Monterey & Madrone Affordable Housing Development

File No. SR2020-0027/EA2020-0020: Monterey - Miner (Jemcor)

The Monterey and Madrone apartment projects is a 100 percent affordable housing development project and is processing under State Density Bonus law and SB330. The project would be comprised of 249 multi-family units, 246 deed-restricted units (very low and low income) and three manager units. The new development will include active and passive open space amenities and a centrally located clubhouse. The project would require approval of a Design Review Permit and environmental review.

Density Bonus law provides for increased density of projects depending on the number and affordability level of housing units. As with all projects that process under Density Bonus laws, concessions and waivers to code requirements are included as part of a project entitlement.  These projects are 100% affordable and are entitled to the maximum number of concessions available. Under state law, the City has extremely limited authority to require changes to development standards or design elements - this includes height and parking. 

State law identifies specific density bonus levels applicable to a housing development project that includes affordable housing units. Under Government Code Section 65915, a housing development project which includes affordable units is eligible for a sliding scale of percentage bonus based on the number of affordable units proposed in the development and the level of affordability (from moderate to extremely low income). Until January of 2021, the maximum percentage of density bonus a proposed project could achieve was 35%. However, AB 1763 substantially increased the maximum bonus which certain affordable projects could achieve. In accordance with AB 1763, a project proposed as a 100% affordable project is entitled to a density bonus of 80%. Both of these projects utilize the full 80% density bonus. 

SB330 is a new law that went into effect in 2020 and provides eligible housing development projects enhanced streamlining. This law also suspended Morgan Hill's Residential Growth Control System (RDCS), which limited the number of housing units that could be built each year. It's important to note that even if RDCS was still in effect, these projects would be moving forward outside of the growth control program because they are 100% affordable.


The project site is approximately 7.5 acres. The site is located along Monterey Road at Madrone Parkway, the site of the California Tow and Salvage.  The land use of the site is Residential Attached Low (6-16 du/ac) and Mixed Use Flex (7-24 du/ac) and the zoning is Residential Attached Low (RAL) and Residential Mixed Use Flex (MU-F).


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Project Plans and Specifications

Environmental Review

An environmental analysis will be conducted during the entitlement processing of the project.