In 1977, the City of Morgan Hill adopted the Residential Development Control System (RDCS). The RDCS was adopted to ensure that residential development pays for itself and that the rate of development does not outstrip the availability of public services and infrastructure to serve the City’s residents.
As implemented through the Municipal Code and other City Council policies, the RDCS requires a building allocation be obtained prior to building residences (however, there are Exemption Policies for some residential development).
Building allocations are awarded on a fiscal year basis based on a formula which determines the desired population increase for the City each year and translates that figure into a maximum number of dwelling units. Currently, this formula allows approximately 250 dwelling units to be constructed each year.