Planning Commission - Regular Meeting

Tuesday, March 24, 2026

About this meeting

Government Body
Planning Commission
Meeting Type
Planning Commission
Location
Morgan Hill, CA
Meeting Date
March 24, 2026

Transcript

344 sections (from 392 segments)

0:20 – 0:311

Good evening. I'm gonna call the March 24 planning commission meeting to order. Jenna, could we do a roll call?

0:312

Thank you, chair Wilson. Chair Wilson?

0:35 – 0:462

Vice chair Habib should be online. Let's see. Let me see if I can get him.

0:461

See him? Yeah.

0:502

Let's see if he's sitting in the attendees section.

0:533

No. No way there, ma'am.

0:562

I don't see him. Let's see. K. We have Commissioners Lake

1:072

Mueller Here. Lovato Here. Downey Here. And Adamo. Here.

1:151

Do you wanna go back to I don't see him. A big

1:192

I do not see him. Okay.

1:241

Hopefully, he'll join us. Can you declare the posting, please?

1:282

Tonight's meeting agenda was duly noticed and posted in accordance with government code section five four nine five four point two.

1:35 – 1:571

Thank you. Commissioner Liam, can you lead us with the pledge of allegiance? I can. I pledge allegiance to The United States Of America Thank you. You're welcome.

2:01 – 2:341

Public comment. Members of the public are entitled to address the planning commission concerning any item within the Morgan Hill Planning Commission's matter subject jurisdiction. Public comments are limited to no more than three minutes. Except in certain specific exceptions, the commission is prohibited from discussing or taking action on any item not appearing in the posted agenda. Jenna, do we have any speakers, any speaker cards, anybody online?

2:34 – 3:002

Are you here for number two? For item number two? Rocky, are you here for item number two? Okay. I don't see anyone online. I would just like to also remind the audience that we are live streaming on channel seventeen, the city's website, and Facebook. You can provide comments to us by emailing us at PCpubliccomment@MorganHill.CA.gov.

3:011

Thank you, Jenna.

3:022

I do not see any raised hands.

3:051

Okay. So we'll close public comment. Orders of the day, gentlemen. No changes.

3:114

This is good.

3:121

Thank you. Okay. Thank you. Item

3:181

Mhmm. Minute approval. 02/10/2026 meeting minutes. Motion to approve.

3:285

Seconded.

3:316

All aye. Aye. Aye. Thank

3:350

you. Roll call. I think they have to do roll call as long as What?

3:381

Members outside. Oh, that's right. Okay.

3:402

Okay. Chair Wilson?

3:432

Hunting commissioners Lee?

3:472

Moeller?

3:482

Lovato?

3:502

Downey?

3:512

Adamo?

3:521

Aye. Thank you.

3:542

Motion passes six zero zero one.

3:58 – 4:121

Okay. So the first item had no public hearings. Other business item two except the 2025 general plan and housing element annual progress report. John, you giving the report?

4:14 – 4:326

This will be a combination report, between Adam and I. John Ling, housing director, city of Morgan Hill, and Adam Pizinski, principal planner. So I'll turn it over to Adam and let him begin, and we'll jump in.

4:331

Thank you.

4:33 – 5:325

Great. Good evening. I'm Wiskowski, principal planner with the city. So the item before you tonight is to accept the 2025 general plan and housing element annual progress report, the APR. Is the PowerPoint presentation It is, but let me restart the And so while, John pulls that up, so, California government code, section six five four hundred mandates that all jurisdictions, prepare a annual progress report or an APR APR and the status of the our general plan as well as the progress made regarding implementation, and the APR must be submitted to the state, both the, governor's office of land use and climate innovation as well as the department of housing and community development by April 1 of each year, and the APRs must also be presented by staff to a legislative body for review and acceptance.

5:33 – 6:255

So as part of this, background, our Morgan Hill general plan was adopted back in July 2016. So we and it's been periodically updated or certain elements have been updated since that time. And so with the APR on the general plan portion of it, there's a an attachment to the agenda item going through a number of goals and policies and actions and items that we have achieved, this past year. And then through the housing element, as a reminder, we adopted that back in January 2023, and it was certified by ACD in November 2023. And as I mentioned, the government code section requires us to submit this report, the annual product report to both, the land use and climate innovation office as well as HCD by April 1.

6:28 – 7:085

So as part of that report, the implementation highlights is by the general plan element. We reviewed it per department and division, and then we identified what general plan goals that it pertained to. And then separately, there is an HCD spreadsheet. It's multiple pages long and goes through all the different housing developments that have been entitled as well as building permits that have been issued, for housing within the city for the past year. And then we also report on what general plan amendments have been filed with the city, and most of them are general plan element updates that I'm working on, and some that we've completed.

7:08 – 7:535

So the first one was the healthy neighborhoods for all element that was approved back in December, and also the natural resources and environment element update, and that was also approved in December. We are initiating work on the transportation element update, and that would be coming to the commission in the future. And then we also have received a general plan amendment for a project called Monterey Third Million Partners. This is on the South side of the city along Monterey Road across the street from Maple Leaf RV Park, and the proposal there is to go from commercial to mixed use. And then as we've been doing the past few years, we've been reporting on our general plan build out.

7:54 – 8:495

Then the only column that changes here, each year is the column that says existing development, 06/30/2025. And so what we did here is we took information from our congestion management plan or congestion management implementation that we report back to a bag MTC. And so through that, we identify what developments have been entitled and how much square feet or how many units have been approved. And so going through this full period, it's looks we've increased our development of residential units up into 17,000 units. If all those units were occupied, it was estimated that it'll be bring our population to 49,700, but that's not our current population as it is today.

8:50 – 9:405

And then for other development and retail and service, it's almost at 3,000,000 square feet. Office hasn't changed much the past couple years, just over 500,000. Industrial hasn't really changed the past year at almost 8,000,000, and then our public facilities has changed slightly to just about 550,000 square feet. And as you can see from both the total horizon year and the total full developed projection, we are still within that criteria. Our general plan EIR evaluated the entire build out of the city based on current or not from current from the general plan designations that were proposed back or adopted rather back in 2015 as part of the 2035 general plan.

9:40 – 9:535

And so you can see through the through that last column that, we fall well below in all those categories. And then I'll turn it over to John to report on what's called table b.

9:54 – 10:276

Thank you, Adam. So the crux of the the annual report is really this table. You have in your packet, multiple tables that get submitted to HCD, but this is really how we are evaluating meeting our regional housing needs assessment. So in column one is really the goals we were given. This is the targets we were, provided that we needed to meet.

10:28 – 11:136

And what you see in the successive columns going to the right is the number of units that we have permitted. And when I serve say permitted, it's building permits have been issued. K? So we're looking at what our target is, our goal, on one, and then summing up, the projection period, the, 2022 through 2023, and then 2023, 2024, and actually our figures for 2025. As you work your way left to right on that table coming to the very far end is what do we have left in terms of achieving our arena goals?

11:13 – 11:486

And you can see we are very close to achieving our arena goals for this cycle. We have basically 50 units left in the very low income category and 66 units in the moderate category. Our total allocation, as far as this cycle was 1,037 units. What we've issued building permits for is 1,144 units. So you have to think about this as a little bit of a funnel.

11:48 – 12:346

You have to pretty much produce more just to achieve the sublevels or subcategories of affordability. So in an ideal situation, you know, you would be able to hit those individual acutely low, extreme low, very low, low, moderate, and get to that total RINA number. But in reality, the way affordable housing is developed, you predominantly build market rate housing that supports the development of affordable housing. So you're always tending to build more market rate than affordable, and that's what makes the affordable pencil. So long story short, we're very close to meeting our RENE goals.

12:34 – 13:236

We suspect even based upon building permits that have now been issued in 2026, we will either meet our goal, or we're just gonna be a tiny bit shy next year when we're back here in front of you, with the 2026 report. In your packet, there are tables if you want the level of detail and breakdown by the unit types, what have you. But, really, this is what matters as it relates to the arena designations. I would like to draw your attention to, table d. One of the things that as part of adopting our housing element is we identified several initiatives we were gonna undertake as part of our housing element.

13:23 – 14:066

There is a detailed summary of what the initiative was, where we are in terms of enacting it, and what progress we've made. That is something we also have to report on. So it's not just about numbers, but it's are we revising our inclusionary housing ordinance? Are we making modifications to our mobile home rent stabilization? So we have over 50 initiatives that we said we were gonna do as part of the housing element, adoption this year, and that is located in table d of this report, and all of this gets submitted to HCD. At this point, this concludes our presentation. Both Adam and I are available for questions.

14:061

Thank you. Do we have a slide for table d?

14:095

No. Table d is a part of the the packet.

14:141

Right.

14:155

But there isn't a slide. It's Okay. The way how it's laid out, it's it's impossible to put it in multiple slides.

14:253

It's a little bit

14:260

I think all of the tables are open in iShine.

14:295

Yes. I

14:331

have a few questions. Sure. Okay. We'll start with commissioner Adamo. Do you have any, Steve? I had a couple questions.

14:39 – 14:547

Okay. I'll start with this. It's a curiosity question. Under public facilities, does that include is that just, like, city owned building, or does that include education buildings, public education, county buildings?

14:545

Yes. It would include all of

14:567

those.

14:565

It includes all of that? Yes. Okay.

15:027

On the staff report, first page, where it says project analysis and findings. Would there be a way I'm brand new to this. I think most of you

15:123

know that.

15:12 – 15:437

But is there a way for, like one of the things I'd be looking for is a general statement from staff saying that we have met our goals in general or maybe, give yourself a grade even or something like that so that we understand because this document is just huge to actually look at the detail, and we appreciate you showing us the the summary information, where it counts. So I'm just curious about that, you know, because it actually says not applicable. So I was just curious about that. What what phase

15:445

Yeah. So

15:447

Where it says project analysis and findings Oh. Just seems like that might be where you say, hey. We did great.

15:51 – 16:175

So in that section, but, it doesn't really it doesn't apply to, this type of report. What it means is for finance is, like, what findings or what meanings does the planning commission need to make in order to approve a project? Got it. And that's the section that we put that analysis and Okay. Those determinations. That makes sense.

16:21 – 16:417

And then I see the last pages basically comments on all those different criteria and all the different things we did to achieve that. Looks very robust. Is that fair to say? Yes. Like, we've done a great job. Seems that way. That's kind of a question.

16:42 – 17:176

Yes. There's a a very big work plan that the the planning team manages. And, you know, there's all the objectives that we're trying to achieve through the general plan, then you're also doing long range planning on top of that, then you have the housing element. So there are a lot of things that are in play in constant motion, and then you're dealing with the projects that come in looking for entitlements, for a particular project. So you're balancing all of those. So, definitely, kudos to the planning team and the whole community development department to try and bring all this together.

17:187

K. Thank you. I agree.

17:205

Nice job. Anything else? No. Adam,

17:26 – 17:583

can you go back to the first slide? I'm pretty whoever's controlling the or not the first slide. The the previous chart. That's that one. Yeah. I I'm trying to I understand what this is telling us. So the or so take retail and service. Right? It's almost 3,000,000 square foot square foot. Right? Yes. It it there. Square feet. And you're saying, are we still projecting our original plan projected to be 4,000,000? Is that what we said? Is that is that how I read that?

17:58 – 18:105

Right. So the the first column where it says general plan exist in development 2015, when we first worked on the general plan, the 2035 general plan, those were the numbers in that column.

18:103

That's what we had physically at that point in time. Okay.

18:135

And then the total horizon year is what we thought we would be at in 2035 when we adopted the general plan back in 2016.

18:24 – 18:385

And if everything was built out as we all the land use designations that we had throughout the city, that's what the total full build out projection was gonna be as well. So these projections were from 2016.

18:383

So what's the last one then? What is the 4,800,000.0?

18:41 – 18:525

That's with all the general plan land use designations that we had in place in 2016, if they were all built on throughout the city, that's what that number would have been.

18:521

I see. Based on that zoning at the time? Correct. Okay. Got it.

18:58 – 19:273

But we're not gonna be anywhere near that. Right? I mean, the rate that we grew over how many years is that? 2015 almost eleven years is minimal. Right? About 5%. Maybe correction. Right? 5%. So does that what is that telling us? Does that tell us we gotta go back and rethink things in the general plan? Because the general plan makes a lot of decisions based on expectations here, which is up by a factor of almost 50%. Right? 100%.

19:27 – 19:535

Mhmm. Well, I guess there there's multiple ways to look at it. One way is, what you mentioned. Another way is that we still have all these uses of these different, germ plan land uses that is still available that could be built on to get up to that number eventually. So on a sequent environmental review process, we're okay.

19:54 – 21:025

It'll be good to go and we have been going through different elements since 2016 and updated those elements, just like the housing element. And through that housing element process, we identified that we didn't have to do anything additional to help, provide more land use designation for residential, because we had enough projects in our pipeline that are within our general plan, existing uses. But when you look at, as you mentioned, the the retail and how it looks like that we should be planning for additional 2,000,000 or that we see that we have potential for 2,000,000 square feet of retail. We still want to looking forward, we still want to help preserve as much commercial in the future for any conditions that change and to bring to bring future revenue to the city. And I would say the same thing for industrial and office as well that we want to provide those uses in the future as we think about another thirty or twenty years in the future.

21:02 – 21:403

Two times before over the years. And I know it's really difficult, right, to to predict. But it's difficult sometimes for me as a planning commission to say, I'm building a general plan based on numbers and projections that we are pretty confident we're not gonna get anywhere near. Right? So then you said, does that end up with a fairly flawed general plan and decisions made within that for things that we would like to happen or likely not gonna happen anywhere near what we project? And would we not be better off saying, why don't we do a realistic projection and make our decisions accordingly? You know what I mean? Yeah. Anyway Right. Just more of an observation.

21:403

I know it's don't get me wrong. I I these things are very difficult, but I find these numbers are off so much. I can't imagine we've been making the right decisions and second elements. Right?

21:494

So I think you need to remember the latest general plan. So

21:55 – 22:180

in this general plan, it was written prior to the housing emergency No. I know. And all of the state laws. Yeah. Got it. Right? And so that's gonna alter things quite a bit. I mean, it's very easy to say, look at Cochrane Commons phase two. It's two thirds housing as and gonna be one third housing.

22:183

Aren't aren't you just stating my case, which is

22:210

No. I'm just saying that's why things have changed. We don't alter the plan until we get ready to rewrite the whole the bulk of the general plan.

22:32 – 22:433

Right? That's what I was saying. The next time we go rewrite it, instead of sticking with the projection, so much has changed. I'm assuming we will readjust our plan and be more realistic about these numbers.

22:43 – 23:011

Well, the other thing would be helpful, get some from economic development. My question is of the retail. How much is actually occupied? Because you drive through Morgan Hill. True. There's all kinds of empty stores and the industrial of the almost 8,000,000. How much is really being used?

23:013

Yeah. Good point.

23:021

But I understand about maintaining the zoning. Or That too. I'm not disagreeing with I get that too.

23:08 – 23:413

Yeah. I I do too, and I would like to preserve it. I'm just saying in my life, when I plan, I have to plan to be fairly realistic about what I think is coming in the next twelve, twenty four, thirty six. No. No time to this. I don't plan ten years ahead like this does. Anyway, that was one point. Can you go to the next slide, John? So, well, first of complimenting. We say this every year to you guys. You guys do a fantastic job. Right? And I know the community appreciates all the work we put into this. I think we've got a great model for a lot of cities to copy here. But two questions.

23:42 – 23:553

What happens when you don't so, you know, there's a lot of industries where you either meet it or you don't meet it. And if you don't meet it and you're off by three units, you know, is there an implication, John, or do they say it's good enough?

23:56 – 24:356

So I'm gonna phone a friend. I'm gonna start, but, if I get it wrong, I mean, I ask Did you forget that's, fifty fifty? And So, you know, a a big part of submitting this to the state is one demonstrating, are we making incremental success in delivering delivering units against the goals that were set for us? If you're not meeting them, like, you're way off, you're not tracking, you start to trigger s p 35

24:36 – 25:096

Which is another it really is more of a administrative tracking, challenge and nightmare for staff. So the fact that we're demonstrating that units are being permitted in our community and we're making very good strides to meet the goals, we're gonna stay off the s b 35 list. So that's very positive. So if you're not making demonstrated success towards that, you trigger s b 35. That's a regulatory thing.

25:10 – 25:306

For other communities that are nowhere near this or not kind of following housing laws, there are bigger bigger implications to permitting authority. So with that, I definitely need to inform a friend. Jennifer, can you please assist?

25:31 – 25:558

Sure. So as I've been telling you over the last few years, HCD, has gradually increased their enforcement of the housing element process to the point where they've created an enforcement division. So that is where, if a city is violating a housing law, someone can make a complaint. There can be fines. There can be all kinds of things that happen.

25:56 – 26:278

But what John is referring to is the implementation of the housing element. So there are things besides the s b 35 that the state has available. One of them is is they can, take back the certification of your housing element. We have four cities, I believe, Portola Valley, Norwalk, I think Los Altos Hills, and one other, that have had their housing element certification revoked, which makes them all subject to builder's remedy. So it's an automatic.

26:27 – 27:008

The big example of what can go wrong is Huntington Beach, and Huntington Beach has fought every step of the way. They've refused to implement their their well, first, they refused to finish their house and element, and then they're refusing to do reasons that they need to do, refusing to adopt builder's remedy projects that they need to do. And they've been fighting in court with the state. They've lost permit authority. Whether the the last appeal went to the Supreme Court, they declined to address it.

27:00 – 27:398

So Huntington Beach has to make some decisions. The state also hasn't determined yet whether they'll hire a receiver to do all housing permitting within the city, but that is as dire as it can get right now. They also have a number of individual cases, I think, that are pursuing legal action at the city, and those fines are significant. And we've talked before at 10,000 per unit. But if you have a proven lack of adhering to the rules, it can be as high as $50,000 per unit, which on a 20 unit project, a city might be able to absorb that.

27:39 – 28:078

Although we did see an example, and you can look it up in Los Altos, there was a 25 unit project that what had come in as s b 35. It was a 100% affordable, and it was back in the February, 2000 or 02/2020. And everything was new, and people were wrapping their arms around it. They ended up in court. They lost, and they wanted to appeal the decision of the judge.

28:07 – 28:348

And they were told to put down a bond of $13,000,000 on a 25 unit project. We don't deal really in 25 unit projects. We deal in 250 unit projects, So the order of magnitude is significant. And we keep that in mind as we're making sure we adhere to laws to protect the city. And and I know people get frustrated, but that is primarily our job is to make sure the city is not vulnerable in any way.

28:35 – 28:503

So I think you answered the question, but let me ask you one more time. Right? A 37 units, we end up at the end of the week in a cycle at a 30, or we end up at a 40 but didn't meet one of the individual numbers. What happens?

28:52 – 29:068

There is the ability for HDD to make a determination that we have not progressed enough, and that would be near the end of the cycle more than likely. We currently are exempt from s b 35 until 2027.

29:075

I've been yeah. So they evaluate the s b 35, which is now s b four twenty three.

29:154

So Okay.

29:165

So s b 35 was set to sunset this year, and then they passed s b four twenty three to extend another ten years.

29:240

Oh, okay.

29:24 – 29:535

So, but they evaluate, the criteria every four years. So they evaluated us back in 2022 or 2023. So it's four years from then. So it's either next year or 2027, so I to double check, when the letter was issued. But we are we are good for the first four years. They evaluate at the beginning of the cycle and then midway of the cycle. Okay. They don't evaluate it. Like, in 2029, they won't take a look at it. They'll

29:53 – 30:053

So it looks like we're in good shape. Right. So right now Yep. We're in very good shape. So okay. I've got two other quick questions. So do ADUs qualify as numbers in here or not?

30:056

Yes. They do. They are captured in here.

30:07 – 30:273

So if we were shorting over here and there, we might be able encourage a couple of people to build an ADU or something there. I'm just saying, I mean, a lot of people are interested in that. I have two of them. That's three of them on my three. But okay. And then on the extremely low, we had a target of zero, but we did 34. Any reason we did extremely low instead of very low, or we don't get to choose?

30:28 – 31:005

So me, Nancy. Go for it. So through the housing element, through the government code so we have to plan for very low, which is the 212 units that was assigned to us through the housing element, and it's said that we should allocate 50% of those units, so a 106 units as extremely low. But in HCD reporting, it's still only reported on very low, low, moderate, and above moderate.

31:003

Oh, okay.

31:01 – 31:385

So what HCD has done is that they put extremely low in these tables now. It's the number that's gonna be required or that we're gonna have a a requirement next cycle. And what they did this year is also the acutely low. That's a brand new, category that was created, and they just want to start tracking now because, all cities throughout the state are on different time frames. So some may be subjected to to extremely low, some may get, be subjected to acutely low now, but we won't be subjected to that until 2031.

31:383

Okay. So we have a zero right now? Correct. But they're okay. Got it.

31:41 – 32:188

And and keep in mind, in Morgan Hill, Santa Clara County, because of our AMI, the average median income being the highest in the state, Service workers who may make minimum wage actually are in the extremely low category. It is very unusual. The Bay Area is is dealing with that, and it really creates this circus mirror effect where someone should be able to live on on minimum wage. But in in this environment, when you put minimum wage up against a 400 k salary, it really twists where all the numbers will sit.

32:18 – 32:295

Okay. And just to clarify, so the 34 units that were built of a stream load this year in 2025, it gets counted in the very low category.

32:303

Got it. Oh oh oh, that's included in the two twelve? No?

32:345

Yeah. I mean, the two sixty

32:350

two or in the two twelve. It is $34.02 12. In that.

32:383

So all of it. So these are so the two twelve includes the 34 of the two Yes. Yes.

32:435

Yes. The two twelve includes the 34 because, otherwise, we would have the 147 plus the 31. So that'll be a 178.

32:523

Okay. Small nit, but you might wanna put a little asterisk to say that, typically, people would add add up all the numbers.

32:598

We we do expect with next year's report, we'll be able to check the box Okay. On being complete.

33:053

Okay. Thanks. David?

33:099

Oh, thank you, John, Adam. Thank you, Jennifer. Thanks for chiming in. I just have one quick clarifying question. You had mentioned for the market rate housing,

33:181

you had said, you know,

33:19 – 33:519

we have to try and move forward with a lot more market market rate housing to get the affordable housing. Can you just explain that a little bit more? And and the reason I ask is is because the intent is the the more we approve market rate housing communities that have integrated affordable housing within them, only because that's where I live. This board, or this this, commission approved the community I live in now, which is the only reason. I'm a first time homeowner, so I always appreciate what you guys did for me. Otherwise, I'd never be able to afford a house

33:519

In in my community right off of Glad

33:533

you were able to. Yeah.

33:547

Thank you.

33:559

So I'm just curious. Is that the plan? Are are we making these communities with that integrated affordable to reach those numbers?

34:03 – 34:396

Thank you, commissioner Lovato. That is a great question. And, really, at the crux of it is what is called our inclusionary housing ordinance or IHO, which basically says if you are building more than one unit of housing, you're subject to the IHO. So for any housing project outside of the downtown, you are required to meet or set aside 15% of the units deemed affordable. If you're within the downtown, it's 10%.

34:40 – 35:236

So proactive policymaking by the city council and for a long time, the the residential development control system, which through that process also developed affordable units. The IHO is the version two or two point o. We are able to designate units in each one of these projects. Now depending on the size of the project, if it's a very small housing project under 10 units, a developer can propose just to fee out and give the city money. That money is used to fund the construction, the rehabilitation of affordable homes.

35:24 – 36:096

So we not only have the ability to capture money to support future affordable housing, but it does allow us to have these conversations and negotiations with developers. There are some very large projects that don't make sense to have affordable units in them. And so we may negotiate with a developer to fee out of that, and that requires city council approval. So it's really through the IHO that creates this funnel of units. I would like to just take a couple more minutes to really, touch on something, Jennifer shared with all of you.

36:10 – 36:506

So right now, the IHO is set to 15% at the moderate level. So if you're looking at this table, look at moderate. You have deed restricted, nondeed restricted. All those deed restricted units that you're seeing there under moderate is through our IHO, and those are deed restricted for forty five years. How do we get to extremely low units? Those extremely low extremely low income units are rental product. That is where the city will partner with a Magnolias development, which is 100% affordable, and it is providing a mixture of extremely low and very low

36:51 – 37:376

For members of our community that are at the lower income brackets. And so in the case of Magnolias, the city contributed $600,000 to that project, and that was from the collection of IHL fees from other developers that have contributed into that fund. So it's a very important program that helps drive the affordability. And once again, just for people to understand numbers, I just looked it up before, the start of this meeting. The median single family home, so think ranch style home in Morgan Hill, is $1,500,000.

37:39 – 38:216

The median, condo or townhouse, which is also an ownership product, is 890,000. When you look up the makeup of the industry that of workers that work in Morgan Hill, do we have some high income earners? Sure. A vast majority all qualify for affordable housing. That is the reality of of this situation. So having the IHO becomes a very important program in terms of developing affordable units to this community. So I apologize for the very long winded answer.

38:214

No. Thank you. You

38:22 – 38:469

hit it right on the end. I think both of you and Jennifer. I think sometimes it's it's it's a stigma when we hear affordable housing, and and I'm in transportation, oriented development. So I think putting that face to a number is extremely important when we start, asking about these developments within our community, what affordable housing, truly is, and who qualifies for that as the average person nowadays.

38:46 – 38:578

Yeah. During the housing element process, I I was very fond of calling out. It's like, hey. If family of four, you make 200 k, you'd qualify for Figures

38:574

your application. Yeah.

38:58 – 39:148

Jobs would drop, and it was just like, what? I can't believe that. But I did wanna get back to the the affordability numbers. So one example that we use a lot is think of a doughnut. So the doughnut is all the housing.

39:14 – 39:528

The sprinkles on the doughnut are the affordable are the are the affordable units at 15%. So if, let's say, we didn't have to meet all these income levels and we only used our inclusionary ordinance to build moderate housing, to get our RANA number, we would need to build almost 7,000 market rate units to get the ten thirty seven out of that. And that is just that's the way the formulas work. And, luckily, because of the numbers being split, it ends up being with the rental product, it qualifies some of those numbers at lower salaries, so we don't have to do that.

39:523

Thank you.

39:54 – 40:260

But Another question. Thing I think we need to remember is when you're building the with a nonprofit to build a 100% affordable projects, the financial stack required is very difficult. Sometimes it takes three or four different sources to make it meet. Mhmm. The amount of influence the city has on those projects goes up as our contribution goes up.

40:27 – 41:020

Okay? So when we had the 20% set aside out of the RDA, we've had a lot of money to put towards affordable housing, which gave us a lot of influence. Now we have a minimal amount to go for affordable. We have less influence about the project. Right? And we need to be aware of that. That's why sometimes and I fact check me if I'm wrong, John. I think in the inclusionary housing ordinance, a developer has my right to buy out 50%. Right? Correct.

41:02 – 41:470

And a lot of them buy out, especially if the city needs the money. Because besides the the inclusionary power numbers that come out from that, it's the ones that they could build that they buy out gives us a lot of money. Right? Paul Brothers project out by the dam on the old Umbrella Ranch. It bought out a 100%. Right? In fact, I think it paid double fee, and it caused some problems for But that's the kind of money that we get. It's just because we lost the 20% set aside from the RDA. RDA. Not from the RDA. Yeah. No. From the

41:490

No. Not the RDCS that was in. It was the RDA, redevelopment agency. Middle block for a second. Because 20% of that, all that money went into the housing fund.

41:59 – 42:360

That allowed us to do a lot of things that are beyond reach now, and that's gonna become probably more severe as we go on, like, cycle. So you you need to think about that resolution. Right? If you were bought under the RDCS, then we did things. In market rate projects, the RDCS had a way of building units into the project, which the inclusionary housing ordinance and the laws that come in around are are maybe in conflict with.

42:36 – 43:130

Right? Because in the in the RDCS, we built duet units on corner lots. And the two units together were just about or equal to the average house size. If you go into Mission Ranch, find the affordable housing that's built in there. I mean, I took a former housing developer. In fact, it was John's predecessor when she first started. I took her on a drive. We went out and drive her. Then one way I said, alright. He just drove by an affordable housing unit.

43:13 – 43:280

And she said, what? It's because the way they were built. And so I think that's an issue because we can get some affordable housing in there if if we if we figure out how to do it.

43:301

Okay. Let's I'll stop. Yes. No. That's fine. Do you have any questions to jump?

43:37 – 43:510

Yeah. I have a little bit of a question. I'm gonna assume that the 2026 report, we've done it. All our regional housing numbers are bad in all categories. Now what happens?

43:54 – 44:366

Excellent question. So one thing that's not very clear right now, I'm not gonna do this justice, so I will phone a friend again. Under the the current housing element and cycle we're in right now, we were able to get credit for, prior years for development. So let's say next year, that right hand table is zero zero zero. We've met. Right now, the presumption is as we continued we're not gonna stop building. Right. Can't just say, hey. We're done. Everything's zeroed out.

44:36 – 45:016

We have to continue to build. But we need to be very proactive in articulating to the state. We need to start building that bank. So as we continue to build and add units, we are getting credit for them. And that may take the form of some, working with the state legislator to ensure that we are gonna get credit for that.

45:02 – 45:336

There is chatter that that might go away. And if that's the case, our next housing cycle, I think, will get and if we get similar numbers, we are gonna be severely challenged. So one is being proactive at the state level to make sure we get the carry forward, and anything that's in this cycle above and beyond, zeroing out these categories. That is going to be critical.

45:33 – 45:450

Okay. So if memory serves me right, we got credit for the last six months of the last housing cycle. Correct. We're talking three years.

45:46 – 46:050

Right? And if you talk to HCD, I believe they will say, these numbers are the minimum. Mhmm. Yes. Okay? And they are they gonna try to try to keep forcing us even though we don't know we're gonna get credit?

46:08 – 46:536

You know, all I all I can speak to that is we recognize we need to make sure we're in greater conversation. Edith and I met with some HCD representatives in Sacramento last late last week at a housing conference, and we posed this question. We want clarity, so we have, one, we can start to plan for this and what this means. But then we also have runway to potentially help support legislation that, honestly, gives credit to those communities that are working towards and achieving their arena goals. There are many communities that are not.

46:546

So do we get lumped in with those that aren't, or should you be rewarding communities that are making great strides in meeting the arena goals? And that's

47:040

Is there any danger that if we go over this time, they'll raise the numbers? So

47:10 – 47:388

That is our arena formula, and that is done on a on a Bay Area wide basis. So MTC ABAC's responsible for that. There's a lot of advocacy happening now from the carryover to, you know, how because the RITA formula takes about a year and a half to do. There's a committee of 50 people. A lot of people weigh in on what should be the focus, how are the numbers distributed.

47:39 – 48:128

There's a number of of folks now, including myself, that are advocating to leave it alone, use the same formula from last time. Because what happened during last cycle is we got our Reno numbers late. And so by the time the housing element was done, HCD was having what they they termed it the grand convergence when a whole bunch of people quit. And they were bringing on brand new folks who have never reviewed housing elements before, and people were going through multiple cycles and missed the deadline. And that's that's what happened to us.

48:12 – 48:578

We had a finished element that was ready to go, got our first set of comments under one reviewer, turned it back in, and that reviewer had just been hired, didn't have time, had to get it back to us, give us the same letter that we got from the original review. But we then it's a sixty day period. It threw us off schedule quite a bit. So everyone's very concerned about how the next cycle's gonna work, whether HCD will be staffed, where can we fix things now. There's also a tremendous amount of interest in reconciliation of all the bills that have been passed over the last, you know, five, six years.

48:57 – 49:248

Yeah. There's over 250 housing bills. Some of them conflict with each other. Some of them override each other. So, really, what what are we gonna be working with? What is the game board that everyone has to figure their way through? The carryover would help us a lot. And but but HCD right now, the mantra is that's your minimum, gold star, thanks, which doesn't help any city Right. In this current situation.

49:240

So the only other thing is the builders now know how to use Builders' Remedy. Yes.

49:33 – 50:128

And well, they they know not only Builders' Remedy, but they know the laws. Yeah. As staff, when I when I talk to my fellow planning directors, when an application walks in the door, if the project applicant is an attorney, you immediately know what you're gonna be dealing with. And they're gonna use every law available to them to to max out the footprints, to move things through. And so now now cities are thinking of alternative ways to offer incentives to get more input into a project, what it looks like, how it feels, what the massing is. And,

50:124

you know,

50:138

we're also looking at those things as well. But the law is still the law, and HCD will default to that law. So

50:221

I'm done. Okay. Commissioner Lake?

50:27 – 51:0510

Yeah. This is very quick. It's really a good conversation. Thank you, Jennifer, John, and Adam. I'm more thinking about the people who can't afford anything. Does does the city have any kind of emergency housing, temporary housing for the people who perhaps if they didn't have the resources would have to live in a in a tent city or some kind of encampment. I know mayor Mahan, it sounds like they have these tiny homes. Is there anything in the housing element that that tries to address that? Is there anything this city does for the people who can't afford anything?

51:07 – 52:016

Commissioner Lake, thank you very much for the question. So, as it relates to helping people at risk of losing their housing or those that are unhoused, we do have a couple programs. We're not as robust as what's happening, in San Jose, but I would like to share with you the the pathways. So the for individuals that are unhoused, there is a coordinated entry system, and this is for all of Santa Clara County. So whether you're working with, Brian Moulicton, who's our unhoused specialist in Morgan Hill, or you're getting services from community solutions or, south community sir South County Community Services, everyone inputs individuals in what's known as the VI SPEDAT.

52:01 – 52:436

It's a vulnerability assessment, and that is for individuals that have expressed interest in housing. That goes into a centralized system at the county, and then they are matching available rapid rehousing units that are part of their portfolio and trying to plug people in. And it's just this constant deck shuffling of of people coming in needing resources. Rapid rehousing are is generally for those individuals that have been unhoused for up to twelve months or on the verge of losing their housing. And if you have kids and other things, you kinda rank differently.

52:43 – 53:226

Mhmm. So we all contribute to the coordinated entry system. Within Morgan Hill specifically, a few years ago, the city, in partnership with Morgan Hill Bible and South County Community Services, developed the safe parking program. That is probably the closest version of providing temporary shelter to individuals that are, unhoused or at risk of unhousing and or being at risk of losing their housing, I should say. And but there's only nine units that can go people can go into, and it's really designated for families.

53:22 – 53:496

So if you're a female or a family with children, you get priority. Unfortunately, there is no option for single males. So the last part of your question is, you know, what does the housing element say? The housing element, we do actually have a requirement to explore a shelter here in Morgan Hill. And we know there is a need when you look at the housing number un sorry.

53:49 – 54:186

When you look at the unhoused numbers and who our population of unhoused in Morgan Hill is, it is predominantly single males. So we are tasked with doing a feasibility analysis and determine whether that makes sense. The largest shelter to us right now is in Gilroy at The Armory. So we have services. We can do rent we can do emergency rent assistance.

54:18 – 54:566

We can do down payment assistance. And in some cases, we've done vouchers for temporary housing. But we also work across our other partners in the county through the housing authority destination home. So if someone contacts us at risk of losing their housing, we kind of pull together the red team and try and find the solutions. But we do not have a true dedicated unhoused shelter, if you will, especially for single males. And that is something that's in our housing element to go explore and whether we can develop one here at Morgan Hill.

54:565

Thank you, John. Appreciate it. Thank you, chair.

55:001

Mentioned Habib has joined us. So, Jenna, can we ask him or bring him up and ask if he has any questions for Adam and John?

55:11 – 55:4911

Thank you, chair. So I I had a couple of questions, actually. So, as I was listening on the conversation, and I think commissioner Downey actually asked several of the the questions around the the numbers I was looking at, and thanks for those responses. I was I was actually curious about looking at the nondeed restricted, and I don't know if I was assuming this right. But as we look at the different income levels, is the reason why we don't see the nondeed restricted for all levels other than moderate? Is that because of, you know, the incentives and concessions that folks otherwise get for doing the restrictions in those other categories aside from moderate?

55:52 – 56:156

Very good, eagle eye. And so let's dig into those numbers. So the deed restricted units that we're talking about, so I'm gonna start with deed restricted because that's critically important. So when talking about deed restricted, I mentioned the IHO earlier, inclusionary housing ordinance. Those are deed restricted units. Effectively, the city is a partner in that house for forty five years.

56:17 – 56:436

And so those are what we mean by deed restricted. So those are units that got allocated through the IHL. Non deed restricted units are effectively ADUs. So meaning, I could charge you $1,000 to rent my ADU. I could charge you $500 to rent the ADU, or I can charge you $4,000.

56:43 – 57:126

So when we have done surveys of ADUs where they're generally falling in in what income category is moderate. So deed restricted is really you have a legal agreement that ties that unit for multiple years. Non deed is I'm feeling generous, and I'm gonna go below market rate. So that is really the nuance between deed and non deed restricted units.

57:16 – 57:5911

Got it. And so in these situations, it seems like, you know, the the non deed restricted when you're actually doing the the the development from the ground up. If, for example, I'm a developer, I'm wanting to do a housing that a housing project that focuses, for example, on low income, it it would be beneficial for me to then go ahead and do the restrictions because, you know, I get a lot more incentives. I got a lot more concessions and so on if I'm already in that category. And so it wouldn't, I guess, then make sense also then if I were doing that development to not make it de restricted because I'm not, for example, able to, you know, recuperate or make it pencil out for my own project.

57:5911

Is that also, one of the the reasons why, you don't see it in anything other than moderate or above?

58:07 – 58:406

So one so once again, there's a a nuance here. So the really, in the non deed restricted, those are truly ADUs. And the only way we can truly evaluate is doing rent surveys. No one if if you build an ADU at the back of your house, we legally can't say, how much are you charging them? We can ask them, are you renting it to your neighbor?

58:40 – 59:076

Are you renting it to a family member? Are you is it your mother-in-law living there? Like so it tends to capture ADUs on non deed restricted. And what we're seeing is there's going to be more legislation around this or guidance from HCD on how you allocate ADUs. As I said, deed restricted, you actually have a legally binding agreement.

59:07 – 59:296

And so for instance, let's jump up to the the very low income category that $1.47 $2.19. So these are projects like Morgan Hill senior apartments. Right? These are restricted unit age restricted units that meet income.

59:30 – 59:556

They got tax credits, and the tax credits basically set the maximum rent, which is an affordable rent. So in that case, it is a deed restricted unit under tax credits. That's how they funded the project. So you will see the deed restricted in some of these other categories when they're 100% affordable. We talked a little bit about the Magnolias project.

59:55 – 1:00:366

So the Magnolias project, you are seeing the number 34 and 31 in 2025. That is because some of the units in the Magnolias project, it's a tax credit project. It's 100% affordable. And the way they've split the units is 34 in terms of extremely low and 31 in terms of very low. So the non deed is an is really a nod to a unit that could be affordable one year and market rate the next. So it's a really hard thing to capture because there is no legal binding or requirement by the city to provide that information.

1:00:3711

Got it. And in those instances, it also then doesn't get counted by the the Rina for those the restricted ones.

1:00:46 – 1:01:026

Yeah. I mean, they're all units. They're all permitted housing units. So you you get to capture them as a number in Rina. We just need when we're reporting, we need to make the distinction. Is this something that has a legal agreement tied to it or something that doesn't?

1:01:03 – 1:01:4511

Got it. Okay. And so why about an instance where you have a developer that, for example, does do, like, a a moderate project but also attaches, possibly, like, a deed restricted ADU? Is that something that has happened, or is that something that can happen where they have different, income level, developments on the same project? And because of the housing type being, for example, an ADU, they're able to set a maybe a deal restriction on a rental for that ADU. Is that something that that can also happen within the project development, or is that something that we just don't see?

1:01:46 – 1:02:106

So we have not so there is a nuance here. Right now, ADU units are not captured under IR inclusionary housing ordinance. So for instance, you will have a project that will have market rate housing. You can pretty much take take the gates is a project. It's a townhome development.

1:02:11 – 1:02:456

That project has nine I think it's 94 units. My memory might be a little hazy here, but they're townhome units. Under the 15%, they are gonna have a number of units that are deed restricted at the moderate level. So you're gonna see some of the numbers in just the moderate above moderate category. That's units at a market rate. And then the units that are deed restricted at the moderate level, you'll see them captured in that category.

1:02:451

So Ron, I think his question was about ADUs.

1:02:496

And and ADUs only go to a number count. They're not deed restricted. So the answer would be no.

1:02:588

Yeah. ADU law is shifting No.

1:03:024

I mean more. You're a homeowner

1:03:041

and you build an ADU, the state or the city is not gonna be able to tell you it's deed restricted.

1:03:10 – 1:03:238

Well, that's not necessarily true. So the old way of doing an AD is you were were you were required to deed restrict it. So and that was for the how it would be used.

1:03:238

So either you

1:03:241

But not right.

1:03:25 – 1:04:068

Or and rented out the main house or you lived in the main house and rented out the ADU. But what we've seen with the evolution of ADU law is now you can have three. You can have them in the front yard. Mhmm. If a city opts into it, you can condo every unit on your lot except for a JADU. So all of that feeds into whether or not it's you could deed restrict for income level because there's no way to know. It's too fluid right now. And what Mhmm. John mentioned is I think with the next set of ADU rules that'll come down, they're gonna give guidance. If cities need to count those, how do you count them, and what would you need to do?

1:04:061

Well, I understand about the uses and stuff and who you can and can't rent, but I'm talking about the actual amount of rent.

1:04:14 – 1:04:398

Right. But let's say you built an ADU on your lot, and you got it de restricted for a certain income level, we were able to count it, and then you moved into it. You're not paying rent. It's not you know, you're renting out the main house. So how does that reflect on the numbers when it can be just that fluid of a change with the ADUs on your lot?

1:04:391

Oh, I get What

1:04:40 – 1:05:028

what the ADU laws really did was eliminated single family zoning as basic because now everyone can have three units on your lot. And because you can't de restrict them anymore for use, you can rent all three of them out. You don't even have to live on-site anymore. The only thing you can't do that with is the j a d u.

1:05:03 – 1:05:3911

Got it. Okay. And then one one more question too. So I know this discussion happened earlier too, Jennifer. You're you're discussing, for example, the the condos, you know, going out, for example, an 800 k product price line versus the single family, which may be, like, in the 1,500,000.0. And that discussion there had me thinking too. So when it comes to arena numbers, they're not necessarily looking at housing types. Right? So technically or maybe hypothetically, you can have varying different income levels that just have one housing type, which I don't I don't know if it's commissioner Lake that talked about, for example, tiny homes. Right?

1:05:39 – 1:06:2911

It might be a tiny home that is de restricted out of VLI or a or a ELI, and that's exclusive well, exclusively what we have. But then at the moderate, you might have, like, McMansions at $3,000,000 at that moderate income level where, again, whether you are even in that moderate level, given the housing type, that's completely out of reach. And, is that true? Then is Arena has no really insight other than what you're determining the income level to be at regardless of the housing type that's being provided, whether it's, again, the hypothetical tiny homes at the VLI and below and the McMansions at, you know, moderate and above where it prices out the people that could afford it at that level. But then the people that are at the lower levels, all they get is a tiny home.

1:06:346

I'm not sure if I followed the Can

1:06:361

you repeat the question?

1:06:376

The the bounty ball of the question. I apologize.

1:06:42 – 1:06:5911

Yeah. Sorry. So this was me just trying to understand how Arena is is tracking their their housing needs allocations in the numbers. Right? And so what I was just really trying to determine is they really don't care about the housing type.

1:06:59 – 1:07:4511

Is that correct? And and the hypothetical question I was giving is, for example, if we only have two housing types, we only have tiny homes and McMansions, for example, are being developed. Those tiny homes, for example, are just focused on the the VLIs and ELIs and now the new category, but acutely low. So if you're in one of those income categories and the development is only providing these, like, tiny homes for me to be eligible at that income level. And then on the other side of the spectrum, you know, if you have, you know, developers at the above moderate or at the moderate building these massive, you know, McMansions, again, at an extreme hypothetical, it doesn't really matter to Rina what housing type you're really providing.

1:07:45 – 1:07:5711

All they're really looking at is whether that income for that housing type is gonna be eligible for that that income level for that person. Is that a correct understanding?

1:07:57 – 1:08:406

Yes. It it it's agnostic to is it a three bedroom, five bedroom, 10 bedroom house? It's you get a unit count, and then where is it in terms of income, and how it's being sold or how it's being rented. So, yes, it doesn't focus on really the the building product type at all, but there is a correlation between size of building, types of amenity that all dictate also affordability levels. So there's the ant the quick answer is no, But keep in mind, there is a correlation between cost of development, size of the product type, etcetera. So there's more of an indirect correlation.

1:08:4111

Sure. And and the market will will really, you know, tell tell it whether, you know, one's gonna work or not. Right? Okay. Perfect.

1:08:48 – 1:09:4211

And just one final question, Cher. So I think, Jennifer, you're discussing this a little bit earlier around, you know, how it's determined our progress and numbers. So whether, you know, if we had, for example, 50 remaining, these restricted VLIs this round, and we have maybe, like, you know, the same number the next round. When it comes to that determination, that's being done whether to determine if there's been any improvement, and we're moving in the right direction by the state. And so are they defining whether or not we're making a notable improvement for each cycle, or is that really just up to the the state to go on a case by case situation to determine whether we're actually not having, for example, our housing element revoked or invalidated?

1:09:43 – 1:09:588

So the state I I don't think there are metrics that the state follows when they look at our performance numbers. At least I haven't seen any. I I'm not sure Adam has either. But they do do a judgment call as to whether or not we're making progress.

1:09:58 – 1:10:365

Yeah. So on the actual numbers, they look at it at if we're making progress at the end of the cycle, but they do the evaluation every four years. And now what HCD is saying, what they're gonna be doing is taking a look at table d, d as a dog, with all that information there. And so that's why there's a lot more detail. That's why HCD this year requested so much detail, so much text within that table because their plan is to start using that table to measure annually if we're doing enough every year.

1:10:3611

Okay. And they really haven't been too objective around how they're gonna determine that?

1:10:415

No. Not yet.

1:10:42 – 1:11:068

And it and it is actually helpful to all municipalities because that evaluation of our programs and policies in the housing element is a required chapter in the next cycle housing element. We have to do a evaluation of how well we progressed every time we pass a new housing element. So we're prewriting in a way.

1:11:07 – 1:11:2211

Got it. Okay. And then does it still possibly open up the city to Builders Remedy challenges specifically by categories that were not, able to be met, or is that builder's remedy only if the entire element gets revoked?

1:11:235

It's only if the entire element is decertified.

1:11:26 – 1:11:398

Got it. We we do believe that we will hit arena this year, and we will be loud about when we do. Okay. Fireworks, balloons, you name it. So

1:11:3911

Thank you, chair.

1:11:40 – 1:12:141

Let's focus. I'm gonna open the public comment in a minute. But after and if you have any questions for the public when we go before our motion, let us focus the question on this report, not what's happening next year or in the past, or we'll be here online. That was an excellent report, by the way, you guys and Jennifer. Really thorough. And you guys asked a bunch of great questions, but a lot of them were down the road. So, anyway

1:12:14 – 1:12:268

Well, every year now, HDD require well, they don't require. They highly recommend that we sit through classes on how to fill out these forms. I think this time it was four hours.

1:12:26 – 1:12:411

Yeah. I think you told us that a couple years ago. It was didn't it take, like, weeks almost to fill out the form, and they kept sending it back and whatever. Anyway, I digress. Let's open the public comment. Do we have any speaker cards or anybody in the audience

1:12:413

We have.

1:12:421

Wish to speak?

1:12:422

Rocky Garcia.

1:12:441

Mister Garcia, good evening.

1:12:47 – 1:13:024

Good evening, and thank you very much for, a very, very long conversation about ADUs and low income housing. I'm here because our particular project and I hope you've all read my letter.

1:13:04 – 1:13:314

The general plan is what I'm really talking about as to what we're building lately in these last five years. And our projects are single family detached homes. The only product that we have done is the Downtown Sunsuite product project, which is apartment houses 83. We firmly believe that our community is single family detached homes. Yes, we have to have apartments.

1:13:31 – 1:13:524

Yes. We have to have townhouses. But the general plan does call for a 70% single family detached, 30% attached. I believe that we need to get closer to that number. Right now, as per my letter, we're in the last five years, we're at 17% of single family detached.

1:13:53 – 1:14:384

Our product, which we hope will get a a tentative map very, very soon, is 320 units at the corner of Hill And Bear, a 70 acre project, is all but 34 are single family detached homes. They're not the same size. They're small, three thou 3,500 square foot lots up to 7,000 square foot lots. We will be accommodating all types of buyers. And we really, really know from our studies and the work we've done for the past fifty years in our community that people want single family detached homes, and that's what we're pushing for.

1:14:39 – 1:15:094

Unfortunately, it's taken us well over five years to get our project through. This is not the only project. We have a project of, 14 single family custom home lots, and we have a project coming out that's called Renaissance. It's on Monterey Road near West Middle. That will have a significant number of single family detached small lot and duets.

1:15:10 – 1:15:524

And we also hope and I I really can't announce it here, but we hope to help address what was shown up here on the, very low income and moderate income with the project and I'll have to address that later. So we've been here for a long time. We've worked very closely with the city. We're very disappointed that it's taken us this long to get a single family detached product, which I know people want. I was reading in the Internet today, single family detached homes at Morgan Hill are selling in less than two months, and that's pretty good.

1:15:52 – 1:16:104

I know that many of the attached townhouses are on the market for quite a quite a bit longer. I'd more than happy to answer any questions. I would like to thank you. My wife and I thank you. We love our community.

1:16:111

Can I ask any of the Steve, do you have anything? No. I have

1:16:164

we're at Admiral.

1:16:201

Alright.

1:16:26 – 1:17:023

Okay. Understand your point of view, but and, you know, maybe you're right that most people that come to live in this community would like to have a single family home. A lot of them can't afford a single family home, and this conversation for that was more about everybody else. We have an obligation as well to build affordable housing. Right? And if you believe we should be building more single family cashed homes, granted your own project maybe took some time, my feedback would be to you and all developers. Go ahead. What's stopping you?

1:17:034

We believe that the Renaissance project will be doing that. We plan well over a 100 single family Yeah. Detached small lots, two car garage.

1:17:133

But you're here. You're saying we we are you saying the city, or are you you're saying we should be building more something from the hill? I'm saying,

1:17:19 – 1:17:314

go ahead. We've been trying. We've been more than five years on the New Horizons project. It it literally should have started three or four years ago.

1:17:323

I got it. But you're you're I read your letter like you're saying, you should be building more like, oh, you can build it. It doesn't stop me from building it. Go ahead.

1:17:4110

No. I think what Rocky is saying, it's taking him five years to start building. And my question would be why is it taking so long to build

1:17:503

a house? Project, by the way. Massive. Yeah.

1:17:531

Is it five years because of the type of house?

1:17:5610

Is it the permitting is taking?

1:17:5810

They want

1:17:581

to If I remember, I think there were some issues with the actual land, not necessarily the homes.

1:18:10 – 1:18:575

So if you're looking for a response from staff, that's been a long process to go or it's been a process going through it, letters going back and forth through the the application process. There was permits that were filed in 2019, or 2021, and those permits were approved. Once we got funding, from the applicant to do the environmental work that was necessary. Those permits or entitlements rather were approved in 2024. And then this a couple months ago, I think in January, we received applications for design review and the map for the project.

1:18:575

Mhmm. And so that's where we are now.

1:19:001

Right. But I guess my point is it's not because of the type of home.

1:19:060

No. It's

1:19:074

not. Definitely not. Because we

1:19:081

have Okay.

1:19:10 – 1:19:210

I think we need to be careful here because this particular project is not on the agenda. Is not what? Is not on the agenda. Oh, I apologize. Right?

1:19:214

You're point point well taken, mister Mueller.

1:19:230

Can't get into specifics because it's not agendaized.

1:19:26 – 1:19:433

No. But I was just making a point, Joe, that the letter I know you're just representing yourself here, but in general, if on trucks, you're saying our general plan said we should be building more single family homes. Okay. But we don't control that, and developers do. And there's nothing stopping you from doing it. So go ahead. Build them.

1:19:43 – 1:20:104

I guess what I'm trying to say, mister Downey, is is that there's there's land out there. We happen to have a couple of pieces of land, and the density on townhouses is very typical within a couple of small lot single family detached. And I think that's what our community is about. That's personal.

1:20:10 – 1:20:323

Right. I don't agree with that, by the way, but there's lots of people I talk to who are quite happy to have a smaller townhome, lower maintenance. I'm I don't believe that's true in all cases, but and single family homes are crazy unaffordable for a lot of They're what do we say, John? 1,500,000.0, typically. It's a lot of money for younger people to start out with. Thank you.

1:20:374

Thank you. No. Thank you. Appreciate it.

1:20:403

Thank you. Yep.

1:20:431

K. We're gonna close the public comment.

1:20:50 – 1:21:296

Chair, can I make one clarifying comment, just for being clear on the public record? Absolutely appreciate what Rocky has done for this community in terms of building housing. It you know, a lot of what Morgant Hill is today is because of him and Glenda. But I do wanna make it very clear because there's some misinformation. So if you look at the general plan right here, page CNF dash 40, and this is policy CNF 10 dot two.

1:21:30 – 1:21:476

I'm reading verbatim. Plan for approximately 70 to 30 ratio of single family to multifamily housing for all future residential development. You did not hear attached. You did not hear detached. I want

1:21:471

to make it very clear.

1:21:49 – 1:22:216

Single family detached and single family attached is single family housing. We are doing a disservice by lumping single family attached as multifamily. It is more dense product, but there it is a disservice to say single family attached is multifamily. It is not. Multifamily is apartments.

1:22:21 – 1:23:186

Single family attached and single family detached is single family homes. The general plan does not make a distinction between attached and detached. It's 70 a goal of seventy thirty single family and multifamily. And I would encourage anyone to look at the last several years of APRs that we've done that is publicly available and see when you look at single family attached, single family detached, with the exception of 2022, we exceed every time that ratio of 70 to 30 single family to multifamily. I I want to I absolutely respect what Rocky has done for this community and building homes.

1:23:18 – 1:23:366

They are needed. But I also want to make clear, it's not seventy thirty detached. It's seventy thirty single family and multifamily. Please keep that in mind. There's it's a distinction with a very big difference, so please keep that in mind.

1:23:371

Thank you.

1:23:37 – 1:24:058

And we will have some products coming that will be or, actually, we already do. Vida does have townhome style apartments. So we do have townhomes that are rental, and those typically are the multifamily. Condo flats, you may own them, but it's a full building. Those could also be considered multifamily. But the majority of our townhomes are zero lot line ownership product, then that falls under that single family flag.

1:24:093

Okay. Well, back

1:24:131

to the business at hand. I'm ready to make

1:24:150

a motion. I think we discussed it.

1:24:181

I think we have.

1:24:200

I'll make a motion to accept that we'll do it just to accept the report.

1:24:250

Is that the 2025 annual report?

1:24:323

Smoothurn on a second.

1:24:372

Discussion?

1:24:402

Do we need discussion first?

1:24:413

No discussion. We're not gonna have any discussion. Please don't.

1:24:462

Let's see. Chair Wilson?

1:24:502

Commissioners Habib?

1:25:002

Motion passes seven zero zero zero unanimously.

1:25:051

Nice job. Thanks, man. Nice job, guys.

1:25:074

Yeah. Great job. Great job.

1:25:121

Director's report.

1:25:13 – 1:25:265

So director's report, as you probably noticed, we have a new planning commissioner that joined us tonight, commissioner Adama. Welcome. So welcome. Thank you for joining us.

1:25:261

Thank you.

1:25:28 – 1:26:095

Other than that, I also wanna report that on Saturday, we have our I'm in partnership with EAA Hausen as well as the South County Youth Task Force and South County Heals Group. We partner as an organization to do a self care day festival. That's gonna be from noon to 3PM at the Community Cultural Center Amphitheater. And so during that event, it's providing services such as blood pressure checks, eye checks, vision checks, also free haircuts to those in need. And so it's providing services to the community, and this is as related to the healthy neighborhoods for all element.

1:26:09 – 1:26:405

One of the things that they requested is more community type engagements, events that help provide these types of services to the community. And so we partnered with a a number of organizations, about 25 different organizations to help provide services and information during that event. And, again, that'll be at the community cultural center from noon to 3PM on Saturday, the twenty eighth. And besides that, I don't have any other reports.

1:26:410

Do we know when the next meeting your next meeting?

1:26:46 – 1:27:008

I believe we do have an item on the next agenda, but there these days, there are some always some questions. So I will confirm with you by email, later this week.

1:27:018

And if you do think you'll be out of town, that April, please let us know.

1:27:071

Any other comments, questions? Adjourned. Yep.

This transcript was automatically generated from the official public meeting video and is presented unedited. It reflects remarks made on the public record by elected officials, staff, and public commenters. Transcript accuracy may vary; view the original recording for reference.