristics. The factors considered in determining fire hazard within wildland areas are fire history, flame length, terrain, local weather, and potential fuel over a 50-year period.

Outside of wildlands, the model considers factors that might lead to buildings being threatened, including terrain, weather, urban vegetation cover, blowing embers, proximity to wildland, fire history, and fire hazard in nearby wildlands. FHSZs are not a structure loss model, as key information regarding structure ignition (such as roof type, etc.) is not included.
• How do the Fire Hazard Severity Zone Maps differ from California Public Utilities Commission (CPUC) High Fire Threat District Maps?
o Answer: The California Public Utilities Commission (CPUC) sponsored map, known as "CPUC High Fire Threat District Map” (HFTD), includes similar factors as those in the FHSZ maps, however the CPUC HFTD Map is designed specifically for identifying areas where there is an increased risk for utility associated wildfires. As such, the CPUC map includes fire hazards associated with historical powerline-caused wildfires, current fuel conditions, and scores areas based on where fires start, as opposed to where potential fires may cause impacts.
• Why is my property in a different zone than the adjacent area, which looks similar? o Answer: In non-wildland areas, zone edges occur based on distance to the wildland edge.

Because hazard in these areas is largely determined by incoming embers from adjacent wildland, urban areas that are similar in vegetation type and housing density may have a change in FHSZ class as the distance to the wildland edge increases. Areas immediately adjacent to wildland receive the same FHSZ score as that wildland where fire originates, and the model then produces lower scores as the distance to wildland edge increases.

In wildland areas, zone edges are a result of the way zones are delineated. Specifically, zones represent areas of similar slope and fuel potential. Zone boundaries divide zones based on geographic and vegetation features that align with fire hazard potential; although, at a local scale, it may appear that the immediate area is similar on both sides of the edge. The class value within a zone is based on the average hazard score across the whole zone, so areas that are in the same zone but not immediately adjacent to a local area can have an influence on the final zone classification.

Data Related Questions
• How are Fire Hazard Severity Zones determined?
o Answer: CAL FIRE used the best available science and data to develop, and field test a model that served as the basis of zone assignments. The model evaluated the probability of

CAL FIRE – December 18, 2024
2024 FAQ Page 3
the area burning and potential fire behavior in the area. Many factors were included such as fire history, vegetation, flame length, blowing embers, proximity to wildland, terrain, and weather.
• What new data will be included in the new model, and how does this differ from the previous model?
o Answer: A 2 km grid of climate data covering the years 2003-2018 is being used in the update. The previous model used stock weather inputs across the state to calculate wildland fire intensity scores. The updated model will adjust fire intensity scores based on the most extreme fire weather at a given location, considering temperature, humidity, and wind speed. In addition, ember transport is being modeled based on local distributions of observed wind speed and direction values instead of using a generic buffer distance for urban areas adjacent to wildlands.
• What is the difference between the various Fire Hazard Severity Zones? o Answer: Classification of a wildland zone as Moderate, High or Very High fire hazard is based on the average hazard across the area included in the zone, which have a minimum size of 200 acres. In wildlands, hazard is a function of modeled flame length under the worst conditions and annual burn probability. Both these factors generally increase with increasing hazard level, but there may be instances where one value is Very High and the other is low, pushing the overall hazard into a more intermediate ranking. On average, both modeled flame length and burn probability increase by roughly 40-60% between hazard classes. Classification outside of wildland areas is based on the fire hazard of the adjacent wildland and the probability of flames and embers threatening buildings. • Why does the model place an emphasis on the spread of embers? o Answer: Embers spread wildfire because they can travel long distances in the wind and ignite vegetation, roofs, attics (by getting into vents), and decks.

State Regulated Area Questions
• When were the maps last updated?
o Answer: The Office of the State Fire Marshal began the regulatory process for the State Responsibility Area (SRA) in December 2022, the final maps were adopted on January 31, 2024, and became effective April 1, 2024.
• What is “State Responsibility Area," or SRA?
o Answer: SRA is a legal term defining the area where the state has financial responsibility for wildland fire protection and prevention. Incorporated cities and federal ownership are not included. Within the SRA, CAL FIRE is responsible for fire prevention and suppression.

There are more than 31 million acres in SRA, with an estimated 1.7 million people and 800,000 existing homes.
• How is state responsibility area determined?
o Answer: The Board of Forestry and Fire Protection (Board) classifies land as State Responsibility Area. The legal definition of SRA is found in the Public Resources Code Section 4125. The Board has developed detailed procedures to classify lands as State Responsibility Area. Lands are removed from SRA when they become incorporated by a city, change in ownership to the federal government, become more densely populated, or are converted to intensive agriculture that minimizes the risk of wildfire. While some lands are removed from SRA automatically, the Board typically reviews changes every five years.

CAL FIRE – December 18, 2024
2024 FAQ Page 4
• What Fire Hazard Severity Zones are in State Responsibility Area? o Answer: All of the State Responsibility Area is in a Fire Hazard Severity Zone. Lands are either ranked as Moderate, High or Very High Fire Hazard Severity Zones. • What are the wildland urban interface (WUI) building codes in State Responsibility Area? o Answer: The WUI building codes (California Building Code (CBC) Chapter 7A) reduce the risk of embers fanned by wind-blown wildfires from igniting buildings. The codes for roofing, siding, decking, windows, and vents apply throughout all state responsibility area regardless of the fire hazard severity ranking. Ember-resistant building materials can be found at: https://osfm.fire.ca.gov/divisions/fire-engineering-andinvestigations/buildingmaterials-listing/ • Is the GIS data for Fire Hazard Severity Zones available for download? o Answer: The data inputs used to develop the Fire Hazard Severity Zones are identified in the Initial Statement of Reasons (ISOR) Title 19 Development (ca.gov). CAL FIRE has developed an additional data package which consists of sequential modeling steps, including any data inputs that were not already publicly available and referenced in the ISOR. The data package encompasses 34 spatial datasets and 8 tables, provided in raster, polygon, and table format. These datasets are formatted for Esri ArcGIS software, except for four tables provided in Excel. Ten of the datasets are updated versions used to produce an edited SRA FHSZ map following the public comment period that ended April 4, 2023.

Upon formal adoption of the FHSZ map, the final SRA FHSZ geospatial data file will become available. The data package is available on the FHSZ website Fire Hazard Severity Zones (ca.gov) under the science and methods banner.
• Why do waterbodies have a Fire Hazard Severity Zone Classification? o Answer: All areas in State Responsibility Area, including water bodies, require a fire hazard severity zone designation. The 2007 FHSZ maps zoned all water as moderate by default. In the 2023 FHSZ model we added a buffer of FHSZ from the surrounding wildland into water bodies to account for potential threat of embers to buildings on docks and house boats, as well as variation in reservoir height that occurs with drought.

Local Regulated Area Questions
• What is “Local Responsibility Area”, or LRA?
o Answer: Local Responsibility Areas (LRA) are incorporated cities, urban regions, agriculture lands, and portions of the desert where the local government is responsible for wildfire protection. This is typically provided by city fire departments, fire protection districts, counties, and by CAL FIRE under contract.
• When did Fire Hazard Severity Zones start in Local Responsibility Area? o Answer: The “Bates Bill” (AB 337), Government Code Section 51175, was prompted by the devastating Oakland Hills Fire of 1991. This mid-1990s legislation calls for CAL FIRE to evaluate fire hazard severity in local responsibility area and to make a recommendation to the local jurisdiction where very high FHSZs exist. The Government Code then provides direction for the local jurisdiction to take appropriate action. • How are Fire Hazard Severity Zones determined in local responsibility areas? o Answer: CAL FIRE uses an extension of the state responsibility area Fire Hazard Severity

CAL FIRE – December 18, 2024
2024 FAQ Page 5
Zone model as the basis for evaluating fire hazard in Local Responsibility Area. The Local Responsibility Area hazard rating reflects flame and ember intrusion from adjacent wildlands and from flammable vegetation in the urban area. • What are the requirements for landowners in FHSZs in local responsibility areas? o Answer: California’s WUI building codes (CBC Chapter 7A) apply to the design and construction of new buildings located in High and Very High FHSZs in Local Responsibility Areas. Local ordinances may require ignition resistant construction for remodel projects.

Check with your local building department to determine which ignition resistant building codes apply to your project. In addition, Government Code Section 51182 calls for defensible space clearance and other wildland fire safety practices for buildings. Owners are also required to make a natural hazard disclosure as part of a real estate transfer. For information regarding “home hardening” and defensible space clearance, visit www.ReadyForWildfire.org.
• Does the designation of Very High Fire Hazard Severity Zones in the Local Responsibility Area trigger the 100-foot clearance requirement?
o Answer: Yes, per Government Code 51182 unless a local government has passed a more stringent requirement, the 100-foot defensible space clearance applies. For information regarding “home hardening” and defensible space clearance, visit www.ReadyForWildfire.org.
• How does CAL FIRE assist Local Governments in Fire Hazard Severity Zones? o Answer: CAL FIRE’s Land Use Planning Program is a specialized unit that provides support to local governments by providing fire safety expertise on the State’s wildland urban interface building codes, wildfire safety codes, as well as helping in the development of the safety elements in general plans.
• What is the process for developing Fire Hazard Severity Zones in the Local Responsibility Area? o Answer: CAL FIRE uses the same modeling data that is used to map the State Responsibility Area. The map, along with a model ordinance, are then sent to the governing body for adoption.
• How are the new Fire Hazard Severity Zones impacting development? o Answer: Many of the changes expanding fire hazard severity zones in local responsibility areas (LRA) have been supported by the building industry. CAL FIRE works closely with the building industry when setting various building codes and defensible space requirements, so we are working together to not affect development itself but to make sure development matches the hazards of that area.
• When will the Local Responsibility Area Map be released? o Answer: The Local Responsibility Area Map Process will happen after the State Responsibility Area process has been completed, which is estimated to occur in the winter of 2025.
• Why haven’t Moderate and High Fire Hazard Severity Zone classes been classified before in the Local Responsibility Area?
o Answer: New legislation, Senate Bill 63 (Stern, 2021), now requires the adoption of all three Fire Hazard Severity Zone classes in the Local Responsibility Area. Previously only Very High Fire Hazard Severity Zones were required for adoption in Local Responsibility Areas.

CAL FIRE – December 18, 2024
2024 FAQ Page 6
Insurance Related Questions
• Will the new Fire Hazard Severity Zones affect my ability to get or maintain insurance? o Answer: Insurance companies use risk models, which differ from hazard models, because they consider the susceptibility of a structure to damage from fire and other short-term factors that are not included in hazard modeling. It is unlikely that insurance risk models specifically call out CAL FIRE Fire Hazard Severity Zones as a factor, but much of the same data that is used in the fire hazard severity zone model are likely included in the insurance companies’ risk models. However, insurance risk models incorporate many additional factors and factors that change more frequently than those that CAL FIRE includes in its hazard mapping, which is built to remain steady for the next 10+ years.

Resources, Additional Information, and Contact Information • To find the current FHSZ designation for a property, visit FHSZ Map Viewer (ca.gov). • Helpful links:
o FHSZ Website:
▪ osfm.fire.ca.gov/FHSZ
o FHSZ Map Viewer:
▪ FHSZ Map Viewer (ca.gov)
• Contacts for FHSZ for Public Questions:
o (916) 633-7655
o [email protected]

City of Gilroy

STAFF REPORT
Agenda Item Title: Consideration of a Resolution Establishing a Pilot Program to Allow Food Trucks in Designated Areas While Updating the City’s Mobile Vending Ordinance
Meeting Date: June 2, 2025
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted by: Victoria Valencia, Economic Development Manager Prepared by: Victoria Valencia, Economic Development Manager STRATEGIC PLAN GOALS: Promote Economic Development Activities

RECOMMENDATION

1. Consider adopting the attached resolution establishing a temporary pilot program allowing food trucks to operate in designated areas of the City of Gilroy, as identified in this report; and

2. Direct staff to implement the pilot program immediately and return to Council with an update prior to expiration of the pilot period; and

3. Provide feedback on the proposed pilot zones and operational standards, including any adjustments to hours, locations, or permit requirements.

BACKGROUND
At the May 5, 2025 City Council meeting, Council directed staff to enforce Chapter 16A Article II as it is currently written. Chapter 16A Article II governs mobile vending (including food trucks) and requires vendors to move at least 100 feet every 10 minutes, while also prohibiting such operations in the C1, C2, and C3 commercial zoning districts.

The ordinance defines a “mobile vending facility” broadly to include any container, cart, stand, vehicle, or wagon displaying or selling food, goods, or services.

As currently enforced, mobile vendors are required to obtain the following permits prior

to beginning operations in the City of Gilroy:

1. California Department of Tax and Fee Administration Seller’s Permit

2. Santa Clara County Department of Environmental Health Permit

3. Mobile Vending Permit, issued by Gilroy Police Department

4. City of Gilroy Business License
Enforcement efforts have begun, with the priority being to ensure health, life, and safety concerns are addressed. Code Enforcement staff are ensuring the proper permits have been obtained by vendors on both public and private property. If vendors do not have the proper permits, they are not allowed to continue operations.

ANALYSIS
Staff is working on updating the City Code (Code) chapter that regulates mobile vendors. A draft of the Code for review and additional consideration will return to Council later this year. In the meantime, there is not an option for mobile vendors to operate anywhere in the city for longer than 10 minutes, including during special events, except for those operating under a Sidewalk Vendor Permit, regulated by Chapter 16B.

Since enforcement efforts began, staff has received multiple inquiries from local food vendors, property owners, and event organizers expressing interest in allowing food trucks in areas currently restricted under the existing ordinance. Food trucks are increasingly seen as a flexible, lowoverhead option for business development, food accessibility, and community engagement.

The mobile vending ordinance, adopted in 1997, does not account for modern operational standards or align with the more contemporary provisions in Chapter 16B, which regulates sidewalk vending.

This discrepancy has highlighted the need to modernize the code in a way that is equitable, practical, and reduces health, life, and safety risks.

A temporary pilot program could provide a low-risk opportunity to test food truck activity in different contexts and locations across the city. This could allow the City to gather data and community input before recommending permanent ordinance amendments.

The proposed Mobile Vending Pilot program could go into effect immediately, and is being proposed to run until December 31, 2025, or until an updated ordinance is adopted by Council.

Objectives of the Mobile Vending Pilot Program:
• Assess feasibility and public response to food trucks in various city locations • Ensure compatibility with nearby land uses and businesses • Evaluate the impact on traffic, parking, and pedestrian flow • Support economic development and placemaking efforts
All mobile vendors will continue to be required to obtain the necessary permits prior to beginning operations in the City of Gilroy.

Any vendor planning to operate longer than one hour would also be required to obtain written

permission for public restroom usage either on the same parcel, or within two hundred feet of their vending location.

Mobile vendors would be subject to similar operational standards and restricted areas as recently adopted in Chapter 16B. A draft operating standards agreement is attached.

No Mobile Vending Zone:

Based on past Council discussions, the pilot program would sustain a No Mobile Vending Zone. This zone would exist in the areas listed below:

1. Public Right-of-Way on Monterey Street and side streets from Leavesley to Luchessa Avenue.

2. Private or Public Property fronting or visible from Monterey Street.

This area is an arterial roadway and is also a main transit corridor. Allowing food trucks or trailers to park or be stationed along this route could pose a public safety concern for pedestrians, bicyclists, and other automobiles.

Key areas for consideration that Council could choose to include in the Mobile Vending Pilot Program:

A. Food Trucks at Special Events
Food trucks have become an integral part of special events held throughout the City, some taking place in downtown, with others taking place in shopping centers, city parks, private lots, and industrial areas. Under the pilot program, Council may consider allowing food trucks, with appropriate permits, to vend at permitted special events for the duration of the event, as opposed to having to relocate after 10 minutes. By considering this change, event organizers could continue to invite food trucks to participate in local events. An event organizer could also have an avenue for creating a “food truck coral” through the special event permit process.

B. Food Trucks in Downtown
Staff has evaluated the following areas of the downtown area (outside of the “No Mobile Vending Zone”) where Council could consider allowing food trucks to operate. These areas have been commonly suggested by the general public, downtown business owners, and the Downtown Committee:
• 5
th Street Lot (between Gardner Health Center and CMAP)

1. Could be designated for food truck parking only during certain times (commonly Friday and Saturday evenings from 5:00 p.m. to 10:00 p.m.).

2. Requires signage and closure of the left turn lane to safely accommodate trucks.

3. Would trigger the need for readily available restrooms (portable or otherwise) within 200 feet, in accordance with Santa Clara County Environmental Health regulations, if a truck remains more than one hour.
• Eigleberry Street

1. Parallel curb parking is available, but the size of some food trucks could pose safety hazards for pedestrians, bicycles and vehicles.

2. Council may consider allowing food trucks by right on Eigleberry in parallel to the curb parking stalls (with no special signage).

• Gourmet Alley & Adjacent Parking Lots

1. Two parking lots adjoining Gourmet Alley (between 4th and 6th) each have several potential spots for designated food truck parking. This would have minimal impact on traffic flow and maintain a safe environment for pedestrians. If directed, staff could manage adding signage to designate spaces as “food truck parking” during certain hours, as well as ensure the spaces are blocked off during certain hours for food truck use.

2. Council may also consider allowing food trucks to operate on private property along Gourmet Alley as long as proper permits are obtained, and private property owner approval and restroom permissions are obtained.

C. Food Trucks on Private Property
Some food trucks have partnered with a local business to assist with activation of an area. Council could consider setting guidelines to allow food trucks to vend from private property. The City of Hollister, as an example, has the following requirements:

Developed Private Property Operations:

1. Permitted Zonings: Commercial Zoning Districts, Industrial/Manufacturing Zones, and Mixed-use Zoning Districts, on a legally developed site with an established use and parking.

2. Prohibited Areas: Residential Zoning Districts

3. Hours of Operation: May operate only from the developed private property location approved in the permit.
a. All other zonings, excluding residential: Mobile food vendors may operate between the hours of 6:00 a.m. to 12:00 a.m.; or
b. Mobile food vendor hours of operation may run concurrently with those of the established business on which the mobile food truck will be located.; or c. Mobile food vendors may propose alternative hours of operation schedule in which the vendor and developed private property owner or legal representative have agreed upon, not to exceed the hours of 6:00 a.m. to 12:00 a.m.

ALTERNATIVES

1. Take no action, maintaining the current code and time limits with no exceptions for food trucks operating in the City of Gilroy. This is not recommended at this time as it would delay the opportunity to explore updated approaches to mobile vending and gather community feedback that could help inform future ordinance improvements.

FISCAL IMPACT/FUNDING SOURCE
While initial enforcement efforts have required staff time, additional fiscal impact is expected to result from the processing of mobile vending applications, as well as the monitoring of the pilot program. These costs may be offset, in part, by associated application and filing fees.