Affordable Housing Ordinance
On June 19, 2018, the City Council of Milpitas adopted an Affordable Housing Ordinance (AHO) Number 297 that requires developers to provide affordable housing units on-site in any new residential development with 10 or more housing units. Alternative compliance measures are available but require council approval. The ordinance requires developers of non-residential projects to pay impact fees to help build or preserve affordable housing. The full text of the AHO is posted in Title XII, Chapter 1 of the City's Municipal Code.
Purpose of the AHO Program
- Enhance the public welfare and assure that further housing development contributes to the attainment of the City's housing goals by increasing the production of residential units affordable by households of very low, low, and moderate-income.
- Assure that the limited remaining developable land in the City's planning area is utilized in a manner consistent with the City's housing policies and needs.
On March 5, 2019, the City Council adopted Resolution 8852 (PDF), which approved the affordable housing fee schedule for a residential in-lieu fee and a non-residential impact fee. View the most recent AHO fee schedule (PDF).
How the AHO Program Works
The City is currently writing Administrative Guidelines to help explain the program. Until these are complete, please refer to the below documents for details on how the program works:
- 2022 Income Limits (PDF)
- Affordable Housing Nexus Study (PDF) - Basis to set AHO Fees
- AHO Ordinance
- AHO Ordinance 8852 (PDF) - Direction to set AHO Fees
The City is proposing changes to the AHO to encourage more on-site housing construction, to help the City meet its Regional Housing Needs Allocation (RHNA) goals, and to add clarity and consistency throughout the ordinance. The below packet was posted on December 8, 2021 and includes a summary of proposed changes and a copy of the ordinance with marked changes.
At the February 1, 2022 City Council meeting, Council adopted the amended Affordable Housing Ordinance (Ord. Number 297.1) (PDF). This ordinance is effective March 3, 2022.
Please direct AHO questions to the Housing Division email or call at 408-586-3222