RDCS Process

RDCS allotments are issued to developers who wish to build residential units in the City of Morgan Hill through a project competition process. The competition is based on an evaluation system which utilizes a series of standards and criteria. For more information about the scoring criteria, refer to the Morgan Hill Municipal Code, Sections 18.78.190 - 18.78.330. Allocations are awarded on a fiscal year basis, requiring the commencement of construction in the fiscal year the allocation was awarded in. The evaluation system scoring standards and criteria are reviewed and revised following each competition.

City Council typically updates scoring criteria on an annual basis usually during June-July. While the municipal code on the webpage is deemed current, there maybe delays in revisions to adopted code.

Competition Categories

The evaluation system used in the RDCS process benefits projects that are able to receive the greatest “points”. In order to provide fairness in the competition, categories have been established in which projects are placed in and compared amongst. Categories can include the following (the City Council has the discretion to add or remove categories for each competition):
  • Micro - Projects consisting of a maximum of 6 units dwelling units. (The project also must represent the ultimate development potential of no more than 6 units)
  • Small - Projects consisting between 7 to 15 units (The project also must represent the ultimate development potential of no more than 15 units)
  • Open/Market - Projects consisting of more than 15 dwelling units at build-out 
  • Senior Housing - Projects of any housing type for persons 55 years and older and as defined in Section 18.04.393 of the Municipal Code
  • Small Vertical Mixed Use - Maximum of 15 dwelling units with a mix of ground floor retail or office and residential use allowed in mixed use districts typically in the Downtown, or other districts such as the CC-R or CL-R zoning districts.
  • Multi-Family Rental - A development of any size providing market rate rental housing, typically apartments.

Ongoing Projects

In addition to the competition categories, allotments are also given to ongoing projects. Ongoing projects are those projects that were awarded building allotments in previous competitions, however, were not fully allocated to complete the project. Ongoing projects can receive up 15 allotments (depending on available allotments) without submitting a new application. Please review City Council Policy CP-09-03 for implementation criteria.

RDCS Implementation Policies

The City Council has policies for the RDCS to provide guidance in the implementation of the RDCS. These include policies for:
  • Affordable Competition
  • Application Scoring
  • Commitment for Offsite Subdivision Improvements
  • Competition Categories
  • Definition of Physical Commencement
  • Exemptions
City Council Adopted RDCS Implementation Policies (PDF) Revised July 20, 2011

Typical Schedule

The RDCS competition is held every 1 to 2 years at the discretion of the City Council. The following is based on recent competitions (the schedule is subject to change, contact the Planning Division for the most recent schedule):
  • Application Due Date - Applications are accepted September 1st
  • Review By City Staff - Through October
  • Planning Commission Review - October
  • Planning Commission allocation of RDCS Building Allotments - January

The RDCS 2016 Competition Schedule is provided:
2016 RDCS Calendar

2016 RDCS Process and Filing Requirements

2016 RDCS Process Outline (PDF)

Filing Requirements

All RDCS project applications must be filed with the Community Development Department on
or before September 1, 2016. All applicants will be required to make an appointment for the day and time an application is to be filed. The City will start to schedule appointments on August 22, 2016.

Subsequent Planning Approvals

Subsequent to receiving RDCS building allotments, a project may need to file for typical land entitlements to complete the project including but not limited to:
  • Building Permits
  • Design Review
  • Development Agreements
  • Development Schedule
  • Subdivision
  • Zoning Amendment