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Downtown Housing Boom — Parking, Character & State Law Tensions

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Morgan Hill's beloved downtown is in the middle of a housing transformation that is creating genuine friction between new residents, existing businesses, and a City Council trying to balance state law compliance with small-town character. Parking and street-level amenities are quickly becoming flashpoints for new projects along the Monterey Road corridor, where both on-street and off-street supply is already tight — with city planning documents flagging downtown parking occupancy as a looming pressure point once multiple developments fill up. State housing laws including density bonus rules and SB 330 allow developers who meet affordability requirements to request concessions on parking, height, and setbacks — significantly limiting how much the city can say no — which has sped approvals for affordable projects while sharpening the political debate at City Hall. The result is a downtown that is physically changing faster than the community's infrastructure and identity can absorb.
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Related cause: Downtown revitalization
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