Affordable Housing Ordinance (AHO)

On June 19, 2018, the City Council of Milpitas adopted an Affordable Housing Ordinance No. 297 (AHO) 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.

What is the 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, which approved the affordable housing fee schedule for a residential in-lieu fee and a non-residential impact fee. The most recent AHO fee schedule can be found here.

How does the AHO program work?

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:

AHO Update (Winter 2021): 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.

We value your input.  Please share your comments and send an e-mail to by Monday, January 10, 2022.

AHO Packet

Upcoming meetings to discuss proposed changes:

December 16, 2021, 8:30 AM – 9:30 AM
Virtual Community Development Roundtable Meeting
To register please click here:

December 16 and 17 AHO Presentation
To view the AHO December 2021 presentation click here

December 17, 2021, 11:00 AM – 12:00 PM
Virtual Community Meeting.  For flyer click here.
To register please click here:

January 18, 2022 City Council Hearing (Discussion and First Reading)
February 1, 2022 City Council Hearing (Second Reading and Adoption)

At the February 1, 2022 City Council meeting, Council adopted the amended Affordable Housing Ordinance (Ord. No. 297.1). This ordinance is effective March 3, 2022.

Who can I contact?
Please direct AHO questions to the Housing Division at (408) 586-3222 or