City of Morgan Hill Fiscal Years 2020- 2022 Recommended Operating and CIP Budgets

Development Services (continued) During FY 2018-19 and FY 2019-20, the Development Services Department worked on an array of projects. Morgan Hill’s Planning Team was consumed by four major activities: the Zoning Code Update, California High Speed Rail planning and review of alignment alternatives and impact assessment, legislative efforts to retain local control over housing development and changes to new state laws that would recognize local affordable housing achievements as well as communication with the community about changing land use laws, the process, and timeline. FY 2020-21 and 2021-22 will be consumed by major General Plan Element revisions, dominated by the preparation of a new Housing Element, to coincide with the 6 th Regional Housing Needs Allocation (RHNA) cycle. Changes to state law, including the requirement to up zone vacant land intended to meet new housing cycle production number assignments, will be arduous. It is expected that this effort will take two full years to complete, require significant consultant hours as well as many community meetings. Other elements required will be a new Environmental Justice Element (formerly Healthy Community section of the General Plan), tackling strategies for social equity, housing, service and job access, and updated Transportation and Circulation element and a required update to the Safety/Services/Infrastructure Element. The Housing Team worked with Eden Housing to complete preparations for cross collateralization and re-subordination of financing to facilitate the renovation/rehabilitation of Skeels, Depot Commons, Sycamore Creek, and The Willows apartments. The team also worked with Urban Housing Community (UHC 39 unit) development to secure utility and other process installation and inspections delayed due to the Public Safety Power Shutoff (PSPS) and staff shortages. In addition, the Housing Team helped coordinate leasing of units to support local South County residents. The City’s housing administrator, House Keys, played a key role in management of the City’s Below Market Rate (BMR) housing ownership program. Homeless issues dominated much of the Housing Team’s daily activities, paving the way for a successful continued partnership with the faith-based community to manage the “Safe Parking Program,” including services from a South County specific Community Outreach Worker. Work continues to identify a matching fund source for a dedicated South County Mental Health Case Manager(s). The proposed FY 20-21 and 21-22 budget continues permanent staffing levels, employing consultant services to augment increased demand. Several new initiatives are proposed, most significantly in Long Range Planning and Housing, with Homelessness activities. The cost of the Economic Development Division was previously accounted for in the City Manager’s Department. Effective FY 2018-19, this function is accounted for as its own Division within Development Services, funded by the General Fund. There is no net effect on Citywide FTEs as a result of this change.

Functional Responsibility  Building

 Housing

 Code Compliance

 Land Development Engineering  Planning – Current and Long Range

 Economic Development

232 DEVELOPMENT SERVICES