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Gilroy staff report slow housing-permit year but highlight pipeline and preservation efforts
Summary
City staff told council the 2025 Annual Progress Report shows 37 residential permits issued (29 ADUs), leaving about 1,340 units to meet the 2023–2031 RENA allocation of 1,773 units; staff highlighted pipeline projects, BMR preservation purchases and coordination with county housing agencies.
City staff on March 16 presented the City of Gilroy’s 2025 Annual Progress Report on implementation of the General Plan and Housing Element, documenting permit activity, progress toward the Regional Housing Needs Allocation (RENA) and several preservation initiatives.
Community Development Director Sharon Goy summarized the RENA accounting and timeline: "The current eight year RENA cycle is from 2023 to 2031... Gilroy's RENA allocation is 1,773 units across four affordability levels," she said. Staff reported 37 residential building permits issued in 2025 (including 29 accessory dwelling units), a marked decline from prior years; that leaves roughly 1,340 remaining units to permit in the current cycle.
Planning Manager Michael Fasadi and Housing & Community Services Manager Christy Thomas highlighted actions including a density-bonus agreement for a 100% affordable project on Monterey Road (estimated to deliver 94 affordable units across extremely low, very low and low-income categories), a pilot Below-Market-Rate preservation program through which the city acquired and resold a BMR unit with $134,000 in down-payment assistance, and ongoing collaboration with the Santa Clara County Office of Supportive Housing on the 8th and Alexander project.
Staff noted structural challenges: most permits issued recently were for above-moderate units and the very-low-income category will be difficult to meet without additional deeply affordable multifamily projects. The presentation referenced Assembly Bill 3093 (effective 2025), which created new ADI income categories and will affect future RENA cycles. Councilmembers asked for clearer pipeline reporting and year-by-year forecasts; staff said several large projects are in the pipeline and that building-permit issuance timing (site remediation, weather) can delay annual RENA crediting.
Council voted to accept the report and directed staff to submit the annual progress report to the state agencies before the April 1 deadline.
