Housing Program / 534
261
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP
Housing Programs [Funds 234, 235, 236, and 255]
ACTIVITY DESCRIPTION
The Housing department is still dealing with the effects of the elimination of the Redevelopment Agency and the re-
sulting loss of $4 million in annual funding to support the rehabilitation and development of affordable housing in
Morgan Hill. These housing funds were one of the significant cornerstones of the City’s very successful housing pro-
gram, and made most of the City’s housing programs, serving low and very low income residents, possible.
The City’s primary housing mission is to continue the on-going efforts to improve, preserve, and assist in the produc-
tion of safe and decent housing in Morgan Hill, and to provide housing opportunities at all income levels for the resi-
dents and the employees of local businesses. As a result of the elimination of redevelopment agencies statewide, the
Housing Program’s accepted secondary responsibility is to serve as the successor to the former Morgan Hill Redevel-
opment Agency’s housing functions and administer its legacy housing assets pursuant to Resolution 6504 adopted by
the City Council on January 18, 2012. The City has accepted the housing assets of the former Redevelopment Agency
and beginning in FY 12-13 operated a limited housing program utilizing and leveraging other housing resources.
The Morgan Hill Redevelopment Agency was the largest funding source for the City’s affordable housing programs
and housing development projects. With the elimination of the Agency, the City restructured its housing programs to
reflect the services that can be provided based on the limited staff resources and funding. Housing activity has be-
come less programmatic and more strategic in scope and function. The housing functions provide coordination of
new unit production activity, implementation of the Housing Element, achievement of the Regional Housing Needs
Allocation requirement (RHNA) and provision of local housing related services that in some instances has resulted in
leveraging or purchasing “local access” to existing programs, rather than maintaining a separate City program.
In FY14-15 Housing efforts were focused on implementing new strategies, policies and procedures, for the provision
of local housing related services with some ongoing Housing programs being administered via contract with a third
party entity. Morgan Hill contracts with the BMR Program Administrator, Neighborhood Housing Services of Silicon
Valley (NHSSV), and in November of 2014 Council approved a contract with the Housing Trust of Silicon Valley to ad-
minister a BMR Rehabilitation Program to preserve the BMR housing stock. Housing efforts were also focused on ne-
gotiating with EAH Housing Developers for the purpose of constructing a multi site family affordable housing develop-
ment with a Transitional Age Youth (TAY) component.
For FY 15-16, Housing will bring forward an Affordable Housing Program update and discuss with the City Council key
City and regional housing priorities, steps to begin planning for the City's next affordable housing project, the evalua-
tion of the BMR in lieu fee, as well as exploring options for creating sustainable Programs to respond to the housing
needs of residents. After several years of winding down and completing the previous RDA’s projects and programs,
the housing department has accumulated significant funds. Potential exists to subsidize 1 or 2 new developments, or
institute new housing programs to help mitigate the effects of the increase in both home prices and rental rates.
Staff will provide ongoing oversight of the EAH multi-site, new construction development, scheduled to begin con-
struction by the summer of 2016. Housing efforts will include identifying regional opportunities for the future of
Statewide Affordable Housing Funding.