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!