Developers in the city aren't expected to build much housing in the next seven years. But almost half of what they do build will be affordable, according to a regional association that divvies up state housing allocations.
The Association of Bay Area Governments expects the city to ready itself for at least 1,312 units being built over the next seven years. And they expect 43 percent of those units to be affordable to low or very low income earners. Over the last seven years, the city prepared to build a minimum of 2,484 units, 27 percent of it affordable, according to city documents.
That means that the number of units expected to be built in all income levels has dropped dramatically, except for one: low income.
Low income earners are defined as those who make between $37,000 and $98,000 per year, depending on their family size, according to the state Department of Housing and Urban Development. For example, to be eligible to purchase a $264,000 low-income home in the city's below market rate housing program, a family of four would have to make about $84,900 per year. That's about the total household income of a teacher and an accountant, said Erwin Ordonez, senior project manager for the city's housing programs.
Ordonez noted that many of the low-income housing requirements would likely be met through Measure A, which voters approved in May. Measure A allows 500 units in the downtown area unfettered by the city's complicated growth control system. The city will encourage mixed-use, multi-level buildings downtown, incorporating smaller residences like condominiums, townhomes and apartments. Because of this, Ordonez said many of the 500 units would be "affordable by design" and thus count towards the city's goal even though the downtown allotments might not be deed restricted. Homes sold under the city's below market rate housing program are deed restricted.
Ordonez also pointed out that the association's allocations are minimum requirements, not maximums.
The 1,312 unit minimum requirement given to Morgan Hill are less than what the city's growth control system will allow during the same seven-year period. Each year, about 220 units are doled out to developers and the 500 downtown units are in addition to these allotments.
Local developers had mixed reactions to the proposed housing levels, which were reviewed by the Planning Commission Tuesday night and will be considered by the City Council in November.
"I have some concerns," Dick Oliver of Dividend Homes said. "It's a worthy goal. The question is, how can we do it?"
Oliver also questioned the demographics change that such a high level of affordable housing would have on Morgan Hill over time.
"Is it what the community wants? Is it desirable? I understand we have a social obligation, but it'll no longer be the Morgan Hill we all love."
Developer Rocke Garcia said if the 43 percent stands, he wouldn't be surprised if something like last year's initiative to forcibly reduce the amount of for-profit developer built affordable housing in Morgan Hill reared its head again.
"We need to do our fair share, but our fair share is not 43 percent," Garcia said. When asked about the initiative, Garcia said:
"Would I be in favor of doing something that would bring us in line with other communities? Absolutely."
But Oliver, who along with Garcia financially supported the initiative campaign, talked down this idea.
"I think we'd rather work with the city," Oliver said.
Trustee Shelle Thomas, who was briefly a member of the task force that developed the policy that incorporates the allocations, said her main concern was that denser housing, whether affordable by default or not, can have a disproportionate effect on schools.
Thomas said the prevalent perception that young professionals will live downtown may prove untrue.
"My feeling is, anyone will live downtown if it's affordable housing," she said, noting that the zoning would send any new kids there to either P.A. Walsh or El Toro elementary schools, both of which are bursting at the seams already.
The Association of Bay Area Governments is a regional planning agency with representatives from cities and counties around the Bay Area.
Natalie Everett
Natalie Everett Natalie Everett is the education and city reporter for The Times. Reach her at (408) 779-4106, ext. 201, or neverett@morganhilltimes.com.
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