Planning For New Residences

Residential Development Control System (RDCS)

The Housing Crisis Act of 2019 (SB 330), if signed into law, will require the City to streamline the housing approval process and cap the number of de novo public hearings for any single project. In addition, the City could not impose or enforce design standards that are not objective, or which render a project unable to meet maximum General Plan density.

The City and League of California Cities officially oppose SB 330 and have requested that it be amended. In particular, the City prefers the State to recognize that the RDCS is responsible for achieving one of every eight units within the City as permanent, deed restricted housing. The City has almost met the Regional Housing Needs Allocation (RHNA) goal through the RDCS program and concentrated non-profit housing partner collaboration. With affordable unit approval continuing outside the RDCS competition, the City will continue to develop quality, affordable housing. 

The Legislature is currently on summer recess and is scheduled to reconvene on August 12, 2019. The last day for bills to be amended is September 6, 2019, and September 13 is the last day for a bill to be passed. The Governor is required to sign or veto bills by October 13, 2019. The City will have a better understanding of how SB 330 may impact the RDCS program the end of the current Legislative cycle. 

Background Information
In 1977, the City of Morgan Hill adopted the RDCS. The RDCS was originally approved by the City of Morgan Hill voters in response to concerns over the amount and pace of residential growth and the impacts of this growth on City services and infrastructure. Measure S, a City initiated ballot measure, was approved by the City of Morgan Hill voters on November 8, 2016 and became effective on March 1, 2017. 

RDCS Competition Manual

The RDCS Competition Manual contains the criteria and standards that the City of Morgan Hill uses to award residential allotments to projects. The Criteria and Standards are consistent with the RDCS ballot measure approved by the voters, the RDCS Ordinance in Division IV of the Morgan Hill Development Code, and with the growth management goals and policies in the General Plan. The City Council adopted Ordinance No. 2280 on September 26, 2018, amending Section III-Competition Criteria, Standards, and Points of the RDCS Competition Manual; and, on September 5, 2018, adopted Resolution No. 18-069 approving Section i, ii, and IV of the Manual. The RDCS Competition Manual is an official City policy document.

RDCS Exemptions
The RDCS applies to all residential development in the City, except for:

 1. One single-family home on a lot existing as of March 1, 2017;
 2. Secondary dwelling units;
 3. The conversion of an existing single-family home into a duplex provided that a new    detached primary structure is not constructed on the lot or lots;
 4. Assisted living/nursing homes; and,
 5. The annexation of existing dwelling units outside of City limits into the City.

Affordable Housing Projects
Through 2035, the City Council shall ensure that an adequate number of allotments are available for 100 percent affordable housing projects consistent with the City's RHNA and adopted Housing Element. To be eligible to receive allotments, a 100 percent affordable housing project must receive at least eighty percent of the total maximum score in the RDCS competition criteria. Eligible projects are not required to compete for allotments.

RDCS Allotments
In accordance with Section 18.156.110 (Number of Available Allotments), the City Council will establish a maximum number of available residential allotments each year, not to exceed 215 allotments. A population ceiling of 58,200 for the year 2035 has been set for the City.

For the 2018 RDCS Competition, the City Council has authorized 125 residential building allotments for the 2020/2021 Fiscal year.

Additional Information
For more information contact Gina Paolini or call 408-778-6480.