Affordable Housing Policy

The City is seeking affordable housing incentives and feasible requirements that will help facilitate very-low and extremely low income housing without significantly constraining housing production. 

Inclusionary zoning / housing refers to policies and adopted ordinances that require new housing developments to include (be inclusive of) a given percentage of units that are price/rent restricted to be affordable by people with low to moderate incomes. 

Why is this important? 

  • Affordable housing opportunities uplift families and reduce stress.
  • It frees up funds within families’ tight budgets to spend on health care, medication, food, and transportation.
  • It can reduce overcrowding and help prevent homelessness.
  • It can help reduce intergenerational poverty and increase economic mobility.

Why are we doing this now? The City of Gilroy does not currently have a City-wide inclusionary housing policy. While the City currently requires new planned developments in the City’s Neighborhood District zone to restrict 15% of units as affordable, this policy has limited applicability since it only applies to newer areas annexed into the City.  The City of Gilroy’s 2023 – 2031 Housing Element includes a program to develop an affordable housing policy (e.g., Inclusionary Housing Ordinance). 

Adopting an affordable housing / inclusionary policy will help the City of Gilroy meet local and regional housing goals. Gilroy’s Regional Housing Needs Allocation (RHNA) for the 2023 – 2031 planning cycle is 1,773 units, including 669 very-low income, 385 low-income, 200 moderate income, and 519 above-moderate income units. Notably, 37.7% of the 2023 - 2031 RHNA is in the very low-income category. 

*** Stay tuned for more information!  

Image of hands holding a cardboard home


On November 6, 2023, the City Council received a presentation on Inclusionary Housing 101 from ECONorthwest, the City's consultant preparing an analysis of potential affordable housing policies for the City of Gilroy. On November 7, 2023, the City and ECONorthwest held a public workshop on Inclusionary Housing 101. The powerpoint presentations for each of these meetings is linked below. 

11/6/23 City Council powerpoint slides

City Council Presentation

11/7/23 Public Workshop powerpoint slides

Please stay tuned for another community outreach meeting in early February 2024 where City staff will present the initial findings of the background analysis and initial recommendations for a potential affordable housing / inclusionary policy.