94 / 194
Morgan Hill, California
88
Zucker Systems
RDCS process between Fiscal Year (FY) 2002/2003 – FY 2012/2013.” Interestingly,
in a separate Housing and Population White Paper, it was estimated that Morgan Hill
only added approximately 170 units per year between 2000 and 2013, which is less
than the 244 average housing allocations granted by the City.
The disparity is explained in The Growth Management White Paper, which points out
that unit’s allocation from Fiscal Year (FY) 2002/2003 to FY 2012/2013 did not
always result in building permit issuance, as some applicants were unable to secure
project funding due to the national recession. For example, from 2006 through 20011,
the number of allocations granted exceeded building permits. On the other hand, there
were years during this ten-year period (e.g., 2002-2005), where the number of
building permits issued outpaced housing unit allocations because some older
allocations were finally being exercised and absorbed. The Paper also highlights the
fact that building permit issuance for RDCS allocations increased dramatically from
2011 to 2012 (e.g., from 98 to 431 permits), as developers again began to exercise
older allocations due to favorable market conditions.
Table 13 below, shows the allotments granted for FY 2013/14 through 2017/18.
Table 13
RDCS Allotment Activities
As the above table shows, the number of allotments granted each year can vary
because they are determined, biennially, using the California Department of Finance's
(CDF) most recently determined persons per household figures and population for the
city of Morgan Hill. CDF’s population estimate is adjusted for any relevant housing
backlog not included in its population estimate, the population of any existing county
subdivision enumerated in subsectio
n 18.78.030(A) that has been annexed, and any
other quantifiable factor that improves the accuracy of the estimate.
The adjusted population is then subtracted from forty-eight thousand, the result
divided by CDF’s most recently determined figure for persons per household in
Morgan Hill, and then divided by the number of years remaining between that
population estimate date and 2020. This gross annual allotment number is then
reduced for any fiscal year by its previously awarded allotments (awarded in prior
years) and the number of exempt units anticipated for that fiscal year.
The biennial allotment calculation applies to each fiscal year after the fiscal year in
which it is computed. For example, the Spring 2004 computation was used to set the
Planning Division
Function
FY
2013/14
FY
2014/15
FY
2015/16
FY
2016/17
FY
2017/18
5-yr Average
RDCS Allotments
197
270
270
242
242
244
% Change
-
37%
0
-10%
0
-