A new state law that will take effect Jan. 1, 2020 will suspend the City of Morgan Hill’s voter-approved growth control ordinance for five years.

“Under the new legislation the city cannot manage the pace or number of housing permits issued each year,” reads an Oct. 17 press release from the city’s public information office.

Thus the city’s Measure S ordinance—which was approved by 77 percent of voters in 2016 and limits annual housing construction to no more than 215 units—is rendered moot and unenforceable until 2025.

The state law, known as SB 330 or “The Housing Crisis Act of 2019,” also allows unlimited residential permits and expediting permit processes. It limits public review of housing projects, subjective local design requirements and certain parking requirements, according to the city’s press release.

Gov. Gavin Newsom signed SB 330 on Oct. 9.

Below is the city’s press release about the new state housing law:


On October 9, 2019, Governor Gavin Newsom signed into law Senate Bill 330, “The Housing Crisis Act of 2019.” The following information is provided to the Morgan Hill community to keep you informed. 

About SB 330
As enacted, SB 330 is intended to accelerate housing construction across the State of California. 

How does SB 330 affect Morgan Hill?
SB 330 suspends Morgan Hill’s voter approved growth control system, Measure “S”, for 5 years. Under the new legislation the City cannot manage the pace or number of housing permits issued each year. 

SB 330 allows:
• Unlimited residential permits
• Expedited permitting processes

SB 330 restricts/limits:
• Public hearings and community outreach
• Subjective design judgments such as look, feel, and character of design. SB 330 requires only objective design criteria when permitting a development
• Any requirements which would limit a development from constructing to maximum density
• Certain development fees
• Certain parking requirements normally required for projects constructed near bus/train transit corridors.

Other New Housing Legislation Tenant Rent Protections
Tenants will be provided new rental protections by AB 1482 and SB 329. Beginning January 1, 2020, all residential properties with 2 units or more, that are 16 years or older, will be restricted from raising annual rents more than 5% + inflation. In addition, landlords will have certain obligations to provide extended notice of rent increases. Landlords will be limited to “just cause” eviction of tenants, unless the property is undergoing extensive rehabilitation, or a family member is intending to occupy the unit. In these cases, relocation payments to tenants may apply. This bill is effective for ten years, sunsetting in 2030. 

Accessory Dwelling Units (ADUs)
Accessory Dwelling Units (ADUs), sometimes called “Granny Flats,” received development assistance and streamlining from local requirements/processes through four major bills, AB 881, AB 68, SB 13 and AB 670.
Collectively these laws limit local government review and regulation in the following ways:
• The City cannot require a minimum lot size or floor area ratio (FAR) requirement for placement of an ADU
• ADU’s cannot be required to provide a side yard or rear yard setback greater than 4 feet
• Two (2) ADUs are permitted per each existing single family/multifamily site, in addition to the existing unit/units
• The City must permit up to 1,200 square foot units, with heights of up to 16 feet
• No replacement parking can be required for a garage or carport conversion, or a new unit within a half mile or transit including bus stop and train station
• The City cannot require owner-occupancy for any units
• The City must complete a “ministerial” or staff-only review of the development on single-family and multi-family lots within 60 days. No public meetings or notices can be required
• No impact fees can be charged/collected on units less than 750 square feet; only 25% of normal impact fees can be charged/collected if ADU is greater than 750 square feet
• Homeowner’s Associations may not limit ADU construction; they may continue limited design review which does not alter side yard or setback, height or size allowed by law 

Density Bonus
State Density Bonus Law (AB 1763) also saw some significant changes. 100% affordable housing projects near transit (train or bus) may seek unlimited additional density than what is established by the General Plan and anywhere else in the City may be granted up to 80% additional density. In addition, projects may receive waivers/exemptions from parking, side yard, setback and height requirements. The City has no authority to disapprove a project which seeks to use the density bonus. 
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7 COMMENTS

  1. Why doesn’t the state do something with the highways to accommodate this unlimited growth ordinance. They keep pushing more and more people south but the highways have not kept pace with the growth. Perhaps the cities of Morgan Hill and Gilroy should file a law suit against the state to force them do something to alleviate the congested highways. Our gas taxes are some of the highest in the country but our roads are some of the worst.

  2. Finally; Newsom did something right. It’s about time to embrace the capitalistic approach to real estate and build what’s needed. Morgan Hill has enjoyed their limited growth far too long and in excess.

  3. And when was the last time Caltrain service to MH and Gilroy was improved? The recent cancellation of the late train to Gilroy will put even more people on the road.

  4. A simple “Thank You” to Mr. Robert Rivas! You are an Angel in our Earth. It is not the fault of poor residents but the “Fault” of our Rich Investors who ALL purchase lands as well as Apartments/Buildings. Thank You Mr. Newsom for Signing this Bill! It is time that our Government come to aid our less fortunate.

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