Monterey-Posada (AMG-SB35)

Project No. SR2022-0022

Project Description:

This project is a 100 percent affordable housing development project. The project would include two buildings:

Building A: 127 units and 102,60 square feet

Building B: 72 units and 62,672 square feet

The buildings will be six-stories (includes a podium level), with 47 parking spaces to be developed on the 1.89-acre site.

A shared recreational area would be provided with play equipment, community garden boxes, and seating. The BBQ area features a shade structure. A fenced dog park would be provided on the easterly portion of the property. Landscaping will be arranged around the building’s perimeter and between the two buildings.

SB 35 Streamlined Ministerial Process

The streamlined ministerial approval process applies to projects that meet the specific affordability level applicable to a jurisdiction as determined by HCD and meets the objective planning standards. SB 35 projects are exempt from the California Environmental Quality Act.

Location

17910 and 17920 Monterey Road, Morgan Hill, CA
APN(s) 726-25-001 and 726-25-002

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Project Plans and Specifications

PROJECT BACKGROUND

In early 2021, City received notice from AMG & Associates of their intent to build a 290-unit project on the site with 55 parking spaces along Monterey Road, adjacent to the adult school. The project claimed unlimited density due to their 100% income-restricted project and their proximity to the train station. Staff determined that the site was outside of the half mile proximity requirement from a major transit stop (train station). The Developer disagreed with the City's determination. City staff and Developer asked the State Department of Housing and Community Development (HCD) to weigh in on this discussion as the proximity to the transit stop, coupled with the income restriction, can offer projects using Density Bonus Law to build at unlimited densities if they are considered located within half mile of a major transit stop.

HCD clarified that any point of the property, regardless of the irregular shape and inconsistent size of parcels associated with the train station, could be used to measure proximity to the transit stop. Therefore, the AMG project is found eligible for unlimited density bonus provided pursuant to Government Code 65915, subdivision (f)(3)(D)(ii) given that 100% of all units are for lower-income households and no more than 20 percent of these units being moderate income. This is unfortunate for the City as the site in question only allows densities of 7-24 dwelling units per acre or a maximum density of 41 units. The HCD letter is available.

City staff continues to challenge the notion that Morgan Hill has a major transit stop and is constantly educating legislators and their staff that while Morgan Hill has a Caltrain Station, the service is limited to three trains each direction. This level of service should not be considered a ‘major transit stop’ and should not suggest that we have adequate public transit service to support development without parking. Staff is actively advocating for a change in the definition of “a major transit stop” in the Public Resources Code.

Notice of Scoping Consultation

AMG and Associates, LLC has filed a Notice of Intent to file a residential development project utilizing the streamlined, ministerial approval process provided by Government Code §65913.4.