Morgan Hill affordable units in new housing (inclusionary)

Each rule below links to the section of the Morgan Hill Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Morgan Hill's code says

Morgan Hill code What Morgan Hill's code adds
How long units stay affordable	45 years (resale price restriction) Applies: For-sale inclusionary units, downtown and elsewhere in the city. § 14.04.040 · code text shall be subject to a recorded deed restriction that will impose resale price restrictions for a period of forty-five years. 55 years (recorded affordable housing agreement) Applies: Rental inclusionary units, downtown and elsewhere in the city. § 14.04.040 · code text such restrictions shall be documented in a recorded inclusionary affordable housing agreement with a term of fifty-five years.
Fee instead of units	applicable housing fee adopted by city council Applies: fractional required inclusionary unit of forty-nine hundredths or less § 14.04.040 · code text Whenever application of the requirements of this chapter results in a fractional number of required inclusionary units, if the fraction is one-half or greater, construction of the next higher whole number of inclusionary units shall be required, and where the fraction is forty-nine hundredths or less, payment of the applicable housing fee adopted by city council shall be required for the fractional unit. An in-lieu fee is allowed for up to one-half of the required inclusionary units. The rest must be built. Applies: At the developer's election. § 14.04.040 · code text Developers may elect to satisfy the applicable requirements set forth in paragraphs B, C, D, and E of this section by paying an in-lieu fee for up to one-half of the number of required inclusionary units and constructing the remaining required inclusionary units.
Projects it applies to	2 or more dwelling units Applies: New for-sale and rental residential projects, downtown and elsewhere in the city. § 14.04.040 · code text All new for-sale residential projects consisting of two or more dwelling units located within downtown are required to restrict ten percent of the dwelling units
Share of affordable units	10% of units, at affordable sales prices for moderate-income households. Applies: New for-sale residential projects of 2 or more units in downtown. § 14.04.040 · code text All new for-sale residential projects consisting of two or more dwelling units located within downtown are required to restrict ten percent of the dwelling units for sale at affordable sales prices to moderate-income households. 15% of units, at affordable sales prices for moderate-income households. Applies: New for-sale residential projects of 2 or more units outside downtown. § 14.04.040 · code text All new for-sale residential projects consisting of two or more dwelling units located within the city but outside of downtown are required to restrict fifteen percent of the dwelling units for sale at affordable sales prices to moderate income households. 10% of units, at affordable rents for low-income and very low-income households (at least one-half very low-income). Applies: New rental residential projects of 2 or more units in downtown. § 14.04.040 · code text All new rental residential projects consisting of two or more dwelling units located within downtown are required to restrict ten percent of the dwelling units for rent at affordable rents and occupancy by low-income and very low-income households. 15% of units, at affordable rents for low-income and very low-income households (at least one-half very low-income). Applies: New rental residential projects of 2 or more units outside downtown. § 14.04.040 · code text All new rental residential projects consisting of two or more dwelling units located within the city but outside of downtown are required to restrict fifteen percent of the dwelling units for rent at affordable rents and occupancy by low-income and very low-income households.

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Frequently asked questions

Does Morgan Hill require affordable units in new housing?

Morgan Hill's code: 45 years (resale price restriction) (For-sale inclusionary units, downtown and elsewhere in the city.) (§ 14.04.040); 55 years (recorded affordable housing agreement) (Rental inclusionary units, downtown and elsewhere in the city.) (§ 14.04.040).

Affordable units in new housing (inclusionary) in Morgan Hill

What Morgan Hill's code says

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