Local zoning · Morgan Hill

Morgan Hill — Overlay Districts

Q: What can I build in a DGF (Downtown Ground Floor) area?

Ground‑floor uses in the DGF overlay are governed by the Downtown Specific Plan Figure 8 — that list replaces the underlying base zone for ground floor spaces. Offices or personal services may be allowed through an administrative use permit if the AUP findings are met; see § 18.30.020 for AUP rules and the three‑year default permit duration .

Q: Are active fault rules strict — can I build within 50 feet of a fault?

The AFSR combining district prohibits locating structures for human occupancy across the fault trace and prohibits locating them within 50 feet of an active fault unless a qualified geologist demonstrates the site is not underlain by active branches. Projects in AFSR require geologic reports and coordination with the city’s reviewing geologist (see § 18.30.060 ) .

Q: Where are overlay boundaries shown?

Overlay boundaries and labels (symbols like AFSR , DGF , DTSP , H , PD ) are shown on the official zoning map and listed in Table 18.14‑2; check § 18.14.020 and the zoning map for the mapped overlays on your parcel .

Overlay Districts under the Morgan Hill local zoning and planning code, with the controlling citations.

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Last reviewed: July 2, 2026

Overview

Morgan Hill's zoning code (Title 18) uses overlay zones and combining districts to apply special rules on top of a property's underlying base zoning. Overlays can change permitted ground-floor uses, require geologic reports, or allow Planned Development flexibility; when an overlay conflicts with the base zone, the overlay controls. See the general overlay purpose at § 18.30.010 .

This page summarizes each Morgan Hill overlay/combining district that appears on the zoning map, explains where each applies, highlights the most decision‑relevant rules, and points to the specific code sections you must check. For baseline zoning district names and the official overlay symbols, see the Zoning District table in § 18.14.020 .

Note: where the code text in the files did not provide detail, I state "Not found in retrieved materials" and identify what to verify with the city.

How I link terms on this page

First time I refer to development standards I link to the city’s Development Standards page. Where I discuss design review, parking, ADUs, or the state building code I link those first mentions to the corresponding Morgan Hill or California pages so you can drill into those related rules: development standards, design review, parking, ADUs, and California Building Standards Code.

(Development standards link: Morgan Hill Development Standards. Design review link: Morgan Hill Design Review. Parking link: Morgan Hill Parking. ADU link: Morgan Hill ADUs. Title 24 link: California Building Standards Code.)

District-by-district breakdown

Below are the overlay/combing districts shown on the Morgan Hill zoning map (Table 18.14‑2) and the code sections that control them. Each subsection covers: purpose, where it applies, typical permitted or special uses, and the key decision-relevant standards or triggers you must check in the code.

Downtown Ground Floor Overlay (DGF) — § 18.30.020

Purpose: Ensure ground-floor uses fronting Monterey Road and Third Street create an active pedestrian environment consistent with the Downtown Specific Plan (§ 18.30.020.A) .
Where it applies: Parcels fronting portions of Monterey Road and Third Street inside the Downtown Specific Plan boundary (map on the zoning map) (§ 18.30.020.B) .
Typical permitted uses (ground floor): The Downtown Specific Plan (Figure 8) lists what is permitted or conditionally permitted on the ground floor; those ground‑floor lists replace the underlying base district's ground‑floor rules (§ 18.30.020.D.1) .
Upper floors: Upper‑floor tenant uses follow the underlying base zone (§ 18.30.020.D.2) .
Administrative Use Permits (AUP): The code allows an AUP process to permit ground‑floor office or personal service uses temporarily if the space has been unsuccessfully marketed and other findings are met; AUP approvals for ground‑floor uses default to a three‑year duration with possible extensions (§ 18.30.020.E, § 18.30.020.E.6–7) .
Development standards: The DGF overlay uses the same development standards as the underlying zone unless the Downtown Specific Plan says otherwise (§ 18.30.020.F) .

Practical note: if your storefront proposal is in the DGF area, verify ground‑floor use lists in the Downtown Specific Plan (Figure 8) and be ready to supply marketing evidence if you propose office/personal services under an AUP (§ 18.30.020.E) . Also expect design review per the Downtown plan and the city's design rules Morgan Hill Design Review.

Downtown Specific Plan Overlay (DTSP) — § 18.30.030

Purpose: Require conformance with the Downtown Specific Plan where the DTSP overlay is mapped (§ 18.30.030.A) .
Where it applies: Parcels within the Downtown Specific Plan boundary shown on the zoning map (§ 18.30.030.B) .
Effect: All proposed land uses and development in the DTSP overlay must comply with the Downtown Specific Plan; if there is a conflict, the Specific Plan governs over the zoning code (§ 18.30.030.C) .
Typical controls: Land‑use lists, ground‑floor rules, frontage and build‑to standards are governed by the Specific Plan (see DGF cross‑reference).

Practical note: DTSP parcels frequently have special ground‑floor rules (DGF), transparency/build‑to requirements, and pedestrian‑oriented development standards; consult the Specific Plan and the zoning map before preparing plans (§ 18.30.030) .

Hillside Combining District (H) — § 18.30.040

Purpose: Manage development on slopes to preserve environmental features and protect safety in geologically sensitive areas (§ 18.30.040.A) .
Where it applies: Parcels (or portions of parcels) with an average slope of 10% or greater (§ 18.30.040.B.1) .
Key standards and triggers:
- Buildings, private streets, and driveways are generally prohibited on slopes greater than 20% except in limited circumstances (§ 18.30.040.C.1.a–b) .
- Certain open‑space percentages of a lot are required to remain ungraded based on average slope; see Table 18.30‑1 for percent‑of‑lot open space thresholds (e.g., as slope increases, required open space increases) (§ 18.30.040.C.5, Table 18.30‑1) .
- Subdivisions with five or more lots on property in the H combining district require a planned development overlay (§ 18.30.040.B.2) .
- Erosion‑control plans, slope limitations, ridgeline buffers, and geotechnical reports are required per the chapter and Chapter 18.70 (Geologic Hazards) — see the geologic clearance rules (§ 18.70.040) .
Development standards: The H combining district sets additional limitations to the underlying zone; where in conflict the H district controls (§ 18.30.010.C) .

Practical note: If your parcel is mapped H, prepare to submit geotechnical reports, an erosion‑control plan, and to show compliance with the open‑space table and slope restrictions before discretionary approvals (§ 18.30.040; § 18.70.040) .

Planned Development Combining District (PD) — § 18.30.050

Purpose: Provide flexibility to achieve high‑quality, site‑responsive development that may deviate from base district standards in exchange for public benefits (§ 18.30.050.A) .
Where it applies: May be applied to any property of 1 acre or more; requires a PD master plan and a zoning map amendment to establish (§ 18.30.050.B, E.1) .
Permitted uses: Uses in a PD are those shown in the approved PD master plan; the PD may deviate from base‑zone use lists only if the PD remains consistent with the general plan designation (§ 18.30.050.C) .
Development standards: Height, setbacks, coverage, FAR, and density are set in the PD master plan. Deviations are allowed, except maximum FAR and residential density cannot exceed the general plan maximums for the land‑use designation (§ 18.30.050.D.1–2) .
Approvals & process: PD establishment requires a public hearing, planning commission preliminary input, design review as required by the code, and city council approval of the PD master plan (§ 18.30.050.E–F) .

Practical note: PDs are often used when developers want different setback, height, or parking solutions (see design review and development standards). The PD process requires findings that the PD offers a substantial public benefit, so be prepared to document public improvements, housing affordability, or other benefits (§ 18.30.050.G–I) .

Active Fault Surface Rupture Combining District (AFSR) — § 18.30.060

Purpose: Implement the state Alquist‑Priolo rules and protect the public from development across active faults (§ 18.30.060.A) .
Where it applies: Mapped along active faults designated by state maps and shown on the zoning map (AFSR symbol) (§ 18.14.020 and § 18.30.060) .
Prohibited development: Structures for human occupancy may not be located across the trace of an active fault, and may not be located within 50 feet of an active fault unless a qualified geologist demonstrates otherwise (§ 18.30.060.C.1–2) .
Required studies: Projects in the AFSR require a geologic report prepared by a qualified geologist and coordination with the city’s reviewing geologist. The city files geologic reports with the State Geologist (§ 18.30.060.D) .
Appeals & waivers: The community development director may waive reporting requirements only under narrow circumstances (e.g., a written finding that no undue fault hazard exists and state geologist concurrence) (§ 18.30.060.D.2–3) .

Practical note: If your parcel sits in an AFSR area, expect geologic reports, possible project redesign to avoid traces, and strict limits on occupancy locations (§ 18.30.060) .

Vehicle Sales Overlay (-VS) — § 18.30.070

Purpose: Permit and manage vehicle sales uses at a mapped 28.7‑acre area near Cochrane Road / Hwy 101 / DePaul Drive with design standards suitable for dealerships (§ 18.30.070.A–B) .
Where it applies: A specific corridor described in the code — corner of Cochrane Road, Hwy 101 and DePaul Drive and an approximately 28.70 acre mapped area (§ 18.30.070.B) .
Permitted uses and limits: The overlay lists additional permitted vehicle‑related uses (vehicle sales, rentals, minor repair, etc.) and includes notes limiting certain activities (e.g., "used car sales" limitations, fueling facilities as conditional uses) — refer to Table 18.30‑2 for the full list (§ 18.30.070.C and Table 18.30‑2) .
Acreage cap and design: Vehicle sales uses may not use more than 70% of total overlay acreage (leaving 30% for other uses). Specific design guidelines and required design permits apply to dealerships and related uses (design permit per § 18.108.040) (§ 18.30.070.D–E) .
Development standards: The underlying base zone standards apply except where the -VS overlay provides exceptions (§ 18.30.070.D) .

Practical note: If pursuing a dealership in -VS, check the acreage cap, the vehicle‑use table, and be ready for a design permit; parking and outdoor display rules will be enforced under the design review process and parking chapter (Morgan Hill Parking) (§ 18.30.070) .

Other combining districts and overlays mentioned in the code

G (Geologic combining) and S (Seismic combining) appear in zoning tables as legacy or special combining districts; detailed programmatic rules for geologic clearance are in Chapter 18.70, especially § 18.70.040 for geologic clearance procedures and conditions of approval (geologic clearance required before discretionary approvals in the G overlay) .
If a given overlay name appears on the zoning map but no detailed section exists in the retrieved file, I mark that detail as "Not found in retrieved materials" and recommend you verify with the city.

Quick reference table — most decision‑relevant items

Overlay / Combining District	What it controls (decision‑relevant)	Where it applies	Code reference
DGF (Downtown Ground Floor)	Ground‑floor permitted uses; AUP for office/personal services; DGF uses replace base zone for ground floor	Parcels fronting Monterey & Third inside Downtown Specific Plan	§ 18.30.020
DTSP (Downtown Specific Plan)	All land‑use and design rules in Downtown Specific Plan govern; Specific Plan controls over code	Downtown Specific Plan boundary	§ 18.30.030
H (Hillside)	Slope limits (no buildings >20% slope), open‑space % based on slope (Table 18.30‑1), geotech/erosion controls	Areas with average slope ≥ 10%	§ 18.30.040; Table 18.30‑1
PD (Planned Development)	Allows alternative setbacks, height, coverage, and uses via PD master plan; PDs require master plan & map amendment	Any property ≥ 1 acre (requires PD master plan)	§ 18.30.050
AFSR	Active fault avoidance; no structures across fault; geologic report by qualified geologist required; 50‑ft buffer unless proven safe	Mapped active fault zones (AFSR on zoning map)	§ 18.30.060
-VS (Vehicle Sales)	Permitted vehicle sales/related uses for mapped area; 70% acreage cap for vehicle sales uses; design permit & guidelines	Designated area near Cochrane/Hwy101/DePaul	§ 18.30.070; Table 18.30‑2

Checklist — what an applicant must satisfy for overlay‑mapped parcels

Confirm the overlay label on the parcel via the official zoning map (Table 18.14‑2 and the zoning map) — see § 18.14.020 .
Read the controlling overlay section (examples: § 18.30.020 for DGF, § 18.30.030 for DTSP, § 18.30.040 for H, § 18.30.050 for PD, § 18.30.060 for AFSR, § 18.30.070 for -VS) and confirm uses and limitations .
If the overlay requires a geologic report or clearance (AFSR or G overlay), retain a qualified geologist and follow the geologic clearance rules in § 18.30.060 and § 18.70.040 .
If proposing a PD, prepare a PD master plan addressing development standards, public benefits, and required findings; schedule preliminary review with the planning commission per § 18.30.050 .
For DGF ground‑floor office/personal service uses, prepare AUP materials including leasing/marketing evidence and be ready for a potential three‑year permit term (§ 18.30.020.E) .
Confirm applicable development standards (setbacks, height, coverage, FAR) — the overlay may adopt or supersede base‑zone standards; consult Morgan Hill Development Standards and the applicable overlay section (§ 18.30.*) .
Verify required permits (design permit, administrative/conditional use permits, zoning map amendment) and prepare for design review per the code and Morgan Hill Design Review (§ 18.30.050.E; § 18.108.040) .
Confirm parking and loading requirements per the parking chapter and any overlay exceptions (Morgan Hill Parking) and include parking in plans .
For projects involving construction, ensure compliance with the state code (California Building Standards Code) as well as local overlay rules.

Verify all parcel‑specific uncertainties with the Development Services Department; some overlay map boundaries and legacy zone applications require city confirmation.

Risks & Ambiguities

Issue	Why it matters	What to verify
Overlay vs. base zone conflict	Overlay controls where it conflicts with the underlying zone; failing to read overlays can lead to noncompliant designs	Confirm which overlay label appears on the parcel and read that overlay’s controlling § (e.g., § 18.30.010 and each overlay §)
AFSR mapping & buffers	Active fault restrictions can block building footprints or require relocation	Is the parcel inside the AFSR? If yes, get a geologic report by a qualified geologist and follow § 18.30.060
Hillside slope calculations	Average‑slope and Table 18.30‑1 open‑space requirements affect lot yield and allowable coverage	Confirm average slope calculation method and required open‑space % in Table 18.30‑1 (see § 18.30.040 and Table 18.30‑1)
Ground‑floor use restrictions in DGF	Some ground‑floor uses are prohibited even if allowed in base zone; AUP conditions are strict	Check the Downtown Specific Plan Figure 8 and DGF AUP findings and marketing evidence requirements in § 18.30.020
PD public‑benefit requirement	PD relief depends on showing substantial public benefit; projects can be denied if benefits are insufficient	Prepare PD master plan showing public benefits and be ready to meet the findings in § 18.30.050
-VS acreage cap and use limitations	Vehicle sales uses are capped at 70% of the overlay acreage; miscounting acreage can block desired uses	Verify the mapped -VS area and ensure proposed vehicle sales acreage ≤ 70% per § 18.30.070.D

Plain‑English Summary

Morgan Hill’s overlays are extra, map‑based rules that sit on top of your base zoning. Depending on the overlay (Downtown ground floor, Downtown Specific Plan, Hillside, Planned Development, Active Fault, Vehicle Sales, etc.), you may face different permitted uses, geologic report requirements, special design rules, or cap limits — always check the specific overlay section (for example, § 18.30.020, § 18.30.030, § 18.30.040, § 18.30.050, § 18.30.060, § 18.30.070) before you spend time on a plan or building permit .

Source References

Morgan Hill Zoning Code (Title 18) — Chapter 18.30, Overlay Zones and Combining Districts: § 18.30.010 – § 18.30.070 (see DGF, DTSP, H, PD, AFSR, -VS) .
Table of Overlay Zones (Table 18.14‑2) and zoning map reference: § 18.14.020 .
Geologic clearance and geologic hazards (G combining and geologic clearance): § 18.70.040 (geologic clearance procedures) .
Planned Development findings, public benefit, and procedures: § 18.30.050 .
Vehicle Sales overlay permitted uses and design guidance: § 18.30.070 and Table 18.30‑2 .
Downtown Specific Plan references and ground‑floor use rules within DGF: § 18.30.020 and § 18.30.030 .

For related local guidance on development standards, design review, parking, ADUs, and the state building code consult the city resource pages: Morgan Hill Development Standards, Morgan Hill Design Review, Morgan Hill Parking, Morgan Hill ADUs, and California Building Standards Code.

Sources

Retrieved passages

Morgan Hill Zoning Code (§ 3) High relevance
Morgan Hill Zoning Code (Section 18.108.040) High relevance
Morgan Hill Zoning Code (Chapter 18.22) High relevance
Morgan Hill Zoning Code (§ 5) Medium relevance
Morgan Hill Zoning Code (Section 18.08.040.B) Medium relevance
Morgan Hill Zoning Code (Section 18.92.130) Medium relevance
Morgan Hill Zoning Code (section shall) Medium relevance
Morgan Hill Zoning Code (section shall) Medium relevance
Morgan Hill Zoning Code (Section 18.108.040) Medium relevance
Morgan Hill Zoning Code (Section 18.108.040) Medium relevance
Morgan Hill Zoning Code Medium relevance
Morgan Hill Zoning Code (Section 2621) Medium relevance
Morgan Hill Zoning Code (§ 5) Medium relevance
Morgan Hill Zoning Code (Chapter 18.114) Medium relevance

Cited sections

Official Morgan Hill code library

Frequently asked questions

What does an overlay zone mean for my Morgan Hill property?

An overlay zone means extra rules apply on top of your base zoning: it can change what ground‑floor uses are allowed, require geologic reports, or set design limits. See the overlay purpose and conflict rule at § 18.30.010; verify the specific overlay mapped to your parcel and read that overlay’s § (for example § 18.30.020 for DGF, § 18.30.040 for H) .

What can I build in a DGF (Downtown Ground Floor) area?

Ground‑floor uses in the DGF overlay are governed by the Downtown Specific Plan Figure 8 — that list replaces the underlying base zone for ground floor spaces. Offices or personal services may be allowed through an administrative use permit if the AUP findings are met; see § 18.30.020 for AUP rules and the three‑year default permit duration .

If my property is in the Hillside (H) combining district, do I need a geotechnical report?

Yes — the H combining district restricts building on steep slopes (no buildings on slopes > 20% except in limited cases) and requires geotechnical and erosion controls consistent with Chapter 18.70. See § 18.30.040 and § 18.70.040 for geologic clearance procedures and required plans .

How does a Planned Development (PD) combining district change setbacks or height?

A PD lets the city and applicant adopt a PD master plan that establishes site‑specific setbacks, heights, coverage, and permitted uses for that property — but the PD cannot exceed general plan maximum FAR or density. PDs require council approval and design review; see § 18.30.050 for process and findings .

Are active fault rules strict — can I build within 50 feet of a fault?

The AFSR combining district prohibits locating structures for human occupancy across the fault trace and prohibits locating them within 50 feet of an active fault unless a qualified geologist demonstrates the site is not underlain by active branches. Projects in AFSR require geologic reports and coordination with the city’s reviewing geologist (see § 18.30.060) .

Do overlays change parking requirements?

Overlays can change or supplement development rules, but parking is generally governed by the parking chapter; check the overlay section for any exceptions and the city's parking standards. Always confirm parking requirements during plan preparation and permit application (Morgan Hill Parking) .

What does the -VS Vehicle Sales overlay allow and limit?

The -VS overlay allows specific vehicle‑related uses mapped to a defined area near Cochrane/Hwy 101/DePaul, but vehicle sales uses may not occupy more than 70% of the overlay’s acreage (30% must remain for other uses). See § 18.30.070 and Table 18.30‑2 for permitted/conditional uses and design guidance .

If the Downtown Specific Plan conflicts with Title 18, which controls?

If the Downtown Specific Plan (DTSP) conflicts with the zoning code, the DTSP controls in the DTSP overlay area — see § 18.30.030.C .

Where are overlay boundaries shown?

Overlay boundaries and labels (symbols like AFSR, DGF, DTSP, H, PD) are shown on the official zoning map and listed in Table 18.14‑2; check § 18.14.020 and the zoning map for the mapped overlays on your parcel .

My project needs a building permit — do overlay rules change Title 24 compliance?

Overlay rules add local development requirements but do not replace the California Building Standards Code (Title 24). You must comply with both local overlay requirements and state building standards — see the local overlay § and the California Building Standards Code. ---

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