Jemcor (Monterey-Miner)

File No. SR2020-0027/EA2020-0020

The Monterey and Madrone apartment project is a 100 percent affordable housing community and is processing under State Density Bonus law and SB330. The project would be comprised of 249 multi-family units, 246 deed-restricted units and three manager units. The new development will include active and passive open space amenities and a centrally located clubhouse. The project would require approval of a Design Review Permit and environmental review.

The applicant will be dedicating up to 20 percent of the units (not including managers units) for moderate-income households, and the remainder of the units (80%) for lower income households. The rent levels for the lower income units will range from 50% to 80% of the Area Median Income (AMI). The County of Santa Clara has one of the highest AMI's in the County, at $151,300 for a family of four. These apartments will serve a segment of our workforce that have an annual household income that ranges from a maximum of $58,000 for a household of one person to a maximum of $117,750 for a household of  four. Rents will range from approximately $1,503 for a one bedroom to $2,270 for a three bedroom, and $2,451 for a four bedroom.

Jemcor (the developer) proposes to use FPI Management to manage the affordable housing development. FPI does manage projects in the Morgan Hill community, which include:

  • Murphy Ranch (310 E. Dunne Avenue) - 100 units
  • The Lodge (515 Barrett Avenue) - 138 units
  • The Huntington (16505 Butterfield Boulevard) - 114 units

The City of Morgan Hill has a good working relationship with FPI, and finds them to be responsive to our team. FPI will manage the qualification process for each resident that will live in the community. 

At this time, the project is not receiving any City or County funding. The developer is planning to apply to the State for an allocation of tax credits and bonds. The project will pay school impact fees during the building permit process.

Density Bonus law provides for increased density of projects depending on the number and affordability level of housing units. As with all projects that process under Density Bonus laws, concessions and waivers to code requirements are included as part of a project entitlement.  These projects are 100% affordable and are entitled to the maximum number of concessions available. Under state law, the City has extremely limited authority to require changes to development standards or design elements - this includes height and parking. 

State law identifies specific density bonus levels applicable to a housing development project that includes affordable housing units. Under Government Code Section 65915, a housing development project which includes affordable units is eligible for a sliding scale of percentage bonus based on the number of affordable units proposed in the development and the level of affordability (from moderate to extremely low income). Until January of 2021, the maximum percentage of density bonus a proposed project could achieve was 35%. However, AB 1763 substantially increased the maximum bonus which certain affordable projects could achieve. In accordance with AB 1763, a project proposed as a 100% affordable project is entitled to a density bonus of 80%. Both of these projects utilize the full 80% density bonus. 

SB330 is a new law that went into effect in 2020 and provides eligible housing development projects enhanced streamlining. This law also suspended Morgan Hill's Residential Growth Control System (RDCS), which limited the number of housing units that could be built each year. It's important to note that even if RDCS was still in effect, these projects would be moving forward outside of the growth control program because they are 100% affordable.


The project site is approximately 7.5 acres. The site is located along Monterey Road at Madrone Parkway, the site of the California Tow and Salvage.  The land use of the site is Residential Attached Low (6-16 du/ac) and Mixed Use Flex (7-24 du/ac) and the zoning is Residential Attached Low (RAL) and Residential Mixed Use Flex (MU-F).


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City Council Hearing

The City Council conducted a public hearing on April 21, 2021, to consider an 80 percent density bonus and three concessions for the project pursuant to Government Code Sections 65915(f)(3)(D)(i) and 65915(d)(2)(D). The City Council approved the density bonus and concessions for reduced parking space dimensions for enclosed garages, the elimination of covered and long-term bicycle storage, and the reduction of decorative pavement.

Planning Commission Hearing 

The Planning Commission conducted a public hearing on October 26, 2021, to consider the approval of a Design Permit and Mitigated Negative Declaration and Monitoring Program. The Planning Commission approved the project with an additional condition requiring decorative iron fencing along Taylor Avenue. 

Project Plans and Specifications

Environmental Review

An environmental analysis will be conducted during the entitlement processing of the project.  For more information, please visit the environmental page for this project.