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

Housing Programs (continued)

Fund 236- Inclusionary Housing In-lieu Fee Prior to issuance of occupancy permits, housing in-lieu funds are collected from market rate housing developers who make development agreement commitments to pay an in-lieu housing fee through the former RDCS process instead of constructing low or median-income Below Market Rate (BMR) units. In addition, this Fund is the repository of inclusionary ordinance in-lieu fees for which the City Council has made findings which accept fees instead of developer created units. This Fund has fluctuated over time and is the only remaining on-going source of income for the City’s legacy Housing Program. In FY 2018-19, an analysis by Keyser Marston Associates was conducted resulting in a change in the fee amount. The current fee for For-Sale Residential Projects outside of downtown is $19.70 per habitable square foot of the residential building area of the market-rate housing to satisfy the 15% Inclusionary Housing Requirement and the fee for For-Sale Residential Projects within the Downtown is $13.20 per habitable square foot of the residential building area of the market-rate housing to satisfy the 10% Inclusionary Housing Requirement. The fee for Rental Residential Projects outside of downtown is $29.00 per habitable square foot of the residential building area of the market-rate housing to satisfy the 15% Inclusionary Housing Requirement, and the fee for Rental Residential Projects within the Downtown is $14.50 per habitable square foot of the residential building area of the market-rate housing to satisfy the 10% Inclusionary Housing Requirement. These fees were adopted by City Council July 25, 2018. Fund 255- Housing Fund (formerly known as the Successor Agency Housing Fund) The legacy housing obligations of the Morgan Hill Redevelopment Agency have associated implementation and delivery costs that are not eligible for reimbursement from RDA Housing dissolution revenues but can be recovered from residual receipts and loan repayment from previously constructed projects and loans executed. These dollars can be used to develop new affordable housing units and preserve housing assets. FY 2018-19 and 2019-20 Accomplishments  In collaboration with UHC and the County of Santa Clara, the Housing Division helped to facilitate financing and construction commencement and completion for the Crossings on Monterey, 39- unit Affordable Housing development, which now houses lower income families.  Ongoing collaboration with PD, Santa Clara County, our Faith Based Community, Gilroy Compassion Center, and Morgan Hill Bible Church, the safe park “Focus” program continues to experience successful meaningful outcomes such as obtaining stable employment and housing. The family program helps 30 people a night.  Ongoing collaboration with Santa Clara County Office of Supportive Housing, funding two South County outreach worker positions to help monitor, counsel, and house our homeless population.

DEVELOPMENT SERVICES 255