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RESOLUTION NO. _____
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SAN JOSE SPECIFYING THE COUNCIL’S
DETERMINATION ON PROPOSED AMENDMENTS TO
THE ENVISION SAN JOSE 2040 GENERAL PLAN
PURSUANT TO TITLE 18 OF THE SAN JOSE MUNICIPAL
CODE TO INCORPORATE THE 2023-2031 HOUSING
ELEMENT AND AUTHORIZING THE CITY MANAGER TO
SUBMIT THE HOUSING ELEMENT TO THE CALIFORNIA
DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT FOR A FINDING OF SUBSTANTIAL
COMPLIANCE AND CERTIFICATION; REVISING THE
‘HOUSING ELEMENT’ SECTION OF CHAPTER 7
“IMPLEMENTATION” OF THE GENERAL PLAN TO
ADDRESS THE 2023-2031 HOUSING ELEMENT, AND
REPEALING THE 2014-2022 HOUSING ELEMENT
(2023 GENERAL PLAN AMENDMENT, CYCLE 2
2014-2023 HOUSING ELEMENT)
File No. GPT22-001
WHEREAS, the City Council of the City of San José (“City Council”) is authorized by Title 18 of the San José Municipal Code and state law to adopt and, from time to time, amend the General Plan governing the physical development of the City of San José; and
WHEREAS, on November 1, 2011, the City Council adopted the General Plan entitled, "Envision San José 2040 General Plan, San José, California“ by Resolution No. 76042, which General Plan has been amended from time to time (hereinafter collectively the "General Plan"); and
WHEREAS, the General Plan is on file in the office of the Director of the Department of Planning, Building and Code Enforcement; and
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WHEREAS, State Housing Element Law (Government Code sections 65580 et seq.) requires the City Council to adopt a Housing Element for the eight-year period of 2023- 2031 to accommodate the City’s regional housing need allocation (RHNA); and
WHEREAS, to comply with State Housing Element Law, the City has prepared its 2023- 2031 Housing Element in compliance with the State Housing Element Law; and
WHEREAS, as provided in the State Housing Element Law, the adoption of the Housing Element constitutes a General Plan amendment; and
WHEREAS, as provided in Government Code sections 65352-65352.5, the City mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and
WHEREAS, no California Native American tribe requested consultation; and
WHEREAS, the City conducted community outreach over the 2023-2031 Housing Element including nine public community meetings at various locations in the City between November 2019 and August 2022, as well as public meetings of City boards and commissions between January 2022 through November 2022 including the Housing and Community Development Commission, the Neighborhoods Commission, the Neighborhood Services and Education Commission, the Community and Economic Development Commission, the Housing and Community Development Commission, and a Planning Commission study session; and
WHEREAS, in accordance with Government Code Section 65585 (b), on July 15, 2022, the City posted the draft Housing Element and requested public comment for a 30-day NF:VMT:DJF
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review period, and on September 16, 2022, after responding to public comments, the City submitted the draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, HCD responded to the City’s submission of its draft 2023-2031 Housing Element by letter dated December 15, 2022, and stated that “[t]he draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law” and goes on to describe the desired revisions; and
WHEREAS, the City has worked with HCD regarding revisions to the draft 2023-2031 Housing Element] to achieve an HCD finding of substantial compliance and certification of the 2023-2031 Housing Element; and
WHEREAS, based upon HCD’s comments to the City about its draft 2023-2031 Housing Element and revisions thereto, City staff revised the draft Housing Element to include additional information and data; and
WHEREAS, based on substantial evidence in the record including historical development trends, market conditions, age of buildings, and recent experience with approved and pipeline projects redeveloping nonvacant sites, the existing uses on the non-vacant sites identified in the site inventory of the 2023-2031 Housing Element to accommodate the City’s Regional Housing Needs Allocation (RHNA) are likely to be discontinued during the planning period and therefore do not constitute an impediment to planned residential development on the site during the planning period; and
WHEREAS, on May 17, 2023, the City published the revised draft Housing Element responding to HCD’s findings; and
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WHEREAS, the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan is also being revised to reference the 2023-2031 Housing Element and the revised RHNA for the City of San Jose for this Sixth Cycle Housing Element; and
WHEREAS, in accordance with Title 18 of the San José Municipal Code, all General Plan amendment proposals are referred to the Planning Commission of the City of San José for review and recommendation prior to City Council consideration of the amendments; and
WHEREAS, on __________, 2023, the Planning Commission held a public hearing to consider the proposed 2023-2031 Housing Element attached hereto as Exhibit “A” and the revisions to the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan attached hereto as Exhibit “B” as an amendment to the General Plan, at which interested persons were given the opportunity to appear and present their views with respect to said proposed Plans and amendments; and
WHEREAS, at the conclusion of the public hearing, the Planning Commission transmitted its recommendations to the City Council on the proposed General Plan Amendment; and
WHEREAS, a copy of the proposed 2023-2031 Housing Element amendment to the General Plan and the amendment to the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan are on file in the office of the Director of Planning, Building and Code Enforcement of the City of San José at 200 East Santa Clara Street, 3rd Floor, San José, California, with a copy of each submitted to the City Council for its consideration; and
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WHEREAS, pursuant to Title 18 of the San José Municipal Code, public notice was given that on _____________, 2023, at 1:30 p.m. in the Council Chambers at City Hall, 200 East Santa Clara Street, San José, California and or by teleconference or other electronic means, the City Council would hold a public hearing where interested persons could appear, be heard, and present their views with respect to the proposed 2023-2031 Housing Element amendment and the revision to the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan; and
WHEREAS, on ___________, 2023 at 1:30 p.m., the City Council held a duly noticed public hearing and gave all persons full opportunity to be heard and to present their views with respect to the proposed 2023-2031 Housing Element amendment and the revision to the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan; and
WHEREAS, the Council reviewed and considered the “City of San José 2023-2031 Housing Element Update Final Supplemental Environmental Impact Report,” Resolution No. _______ for the 2023-2031 Housing Element amendment and revision of the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan prior to Council’s determination on the proposed 2023-2031 Housing Element amendment to the General Plan; and
WHEREAS, at the public hearing, the Council considered this Resolution regarding the proposed 2023-2031 Housing Element, all pertinent maps, documents, and exhibits, including HCD’s findings and comments, the City’s response to HCD’s findings and comments, the revision of the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan, the staff report, and all attachments, and oral and written public comments; and
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WHEREAS, the City Council is the decision-making body for the proposed 2023-2031 Housing Element amendment and revision of the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and are incorporated by reference into this action.
SECTION 2. The consideration and adoption by the City Council of this amendment to the General Plan has complied with all the requirements of Chapter 18.08 of the San Jose Municipal Code and state law.
SECTION 3. The 2023-2031 Housing Element incorporated herein by reference as Exhibit “A” substantially complies with the State Housing Element Law, as provided in Government Code sections 65880 et seq., and contains all provisions required by the State Housing Element Law.
SECTION 4. As required by Government Code section 65585(e), the City Council has considered the findings made by HCD included in HCD’s November 15, 2022, letter to the City, and consistent with Government Code section 65585(f) the City has changed the 2023-2031 Housing Element in response to the findings of the Department to substantially comply with the requirements of State Housing Element Law as interpreted by HCD.
SECTION 5. The City Council hereby adopts the 2023-2031 Housing Element amendment to the General Plan specified in Exhibit “A” attached hereto and incorporated herein by reference.
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SECTION 6. The City Council hereby adopts the revisions to the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan specified in Exhibit “A” attached hereto and incorporated herein by reference.
SECTION 7. The 2014-2023 City of San José Housing Element is hereby repealed in its entirety and shall have no further force and effect on project applications filed after the date of adoption of this resolution.
SECTION 8. This Resolution and the City Council’s determination on the 2023-2031 Housing Element amendment to the General Plan specified in Exhibit “A” and the revisions to the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan specified in Exhibit “B” shall take effect upon adoption by the City Council.
SECTION 9. The Director of Planning, Building, and Code Enforcement, or his or her designee, is hereby directed to submit a certified copy of this resolution and the adopted 2023-2031 Housing Element (Exhibit “A”), and any other necessary material, to HCD for HCD to find that the Housing Element is in substantial compliance with the State Housing Element Law and for HCD to certify the Housing Element.
SECTION 10 .The Director of Planning, Building, and Code Enforcement, or his or her designee, is further directed and authorized to make all non-substantive changes to the Housing Element to make it internally consistent or to address any non-substantive changes or amendments requested by HCD to achieve certification.
SECTION 11.The Director of Planning, Building, and Code Enforcement, or his or her designee is hereby directed to distribute copies of the 2023-2031 Housing Element in the manner provided in Government Code Sections 65357 and 65589.7.
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ADOPTED this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF SANTA CLARA )
I hereby certify that the 2023-2031 Housing Element amendment to the General Plan specified in the attached Exhibit "A" and the amendment to the “Housing Element” section of Chapter 7, “Implementation,” of the General Plan in the attached Exhibit “B” were adopted by the City Council of the City of San Jose on ______________, as stated in its Resolution No. ________.
Dated: ________________________
__________________________
TONI J. TABER, CMC
City Clerk
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A
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EXHIBIT A
Envision San Jose 2040 General Plan
2023-2031 Housing Element (see attached)
Redline changes in the following pages have been
included following the May 24, 2023 City of San
José Planning Commission meeting.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1-2 City of San José Draft Housing Element, rev. May 2023 Acknowledgments
City Council
Matt Mahan, Mayor
Rosemary Kamei, Vice Mayor
Sergio Jimenez
Omar Torres
David Cohen
Peter Ortiz
Devora Davis
Bien Doan
Domingo Candelas
Pam Foley
Arjun Batra
Planning Commission
Pierluigi Oliverio, Chari
Justin Lardinois, Vice Chair
Louis Barocio
Charles Cantrell
George Casey
Sylvia Ornelas-Wise
Carlos Rosario
Michael Young
Anthony Tordillos
Jorge A. Garcia
Housing and Community
Development Commission
Alex Shoor, Chair
Roma Dawson, Vice Chair
Barry Del Buono
Linh Vong
Ruben Navarro
Andrea Wheeler
Victoria Partida
Huy Tran
Don Jackson
Roberta Moore
Zenia Cardoza
Ryan Jasinsky
Daniel Finn
Sketch Oppie
Jerome Shaw
City Attorney
Johnny Phan
Vera Todorov
Department of Housing
Kristen Clements
Joshua Ishimatsu
Elizabeth Guzman
Sowmya Raman
Jacklyn Joanino-Sipat
Mollie McLeod (former employee)
Nathaniel Montgomery
Planning Division
Michael Brilliot
Martina Davis
Ruth Cueto
David Ying (former employee)
Brent Carvalho
Jose Ruano
Alexandre Hughes
Cheryl Wessling
Dylan Kuhlmann (former employee)
Aparna Ankola
Ed Schreiner
Sanhita Ghosal
Laura Maurer
Karen Gauss (former employee)
Office of Economic Development
Jerad Ferguson
Lori Parks Severino
Department of Public Works
Drew Smith
Michael Fung
Consultants
Tolemi
Community Planning Collaborative
Lawyers’ Committee for Civil Rights
The City of San José would like to thank
all those who participated in the
community workshops and events,
providing feedback and comments, or
otherwise contributed to the
development of this document.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1-3 City of San José Draft Housing Element, rev. May 2023
This is a preliminary draft document that has not been adopted by the San José City Council. The purpose of this draft is to solicit public input prior to submission to the City Council and then to the State Department of Housing and Community Development.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1-4 City of San José Draft Housing Element, rev. May 2023 Table of Contents
Each chapter of this Housing Element document begins with a detailed table of contents for the chapter. Here are the contents of the full document:
Chapter 1: Introduction to the Housing Element ......................................................... 1-2 Chapter 2: Housing Needs ................................................................................................ 2-2 Chapter 3: Housing Goals and Strategies ....................................................................... 3-2 Chapter 4: Constraints on Housing ................................................................................. 4-2 Chapter 5: Adequate Sites for Housing ......................................................................... 5-2 Chapter 6: Energy Conservation ...................................................................................... 6-2 Appendices
A. Demographic Profile/Housing Needs
B. Assessment of Fair Housing
C. 5th Cycle Accomplishments
D. Housing Program Resources
E. Constraints on Housing
F. Site Inventory (Map)
G. Site Inventory: Pipeline Projects
H. Public Outreach
J. GP Policies – Energy Conservation
K. Site Inventory Data
No appendices before “J” are missing; rather, some appendices were consolidated. The final published document will be renumbered upon Council approval.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1-5City of San José Draft Housing Element, rev. May 2023 DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
City of San José Draft Housing Element
Chapter 1
Introduction to the
Housing Element
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1-2 City of San José Draft Housing Element, rev. May 2023 CONTENTS – CHAPTER 1
1.1 Purpose of the Housing Element ................................................................................................. 3 Regional Housing Needs Allocation .....................................................................................3 State Law Framework ............................................................................................................... 4
1.2 Housing Element Organization .................................................................................................... 5 Document Structure ..................................................................................................................5 Housing Element and General Plan Alignment ................................................................. 6 General Plan and Periodic Reviews ....................................................................................... 7 Consistency with Other Plans ................................................................................................. 7
1.3 Public Outreach and Engagement ............................................................................................... 8
1.3.1 Phases of Public Engagement and Input ...................................................................... 9 Phase 1: Part 1 of the Assessment of Fair Housing ........................................................... 9 Phase 2: Housing Element Kick-off and Part 2 of Assessment of Fair Housing ...... 10 Phase 3: Draft Goals, Strategies, and Policies .................................................................. 11 Phase 4: Public Review Draft of the Housing Element ................................................... 12
1.3.2 Inclusive Engagement ...................................................................................................... 12 Applying an Equity Lens ......................................................................................................... 12
1.3.3 Other Community Engagement Efforts ................................................................... 14 Community Opportunity to Purchase Program (COPA) ............................................... 14 Project Homekey ...................................................................................................................... 14 Diridon Station Area Affordable Housing Implementation Plan ................................ 14 Affordable Housing Siting Policy ........................................................................................ 15 2020-2025 Consolidated Plan ............................................................................................... 15 General Plan Four-Year Review Task Force ........................................................................ 15 Citywide Residential Anti-Displacement Strategy .......................................................... 15 Analysis of Impediments to Fair Housing .......................................................................... 16 DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1-3 City of San José Draft Housing Element, rev. May 2023
1.1 Purpose of the Housing Element
San José has changed dramatically over the last 60 years, growing from an agricultural community into a diverse and bustling city. Throughout its history, San José has been and continues to be a place of great opportunity, but it has also been shaped by a legacy of regional racial segregation, housing discrimination, and uneven investment in neighborhoods. This legacy combined with a long-term regional housing shortage and a booming economy has resulted in gentrification and harm for many low-income residents, many of whom are people of color, particularly Black, Latino/a/x, and Southeast Asian residents. Examples of this harm include out-of-reach home prices, evictions because rents outpace incomes, severe overcrowding, displacement, and homelessness.
This Housing Element is the City’s eight-year housing strategy and commitment for how it will meet the housing needs of everyone in the community. This housing strategy intends to address the housing crisis in San José through a number of goals, policies, and programs that focus on expanding the housing stock and offer a wider range of housing choices for everyone in the City. Equity, inclusion, and anti-displacement are themes that are woven throughout the document and reflected in a number of policies and programs. The City aims to ensure that San José is an equitable and inclusive city by protecting and providing opportunities to those residents who are most vulnerable and prioritizing community resources towards historically disadvantaged communities.
The purpose of this Housing Element is to:
• Identify the City’s housing needs;
• State the community’s goals and objectives with regard to housing production, rehabilitation, and conservation to meet those needs;
• Define the policies and programs that will be implemented to achieve goals and objectives.
Regional Housing Needs Allocation
This Housing Element covers the planning period of January 31, 2023 – January 31, 2031. It is closely aligned with the Regional Housing Needs Allocation projection period, which runs January 1, 2023 – October 31, 2031. The determination of regional housing need begins with the California Department of Housing and Community Development (HCD) and California Department of Finance (DOF), which first calculate statewide housing need based on population projections and regional population forecasts used in preparing regional transportation plans. The statewide need is then distributed to regional Council of Governments (COGs) throughout California, which works with cities and counties within their respective purview to assign each jurisdiction its share of the regional housing need, known as the Regional Housing Needs Allocation (RHNA).
The RHNA itself is divided into five income categories that encompass all levels of housing need.
The City of
San José is a member of the Association of Bay Area Governments (ABAG), which stands as the Bay Area’s COG and is comprised of nine counties and 101 cities. The total RHNA for Santa Clara County in the 2023-2031 cycle is 129,927 housing units, of which 62,200 units (approximately 48%) are assigned to San José, as shown in Table 1-1.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 1: Introduction to the Housing Element
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Table 1-1: Final RHNA Allocation for the Housing Element 6th Cycle
VERY LOW INCOME
(<50% OF AREA
MEDIAN INCOME)
LOW INCOME (50%-
80% OF AREA MEDIAN
INCOME)
MODERATE INCOME
(80%-120% OF AREA
MEDIAN INCOME)
ABOVE MODERATE
INCOME (120% OF AREA
MEDIAN INCOME)
TOTAL
15,088 8,687 10, 711 27,714 62,200
State Law Framework
State law recognizes the vital role local governments play in the supply and affordability of housing.
Each local government in California is required to adopt a housing element, which is one of the eight mandated elements of the General Plan. Pursuant to state law, the Housing Element must include the following key components:
• Housing Needs Assessment: Examine demographic, employment and housing trends and conditions and identify existing and projected housing needs of the community, with attention paid to housing for special needs populations (e.g., large families, persons with disabilities) and to fair housing issues, including issues of segregation and access to opportunity.
• Evaluation of Past Performance: Review the prior Housing Element to measure progress in implementing policies and programs.
• Housing Sites Inventory: Identify locations of available sites for housing development or redevelopment to ensure there is enough land zoned for housing to meet the future need at all income levels.
• Community Engagement: Implement a robust community engagement program, reaching out to all economic segments of the community plus traditionally underrepresented groups. • Constraints Analysis: Analyze and recommend remedies for existing and potential governmental and nongovernmental barriers to housing development. • Policies and Programs: Establish policies and programs to be carried out during the 2023- 2031 planning period to fulfill the identified housing needs.
State law (Government Code Section 65583) requires the City to adopt a Housing Element that addresses the needs of everyone in the community, at all income levels. Because housing needs are recognized as a matter of statewide concern, the state, through the Department of Housing and Community Development (HCD), must certify the compliance of every jurisdiction’s Housing Element upon adoption.
The legislature has adopted two bills that have implications for Housing Element compliance.
Assembly Bill 686 (2019) c
reates new requirements
in Housing Element law: Housing elements must now include a program that promotes and affirmatively furthers fair housing opportunities throughout the community for all persons
regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (FEHA), Government Code Section 65008, and any other state and federal fair housing and planning law. Additionally, all housing State law requires the City
to adopt a Housing Element
that addresses the needs of
everyone in the community,
at all income levels.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 1: Introduction to the Housing Element
1-5 City of San José Draft Housing Element
elements due on or after January 1, 2021, must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule of July 16, 2015.
Pursuant to Assembly Bill 72 (2017), HCD also has new statutory authority to revoke Housing Element compliance if the local government’s actions do not comply with state law. In addition, HCD may notify the California Office of the Attorney General that the local jurisdiction is in violation of state law for non- compliance with housing element law or other state housing laws.
1.2 Housing Element Organization
Document Structure
This Housing Element and associated appendices satisfy the requirements of state law (Government Code Section 65583(a)). The Housing Element is divided into the following chapters:
• Chapter 1-Introduction to the Housing Element - This provides an overview of the Housing Element, state requirements, and a summary of the public outreach and community engagement process.
• Chapter 2-Summary of Housing Needs and Assessment of Fair Housing - This provides an overview of the City’s population, household, and housing stock characteristics, and an analysis of these factors through a fair housing lens in order to identify housing needs of the variety of household types and special needs across the City. • Chapter 3-Housing Goals, Objectives, Policies and Programs - This contains the City’s housing goals and policies that provide direction to help the City meet its housing goals. The Housing Element includes five goals that create the framework for how the City will address housing needs. The objectives, policies and implementation programs under each goal address how the City will meet housing needs across the City. • Chapter 4-Constraints on Housing - This provides an analysis of the governmental and non- governmental regulations and framework that constitute constraints to housing production and preservation, such as zoning permitting process, land, construction and labor costs, and restricted financing availability.
• Chapter 5-Adequate Sites for Housing - This includes the inventory of sites that are suitable for residential development during the planning period. • Chapter 6-Energy Conservation – This includes an analysis of opportunities for residential energy conservation.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 1: Introduction to the Housing Element
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Housing Element and General Plan Alignment
The Housing Element is a component of Envision San José 2040 General Plan a community-ba sed plan that serves as the blueprint for the City’s growth. The Housing Element identifies the City’s housing needs and opportunities and establishes clear goals and objectives to inform future housing decisions.
State law requires that local general plans be consistent with their housing elements. B e cause general plans are typically updated every 15-20 years and housing elements are updated more frequently (generally every eight years), the different update cycles create the potential for inconsistencies between the goals, policies, and programs contained in the two documents. Because a housing element affects the locality’s policies for growth and residential land uses, a city should review the entire general plan, especially land use provisions, to ensure internal consistency is maintained upon any amendment to the housing element. The Housing Element also includes an implementation workplan that links each action for the 2023-31 RHNA cycle to a General Plan housing policy to ensure alignment and internal consistency between the two documents.
The Housing Element is consistent with the other elements of the General Plan and is guided in particular by these two strategies of the General Plan: Major Strategy #3 Focused Growth and Major Strategy #5 Urban Villages. Together, these two strategies focus new growth into areas of San José that will enable the achievement of City goals for economic growth, fiscal sustainability, environmental stewardship, and the development of new, attractive urban neighborhoods.
Consistent with Senate Bill 375 (2008), which requires that California’s regions reduce greenhouse gas (GHG) emissions, the urban village strategy promotes a land use pattern that will help the City meet its GHG emissions reduction targets. These General Plan strategies and the Housing Element seek to:
improve transportation and land use integration; achieve a jobs-housing balance; create more compact, walkable, and transit-oriented communities; provide more housing capacity for all income levels; and protect open space resources. The Housing Element provides the policy framework for future housing planning decisions and identifies a series of implementation steps to meet the goals, objectives, and policies herein.
The Housing Element has been prepared to maintain internal consistency with the current 2040 General Plan, as required by state law. Specifically, the sites inventory reflects the capacity under the 2040 General Plan land use designations. The Housing Element goals, policies, and programs were drafted with the goal of implementing the vision and guiding principles for the 2040 General Plan, including the vision that “San José’s neighborhoods will be affordable and inclusive, and every resident will have the opportunity to thrive.” Relevant guiding principles from the 2040 General Plan update are listed below.
When the City prepares any future amendment to the 2040 General Plan it will review the Housing Element to ensure internal consistencies.
These General Plan strategies and the Housing Element seek to improve transportation and land use integration; achieve a jobs-housing balance; create more compact, walkable, and transit-oriented communities; provide more housing capacity for all income levels; and protect open space resources.
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Chapter 1: Introduction to the Housing Element
1-7 City of San José Draft Housing Element
General Plan and Periodic Reviews
The General Plan of the City of San José is an integrated and internally consistent statement of the official land use policy of the City. The General Plan meets the requirements and intent of the California Government Code while accommodating local conditions and circumstances. It contains each of the elements mandated by Government Code Section 65302. Since they are intrinsically interrelated and overlapping, the elements have been combined into a consistent meaningful whole, and organized in a manner designed to meet the needs of public officials, developers, neighborhood organizations and members of the community who will use it most frequently. In order to facilitate identification of the aspects of each mandatory element, the appendices include a comprehensive list of references for each of the seven mandatory elements.
The Envision 2040 General Plan establishes an ongoing program for the City to monitor and evaluate its success in implementation, fundamental elements of which include both annual reviews and a recurring 4-year major review cycle. Through these review cycles, the General Plan maintains internal consistency among all its elements.
Consistency with Other Plans
The City of San José’s Housing Element is intended to be consistent with other housing plans and policies, including the City’s federal 2020-25 Consolidated Plan and its local 2015-20 Housing Investment Plan.
• 2020-25 Consolidated Plan: The federal Department of Housing and Urban Development (HUD) requires jurisdictions that receive federal housing and community development funding to develop a five year Consolidated Plan and corresponding annual action plans that identify needs, goals, actions, and funding strategies. As part of any approved Consolidated Plan, all grantees must perform an Analysis of Impediments to Fair Housing Choice or an Assessment of Fair Housing and must certify that they will affirmatively further fair housing.
The report is called the Consolidated Plan because it includes a comprehensive strategy for multiple federal funding sources, including the Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with Aids (HOPWA). While CDBG is a more flexible funding source that allows for investments in a variety of activities such as housing, economic development, and public service, other programs such as ESG and HOPWA are more targeted to specific housing and homelessness prevention activities.
• FY 2020/21 – FY 2022/23 Affordable Housing Investment Plan: San José’s Affordable Housing Investment Plan (AHIP) is a strategic document that prioritizes how the City will use its resources to implement its programs and policies in the current planning period to meet its housing objectives. The AHIP also contains information on key City policies related to residential developments. Some of the AHIP policies and priorities may overlap with those found in the state and federal plans; others may be unique to San José and are determined locally.
The City’s Housing Element aligns with the goals contained in the General Plan, while also supporting the goals contained in the City’s federal and local housing plans for a range of affordable housing DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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opportunities to low- and moderate-income workers, an effective response to homelessness, fair, equitable, and complete communities, and for sustainable, transit-oriented development.
1.3 Public Outreach and Engagement
1.3.1 Regulatory Context
State law (Section 65583[c][7]) of the California Government Code) requires cities and counties to make a diligent effort to achieve public participation that includes all economic segments of the community.
Housing Elements must provide a summary of the public input received and a description of how it was considered and incorporated into the plan.
Assembly Bill 686, Affirmatively Furthering Fair Housing (2019) requires the Housing Element to include:
• a description of outreach activities intended to reach a broad audience; • a list of organizations contacted and consulted in the process and for what purpose; • a summary of comments and how the comments are considered and incorporated; and • a summary of issues that contributed to lack of participation in the housing element process by all economic segments, particularly people with protected characteristics.
Key areas to seek input include:
• Review of Past Actions
• Assessment of Fair Housing
• Potential Constraints on Housing for Persons with Disabilities • Policies and Actions
1.3.2 Overview of the Public Engagement Process
This Housing Element Update and associated Assessment of Fair Housing is based upon extensive community input. The City developed and implemented a robust public participation strategy to involve all segments of the population and gather a wide range of feedback on key components of the documents. The strategy involved using a variety of methods to involve the public and stakeholders, including:
1. Seven community meetings for the general public
2. Two online surveys
3. Twenty-one focus group meetings with residents of protected classes
4. Four working groups with leaders of local nonprofits
5. Six internal workshops with City staff from other departments
6. Forty-four roadshow presentations and discussions with stakeholder groups, such as business associations and community-based organizations
7. Five booths at community events
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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8. Four special community outreach events including a podcast and documentary movie screening
9. Fourteen public hearings of City Council, Council Committees, and City Commissions
10. Coordination with Santa Clara County’s Let’s Talk Housing (Planning Collaborative) and local partners (SV@Home and Law Foundation of Silicon Valley) The approach to public engagement also involved broad and proactive outreach efforts to inform the public about opportunities to get involved, such as through email distribution lists, social media, and connections with a large network of community groups, who helped distribute information to their communities.
Since 2019, the City has conducted several phases of public outreach and engagement to share information and gather feedback to inform the Assessment of Fair Housing (AFH) and the Housing Element. These phases are covered in the next section, along with descriptions of the specific outreach and engagement efforts, the input received, and examples of how the City considered and incorporated input into the plan. A list of all engagement activities and organizations consulted can be found in Appendix H.
Section 1.3.4 describes barriers to participation by protected classes and the inclusive methods that staff used to address the barriers and achieve more equitable outcomes in the process. For example, the process promoted language access by offering interpretation in Spanish and Vietnamese at community meetings, translating materials, and exploring specific methods to intentionally reach and involve limited English speaking community members. In addition, staff worked with the countywide equity collaborative partners SV@Home and the Law Foundation of Silicon Valley and consulted other local equity leaders throughout the process.
The City also considered and incorporated input received through several years of outreach and engagement on a range of housing and community development topics. Stakeholders have urged City staff to integrate public feedback from all recent housing-related outreach to help identify housing needs and potential strategies for the AFH and Housing Element. Accordingly, the project team involved staff from other departments and sought out relevant outreach findings. This approach was intended to recognize, v alue, and
act on the contributions of the many community members who have shared their needs and ideas with the City, particularly protected classes who experience disproportionate barriers to civic engagement.
The following section summarizes the City’s specific outreach and engagement efforts, the input received, and examples of how the City considered and incorporated input into the plan. A list of all engagement activities and organizations consulted can be found in Appendix H.
1.3.3 Phases of Public Engagement and Input
The City strived to conduct a transparent and participatory process to involve all segments of the population and draw upon relevant outreach findings from other efforts. Input received during each major phase of the process informed the next. As a result, the document reflects the wide range of needs, perspectives, and ideas of the San José community.
Phase 1: Part 1 of the Assessment of Fair Housing
Time span: October 2019 to Spring 2020
The first phase of outreach focused on establishing existing conditions for the Assessment of Fair Housing. During this time, the Lawyers’ Committee for Civil Rights (the City’s consultant) and Housing DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Department staff conducted a community engagement process through print and social media engagement, community meetings, focus groups, surveys, and the establishment of a countywide Santa Clara Assessment of Fair Housing Advisory Committee.
City staff and the Lawyers’ Committee also conducted a second phase of community engagement (from April to May 2021) with government agency partners to share initial findings from the AFH analysis.
Public outreach during this phase included 48 meetings, including two public hearings, two advisory group meetings, 12 focus groups, 27 stakeholder meetings, and five intergovernmental agency meetings.
Key themes emerging from public input included:
> The City is segregated. Discrimination in housing exists. It is important for the City to acknowledge these issues and start broader conversations with residents about history and legacy.
> Displacement continues to happen and is causing harm to communities. > More needs to be done to protect residents from displacement and rent burden and provide affordable housing for all.
Input gathered during this phase formed the foundation for the Housing Element Update and the Assessment of Fair Housing. It spurred dialogue about fair housing in San José. Publicity of the public engagement and related conversations resulted in several news articles highlighting the City’s history of racial segregation and its impacts. Examples of how staff adjusted course due to the input include:
• Held community conversations about the City’s history of segregation, governmental racist practices in housing and how legacies of racial discrimination in housing manifest today during Phase 2. In the fall of 2021, the City presented at San José State’s Racial Justice Symposium and held a documentary movie screening of “Reckoning in Boston” to spur these conversations.
• Held working groups in Phases 2 and 3 in the issue areas of top concern identified in Phase
1. These include: increasing homeownership opportunities for protected classes, increasing access to rental housing, increasing investment in under resourced neighborhoods, and increasing affordable housing in high resource neighborhoods. These working groups were designed to dive into issues areas to broaden understanding and explore solutions. Working groups members were selected for their related or lived experience and technical expertise.
Phase 2: Housing Element Kick-off and Part 2 of Assessment of Fair Housing Time span: September 2021 to January 2022
Staff officially kicked off outreach on the Housing Element Update in September 2021, and proceeded to conduct joint AFH and Housing Element engagement activities since that time. The City began to work with several partners, including the Santa Clara County Collaborative (Let’s Talk Housing) and the countywide equity collaborative partners SV@Home and the Law Foundation of Silicon Valley.
This phase focused on informing the public about the Housing Element Update process and fair housing concepts, given the new state requirements and the City Council’s direction to engage the community on our history of segregation and need for fair housing. Another objective was to gather input on housing needs, issues, and goals. As part of this phase, staff sought input on the effectiveness of current and past housing policies, the findings of Part 1 of the AFH process, and potential constraints on securing and maintaining safe, affordable, and accessible housing.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Public outreach during this phase included:
• Two virtual community meetings.
• Four focus groups with members of protected classes, including disability, veterans, LGBTQ+ and African ancestry.
• One strategy working group meeting about access to rental housing. • Eight stakeholder meetings, including South Bay Yes in My Backyard (YIMBY) and League of Women Voters.
• Tabling at five community events.
• A panel discussion on the history of segregation in San José at San José State University’s Racial Justice Symposium.
• A special screening of the documentary A Reckoning in Boston followed by a discussion with the producers.
• A City sponsored podcast about housing elements and fair housing. • An online survey (September 17, 2021, to January 12, 2022) asking about housing priorities; the survey was advertised at City events, on the City’s website and social media platforms, including Facebook ads in Spanish and Vietnamese. It received 335 responses in English, 155 in Spanish, and 150 in Vietnamese (640 total).
Key themes emerging from public input included:
> Homelessness is increasing and is a major issue.
> Housing costs in San José are too high.
> Homebuyer assistance that requires housing to remain affordable doesn’t allow wealth building benefits to the homeowner.
This input informed the draft concepts presented in the focus groups with protected classes and stakeholders in Phase 3 and informed the Draft Goals presented in the April Online Survey. Specific examples of ways that staff adjusted course due to the input include:
• Consistent feedback from community about displacement and its impacts led the City to include several anti-displacement strategies (tenant preferences, Community Opportunity to Purchase, and expansion of tenant protections) already approved by City Council, more prominently in Housing Element strategies.
• Low responses received from people of color, especially for non-English proficient, in online formats (surveys and meetings) led to planning for at least one in-person community meeting. • Feedback regarding a need for systems change to advance homeownership opportunities resulted in a shift in thinking. It led to more creativity about other types of wealth or asset building strategies and comprehensive reform of homeownership programming.
Phase 3: Draft Goals, Strategies, and Policies
Time span: January 2022 to June 2022
The primary objective during this phase was to get feedback on draft goals, strategies, policies, progr
ams, and actions. It also involved ongoing education about fair housing concepts and associated input.
Public outreach during this phase included:
• Four focus groups with people of protected classes, including formerly homeless, LGBTQ+, DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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affordable housing residents and Indigenous Peoples.
• Ten working group meetings corresponding to four fair housing strategy areas • Two virtual community meetings
• One in-person community meeting
• Four Commission meetings
• Four stakeholder meetings
• An online survey that ran the month of April 2022. It was advertised at City events and on the City’s website, and social media platforms, including Facebook ads in Spanish and Vietnamese. It received 713 responses in English, 92 in Spanish, and 10 in Vietnamese (815 total).
Key themes emerging from public input included:
> It takes too long to get anything built. The City needs to speed up processes for housing production.
> Reparations are needed for redlined neighborhoods.
> Instead of thinking about funding as dividing up a set amount, funding can be thought of more creatively and expansively.
The input from the focus groups, online survey, and community meetings shaped the draft strategies, programs, and policies included in the Housing Element Update. Specific examples of ways that staff adjusted course due to the input include:
• Staff incorporated the prioritization and ideas from the focus groups into the draft policies shared at the community meetings.
• Staff is proposing several policies to speed up the entitlement process including housing navigator, streamlined review, and a City-led environmental clearance for approved urban village plans.
• City adapted a working group process when participants of the high and low resource working groups found that they could not discuss one topic without the other. So, the issues were combined into one topic area and discussed together at subsequent community meetings.
• Comments about land use reparations for redlined neighborhoods and comprehensive investments in neighborhoods spurred discussions to have cross-departmental city-internal working group to better coordinate and prioritize investments and policies to address lower- income and racially segregated neighborhoods.
Phase 4: Public Review Draft of the Housing Element
Time span: July 2022 to August 2022
The primary objective during this phase was to collect comments on the Draft Housing Element Update. It focused on the draft site inventory, constraints analysis, and the full list of draft goals, strategies, and policies. It also involved ongoing dialogue about housing needs and fair housing concepts. The official comment period ran from July 22, 2022 to August 21, 2022.
Public outreach and engagement during this phase included:
• One virtual community meeting
• One in-person, open house style community meeting
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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• 5 stakeholder meetings (including Equity Advisory Group, Sacred Heart Action Committee Meeting, and California Apartment Association)
• One tabling event at Vietnamese American Organization’s Community Day • An online comment form
Staff received 17 comments letters and 17 online form submissions during the 30-day comment period.
Approximately 40 people attended the virtual meeting and appro ximately 40 attended the in-person event. Staff advertised the comment period and associated engagement events through email lists, social media, and coordination with Council offices and CBOs.
Key themes emerging from public input included:
> Strategies lack specific metrics to make them actionable. > Neighborhood opposition is a constraint to building housing. > Increase representation of people with lived experience in policy development as well as decision-making processes.
> Increase tenant protections.
> Avoid encampment sweeps.
> Increase code enforcement capacity.
> Allocate and increase funding for proposed programs.
The input shaped the strategies, programs, and policies included in the Housing Element Update. Specific examples of ways that staff adjusted course due to the input include:
• Staff examined neighborhood opposition and urban villages as constraints to building housing, and included analysis in the Housing Element Update.
• Staff expanded analysis to include demographics of who lives in single family homes and duplexes.
• Included data on families experiencing domestic violence to housing needs section. • Added additional notes from past focus groups and stakeholder meetings to outreach appendix. • Removed sites from site inventory based on public feedback
Public Hearing Phase
Time span: September 2022 to Present
The final phase of outreach occurs during the public hearing process, which will culminate with City Council consideration of the Housing Element Update. During this time, staff will take the Housing Element Update to various City and County commissions for recommendations. The public will have opportunity to submit comment letters and provide oral testimony at the hearings. For details, visit www.sanjoseca.gov/HousingElementUpdate.
Staff has continued outreach during this phase by following up with stakeholders and continuing to receive feedback. Staff continues to incorporate input and address HCD comments
1.3.4 Inclusive Engagement
The City made diligent efforts to include all demographic segments of the community and/or their representatives in the development and update of the Draft Housing Element. In addition to meeting DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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this baseline requirement, the goal is to achieve balanced representation in the planning process and meaningful participation among protected classes.
For planning and community development processes in San José, certain demographic groups are often underrepresented relative to their share of the city’s population. Examples include: youth/young adults, people of color, people with limited English proficiency, lower income households, renters, and people experiencing housing insecurity. Examples of issues that contribute to under-representation in planning processes, including the Housing Element Update, include:
• COVID-19 pandemic: The pandemic has had a significant impact on staff’s ability to conduct in-person engagement and on the capacity of community-based organizations to engage in the process. Staff has found that some harder-to-reach populations are less likely to participate in virtual meetings compared to in-person meetings. This is particularly true for Vietnamese speaking population, which tends to be older. Outreach tends to be most effective when it is integrated into regularly scheduled community events hosted or co- hosted by non-City groups – yet the pandemic has made this type of coordination extra challenging.
• Language and communication: Even with translation and interpretation in the City’s most common languages built into the process, fully participating in the process as a non-English speaker is a challenge. There is the potential for the information to “get lost in translation” and many phrases related to housing, planning, and policy do not easily translate to other languages. Even for English-speakers, the terminology can be confusing and speaking up in a community to share your experiences and opinions can be intimidating. • Time and resources: Sta
ff has found that lower-income community members face extra logistical barriers to participation compared to higher-income community members. For example, needing to work multiple jobs and/or working in the evening and weekends conflicts with most of the engagement events. Securing affordable childcare, internet, and/or transportation can be a challenge. Furthermore, lower-income community members are more likely to face urgent concerns on a daily basis, such as keeping housed and bills paid, and participating in long-term planning processes is an added burden and lower priority. • Trust: Among many community members, there is a general mistrust in government due to patterns of discrimination, decision-making that has marginalized many communities, and inequitable outcomes – as well as macro issues that go beyond the control of local government. Community members that do participate in planning processes often get burnt out by answering the same questions for different projects, and when little action or no notable change results from their feedback, it further undermines trust.
Applying an Equity Lens
With these considerations in mind, City staff applied an equity lens when designing the approach to public outreach. This means paying special attention to underrepresented populations while offering meaningful opportunities, in a variety of venues, for all interested individuals and organizations to get involved. Specific practices included:
• For each round, staff offered a mix of methods and opportunities for community members to learn about and provide feedback on the planning process – recognizing there is no one-size-fits-all method. For example, as pandemic-related constraints eased up, staff reintroduced in-person meetings to draw in people that, for many reasons, were not participating in the virtual methods. Staff also tabled at five community events, in order to DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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meet people where they are, not just invite them to attend City-hosted meetings. • Special attention was paid to language access for Spanish and Vietnamese speakers (the second and third most spoken languages in San José, after English). Staff offered interpretation at the community meetings, translated the online surveys and the outreach materials advertising the meetings and surveys and ran Facebook ads. These efforts were particularly successful for the Fall 2021 online survey, which received 155 responses in Spanish and 150 in Vietnamese (out of 640 total)
• Staff scheduled the community meetings aimed at the general public in the evenings (and one on the weekend) and offered alternative meeting times and methods to increase opportunities to provide input. Staff also offered refreshments and activities for children at the in-person meetings.
• For the community meetings and surveys, staff paid special attention to using clear language with minimal jargon. The messages used in outreach materials were intended to make the process welcoming, relevant, and interesting. In seeking feedback, staff strove to break down the material in manageable ways and make it easy for people to comment only on what interested them most. For example, staff adjusted the April 2022 survey in response to feedback from the community about its user friendliness. • Staff paid attention to accessibility for persons with disabilities by consulting with the Housing Department’s accessibility specialist, reviewing communications against accessibility standards and making revisions accordingly, providing extensive remote participation opportunities, offering reasonable accommodations, and hosting a focus group for people with disabilities.
• Staff also partnered with several local organizations to encourage direct participation in the process among underrepresented populations and communities with protected characteristics, as well as to indirectly represent these populations through their relationship to these communities. By partnering with local organizations, opportunities for connections and trust with underrepresented populations can be built. Staff met regularly with SV@Home and Law Foundation of Silicon Valley as the countywide equity collaborative partners, and met early on with the Race Equity Action Leadership (REAL) Coalition, comprised of local non- profit organizations, service providers, and advocacy organizations. Staff also involved sending email updates to a list of approximately 100 community leaders and preparing outreach materials that could be easily distributed. As an example of the impact of these efforts, SOMOS Mayfair helped bring about 15 people to the June 4, 2022 in-person meeting, bringing new voices and the perspectives of Latino/a/x , immigrant, and limited English- speaking residents.
1 • Focus groups were a key method for reaching underrepresented populations. Staff hosted 21 focus groups of people from protected classes, such as unhoused people, LGBTQ+, veterans, survivors of gender violence, and people of Black/African ancestry. Another important method was the working groups with leaders of local nonprofits, many of which directly or
1 SOMOS Mayfair is a community-based organization that supports East San Jose residents and promotes equitable community development in Mayfair, a “working poor and immigrant neighborhood” that has predominantly has many first- and second-generation Mexican-origin families. Source:
https://www.somosmayfair.org/about.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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indirectly represent the interests of lower income populations. • Staff has found that attending meetings hosted by community groups is one of the most effective ways at reaching a broad range of community members and at engaging in meaningful dialogue. Therefore, a significant amount of staff’s outreach efforts was dedicated to roadshow meetings and presentations (a total of 44). Examples of community groups reached through this method include: Silicon Valley Council of Nonprofits, Destination Home, League of Women Voters, Chamber of Commerce Public Policy Committee (Housing and Land Use), and the San Francisco Bay Area Planning and Urban Research Association (SPUR). Refer to Appendix H for the complete list.
• Lastly, the project team brought in community input from other City projects (separate from the Housing Element Update), particularly from protected classes and/or low resource areas. The team has mainly done this through interdepartmental workshops and requests for information. The intent was to honor the time and insights from community members, regardless of the context in which they provided input to the City, which helps to avoid community burnout and increases the impact of the feedback. See the following section for additional details.
The overall mix of engagement activities and use of best practices has helped reach a wide variety of perspectives and ensure at least some representation across key demographic indicators. Staff is consistently evaluating the process and making adjustments to get more inclusive outcomes. For example, the project team is pursuing specific methods to more effectively reach and involve the Vietnamese community, such as attending events at the Vietnamese American Community Center.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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1.3.4 Other Community Engagement Efforts
The City of San José has conducted a variety of outreach and engagement efforts in recent years that relate to housing, neighborhoods, and community development. Outlined below are eight such efforts that engaged the community and solicited feedback directly related to housing issues during the same period during which City staff was conducting the Housing Element/Assessment of Fair Housing process.
The City coordinated these efforts whenever possible. For example, separate community engagement activities for the Assessment of Fair Housing and the Consolidated Plan focused on those topics but input from both outreach processes was intended to inform both plans.
Community Opportunity to Purchase Program (COPA)
A COPA program would give a qualified nonprofit buyer the right to make a first offer on a residential property covered by the program that is up for sale. The purpose of COPA is to enable more properties to become restricted affordable, to the extent that City subsidies were available, and be owned by mission-oriented nonprofit organizations that would cooperate with the City to keep them affordable.
Outreach on a potential COPA program in San Jose consisted of 2 phases:
• Phase 1, between April 1, 2021 to November 30, 2021, included a series of working group meetings made up of two groups, a technical advisory committee and a stakeholder advisory committee. A total of 227 people participated in the meetings and engaged and offered input on COPA. The Working Group included community members and leaders from all council districts across the city and included voices of those who will be directly impacted by the policy: apartment owners, tenants, housing providers, developers, realtors, and housing advocates. Attendees were approximately evenly split between owners and renters and evenly distributed in age ranges.
• Phase 2 commenced December 1, 2021 and ran through February 9, 2022. Almost 200 people attended one of the 7 online public meetings and 274 questions or comments were received, either at the public meeting or via email.
Project Homekey
Project HomeKey is an opportunity for the City to develop a broad range of housing types and convert commercial properties and buildings to permanent or interim housing. The City of San José has hosted a series of community meetings to share information about the State-funded program and gather feedback from residents. A total of 5 meetings were held between October 2021 to February 2022. Each meeting focused on specific sites.
Diridon Station Area Affordable Housing Implementation Plan Between 2018-2021, the City conducted a comprehensive community engagement process on the Diridon Station Area, including a proposed mixed-use d evelopment by Google. The process was designed to involve underrepresented populations through partnerships with community-based organizations and other inclusive methods. Concerns about displacement and calls for abundant affordable housing and social equity were key themes of the process.
During this time
, the City prepared the Diridon Affordable Housing Implementation Plan (“Diridon Housing Plan”) to address housing-related concerns and goals. The Diridon Housing Plan includes strategies and policies, taking a “3Ps” approach: production of new affordable housing units, DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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preservation of affordable homes for lower-income residents, and protection of vulnerable residents from displacement. The production strategy focuses on the Diridon Station Area Plan (DSAP), while the preservation and protection strategies focus on the and surrounding half-mile (referred to as the Neighborhood Stabilization Area).
The City Council adopted the Diridon Housing Plan in May 2021. Achievement of the plan’s goals will require a joint effort between the City, the community, and external funders in the private and philanthropic sectors. One source of funding will be from the community benefit contributions made by Google under the Downtown West Development Agreement.
Affordable Housing Siting Policy
The Affordable Housing Siting Policy is intended to help the City affirmatively further fair housing by increasing affordable housing in higher opportunity neighborhoods of choice and also mitigating displacement. The Housing Department and consultant team hosted eleven listening sessions with more than 250 residents, advocates, developers, and affordable housing residents across the City between February and May 2021 to solicit input on the Siting Policy.
2020-2025 Consolidated Plan
Outreach for the Consolidated Plan included additional activities, including three public hearings, 21 stakeholder interviews, a paper and online survey, and two pop-up tabling events. From fall 2019 to mid- 2021, the AFH and Consolidated Plan public outreach process together engaged a total of 476 people in-person through public community meetings events and collected 648 written and online surveys. The surveys were available in English, Spanish, Vietnamese, and Chinese.
General Plan Four-Year Review Task Force
The General Plan establishes a four-year review cycle, providing an opportunity to evaluate the City’s achievement of key goals and mid-course adjustments to the General Plan. As part of this review staff evaluated and the Taskforce provided feedback on the following housing-related topics: Urban Village Implementation and Affordable Housing Goals, Opportunity Housing, Residential Uses in Underutilized Business Corridors and Commercial Space Requirements for Affordable Developments, This work was done through open, public meetings of the Envision San José 2040 Task Force and City Council from Fall of 2019 to Spring of 2021. City staff hosted a total of 10 community meetings following each of the public Task Force meetings on various General Plan Four-Year Review Topics. The public was also invited to attend each of the Task Force meetings. More than 1,000 people attended across the meetings. Public comments were taken at each meeting, each commission and council meeting, and also received in written format.
Citywide Residential Anti-Displacement Strategy
City staff engaged an estimated 800 to 1,000 community members and stakeholders through a variety of events and activities over close to two years of work on developing the Citywide Residential Anti- Displacement Strategy.
• Early 2018 to early 2019 - Outreach included a series of interviews and focus groups to learn directly from residents who lived in neighborhoods that were experiencing ongoing displacement and from those who had been displaced in the past.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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• Summer 2019 to winter 2020 - Staff gathered feedback on potential anti-displacement solutions and received new ideas from a broad base of stakeholders at both public and one- on-one meetings.
• Early 2020 - Staff conducted outreach to real estate professionals and other stakeholders in early 2020 to get their perspectives.
This input helped to generate the list of recommendations included in the anti-displacement strategy.
Analysis of Impediments to Fair Housing
Organizations, agencies, and persons were directly engaged via outreach efforts and asked to share materials with their beneficiaries, partners, and contacts between 2014 and 2016. These stakeholders were also encouraged to promote attendance at the public forums and to solicit responses to the Regional Needs Survey. Stakeholder engagement included phone calls, targeted emails, newsletter announcements, social media posts, and personalized requests from jurisdiction staff. Through these communications, stakeholders were invited to participate in one of the forums planned throughout the County and to submit survey responses. A total of 1,472 responses were collected. Approximately 1,225 printed flyers noticing the regional forums were distributed throughout the County, including at libraries, recreation centers, community meetings, and organizations benefiting LMI residents and areas. These flyers were available online and in print in English and Spanish. Multilingual print advertisements in local newspapers were posted in the Gilroy Dispatch (English), Mountain View Voice (English), El Observador (Spanish), La Oferta (Spanish), Thoi Bao (Vietnamese), Philippine News (Tagalog), World Journal (Chinese) and San José Mercury News (English). In addition, an online display ad was placed in the San José Mercury News to reach readers electronically. Each segment of the community outreach and planning process was transparent to ensure the public was aware its input was being collected, reviewed, and considered.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Housing Needs
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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The City of San José, at slightly over a million people, is the tenth largest city in the U.S. It is the population center of Silicon Valley, a region where the economy grew significantly even during the pandemic, with Silicon Valley tech companies exceeding $14 trillion in market capitalization in 2022.1
San José continues to be one of the most expensive places to live in the country, with median housing prices pulling ever further out of reach for essential workers. In the first quarter of 2022, the median single-family home was $1.7 million, the median condo/townhome was
$900,000, and median monthly rent was $2,595.2 Figure 2-1 shows how these housing costs are unaffordable for a cross-section of workers who are essential for the continued functioning of our economy and society. Please see Appendix A, Demographic Profile and Housing Needs, for more data about housing needs and demographics in the City.
Despite a thriving and growing economy and decades of population growth, the most recent U.S. census data indicates that the City has lost population in the past few years. In community outreach and engagement around the Housing Element (see Appendix H for details about our community engagement process) and in prior community engagement around the Citywide Anti-Displacement Strategies, 3 City staff heard
from many community members who want to continue to live in San José but worry about being priced out of the market, and who report that family and neighbors have already been displaced. See Appendix B, Assessment of Fair Housing, for more analysis of displacement in San José, including breakdowns of displacement risk by race and geography.
READER NOTES
In this chapter,
bold blue phrases
express the
Housing Element
Goals, which
are detailed in
Chapter 3.
Footnotes are
compiled as
endnotes at
the end of this
chapter.
Figure 2-1: Annual Incomes Vs. Incomes Needed to Afford Housing in San José DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-3 City of San José Draft Housing Element
Given the extreme prices in our market, how do we ensure that there is an abundant and affordable supply of housing for all current residents who want to stay in the City and for all future residents who will continue to be drawn here to live and work, as well as providing sufficient housing for people experiencing homelessness?
In addition to addressing issues of housing supply and production, the City needs to ensure that access to such housing is fair and equitable and that housing policies and programs work towards redressing past and current day segregation rather than reinforcing segregation. As discussed in Chapter 1, State law (Government Code section 65583) requires that all jurisdictions perform an Assessment of Fair Housing (AFH) and propose policies and programs that actively and affirmatively further fair housing.
The City’s detailed AFH is attached as Appendix B and policies and programs to affirmatively further fair housing are integrated into the larger set of policies and programs described in Chapter 3. Here, to capture some of the analysis in the AFH, we cite one specific statistic to illustrate the history and current context of fair housing in San José: approximately one-third of the City’s housing stock is homeowner-occupied units built between 1950 and 1979. Per Table 2-1 (next page), no other large city in America has such a high proportion of this type of housing.
The three decades long period starting in 1950 and ending in 1980 was San José’s primary growth spurt, when it transformed from a small city in the heart of an agricultural region to the sprawling, low-density metropolis that it is today. In 1950, San José’s population was under 100,000. By 1980, San José’s population was approximately 630,000, with non-Hispanic Whites constituting the vast majority of the population growth.
In contrast, during this same period, the other big cities in the Bay Area — San Francisco and Oakland — experienced net population losses, with non-Hispanic Whites at the leading edge of the declines in population; during this period, San Francisco and Oakland’s White population dropped by a combined 500,000 persons.
From 1950-1980, San Jo
sé grew through subdivision, turning thousands of acres of open space and agricultural lands into neighborhoods built around the single-family home and the automobile. The majority of this growth occurred prior to the passage of federal Fair Housing Act of 1968 and was within the national movement to build white, middle-class suburbs. As documented in The Color of Law by Richard Rothstein, this national, post-War strategy to build middle-class, suburban housing was the largest publicly subsidized housing and wealth building program in the history of the U.S. And it was explicitly and intentionally racist.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-4 City of San José Draft Housing Element
Table 2-1: Owner-Occupied Units Built from 1950-1979
in Top 20 Largest U.S. Cities and Selected California Cities
City Occupied Housing
Units
Owner-Occupied Units Built
from 1950-1979
Owner-Occupied Units Built
from 1950-1979 as a % of All
Occupied Housing Units
San José, CA 325,114 111,694 34.4%
Phoenix, AZ 565,832 131,150 23.2%
San Diego, CA 507,580 116,577 23.0%
Dallas, TX 513,443 110,187 21.5%
Houston, TX 858,374 180,701 21.1%
San Antonio, TX 501,400 102,903 20.5%
Indianapolis (balance), IN 338,208 68,647 20.3%
Philadelphia, PA 601,337 114,251 19.0%
Denver, CO 301,501 56,250 18.7%
Long Beach, CA 166,813 31,103 18.6%
Jacksonville, FL 338,991 59,975 17.7%
Los Angeles, CA 1,383,869 241,654 17.5%
Sacramento, CA 185,331 32,314 17.4%
Fresno, CA 168,625 28,591 17.0%
Fort Worth, TX 297,498 48,071 16.2%
Columbus, OH 357,128 57,688 16.2%
Charlotte, NC 330,391 48,713 14.7%
Austin, TX 380,392 54,034 14.2%
Chicago, IL 1,066,829 147,204 13.8%
New York City, NY 3,167,034 363,999 11.5%
Seattle, WA 331,836 36,587 11.0%
Oakland, CA 162,419 16,494 10.2%
Washington, DC 284,386 25,975 9.1%
San Francisco, CA 362,354 25,799 7.1%
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-5 City of San José Draft Housing Element
The latter part of San José’s population boom — in the 1970s — also coincides with the beginning of California’s long and ongoing real estate boom. As shown in Figure 2-2, prior to 1970, housing costs in California were roughly comparable to the U.S. market. However, starting in 1970, California’s housing costs took off on their own higher (and more volatile) trajectory.
This means there was only a small window of time where homeownership in San José was both open to all and affordable. Today, significant parts of the City are effectively locked into a pre-Fair Housing, segregated dynamic. While this sequence of events — a period of post-War growth followed by decades of slower growth and rapidly rising housing costs — happened in many cities across the American West, it defines San José in greater proportion than any other big city in the U.S. (as seen in Table 2-1). The impacts of this specific version of segregation can be seen in several ways:
• San José is one of the most segregated cities in the Greater Bay area. Per Figure 2-3 (next page), across the 104 jurisdictions in the nine-county Bay Area, San José is consistently one of the most segregated cities, as rated on the Dissimilarity Index, where a score of 0.4 or higher indicates that a geography is segregated. • Non-Hispanic Whites represent a disproportionate share of homeowners. Non- Hispanic Whites are 26% of the City’s general population but 41% of the total number of homeowners; they have a higher homeownership rate than any other major racial/ethnic group, see Figure 2-4 (next page). Also, while the broader category of Asian Americans, Native Hawaiians, and Pacific Islanders (AAPIs) have a high rate of homeownership, disaggregated AAPI data reveals differences in rates among AAPI subcategories. Because homeownership has been such a prevalent pathway to wealth building in the U.S., this differential in who owns and who rents presents challenges in how the City can support housing stability and opportunities to build wealth for all residents.
Figure 2-2: Median Home Prices - California vs. U.S. since 1940 (2021 dollars)
Source: https://en.wikipedia.org/wiki/California_housing_shortage
Figure 2-2: Median Home Prices - California vs. U.S. since 1940 (2021 dollars)
Source: https://en.wikipedia.org/wiki/California_housing_shortage DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-6 City of San José Draft Housing Element
Figure 2-3: Level of Segregation in San José Compared to 103 Bay Area Jurisdictions
Source: AFFH Segregation Report: San Jose, UC Merced Urban Policy Lab for the Association of Bay Area Governments / Metropolitan Transportation Commission (2022)
Figure 2-4: San José Homeownership Rates by Householder Race/Ethnicity
Source: City of San José analysis of US Census data (2019 5-Year ACS for general categories; 2015-5-year ACS for disaggregated AAPI data). Please see Appendix B for more detail on the methodology for disaggregation of AAPI data.
0%
10%
20%
30%
40%
50%
60%
70%Homeownership Rate
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-7 City of San José Draft Housing Element
• Segregation influences who lives in “high-resource” and “low-resource” neighborhoods.
The State Department of Treasury Tax Credit Allocation Committee/Department of Housing and Community Development Opportunity Map (TCAC/HCD Opportunity Map)4 helps to analyze high- and low-resource neighborhoods, and in San José, we can see that where people live correlates with race:
> The majority of Latino/a/x and Southeast Asian American persons in San José live in low-resource neighborhoods.
> The majority of Chinese and Asian Indian Americans and just under 50% of non- Hispanic Whites live in high-resource neighborhoods.
Figure 2-5 further shows the breakdown by race/ethnicity per the Opportunity Map category.
Medium-resource neighborhoods resemble the City as a whole; high-resource neighborhoods have disproportionate amounts of non-Hispanic Whites, Asian Indians, and Chinese; and low- resource neighborhoods have disproportionate numbers of Latino/ a/x and Southeast Asian Americans. This “geography of opportunity effect” matters, as there is a growing body of evidence that where somebody lives affects the outcomes for individuals, even holding constant other factors such as education, race, and income. This unequal distribution of population by neighborhood type is a stark datapoint showing that not all San Joséans live in healthy, thriving neighborhoods with access to good jobs, schools, transportation, and other resources and is indicative of our challenge to create racially and socially inclusive neighborhoods that overcome past and present discrimination.
Figure 2-5: Racial/Ethnic Composition of San José Neighborhoods by Categories of TCAC/HCD Opportunity Map
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CITYWIDE High Resource Medium Resource Low Resource
Non-Hispanic White Black, African American Native American Latino/a/x Asian Indian and Chinese Southeast Asian Americans All other AAPIs
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CITYWIDE High Resource Medium Resource Low Resource
Non-Hispanic White Black, African American Native American Latino/a/x Asian Indian and Chinese Southeast Asian Americans All other AAPIs
Source: City of San José analysis of US Census data (2019 5-Year ACS)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-8 City of San José Draft Housing Element
From community engagement and data analysis conducted as part of the City’s Assessment of Fair Housing, other barriers to fair housing include:
• Segregation: In addition to the findings about opportunity and resources described above, segregation also correlates with increased risk of displacement, a higher proportion of substandard housing, increased exposure to negative environmental factors (e.g., poorer air quality, higher temperatures), and increased health risks for lower-income communities of color.
• Homelessness: There is a high level of need for housing (shelters, transitional housing, and permanent supportive housing) and services targeting unhoused people. African American, Latino/a/x, and Native American people are disproportionately represented in the population of unhoused people.
• Fair Housing Violations: Community members anecdotally report potential fair housing issues/violations, especially source of income discrimination and disability discrimination. • Lack of Accessibility for Disabled Persons: Accessible housing is scarce and requests for reasonable accommodation are often not fulfilled.
• Lack of Information and Community Engagement: Community members and stakeholders request greater governmental transparency, more information about housing rights and opportunities, and greater involvement in decisions around housing and development policy, especially for members of protected classes.
Please see Appendix B, Assessment of Fair Housing, for more history and analysis of current segregation in San José.
Contributing Factors to Segregation / Programs and Policies to Affirmatively Further Fair Housing From City staff’s AFH analysis and from community feedback during the overall Housing Element outreach process, the following issues or factors are the primary contributors to inequitable outcomes in the City of San José:
• Segregation and exclusion from “High Resource” areas: Communities of color have been excluded from neighborhoods that have benefited from the highest levels of public and private investment, • Exclusion from growth areas: Areas of market rate growth and investment – the likely high resource areas of tomorrow – have the potential to become exclusionary, • Inequitable patterns of investment and disinvestment: Lower-income communities and communities of color have not received the same levels of public and private investments, • Racially disparate impacts of displacement: Displacement disproportionately harms people of color, • Lack of access for persons with disabilities: Persons with disabilities continue to report barriers to housing accessibility,
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-9 City of San José Draft Housing Element
• Racial disparities in homelessness: The persistence of racial disparities in the population of persons who are unhoused is indicative of numerous interrelated factors, • Discrimination in the housing market: Community members still cite violations of fair housing practices as a barrier to access in our housing market.
In order to affirmatively further fair housing, the City intends to create and implement policies and programs that directly address these contributing factors. Each contributing factor and the programs and policies intended to address them are described below. Each strategy listed below contain specific milestones and metrics to ensure outcomes. Of these strategies, 55% will begin implementation in the short-term, 2023-2025.
Chapter 3 contains a list of all the strategies listed in the short-term, medium-term or annual/ongoing. In order to maximize beneficial impact in the planning period, a majority of the above strategies will be begin implementation in the short-term.
Segregation and Exclusion from “High Resource” Areas
Overview / AFH Data and Analys is
San José is one of the most segregated cities in the Bay Area (please see AFH Section III.A.2.b.). As described in AFH section II.C., San José’s patterns of segregation were established through redlining and suburbanization.
As documented in AFH Section III.A.2.e., one present day result of the City’s segregation is that specific communities of color continue to be excluded from parts of the City that have benefited from the highest levels of investment (see also “Inequitable Patterns of Investment and Disinvestment” factor, below). One indicator of this level of segregation and exclusion is the percentage of the City’s population of each major racial/ethnic group who live in TCAC/HCD High Resource Areas. Overall, approximately one-third of the City’s population lives in TCAC/HCD High Resource Areas. If all things were equal, approximately one-third of each population would also live in High Resource Areas. However, as per the table below, non-Hispanic Whites and AAPIs (especially Asian Indian and Chinese groups) are disproportionately concentrated in High Resource census tracts while African Americans, Native Americans, Southeast Asian Americans, and Latino/a/x groups are disproportionately excluded from High Resource Areas.
Figure 2-6: Racial/Ethnic Composition in San José “High Resource” Census Tracts
Source: 2019 5-Year ACS data overlaid on 2021 TCAC/HCD Opportunity Map DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-10 City of San José Draft Housing Element
Community Input
The Housing Department held a series of meetings focused on the topic of increasing access to high opportunity areas. Community input on this topic was also received in several other focus groups and stakeholder meetings. Overall, the input received identified barriers to housing production, regardless of area, including lack of subsidies and delays to production caused by permitting or CEQA. However, input received also identified specific barriers to housing in high opportunity areas, including the power of NIMBYism to delay or deter housing production or preservation in high opportunity areas. Suggestions for increasing access to high opportunity areas included increased subsidies for affordable housing production, increased housing vouchers and increased access to transit for low-income earners in high opportunity areas.
Programs and Policies
In order to increase the number of lower-income people in high opportunity areas, the City of San José has established the Housing Siting Policy, a set of goals and incentives to increase the new construction of affordable housing in higher opportunity areas and will explore creating additional incentives for use of vouchers in higher opportunity areas. These program proposals are listed in Chapter 3 of the Housing Element as:
• N-5, increase affordable housing production in higher-resource areas • S-25, tenant-based vouchers in higher-resource areas
Exclusion from Growth Areas
Overview / AFH Data and Analysis
Home to some of the largest and most successful companies in the world, the greater region of Santa Clara County / Silicon Valley is continuing to grow. Policies to affirmatively further fair housing not only need to take into account past patterns of investment/underinvestment (which created the segregation we see now) but also planned patterns of growth and investment which, if not inclusive of intentional policies and programs to affirmatively promote equity, will become future landscapes of segregation.
As an example, the northern part of Santa Clara County along Highway 237, stretching from Mountain View, thr
ough Sunnyvale, Santa Clara, and north San José, and terminating in Milpitas is a large cross-city area that generally consists of large-site parcel industrial/commercial office parks (low-rise buildings surrounded by surface parking). As characterized in a recent local newspaper article, the area “has a sizeable amount of vacant and underutilized industrial land ripe for conversion into housing and office space.” 1 Across multiple
cities, there are multiple specific plan area upgrades and major development proposals2, representing billions of dollars of planned private and public investments, millions of square feet of new commercial development, and tens of thousands of new units of housing. Taken together, this will have a transformative effect on the sub-region that is not fully visible if only looking at the growth plans for each individual city. And, if there is not due care taken to assure that these areas are inclusive and equitable, they will become exclusionary, segregated communities in the future. For example, in 2006, before housing production in north San José was estopped due to legal disputes between the City and the City of Santa Clara and the County of Santa Clara, the City released capacity for development of 8,000 units of housing in north San José. This available capacity was quickly built and none of the 8,000 units developed were affordable. And, as a result, two North San José census tracts qualify per the City’s locally specific definition of Racially Concentrated Areas of Affluence. 3 DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-11 City of San José Draft Housing Element
Currently, because the broader North County is lightly populated, the overall area (defined by small sample sizes) has metrics that classify it as middle resource under the TCAC/HCD opportunity maps. However, given the transformative level of investment planned for this subregion, this area likely will not be middle resource for much longer. It is therefore important to ensure that low-income people (disproportionately people of color in City and in the Greater Bay Area region) are considered in the planned growth in these areas.
Community Input
Lack of affordable housing units was identified as an issue in nearly every working group, focus group and stakeholder meeting convened in the AFH outreach process. Additionally, barriers to affordable housing production were also identified on a near consistent basis. General feedback to address these issues included increasing subsidies and reducing barriers to land acquisition for affordable housing. Specific strategies offered by the AFH Advisory Committee included changing zoning, land use and overlays to increase multi-family production.
Programs and Policies
The City of San José will create goals and incentives for increased affordable housing production in specified growth and investment areas such as North San José and the Diridon Station Area (also known as Downtown West).
• P-9, Diridon affordable housing production goal
• P-3, North San José Affordable Housing Overlay Zone
Inequitable Patterns of Investment and Disinvestment
Overview / AFH Data and Analysis
Per research conducted by the Urban Institute and cited in San José’s AFH (see AFH Section III.B.2.e.), while San José has had a high volume of public and private investment relative to the 250 largest U.S. cities, the City has done less well in terms of equitable distribution of these investments.
Figure 2-7: San José Investment Distribution
Source: Urban Institute
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-12 City of San José Draft Housing Element
San José’s patterns of infrastructure investment (see for e.g., AFH Section II.C.5-6) have historically been to the benefit of suburban expansion and not towards improving quality of life in neighborhoods that were redlined.
Community Input
In both written comment and in community forums and working groups, community advocates identified inequities in neighborhoods across the San José and advocated for solutions that would directly right the wrong of historical disinvestment and marginalization. These solutions included reparations and housing programs, including access to rental housing and home ownership programs, based on race. A self-organized working group of stakeholders representing lower-income communities of color (neighborhood equity working group) offered specific recommendations to address inequities. One of their priority recommendations is to develop processes for tenant associations to target Apartment Rent Ordinance (ARO) and code violations.
Noting the lack of tenant organizations, the working group advocated for collective power structures to improve reporting processes for violations.
Programs and Policies
Based upon recommendations from community stakeholders, San José staff propose to better coordinate citywide investments and service programming to target neighborhoods and communities that historically have not been the beneficiary of public and private investments. • N-1, interdepartmental team for equity-based framework for investment • N-7, external funding for infrastructure to create complete, high-quality living environments In addition, deteriorating conditions of housing stock is another way in which patterns of disinvestment become physically manifest. In order to mitigate this long-term neglect, staff proposes enhanced code enforcement in targeted areas of disinvestment per the following:
• S-3, proactive, place-based code enforcement
• S-5, improved case management for code enforcement
Racially Disparate Impacts of Displacement
Overview / AFH Data and Analysis
In San José, displacement disproportionately impacts communities of color, especially Latino/a/x people (please see AFH Section III.B.4.a.ii.). Per the figures below, while Latino/a/x people are 32% of the City as a whole, they are 53% of the population of census tracts identified by the UC Berkeley Urban Displacement Project as places where displacement is occurring or at risk of occurring.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-13 City of San José Draft Housing Element
Figure 2-8: Race/Ethnic Composition of Displacement
Because of this disparate impact, displacement is a high priority fair housing issue in the City of San José.
Community Input
Stories of displacement, personal and external were shared throughout the AFH outreach process. These stories highlighted painful realities of displacement and the associated impacts including the breakup of families, children having to frequently switch schools, extreme commutes and poor health. The access to rental housing and neighborhood equity group identified the disproportionate rate of displacements in communities of color. Specific recommendations offered from these working group included tenant preferences, reparations, housing (including affordable) preservation policies and limit rent increases in restricted affordable housing.
Programs and Policies
In alignment with the Citywide Anti-Displacement Strategies approved by Council in 2020, the Housing Element Source: 2019 5-year ACS data overlaid upon UDP displacement risk maps
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-14 City of San José Draft Housing Element
contains a number of anti-displacement programs and policies, including the following:
• R-7, extend affordable housing restrictions
• R-2, establish a Preservation NOFA
• S-10, study on rent increases and rent burden in affordable housing • S-20, anti-displacement tenant preferences
Lack of Access for Persons with Disabilities
Overview / AFH Data and Analysis
In the approximate past five years, the population of persons with disabilities grew faster than the general public (please see Section AFH III.D.1.a.), with a 9% increase as compared to 4% increase for the general population. Amongst disabilities as categorized by the US Census, the largest increases were for persons with self-care difficulties (a 15.7% cumulative increase) and independent living difficulties (a 15.5% increase). Over the same time period, the housing market has not produced the corresponding number of accessible units.
Community Input
Focus groups for persons with disabilities and veterans provided critical information regarding the gap in accessible housing. Overall, lack of accessible housing units was identified as a key concern. Specifically, feedback included unwillingness of owners to grant reasonable accommodation requests, unwillingness of owners to accept Section 8 vouchers, difficulties in obtaining vouchers, long waitlists for affordable housing units and difficulties accessing and navigating disability and housing programs. One participant noted the toll of navigating housing challenges on their mental health to which the remaining participants agreed.
Programs and Policies
In order to increase the number of accessible, affordable units, the City will implement policies, plans, and incentives for affordable housing units to be built with universal design principles and that existing developments implement industry best practices in accessibility in lease-up and operations, including in terms of affirmative marketing and effectuating reasonable accommodation request. These policies and practices include the following:
• I-6, universal design and ADA upgrades
• I-2, affirmative marketing to disabled community
Racial Disparities in Homelessness
Overview / AFH Data and Analysis
As shown in Table 2-2, below, and as described further in AFH Section III.D.4.a., people of color – especially Black, Native American, and Latino/a/x people – are over-represented in the population of persons experiencing homelessness.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-15 City of San José Draft Housing Element
Table 2-2: Racial/Ethnic Composition of Unhoused
Population in City of San José
Racial/Ethnic Category Unhoused Population
Racial Breakdown
City of San José, 2019
Total Population
Racial Breakdown
City of San José, 2019
Black/African American 18.8% 3.0%
American Indian/Alaskan Native 8.1% 0.6%
Latino/a/x 42.7% 31.6%
Sources: City of San José Homeless Survey 2019
This disproportionate representation is the result of multiple generations of discrimination, including inequitable and racist public policies enacted at all levels of government.
Community Input
Feedback from LGBTQ+, Disability, Veterans, Indigenous and African Ancestry focus groups identified the importance of having persons with lived experience and those from underrepresented populations involved in policy development and decision-making processes. Further feedback identified barriers to participation including lack of compensation, tokenization of protected class characteristics, frustration with slow government processes and difficulties understanding government processes. Barriers to accessing supportive services was also identified in these focus groups as a deterrent to persons from protected classes. Barriers included discrimination and bias at shelters and prohibitive rules around medication and pets, cultural misunderstandings, high turnover of staff and lack of availability of supportive services.
Programs and Policies
To make programs and services addressing issues of homelessness more inclusive, City staff seeks to evaluate racial bias within the shelter and supportive housing systems and to increase involvement of persons with lived experience in system-wide decisions about program design and implementation. These include:
• H-10, evaluate racial bias in shelter and supportive housing systems • H-11, involvement of persons with lived-experience of homelessness in decision making • I-10, lived experience with homelessness seat on HCDC
Discrimination in the Housing Market
Overview / AFH Data and Analysis
While many of the factors described above relate to structural problems within the larger systems of housing and land use policy, individual discrimination within the local housing market still persists. Per AFH Section III.E.3.a., there are approximately 60 fair housing complaints per year in the City. Approximately half of these complaints are related to access for persons with disabilities.
Community Input
The rental access working group identified lack of information regarding housing, including renter rights and DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-16 City of San José Draft Housing Element
affordable housing availability, especially in relevant languages, as a barrier to accessing rental housing. The rental access group also identified continued high rates of discrimination in housing, especially for persons with disabilities and non-citizens.
Programs and Policies
To address housing discrimination with emphasis on specific issues raised by community feedback and public comment, the Housing Element programs and policies include the following:
• S-21, facilitation of equal access to housing
• I-12, resident-identified priorities
• S-11, alternative documentation for non-citizens
• S-23, know your rights materials
• S-13, affordable housing renter portal language access
Special Needs Housing
To examine the barriers to housing, the Assessment of Fair Housing (Appendix B) analyzed the existing needs and resources of special needs populations in San José, and found challenges persist for members of protected classes. A full analysis can be found in Appendix B. An overview of the analysis for special needs households, including persons with disabilities, female-headed households, large households, seniors and extremely low- income (ELI) households, is summarized below.
Persons with Disabilities
For persons with disabilities, of which there are approximately 88,253 living in the City of San José according to 2019 5 year American Community Survey (ACS Survey,), there is a significant gapsgap in coverage for housing. This is considering there are issues with the counting of persons with disabilities and accurate representation of disabilities in counting. Given the range of disabilities, the range of housing needs ranges widely as well, including accessible housing (housing design features such as wheelchair ramps, holding bars and special bathroom design). Feedback received during the outreach process found that there is a lack of accessible housing, and a lack of resources to find and obtain accessible housing. Overall, gaps in coverage identified are housing affordability, support services and supportive housing, housing accessibility and housing discrimination.
The City has adopted reasonable accommodation procedures for persons with disabilities. Chapter 20.160 of the Zoning Code identified who is authorized to request reasonable accommodation provisions, what the application requirements are, and what findings are needed to grant the request. These procedures allow modifications to regular development standards as needed to accommodate individuals with disabilities. Organizations serving people with disabilities include San Andreas Regional Center (SARC)Services provided include advocacy, skills training and residential placement.
Female Head of Households
According to the 2019 5-Year American Community Survey (ACS), 11.5% of San Jose households (37,319 households) are female-headed family households, down slightly over 5 years. Female-headed DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-17 City of San José Draft Housing Element
households with children face unique housing challenges. They often deal with pervasive gender inequality that results in lower wages for women. About 15% of the female-headed family households fall below the poverty level compared with 5% of all San Jose families who fall below the poverty level.
Women of color face significantly worse housing problems than any other group in San Jose. The Bay Area Equity Atlas highlights the cost burden experienced by females - 2019 IPUMS data for San Jose indicates that, while 58% of all female renters in San Jose are cost burdened (compared with 48% of males), 69% of female Black renters and 62% of female Latina renters in San Jose are cost burdened.
The City currently has 1,070 emergency shelter beds and transitional housing beds that serve homeless individuals including women with children and victims of domestic violence. The City also funds the Supportive Housing Employment Initiative to develop and launch an employment engagement system focused on homeless (men and) women in rapid rehousing programs. The City does not provide enough affordable housing specifically for female-headed households.
Large Households
Large households are defined by the HUD as households with five or more members. According to the 2019 5-year ACS, there are 49,165 households with five or more persons in the City of San José, which makes up 15% of the City’s total households. HUD’s Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release provides some data on the income distribution among large family households. CHAS indicates that 28% of large family households were extremely or very low- income, earning less than 50% of the Area Median Income (AMI). There are no specific City sponsored programs targeting large or multigenerational households. The 2019 5-Year ACS data reveals that there are 89,065 occupied housing units in San Jose that have 4 or more bedrooms, 27% of the total housing units. Most of them (75,839 or 85%) are owner occupied while 15% (13,226) are renter occupied. If we assume that a minimum of 4 bedrooms is required to house a large person household, the city potentially has housing available to accommodate its 27,532 large family owner households. But large family renter households have a housing unit deficit – 13,226 housing units to accommodate 21,638 large family households. Moreover, the cost of owning or renting large family housing may make it prohibitive for the 28% of the large family households who earn 50% or less of the AMI.
Seniors
According to the 2019 5-year ACS, there are 128,611 persons at or over the age of 65 living in the City of San José or 13% of the city’s population. From 2014 to 2019, the number of seniors grew at a much faster pace than the general population – i.e., the city’s population grew by 4.2% while the senior population grew by 19.5%. Approximately 36% of San José’s seniors are AAPI, 32% are Latino/a/x, and 26% are non- Hispanic White. About 33% of San José’s senior population have a disability. With the senior population growing at a much higher rate than the general population, the demand for affordable Senior Housing is expected to accelerate in the future. Currently there are about 87,059 households in San José with at least one person over the age of 65. City-assisted affordable housing apartments meet only a small percentage of the need for senior housing.
Extremely Low Income (ELI) Households
According to 2021 HCD Income Limits, a family of four making an annual income of $49,700 in Santa Clara County is considered an Extremely Low-Income (ELI) household. CHAS 2013-17 tabulation reveals that 16.2% of San José households (51,924 households) are ELI households. ELI households face DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 2: Summary of Housing Needs & Assessment of Fair Housing 2-18 City of San José Draft Housing Element
significant housing challenges, especially in a high-cost economy like the Silicon Valley. Their wages are low and stagnant. They are forced to compete with higher wage earners for the limited supply of affordable housing. According to The Gap, a 2021 report published by the National Low Income Housing Coalition, there are just 29 homes available for every 100 extremely low-income households in the San José-Sunnyvale-Santa Clara metro area. For this current RHNA cycle, the City has been able to meet only 13% of its ELI housing goal.
Programs and Policies
To increase the supply, quality, and access to housing for persons with special needs, the Housing Element contains the following programs and policies:
• I-1, create partnerships with organizations that provide outreach to persons with disabilities • I-2, affirmative marketing to persons with disabilities • I-4, create a housing balance report
• I-5, accessibility plans and guidance
• I-6, universal design and ADA upgrades
• 1-19, update ordinance to streamline reasonable accommodation review process • P-21, issue special needs housing Notice of Funding Availability • P-42, update zoning code to be consistent with State and Federal laws regarding group homes
ENDNOTES
1 Silicon Valley market capitalization: https://jointventure.org/a-message-about-the-2022-index 2 San Jose median housing prices: https://www.sanjoseca.gov/home/showpublisheddocument/86697/ 3 Citywide anti-displacement strategies: https://www.sanjoseca.gov/your-government/departments-offices/housing/ resource-library/housing-policy-plans-and-reports/citywide-anti-displacement-strategy 4 TCAC/HCD Opportunity Map: https://belonging.berkeley.edu/2022-tcac-opportunity-map DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
3-1 City of San José Draft Housing Element, rev. June 2023
Chapter 3 Housing Goals and
Strategies
, Villas on the Park, permanent supportive housing, downtown San José DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
3-2 City of San José Draft Housing Element, rev. June 2023
CONTENTS - CHAPTER 3
3.1 Goal 1: An abundant and affordable housing stock ............................................................ 4
3.2 Goal 2: Sufficient housing for people experiencing homelessness ................................. 18
3.3 Goal 3: Housing stability and opportunities to build wealth for all residents ............. 23
3.4 Goal 4: Healthy, thriving neighborhoods with access to good jobs, schools, transportation, and other resources .................................................................................... 33
3.5 Goal 5: Racially and socially inclusive neighborhoods that overcome past and present discrimination .................................................................................................... 37 DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-3 City of San José Draft Housing Element, rev. June 2023
The Housing Element includes five goals that create the framework for how the City of San José will address housing needs during the planning period.
Linked to each goal, strategies provide direction for how the City will achieve that goal. They reflect the City’s ambition to provide opportunities for a variety of housing at all levels of affordability and types to meet the current and future needs of all residents, and to create equitable and inclusive neighborhoods that support housing choice. Strategies are used here as a general way to describe actions the City will undertake during the planning period. They consist of policies, programs, and activities that the City would do either alone or in partnership with other organizations and the community The sixth cycle goals and strategies were developed with and informed by extensive community input, as noted in Chapter 1 and Appendix H. The strategies address issues raised as barriers and problems in the San José market through data from comments by participants in dozens of focus groups, working group sessions, community meetings, and stakeholder meetings. The City’s long outreach and engagement started in 2019 and will continue through early 2023. Per the state’s requirements, the City’s outreach emphasized engagement of members of protected classes and nonprofits regarding those residents’ housing and fair housing needs, selected neighborhood representatives regarding neighborhood strategies, and both market-rate and affordable housing developers regarding barriers to housing production. In addition, the general public was engaged throughout so staff could educate on this work, and seek their opinions on the City’s draft goals and draft strategies.
The City’s five goals are as follows:
Goal 1: An abundant and affordable housing stock
Goal 2: Sufficient housing for people experiencing homelessness Goal 3: Housing stability and opportunities to build wealth for all residents Goal 4: Healthy, thriving neighborhoods with access to good jobs, schools, transportation, and other resources Goal 5: Racially and socially inclusive neighborhoods that overcome past and present discrimination.
Each goal is described in the sections that follow, followed by tables of strategies that would help to achieve that goal. While many strategies achieve more than one goal, they are grouped by the primary goal they would achieve. The tables note additional goals that each strategy supports. Strategies are also tied to the barriers and needs they would address, the input and other plans that supported inclusion of each strategy, City departments involved, type of action, timelines, and metrics by which to measure progress. In the next version of this draft plan, quantitative goals will be identified for those actions that support the City’s obligation to affirmatively further fair housing.
Note that some strategies reflect statutory requirements and must be completed. Of the other strategies, most require City Council approval. However, some strategies are presented as more definite than others. This may be because Council has already given direction to staff to do this work, or because certain work is so important to achieve the fair housing and RHNA goals of this plan that these strategies should move forward. Other actions are more preliminary or exploratory in nature, and have less certain wording. The City Council’s adoption of this work plan will signify its willingness to commit to the actions contained herein, to the degree that each is stated.
Strategies demonstrate they will have a beneficial impact within the planning period by naming specific commitment to measurable metrics. Where possible, deliverables occur early in the planning period to ensure actual housing outcomes. Strategies are in short-term, medium term or annual/ongoing DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-4 City of San José Draft Housing Element, rev. June 2023
in Implementation Tables 3-7, 3-8 and 3-9. Strategies include “Timing” information to indicate either the calendar or fiscal year in which staff anticipates the work would be completed. The exception to this rule is for initiatives which are ongoing, such as advocacy for additional resources, which span the entire sixth cycle period.
The “Geo” column in the tables below demonstrates the geographic areas of impact for each strategy. The areas are indicated as follows:
Abbreviation Meaning
CW/No Citywide or no specific geography
Site Site specific (described in item)
LMI Low-mod census tracts
RECAP R/ECAPs
RCAA RCAAs
High High and Highest Opportunity tracts per TCAC/HCD
Low Low Opportunity tracts per TCAC/HCD
NSJ North San Jose
UV Urban Villages
Red Formerly redlined neighborhoods
DT Downtown
DTW Downtown West
UDP
Census tracts (per UDP analysis) identified as at risk of displacement or where displacement is occurring
City departments that would undertake the strategies work are identified, and outside partner agencies are also mentioned as in the text as appropriate. City departments are abbreviated as follows:
• Budget = City Manager’s Budget Office
• CAO = City Attorney’s Office
• CMO = City Manager’s Office
• DOT = Department of Transportation
• ESD = Environmental Services Department
• Fire = Fire Department
• Housing = Housing Department
• IGR = City Manager’s Office of Intergovernmental
Relations
• OEDCA = City Manager’s Office of Economic
Development and Cultural Affairs
• OEM = City Manager’s Office of Emergency
Management
• ORE = City Manager’s Office of Racial Equity
• PBCE = Department of Planning, Building, and
Code Enforcement
• PRNS = Department of Parks, Recreation, and
Neighborhood Services
• PW = Public Works Department
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-5 City of San José Draft Housing Element, rev. June 2023
3.1 Goal 1: An abundant and affordable housing stock
Housing is essential to a healthy life and must be available to everyone at a reasonable cost. San José needs to support the creation of enough homes over the next eight years to ensure there is an affordable home for every household. While the City does not itself build homes, t he City can create policies and programs that increase the rate at which homes are built and ensure a diversity of housing types to meet different needs.
Goal 1 strategies focus on both market-rate and affordable housing production (Table 3-1) and preservation (Table 3-2).
Table 3-1: Production of Market-Rate and Affordable Housing
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS P-1 Align zoning with the General Plan - Align zoning with General Plan designations for all sites planned for housing by April 2024. 1 Need for housing
production
Housing Crisis Workplan PBCE CW/No 2024 Council approval of zoning changes
P-2 Subsidize extremely low-income housing including permanent supportive housing for homeless - Continue to prioritize funding to create affordable homes for extremely low-income individuals and families, including permanent supportive housing for people experiencing homelessness, to meet the needs of the community and create more balance in the affordable housing portfolio. To that end, the City will actively pursue local, state, and federal funding sources to support these efforts.
1, 2 Need for affordable
housing for
extremely low-
income households
Need for housing
and services for
people experiencing
homelessness
Focus groups:
• Veterans
• Formerly homeless
• LGBTQ+
• Indigenous Peoples
• Persons with
Disabilities
Working groups:
• Rental access
• High-opportunity areas
Housing Element
community meetings on
goals / strategies
Housing CW/No Ongoing
2023-31
Dec 2031: 45% of
City capital
subsidies spent
on ELI and PSH
Dec 2031: 1,200
ELI affordable
homes created
Dec 2031: Pursue
and apply for a
minimum of 3
funding
opportunities
during the
planning period
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-6 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS P-3 North San José Affordable Housing Overlay Zones -
• Identify areas for housing to be integrated into North San José and propose changes to the General Plan, zoning code, and Rincon South Urban Village Plan to facilitate the production of all 24,000 planned housing units in North San José.
• To integrate affordability, identify North San José-specific Affordable Housing Overlay Zones that support only Industrial uses, 100% affordable housing, or market-rate housing that integrates affordable units into their developments.
• Rezone identified sites in the North San José Affordable Housing Overlay Zones through the Sites Inventory rezoning process. Sites that are rezoned are subject to the requirements of Government Code Section 65583.2, subdivisions (h) and (i), including:
o By-right permitting of owner-occupied and rental multifamily uses for developments in which 20 percent or more of the units are affordable to lower-income households
o A minimum site capacity of 16 units
o A minimum density of 20 units per acre
o At least 50 percent of the shortfall of low-and very-low RHNA can be accommodated on sites designed for exclusively residential uses or if accommodating more than 50 percent of the low-and very-low RHNA on sites designated for mixed-uses, all sites designated for mixed-uses must allow 100 percent residential use and require residential use to occupy at least 50 percent of the floor area in a mixed-use project.
• Communicate to the development community about the new program. 1, 4
Lack of affordable
housing units
Need for
economic
diversity in North
San José
Support from AFH
Advisory Committee to
change zoning, land use
laws, and land use
overlays for multifamily
housing development
PBCE NSJ 2024 Jan 2024: Council
approval of
General Plan and
Zoning Code
Amendments
P-4 Affordable housing tools for North San José -
• Produce an analysis of new programs and tools to help ensure 20% of all North San José homes are restricted affordable for lower- income residents.
• Conduct a feasibility study to examine the affordability levels that would be feasible for developers to construct affordable homes on- site, both standalone and combined with a proposed North San José Density Bonus program.
• Create a North San José Affordable Housing Implementation Plan that identifies strategies and projects affordable units created through these 5 Lack of affordable
housing for lower-
income
households
Need for
economic
diversity in North
San José
Rental production focus
group
Housing Crisis Workplan
Housing,
PBCE
NSJ 2024-26 2024: Study
created
Creation of draft
tools
Council approval
of tools
2025: Creation
of Plan
Council approval
of Plan
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-7 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS tools and City subsidy.
P-5 Affordable Housing Investments in North San José -
• Direct City resources to help ensure 20% of all North San José homes are restricted affordable for lower-income residents.
• Prioritize City land acquisition in North San José for future 100% affordable housing new construction opportunities, then conduct Requests for Proposals to award land control through ground leases to developers.
• Ensure that affordable development proposals in North San José are prioritized with the City’s funds.
1, 5 Lack of affordable
housing for lower-
income
households
Need for
economic
diversity in North
San José
AFH Advisory Committee
From Housing Crisis
Workplan
Housing NSJ 2023-31 800 restricted
affordable homes
2 of sites acquired
4 RFP awards &
groundleases to
affordable
developers
P-6 Regular coordination meetings for affordable housing - To facilitate and speed the construction process for affordable housing, continue Housing Navigator services to coordinate construction-related permits, inspections, and other post-entitlement processes across departments for affordable housing developments, and with external parties such as utilities and other public agencies required to sign off on construction completion.
1 Delays due to
need to
coordinate, not
understanding
deadlines, and
unclear
processes of
departments and
external agencies
Supported at Housing
Element goals/ strategies
community meetings
Consistent with Housing
Crisis Workplan
OEDCA,
PBCE,
Housing,
PW, DOT,
Fire,
PRNS
CW/No 2023-31 Housing
Navigator
budgeted
annually
# affordable
housing
developments
assisted
P-7 City ministerial infill approval ordinance -
• Adopt and implement a City Ministerial Infill Housing Approval Ordinance to streamline approval of infill housing developments that meet objective development standards without public hearing, include deed-restricted affordable units on-site and qualify for a CEQA infill exemption.
• Make minor revisions to the municipal code to facilitate use of the CEQA exemption for infill development, in order to reduce project timeframes.
1, 4 Delays due to
need to
coordinate, not
understanding
deadlines, and
unclear
processes of
departments and
external agencies
Ease infill housing
development
processes to
increase
development
Working groups:
• Housing production
• Rental access
PBCE CW/No 2025 Dec 2024: Council
approval of
Ordinance
Jan 2025:
Outreach to
developers
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-8 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS P-8 General Plan Amendment to remove commercial requirements for affordable housing – Strategy removed as this work was completed in December 2022.
P-9 Diridon affordable housing production goal - Actively subsidize and effectuate production of affordable housing in the Diridon Station Area to achieve the City’s goal of at least 25% of housing in this area being restricted affordable by the time of full Station Area build-out. 1, 5 Lack of affordable
housing. Need for
affordable housing
near transit center
From Diridon Affordable
Housing Implementation
Plan
Supported by disability
community comments
Housing DTW 2023-31 By the later of
Diridon Station
Area Plan
buildout or 2040:
25% of homes in
Station Area as
restricted
affordable
Annual goal: Fund
an average of 61
new affordable
homes
By 2031: 350
affordable homes
funded by City
P-10 Standardize and streamline permitting, fees, applications • Standardize fees through the Development Fee Framework to provide transparency and speed for developers and provide clarity to City decision makers on cost implications of housing development fees. • Create webpage with development-related fees and taxes with a staff contact.
• Continue to improve the City’s land use and permitting approval processes to reduce developers’ time and cost spent in
predevelopment.
1 Cost and
delay of City
permit
processes
and
entitlements
Housing production
working group
Developer focus groups
PBCE,
OEDCA
CW/No 2024
Policy resolution
to Council on
Fee Framework
Fees webpage
created
Development
applications
tools improved
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-9 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS P-11 Explore Allowing “SB 9” Type Housing on Additional Properties Examine allowing SB 9-type projects on properties zoned R-2 Two Family and properties listed on the Historic Resources Inventory.
Create design standards and conduct outreach to maximize acceptance of SB 9 developments in single family neighborhoods.
1 Increase
availability of
areas for housing
development,
especially
multifamily
housing
General support for
creating “missing middle”
alternatives from African
Ancestry working group
Consistent with Housing
Crisis Workplan
PBCE Site April
2024
Apr 2024: Council
approval of
zoning code
amendment and
design standards
P-12 Cost of Residential Development Study update - Conduct analysis every 2 to 3 years, or as market conditions warrant, and present to the City Council on the Cost of Residential Development that uses prototypical models of common types of multifamily residential construction in different submarkets within San José. The report will help inform on an ongoing basis governmental and nongovernmental constraints on the production of market-rate and affordable housing in San José. 1 High cost of
housing
development
From Housing Crisis
Workplan
OEDCA,
Housing
CW/No 2023-31
Periodicall
y
Council
presentations
Program or fee
changes
identified and
made per
updated analysis
P-13 Replacement of existing affordable housing units - • To mitigate the loss of affordable housing units, require new housing developments on selected sites to replace all affordable housing units lost due to new development. The City will adopt a policy and will require replacement housing units subject to requirements of Government Code section 65583.2 subdivision (g)(3) on all sites identified in the Sites Inventory when any new development (residential, mixed-use, or nonresidential) occurs on a site identified in the Sites Inventory meeting the following conditions:
1) site currently has residential uses or within the past five years has had residential uses that have been vacated or demolished, and
2) was subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low-income, or
3) site’s residences were subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or
4) site’s residences occupied by low- or very low-income households.
• Create a proposal to present to City Council that makes permanent 1, 5 Loss of affordable
housing stock
Neighborhood equity
working group
PBCE,
Housing
CW/No 2023-24 2024: Council
approval of Policy
Dec 2024:
Proposal created
Developer
guidance created/
improved
Website amended
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-10 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS the replacement housing obligations in Government Code sections 65583.2 subdivisions (g)(2) and (g)(3) per SB 330 and 65915, subdivision (c)(3)
• Streamline the City’s implementation of SB 330’s replacement housing requirements to preserve affordable housing opportunities, such as clarifying requirements for developers to speed the predevelopment process.
P-14 Housing in Business Corridors - Update Zoning Code to allow housing in three Neighborhood Business Districts appropriate for housing (13th Street, Japantown, Willow Glen).
1 Need for housing
production
From Housing Crisis
Workplan
PBCE Site 2024 Nov 2024:
Council approval
of zoning code
amendment
P-15 Moderate-income Housing Strategy - Complete study and implement Council-approved strategy to further rental and homeownership opportunities for moderate-income residents. Obtain Council direction to work on priority programmatic recommendations.
1, 3 Lack of moderate-
income housing
African ancestry focus
group
From Housing Crisis
Workplan
Housing,
PBCE
CW/No 2025 Council approval
of strategy
P-16 Groundleases for affordable housing -
• Require every newly-funded affordable housing development to include a City groundlease structure, or a groundlease from the County or other public entity, to ensure permanent affordability and public site control at key locations throughout the City and to minimize future affordable housing preservation challenges.
• To the extent funding is available, negotiate the purchase of land beneath existing affordable apartments at key locations at the time of refinancing and/or resyndication of tax credits to increase the number of groundleases in the City’s existing affordable housing portfolio. 1 Expiration of
affordability
restrictions
Preservation best
practices
Housing CW/No Ongoing # and %
affordable
developments that
closed construction
with public
groundleases
each year
% of all funded
restricted
affordable
properties with city
or other public
groundleases
# existing deal
land purchases
# affordable units
permanently
preserved
P-17 Affordable Housing Siting Policy – Combined with N-5.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-11 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS P-18 Loans for affordable housing
• Continue to provide land acquisition, construction, and permanent financing for the development of new affordable homes.
• Provide financing for the acquisition/rehabilitation of existing market- rate rental housing to create newly-affordable homes.
• Issue Notices of Funding Availability at least annually for both New Construction and Preservation.
1 Need for
affordable
housing
Focus groups:
• Veterans
• LGBTQ+
• Disability
• Indigenous
Peoples Rental
access working
group
Housing Element goals /
strategies community
meetings
Housing CW/No Annually
2023-31
NOFAs issued
Funds
committed
Affordable
homes created
Affordable homes
preserved
P-19 Expanded City Density Bonus program - Increase the City’s Density Bonus by at least 10% above State statutory requirements, and identify other ways the City’s Density Bonus Ordinance could be expanded to result in more affordable homes, include more pre-approved concessions and incentives, and/or add CEQA clearance.
1 Need for
affordable
housing
Rental access working
group
Housing production focus
groups
PBCE,
Housing
CW/No 2027 Study
completed
Council
approval of
Ordinance
changes
# Affordable
units created
through Density
Bonus
Number of units
by AMI category
P-20 Mixed-income housing -
• Facilitate housing with a range of income levels (from extremely low- to moderate-income and market-rate) at the building level. • Foster mixed-income housing that is 100% restricted affordable at a range of income levels, and facilitate market-rate housing that incorporates affordable homes at the building level.
1, 5 Financial
infeasibility of
affordable
developments
Economic
segregation of
neighborhoods
Stigma concerns
of standalone
affordable
housing
Retained from 5th Cycle
and updated
Housing CW/No 2023-31
# of housing
developments
with market-
rate or
moderate-
income units
and ELI and/or
VLI units
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-12 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS P-21 Special needs housing NOFA –
Issue Notices of Funding Availability (NOFAs) for City funds that incent deeply affordable housing developments that serve Special Needs populations, to the extent the City is allowed under law. Focus on populations and protected classes identified as having highest housing needs versus supply in the Housing Balance Report.
1, 5 Lack of
housing for
special needs
populations
Legal barriers to
providing housing
based on race
Disability focus group Housing CW/No
2023-31 NOFAs issued
Council
commitments
# resulting
affordable units
P-22 Transit-oriented affordable housing near Diridon Station - To integrate restricted affordable housing around the City’s main transit station and maximize competitiveness for State affordable housing funding sources, prioritize sites within a one-half mile walkshed of Diridon Station for affordable housing through NOFA issuances and/or land purchases.
1, 5 Lack of affordable
housing
From Diridon Station
Area Plan
Housing,
PBCE
DTW 2024-31 NOFAs
prioritizing area
P-23 Pursue AHSC funding near Diridon Station –
• Partner with transit agencies and affordable housing developers to apply for State Affordable Housing and Sustainable Communities grants for both affordable housing developments and greenhouse gas- reducing improvements near Diridon Station Area.
• In 2023, actively pursue Prohousing Designation from California Department of Housing and Community Development (HCD) in order to be competitively eligible for additional state funding sources including the Infill Infrastructure Grant, Transformative Climate Communities grant, Solutions for Congested Corridors grant, Local Partnership Program, Transit and Intercity Rail Capital Program, and Prohousing Incentive Pilot Program.
• Use funding to support planning initiatives in the Diridon Station Area. 1, 4 Reduce harmful
environmental
effects of
greenhouse
gases and need
for affordable
homes near
transit to
maximize access
by disabled
residents
From:
Diridon Station Area
Plan Diridon Affordable
Housing Implementation
Plan
Housing,
DOT
DTW 2023-31
By Dec 2031: At
least 2 AHSC
applications
submitted for
affordable housing
near Diridon
5 total funding
applications
awarded for various
initiatives, including
affordable housing
$20 million
leveraged for
planning initiatives
and affordable
homes near Diridon
P-24 Housing on Public/Quasi Public Lands - Focus on school district housing (YOSL) and on sites with houses of worship (YIGBY) is superseded per City Council direction. Instead, City will amend General Plan to allow housing development proposals that are 100% affordable, including at least 25% permanent supportive housing, to proceed on land- 1,4 Need for
affordable
housing
Rental access working
group
Housing production focus
group
PBCE CW/No 2024 Dec 2024:
Council
approval of
General Plan
amendments
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-13 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS designated Public/Quasi Public (PQP)
P-25 Updated Inclusionary Housing program fees - Conduct a fees study to ensure the Inclusionary Housing program remains feasible and does not present a barrier to housing construction. If fees are identified as a barrier, implement recommended policies and programs to remove constraints.
1 High cost of
housing
development
Housing Element
goals/strategies
community meeting
From Housing Crisis
Workplan
Housing CW/No 2027-28 By Jan 2028:
Fees study
produced
P-26 Accessory Dwelling Unit (ADU) Amnesty program - Resume the ADU Amnesty program to waive permit fees and penalties to incentivize homeowners to legalize their unpermitted ADUs that meet or will meet code requirements.
1, 3 Needs include:
• Housing
producti
on
• Safe housing
Low-income
homeowners to
gain wealth by
renting
Retained from 5th Cycle
and updated
Council direction
PBCE CW/No 2024-31 Jul 2024: Program
release
Dec 2031:
Approximately 150
ADUs in compliance
by 2031
P-27 Accessory Dwelling Unit (ADU) affordability - Study the feasibility of an ADU financing program to house low- and very low-income renters.
Within this potential program, seek to incentivize ADU development by low- and moderate-income homeowners as a wealth building strategy that also helps meet housing needs in our market. If feasible and City funding is available, seek external partners to jointly create a financing program for City Council consideration. Review and implement options to encourage ADUs, such as financial incentives, expedited procedures, and affordability monitoring programs.
1, 3, 5 Build wealth
for low-
income
homeowner
s
House low- and
very low-income
residents
Consistent with feedback
from anti-displacement
outreach on need for
income for existing low-
income homeowners
Housing CW/No 2026 Feasibility
analysis
completed P-28 Predevelopment loans - Provide predevelopment loans to assist nonprofit developers of City-owned properties with funds necessary to explore feasibility of proposed affordable multifamily housing. 1 High cost of
housing
development
Retained from 5th Cycle
and updated
Housing CW/No Ongoing
2023-31
5 predevelopment
loans made
1,500
affordable units
assisted
P-29 Fair Housing Equity Analysis for Specific Plans – Combined with S-9
P-30 Updated feasibility study for Commercial Linkage Fee - Ensure funding for affordable housing is being paid per the City’s new Commercial Linkage Fee. Periodically update the feasibility study, 1 Need for
resources for
affordable
From Housing Crisis
Workplan
OEDCA,
Housing
CW/No 2024
or when
trigger is
Dec 2024:
Feasibility study
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-14 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS including geographic analysis, to update fee levels for then-current market conditions. First trigger is fall 2023 or after 1M square feet in executed leases of new construction over 100,000 sq. ft. in the Downtown over more than one building, whichever happens first. Integrate the fee into Development Agreements, as appropriate.
housing
production and
preservation
reached update
Jun 2026: Council
approval of
updated fees
$20M CLF
revenues
collected
60 affordable units
subsidized
P-31 Land acquisition for affordable housing in target locations - Target the City’s land acquisition for affordable housing development in areas close to transit and higher-opportunity neighborhoods.
1, 4 Increase resident
mobility and
access to higher-
opportunity
neighborhoods
Lessen
environmental
impacts of
housing
Retained from 5th Cycle
and updated
Housing CW/No Ongoing
2023-31
# parcels
purchased
# projected
affordable units
assisted
P-32 Higher subsidies per unit - In areas in which affordable housing development will cost more due to higher land costs, smaller buildings, or mid- or high-rise construction, ensure that City subsidies per unit are sufficiently higher so as to not disincentivize building in those areas. 1, 4 Build affordable
housing in areas
of higher
opportunity and
close to transit
Rental access working
groups, housing
production focus groups,
and Housing Element
goals/strategies
community meetings
Consistent with Diridon
Affordable Housing
Implementation Plan
Housing High Annual
NOFAs
2023-31
Ongoing
adjustments to
NOFA/program
guidelines as
needed
P-33 Complete and implement new “Yes in God’s Backyard” (YIGBY) ordinance - Combined with P-24
P-34 Affordable housing funding advocacy -
• Support bond funding initiatives at the County and regional levels to increase the supply of affordable housing production and preservation.
• Sustain advocacy for State and Federal funding programs and advocate for more resources so that they meet the affordable housing production and preservation needs of San José.
For homelessness response, advocate for both operating and capital 1, 2 Lack of funding
for affordable
housing
Lack of funding
for preservation
Lack of ongoing
funding for
homelessness
Focus groups:
• Veterans
• LGBTQ+
• Disability
• Indigenous Peoples
• Formerly homeless
Homeownership working
group
Housing,
IGR
CW/No Ongoing Support letters
issued
Participation on
working groups
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-15 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS subsidies. response
P-35 Small multifamily housing - Allow missing middle housing uses citywide (for buildings with 2-4 units) and in higher-opportunity areas (for buildings with 6-10 units) and potentially provide incentives such as establishing pre-approved plans for these housing types. As directed by the City Council, define design standards and educate the public about financing programs that could result in restricted affordability. 1, 5 Lack of housing
for middle-income
residents
African ancestry focus
group
State Prohousing
Designation Program
PBCE,
Housing
CW/No 2026 Dec 2025:
Feasibility
analysis done
Jul 2026:
Possible
incentives
identified
Oct 2026: Design
standards created
Council approval of
land use changes,
design standards
Jun 2027: Publish
financing
information
P-36 Alum Rock East Urban Village Plan – Complete Alum Rock East Urban Village Plan to facilitate construction of market-rate housing and healthy neighborhoods.
1, 4 Need for more
housing at all
income levels
City’s Housing Crisis
Workplan
PBCE Site 2025 Outreach
conducted
Plan drafted
Aug 2025: Council
approval of Plan
P-37 CEQA analysis for Urban Villages – To the extent funding and capacity exist, conduct program-level CEQA analysis as part of the process of developing or updating Urban Village Plans to help speed developments' timelines on all sites, including those not needed to accommodate the RHNA, and remove barriers to housing production.
1 Environmental
review lengthens
development
timeframes and
increases cost
Developer focus group,
City Auditor report March
2022, State Prohousing
Designation Program
PBCE Site 2027
Dec 2027: Council
approval of CEQA
study
P-38 Adequate sites for lower-income households on nonvacant and vacant sites identified in previous housing element cycles – By January 31, 2024, rezone sites to allow development by-right pursuant to Government Code section 65583.2 subdivisions (c)(3)(A)(B) and (i) when 20 percent or more of the units are affordable to lower- income households
on sites identified in Appendix F, Table B to accommodate lower-income RHNA sites previously identified in the 4th and 5th cycle housing elements’ inventories.
1 Statutory
Requirement,
Government
Code section
65583.2(i)
N/A PBCE CW/No 2023-
2024
By Jan 31, 2024:
Council approval
of zoning
changes
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-16 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS P-39 Replacement unit program for selected sites – Combined with P-13 P-40 Evaluate Urban Village planning process - To streamline the development of urban village plans and unlock more sites for housing beyond those sites need to accommodate the RHNA, evaluate General Plan 2040’s urban village strategy beginning in November 2024 and adopt amendments from the report recommendations in 2025, including but not limited to:
• reducing and consolidating urban village areas
• reev
aluating required components of urban village plans, and • accelerating timelines while still supporting community engagement throughout the process.
As part of a multi-pronged strategy to seek additional funding sources to support the full buildout of unplanned Urban Villages, the City will:
• Achieve Prohousing Designation in 2024 and apply for associated financial benefits to support work in the Urban Villages Recommend the City Council amend the General Plan Policy IP-5.15 in 2024 to encourage the City to identify a stable, internal funding source to cover the majority of the costs for the urban villages’ planning processes, 1 Need to ease infill
housing
development
processes to
increase
development
Developer focus groups PBCE Site 2024-
2026
Present findings
to CED
Committee and
City Council by
2025
A minimum of two
grants secured for
unplanned Urban
Villages by 2031
P-41 Review and Revise Planning Permit Conditions-
Review and revise subjective language used in standard permit conditions for site development permits or conditional/special use permits which are required or housing development with objective development and design standards.
1 Objective
language such as
“mutually
compatible and
aesthetically
harmonious,”
“character of the
neighborhood,” is
potentially not
consistent with
state law and/or
constraining
development,
particularly higher
density or
multifamily
projects.
HCD
PBCE CW/No 2025
Dec 2025: Council
approval of
ordinance
P-42 Group homes for seven or more persons – The City will update the zoning code to be consistent with State and Federal laws and Affirmatively Furthering Fair Housing (AFFH) by ensuring that group homes serving 1 Addressing
barriers to the
development of
PBCE CW/No 2024 Dec 2024: Update
ordinance
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-17 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS seven or more persons are subject only to the generally applicable, non- discriminatory health, safety, and zoning laws that apply to all single- family residences.
special needs
housing
P-43 Update City Density Bonus – Review and if necessary, update City Density Bons Ordinance to be consistent with current State Density Bonus Law.
1 HCD PBCE Site 2024 Dec 2024: Council
approval of
ordinance
amendments
P-44 Urban Villages - Conduct an in-depth mid-term evaluation of actions that incentivize or remove constraints on Urban Villages, including effectiveness, and commit to making adjustments within a specified time period.
1 HCD PBCE Site 2027 Completion of
evaluation
P-45 Pipeline Projects Evaluation - conduct a bi-yearly evaluation of Pipeline projects to determine if inventory buffer can accommodate projects that do not commence to building permit stage.
1 HCD PBCE CW/No Ongoing Present findings
during housing
element annual
reporting period
P-46 Rezoning Program for Shortfall, low income sites - The city will rezone sites identified in the Sites Inventory, Table B, pursuant to Housing Element Law (Gov. Code 65583.2 (h) and (i)). The rezoning program will be consistent with the following: 1. By right approval: The zoning must allow for by-right approvals if at least 20% of the units in a project are affordable to lower income households and the project does not need a subdivision. See below for definition of “by right.” 2. Limits on small sites:
The site must be large enough for at least 16 units under the rezoning. 3.
Minimum 20/30 units per acre: The zoning must allow at 30 units per acre.
4. Limits on mixed-use development: Specifically, the jurisdiction must meet one of the two following conditions: 1. At least half of the lower income units must be placed in zoning districts that are exclusively residential, or 2. The rules must allow for 100% residential development and must require that the proposed development be at least 50% residential by floor area.
1 HCD PBCE CW/No 2024 Council approval of
rezoning ordinance
changes
P-47 Accessory Dwelling Unit (ADU) Monitoring and Ordinance Compliance
• Record progress in ADU goals on the housing element APR by April 1 of each year and frequently monitor (e.g. every two years) ADU production and affordability levels and adjust assumptions to meet desired goals
• If ADU production or affordability is below the projected annual average, market the ADU program in the City’s newsletter and 1 HCD Housing CW/No Ongoing Jan 2024: SLA
activities completed
Dec 2025: Notices
of Availability issued
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-18 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS associated publications for one year, or until publication exceeds the projected annual average, whichever is longer.
• If after the first 2 years, ADU production is 25% below the projected annual average, staff will identify additional sites to meet the City’s RHNA obligation, in proportion to the expected deficit and process required General Plan or other zoning code amendments within one year of the determination of the shortfall.
• Within six months of HE adoption, the City will update the City’s ADU ordinance to be in compliance with state law.
P-48 Implement Surplus Land Act (SLA) – For City-owned parcels, including those in the Sites Inventory, the City will:
• Facilitate development in the planning period of these sites, including by removing barriers to development of these sites in order to prepare them for lease, issue requests for proposals, and provide incentives to further promote these sites including but not limited to: fee waivers, priority processing, and financial assistance.
• Adhere to all of the requirements of the Surplus Land Act (Government Code, Title 5, Division 2, Part 1, Chapter 5, Article 8, commencing with Section 54220) when preparing sites for disposition.
These requirements include holding a public hearing and conduct associated outreach to notify the public that the properties have been designated “surplus” under State law. The City will then send a Notice of Availability to all required parties regarding the availability of these sites for leasing.
1 HCD PBCE CW/No Ongoing Jan 2024: SLA
activities completed
# Notices of
Availability issued
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-19 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS R-1 Monitor at-risk affordable units -
• Proactively assess and monitor affordable units at risk of losing affordability by 2031, and reach out to property owners, tenants, and qualified entities to negotiate and assist in preserving existing affordable homes.
• Enlist consulting assistance to create and update risk assessment reports regularly.
• For properties at-risk, contact property owners within one year of the affordability expiration date to discuss the City’s desire to preserve the units.
• Jointly explore funding sources and other options with property owners to preserve the affordability of the units with long-term covenants.
• Coordinate with property owners to ensure notices to tenants are sent out at 3 years, 12 months, and 6 months, as required by state law.
• Provide other technical assistance, as feasible, to assist in developing, financing, or supporting preservation efforts. 1 Loss of existing
affordable housing
units
Displacement
prevention
Equity working group Housing CW/No Updated
reports
by 2024
and
2028;
coordina
tion and
noticing
as
required
2024, 2026, 2028,
2030: Creation of
risk-based reports
10 meetings held
By 2031: 600
existing at-risk
units preserved
R-2 Establish a Preservation NOFA -
• Establish a regular housing Preservation program, including an annual funding allocation averaging at least $5 million (dependent on funding availability), funding priorities, underwriting guidelines, Notice of Funding Availability (NOFA) scoring framework, NOFA issuances, and ongoing workplan.
• Eligible Preservation activities should include acquisition and rehabilitation of existing market-rate housing, community land trusts’ rental housing acquisition, and other nonprofit-led alternative homeownership models.
• Create a staffing plan for a Preservation team to underwrite, fund and facilitate Preservation deals, and request staffing through the city budget process when ongoing sources of funding are available for this work.
1 Lack of
affordable
housing
Lack of funding for
preservation
Displacement
prevention
Neighborhood equity
working group
Housing Element
strategies/goals
community meeting
From Citywide Anti-
Displacement Strategy
Housing
CW/No First
NOFA
2024
Jun 2024: Program
guidelines
completed
by Dec 2024: First
NOFA issued at
least every other
year (i.e., at least 4
NOFAs during the
Sixth Cycle
compliance period)
$5M average
available per year
per NOFA
By 2031: At least
110 units of
newly-restricted
affordable housing
Table 3-2: Preservation of Market-Rate and Affordable Housing DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-20 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS acquired by
nonprofits and
rehabilitated
through City and
external funding
R-3 Diridon Preservation Pilot -
• Create and fund the Diridon Preservation Pilot Program for the area around the Diridon Station Area.
• Issue Notices of Funding Availability to enable developers to acquire, rehabilitate and make affordable market-rate properties appropriate to preserve as the Station Area develops.
• Identify buildings’ desired physical profiles depending on location and development potential to help maintain buffer areas between dense Station Area developments and surrounding low-rise neighborhoods.
1, 4 Lack of funding
for preservation
Lack of
affordable housing
Displacement
prevention
From Diridon Station Area
Plan
Housing,
PBCE,
OEDCA
DTW 2025 Jan 2025: Pilot
creation
City Council
approval of pilot
By Dec 2025:
NOFAs issued
By Aug 2026:
Council approval of
funding
commitments
55 homes
preserved through
acq/rehab in
defined area around
Diridon Station Area
R-4 Implement the Community Opportunity to Purchase Program – The City Council voted 7-4 to reject the proposal and directed staff to stop work on this program. Program has been removed.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-21 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS R-5 Acquisition Loan Fund –
Work with external funders to identify and/or establish sources of reliable acquisition financing that work together with City preservation Notices of Funding Availability, with the goal of preserving low-cost housing, creating more restricted affordable multifamily properties, and stabilizing low-income renters who are disproportionately people of color.
1 Lack of affordable
housing
Loss of existing
affordable housing
Displacement
prevention
Supported by Rental
access working group,
Neighborhood equity
working group, Housing
Element goals/ strategies
community meetings.
In Housing Crisis Workplan
Housing CW/No 2026
Request for
Proposals issued for
partner lender(s) if
needed
Loan product defined
and rolled out
# units acquired with
Loan Fund(s)
R-6 Mobilehome Park General Plan designation for remaining 56 mobilehome parks –
Apply the Mobilehome Park Land Use Designation through City- initiated General Plan Amendments to the remaining 56
mobilehome parks, and rezone the sites, to promote preservation, public input, and transparency on any future mobilehome park conversion proposals.
1 State law regarding
zoning consistency
and transparent
public process for
any conversion
proposal of this finite
housing stock.
Displacement
prevention
From Housing Crisis
Workplan
PBCE CW/No June
2024
2024: Council
approval of General
Plan Amendments
and rezonings; 13
mobilehome parks
with new land use
designation by Jan
2024; remainder by
June 2024
R-7 Extension of affordable housing restrictions –
Preserve existing deed-restricted affordable housing for properties in the middle of their affordability terms by routinely negotiating to extend the City’s affordability restrictions in return for the City’s amended loan terms or other actions on properties in its existing portfolio. 1 Expiration of
affordability
restrictions in
affordable
housing stock.
Displacement
prevention
LGBTQ+ focus group,
Disability focus group,
Veterans focus group and
Indigenous Peoples focus
group
Housing CW/No Ongoing
By 2031: preserve
affordability for at
least 900 units in the
middle of their
affordability terms
(average of 112 units
per year)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-22 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS R-8 Work with the Bay Area Housing Finance Authority (BAHFA) on Moderate-income Financing Strategy –
Advocate for legislation and work regionally with partners to create and/or use a JPA-issued bonds product that supports moderate- income housing and deeper affordability, controls escalation of rents, and delivers sufficient public benefit.
1 Need for
moderate-income
housing and rent
stability
From Housing Crisis
Workplan
Housing,
OEDCA,
Finance
CW/No 2027 2027: If
product is
defined and
feasible,
request
Council
approval for
structure
By 2031:
Complete at
least 2
transactions
if feasible
# newly-affordable
homes at each
income level
R-9 Creation of a Preservation Policy –
Create a community-informed Preservation Policy statement for Council consideration that establishes a goal of preserving existing affordable and low-cost housing and helping to prevent
displacement, to inform programs, resources, and development of policy decisions.
1, 3 Lack of those most
affected voice in
decision making
processes.
Lack of meaningful
community input on
City programs and
policies.
From Citywide Anti-
Displacement Strategy.
Supported by neighborhood
equity working group
Housing CW/No By 2024
Council approval of
Policy
R-10 Mobilehome park local inspections-
Strategy has been removed based upon feedback from local mobilehome owners, the Golden State Manufactured and Mobilehome Owners League (GSMOL), and commissioners on the Housing and Community Development Commission.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-23 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS R-11 Owner-occupied home preservation –
To physically preserve existing homes, continue to fund urgent home repairs for low-income homeowners, many of whom are seniors, through nonprofit partners as funds are available.
1 Need to assist
lower- income
homeowners with
urgent repairs.
Retained from 5th Cycle and
updated
Housing LMI 2023-31 1,600 low-income
households assisted
R-12 Revised Citywide Residential Anti-Displacement Strategy – Update the current Anti-Displacement Strategy approved by the City Council in 2020 to integrate preservation activities and remove completed priorities. Evaluate effectiveness of existing tools, obtain ongoing best practices information from like-minded cities, obtain feedback on priorities from San Jose stakeholders, and seek City Council approval for revised anti-
displacement and preservation policies
or programs to pursue.
3, 1, 4 Prevent
displacement of
residents and
coordinate efforts to
do so.
Supported by neighborhood
equity working group.
Housing UDP 2024-29 Best practices
researched
Outreach
conducted
Strategy drafted
2028: Council
approval
R-13 Soft Story program –
Develop a 'soft story' seismic mitigation ordinance for older multifamily buildings with weak and/or open frontlines, which have a higher likelihood of collapse during an earthquake and a high likelihood of being rent stabilized. Create an implementation process and incentive retrofit program that increases renters' safety and considers equity issues for lower-
income renters, minimizing their risk of displacement as a result of construction and rent increases.
1,3 Need for safe, lower
cost housing stock
Displacement
prevention
State guidelines on
remedying condition
problems in existing housing
PBCE,
Housing,
Office of
Emerge
ncy Mgt
CW/No 2024 Outreach
conducted
Ordinance and
program drafted
Council approval of
Ordinance and
program
Rebate program
launched
# buildings
receiving retrofits
$ funded for
rebates
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-24 City of San José Draft Housing Element, rev. June 2023
3.2 Goal 2: Sufficient housing for people experiencing homelessness The homelessness crisis in San José and across the Bay Area is growing. In Santa Clara County, people experiencing homelessness were shown in 2020 to be disproportionately Black/African American, American Indian/Alaskan Native, and Hispanic/Latino/a/x. The City is focused on implementing strategies from the Countywide Community Plan to End Homelessness.
The strategies under Goal 2 (Table 3-3) include providing permanent and temporary housing for people experiencing homelessness, funding the delivery of services to people without homes and in service -enhanced housing, and helping to prevent people from becoming homeless. With its partners across the County, the City seeks to do this work with an equity lens, centering the experiences of those with lived experience in homelessness.
Table 3-3: Housing and Systems for People Experiencing Homelessness
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS H-1 Interim homeless housing construction –
Complete construction of emergency interim housing
development in the Civic Center and Rue Ferrari areas.
Seek ongoing funding from the State and Federal
governments to pay for operations and services for the
City’s emergency interim housing units and shelter
beds.
2 Lack of emergency
housing
Lack of shelter beds
LGBTQ+ focus group for
increase in shelters
Formerly incarcerated
focus group for increase
in transitional housing
Revised from 5th cycle
Housing Site 2025 2025: Units completed
Funds obtained for
operations & services
H-2 Interim housing for people experiencing
homelessness in hotels/ motels and other existing
buildings –
Continue to use hotels and motels and other existing
residential properties to provide supportive housing for people experiencing homelessness and seek additional
Homekey funding from the State for both capital
improvements and ongoing operations costs.
2 Lack of supportive
and transitional
housing
LGBTQ+ focus group for
increase in shelters
Support from formerly
incarcerated focus group
for increase in transitional
housing
Revised from 5th cycle
Housing CW/No 2023-31 At least one property newly
acquired
At least five properties
operated
At least $19M of new
Homekey awards accepted for
acquisition/rehabilitation
At least 280 residents housed
H-3 Conversion of hotels/motels for homeless housing - This work is part of H-4, and so has been deleted.
H-4 Shelters streamlining throughout the City –
Combined with H-14.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-25 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS H-5 Low-cost permanent housing solutions –
Removed due to lack of constraints for low-cost permanent housing per constraints analysis.
H-6 Housing with integrated health care –
In coordination with County Behavioral Health, Santa Clara Valley Health and Hospital System, and health plans in the region, seek to generate new housing opportunities that integrate health care for the complex needs of people
currently or formerly experiencing homelessness.
2, 1 Need for services-
enhanced housing
for people
experiencing/ed
homelessness
Consistent with
Community Plan to End
Homelessness
CMO,
Housing
CW/No 2025-31 By 2031: At least one new
development with on-site
health services
H-7 Safe/supportive parking programs –
Operate overnight and 24-hour safe parking programs for both RVs and car vehicles and other emergency shelter
options and seek permanent funding sources for these uses. 2 Lack of shelters
and emergency
housing for people
experiencing
homelessness
LGBTQ+ focus group
Public meetings on
strategy ideas
Retained and revised
from 5th cycle
Housing CW/No 2023-31
At least 45 safe
parking created for
RVs and car vehicles
At least $1.7M spent
on safe parking site
preparation
At least $1.2M spent
per year on safe
parking operations
and services
H-8 Nonprofit-provided homeless support services -
Continue to fund nonprofit agencies that provide services to people who are homeless or at risk of becoming
homeless, with highest priority to those most in need at or below 30% of the Area Median Income. Funding would
support programs including, but not limited to, those that prevent and end homelessness, and those that provide
case management and services for formerly unhoused
residents in permanent supportive housing, interim
housing, and shelters.
2 Need for housing
and services for
people experiencing
homelessness
Veterans focus group and
formerly homeless focus
group
Housing Element goals/
strategies community
meeting
Retained from 5th cycle
Housing CW/No 2023-31 Funding to nonprofit service
providers
# people assisted
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-26 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS H-9 Street-based services for unhoused residents -
• Fund street-based services such as outreach, hygiene
services, behavioral health, and transportation options to meet the needs of unsheltered residents.
• Use input from persons with lived experience to help
define what services should be available.
• Advocate for ongoing funding from the state and Federal governments for this purpose.
2 Lack of services
for unsheltered
residents
Focus groups: Veterans,
Disability, LGBTQ+,
Indigenous Peoples,
African ancestry
Housing Element
goals/strategies
community meetings
Consistent with
Community Plan to End
Homelessness
Housing,
IGR
CW/No 2023-31 Funds budgeted
Services provided
# of clients served
H-10 Racial and other bias of protected classes in
homeless shelter and supportive housing systems -
Increase access to homeless shelters and permanent
supportive housing for people experiencing homelessness who are in protected classes by examining data on city- funded shelters and permanent supportive housing
developments, and collaborating with the County, to
identify systemic racism and patterns of other biases of protected classes.
2 Racism and bias
within administration
and operation
creates harm and not
serving population
disproportionately
people of color
Support by formerly
homeless focus group
and LGBTQ+ focus group
Consistent with
Community Plan to End
Homelessness
Housing CW/No 2027 Dec 2023: Meet with County,
service providers and property
management staff on
accessing data
2024, 2027, 2030: Collect
data, analyze data
Within 12 months following
each analysis completion:
Work with partners annually to
provide technical assistance
sessions as needed to ensure
the City is meeting its AFFH
obligations
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-27 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS H-11 Feedback from those with lived experience in
homelessness in decision making -
• Create additional feedback mechanisms for clients with lived experience of homelessness on how programs are
serving the needs of this population.
• Integrate requirements into City-funded contracts for grantees to create feedback mechanisms.
• Work with the Lived Experience Advisory Board,
composed of residents who have experienced
homelessness, to evaluate key City-funded services and
initiatives, including encampment support, street
outreach, referrals to new housing opportunities,
shelters, emergency interim housing provision, and/or
existing permanent supportive affordable housing.
2 Lack of participation
from those with lived
experience in City-
led decision-making
processes
Supported by LGBTQ+
focus group with a focus
on LGBTQ+ persons,
compensating people for
their time and refrain from
tokenization
Consistent with
Community Plan to End
Homelessness
Housing CW/No 2024-31 2023-2031: Staff to
attend meetings of
LEAB or other lived
experience groups at
least once a year to
ask for feedback on
program priorities
Jul 2024: Identify
universe of
applicable contracts
and timeline for
renewals
Jun 2025: Contracts
renewed amended to
include consultative
language, and
include in newly
awarded contracts
By Dec 2025: Goal of 90%
of homelessness contracts
with amended language
requiring lived experience
consultations
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-28 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS H-12 Neighborhood outreach and education on homeless
housing and other housing topics -
• Work with partners countywide on a community-based
outreach campaign to promote dialogue and greater
understanding of these issues. Outreach would focus on:
1) the root causes of homelessness and different
housing approaches for people experiencing
homelessness
2) controversial housing topics related to equity and
protected classes.
• Focus community outreach in areas experiencing
growth.
• Pursue ongoing funding to compensate community-
based organizations and advocates to conduct outreach.
• Create content and outreach materials, post on City’s website and establish regular cycles of issuing low-
barrier Requests for Qualifications, identifying outreach partners, conducting regular trainings, and holding
feedback and support sessions with outreach partners.
2, 5 Public opposition to
housing strategies
Public interest in
effective
homelessness
response strategies
Strong support at
Housing Element goals
& strategies community
meetings
Housing,
CMO,
PBCE
CW/No 2024-31
Materials prepared
CBOs under contract
Funding allocated
Households outreached to
Feedback sessions held
H-13 Regional homeless response coordination and
planning –
In cooperation with the County of Santa Clara, Destination:
Home, and other community partners, seek City Council
approval of the City’s implementation plan for the 2020-25 Community Plan to End Homelessness in Santa Clara
County.
2 Address impacts of
homelessness
Veterans focus group,
LGTBQ+ focus group,
High opportunity working
group and Schools focus
group
Revised from 5th cycle
CMO
Housing
CW/No 2023 Council adoption of City’s
implementation plan
H-14 Emergency Shelters –
• Due to inadequate capacity to accommodate homeless
population, update the Zoning Code to identify additional zones, in addition to Combined Industrial Commercial
(CIC), where emergency shelters are permitted by right
• Review and ensure compliance with the requirements of Government Code Section 65583 (AB 2339). If
amendments are necessary, the City will revise the
zoning code within one year of Housing Element
adoption.
2 Inadequate shelter
capacity to address
the need for
emergency housing
HCD PBCE CW/No 2024 2024; necessary code
amendments to comply with
AB 2339 within one year of
HEU adoption
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-29 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS • Conduct outreach to homeless shelter providers to
determine additional process changes that the City can
incorporate to further facilitate emergency interim
housing and homeless shelters.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-30 City of San José Draft Housing Element, rev. June 2023
3.3 Goal 3: Housing stability and opportunities to build wealth for all residents With the Bay Area’s housing crisis and the COVID-19 pandemic, renters have experienced far more recent instability and displacement than homeowners.
Tenant protections can help ensure that renters are not displaced by unfair practices, speculation, demolition, or other factors. Residents able to purchase a home can achieve housing stability, build equity, and pass down intergenerational wealth to future generations. Unfortunately, homeownership is out of reach for a large proportion of San José households with June 2022 median sales prices of $1.56 million for detached single family homes, and $826,000 for condominiums and townhomes.
Goal 3’s strategies (Table 3-4) focus on ensuring that all forms of tenure, including ones not common today, can provide households with stability and the foundation for a better life. These strategies address renter stability and access, fair housing, tenant protections, and wealth building. [Also note that while Preservation activities that keep existing residents in place are also housing stability measures, Preservation activities are shown under Goal 1 above.]
Table 3-4: Housing Stability, Tenant Protections, and Wealth Building
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-1 Tenant Resource Centers and violations reporting –
• Incorporate Code Enforcement and Apartment Rent
Ordinance violation reporting procedures as part of
expanded tenant resource centers, including allowing
for tenant associations to report such violations on
behalf of tenants.
• Assist residents to learn how to file Code complaints and look up their status online in fixed or mobile
Centers to help make the process more transparent.
Improve coordination between Rent Stabilization
Program and Code Enforcement staff and meet
regularly.
• Identify additional funding and potentially additional staff to support Tenant Resource Centers.
3 Fear of retaliation by
tenants to report code
violations
Need to make code
enforcement processes
widely available to ensure
safe living conditions
Suggested by
neighborhood equity
working group
Housing,
PBCE
CW/No 2023-25 Tenant resource
centers with Code
assistance
# residents assisted
# Housing/Code
meetings held
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-31 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-2 Rental property registry improvement –
Ensure that all permitted, rented residences in San José are registered with the City to aid in communications about renter resources and to ensure safety in emergency
situations.
3 Need to contact renters in
emergency conditions
Difficulty communicating
with renters
Supported by
neighborhood equity
working group and
rental access equity
group
Housing,
Finance,
PBCE
CW/No 2025-28 % of City's rental
units registered
S-3 Proactive Code enforcement in identified Project Hope Place-based neighborhoods –
Proactive code enforcement helps to prevent the decline and deterioration of aging rental stock, reduced blight conditions, and reduce likelihood of complaint-based
evictions. Continue to implement the Multiple Housing
Inspection Program citywide, with inspection frequency
determined by severity of violations (Tier 1, 2 and 3). In addition, fund enhanced proactive inspections in Project Hope and other low-income communities of color with
federal CDBG funds or other funds as available.
3 Decline and deterioration
of aging housing stock
Fear of retaliation by
tenants for reporting
housing code violations
Targeted investments in
under-invested
neighborhoods
General support for
ensuring safe housing
conditions from equity
working group and in
Citywide Anti-
Displacement Strategy
outreach
PBCE CW/No Ongoing
2023-31
Annually through
2031: At least 3
neighborhoods
covered with
enhanced
multifamily
inspections
Annually through
2031: Average 200
250 units per
neighborhood
inspected per year
(total 600 750 units
per year)
# of violations
resolved within 150
days each year.
Target of 2000
(includes mostly
housing violations
and some blight)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-32 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-4 Updated relocation assistance –
In Phase 1, update the City's municipal code to ensure that compensation given to residents for potential displacing events -- noticing, relocation payments, housing search assistance, the replacement of affordable units, and a right of return -- matches or exceeds any state requirements, is sufficient given current housing costs, and is consistent across City programs. In Phase II, create a program of
regular updates, and consider amendments that cite
housing cost data sources to enable the code to move with the market.
3 Cost burden to tenants
when forced to relocate
exacerbated by high local
housing costs
From Citywide Anti-
Displacement
Strategies
Supported by
neighborhood equity
working group
Housing,
PBCE,
CAO
CW/No Phase 1 by
2024
Phase 2 by
2027
Analysis complete
Stakeholder
outreach on cost
escalators and
proposed changes
Council approval of
code updates
S-5 Code enforcement improved case management -
Implement a new Code Enforcement case management
system for improved violation tracking to identify properties more easily with the most serious safety violations. Use the information to better educate the City's building
preservation efforts.
3 Need to strategically
allocate limited code
enforcement capacity
Unsafe housing conditions
in housing stock
From Citywide Anti-
Displacement
Strategies
Supported by
neighborhood equity
working group
PBCE,
Housing
CW/No Phase 1 by
2026
Phase 2 by
2028
Jan 2026: Phase 1 -
New Case
Management
System
Implemented.
Violation tracking
system in place
Jan 2028: Phase 2 -
Analysis of building
performance
complete
Jan 2029: Phase 3 -
Stakeholder
outreach on cost
escalators and
proposed changes
Council approval of
code updates (if
any)
Jan 2030: Phase 4 -
Implementation
complete
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-33 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-6 Proactive Code enforcement for more rented
residences –
Create a study on the cost, needed staffing, potential
timeline for expansion, and other resources needed to
expand the types of housing units covered by proactive
code inspections which help avoid complaint-based
evictions. Units include rented single family homes,
duplexes, condominiums, and/or townhomes. Bring a
recommendation to City Council if needed resources can
be identified.
3 Retaliatory evictions from
Code complaints of
renters
Physical condition
problems in existing
rented units of all kinds
Anti-displacement best
practices from
PolicyLink focus on
proactive code
enforcement. Included
in Citywide Anti-
Displacement
Strategies (#6C)
Supported by
neighborhood equity
working group
PBCE CW/No 2025-27 June 2025:
Complete study
Dec 2025:
Recommendation to
City Council if
feasible
S-7 Financial literacy programs for potential homebuyers – Identify funding for nonprofit organizations to educate homebuyers on the homebuying process, homeownership
responsibilities, and financial literacy. Identify funding for nonprofit organizations to deliver pre- and post-purchase homeownership counseling, and target services to lower- income protected class buyers to help them attain and stay in homeownership.
3, 5 Needed preparation and
support for first-time
homebuyers
Supported by
attendees of HE
goals/strategies
community meeting,
African ancestry focus
group
Housing CW/No 2026-31 Services provided
Budget allocated
# buyers assisted
S-8 Homebuyer program redesign –
• Create feasibility analysis and plan to redesign the
City's homeownership programs to have better reach
to underserved populations.
• Programs would include City downpayment
assistance to homebuyers, pre- and post-purchase
housing counseling, affirmative marketing to
underserved populations, alternatives to fee simple
homeownership (such as community land trusts,
limited equity cooperatives and long-term tenant
leases with wealth accumulation program), funding
sources for program offerings, and evaluation metrics
for assessing the impact on closing racial
homeownership gaps.
• Target market programs through outreach in formerly
redlined neighborhoods.
• Include protected class demographic information as
part of all City-funded homeownership programs.
• Analyze and report on data regularly to determine
3, 5 Lack of protected class
data of who has benefitted
from City's
homeownership programs
Need to increase
homeownership rates for
protected classes
Supported by African
ancestry focus group,
homeownership
working group, schools
focus group, equity
organizations, and
Indigenous focus
group
Housing CW/No 2027 2026: Feasibility
analysis and plan
created
2027: Council
approval of program
By 2031: Assist 100
households
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-34 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS who programs are assisting.
S-9 Fair Housing Equity Analysis and Anti-Displacement
for Specific Plans –
Integrate fair housing equity analysis and residential and small business anti-displacement features into specific plans and area plans, including Urban Village plans.
Consider anti-displacement features identified from Five Wounds Urban Village updates into forthcoming Urban
Village Plans and consider appropriateness for inclusion in the General Plan.
1, 3,
4, 5
Need to stabilize lower-
income residents and
businesses in growing
areas to avoid
displacement
From Citywide Anti-
Displacement
Strategies and
consistent with state
guidance on sites
inventory
PBCE,
Housing
Site,
UDP
2024-2031 2024: Consultant
identifies anti-
displacement
features for Five
Wounds UV Plan
# of other UV Plans
incorporating
features
By 2026: Fair
Housing Equity
Analysis method
defined
Ongoing: Plans with
fair housing analysis
and anti-
displacement
features integrated
S-10 Study on rent increases and burden in affordable
housing –
• Research how rent increases in the City's restricted
affordable apartments have been implemented over
the last five years, given that area median income
continues to increase rapidly in Santa Clara County.
• Study rent burden and demographics for residents of
affordable homes. Use research results to inform
proposed state legislation and/or City policy.
• Present findings and policy recommendations to the
City Council.
• Work actively on potential legislative solutions to high rent increases.
3 Prohibitive rent increases
in restricted affordable
apartments
Support from rental
access working group
Housing,
IGR
CW/No 2025 Jan 2024: Research
conducted
Jan 2025: Findings
presented to the
City Council
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-35 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-11 Alternative documentation for non-citizens - Seek City Council approval of a policy requiring all property
management companies managing restricted affordable
apartments to advertise acceptance of alternative
documentation for non-citizens. Prepare a workplan for
implementation procedures for different types of affordable homes, with input from the City Attorney’s Office.
3 Avoid discrimination in
rental housing
applications process for
non-citizens
Lack of knowledge of non-
citizens that they could
apply and be eligible for
affordable housing
Supported by
neighborhood equity
working group and
Housing Element
goals/strategies
community meeting
Housing
CAO
CW/No 2026 Jul 2024: Council
approval
Jul 2025: Workplan
complete
# properties
implemented
S-12 Eviction Prevention - Housing Collaborative Weekly Eviction Prevention Court Clinic, Eviction Diversion
Program and other support for legal services –
• Work in ongoing partnership with the County's
Superior Court and other community partners to staff
an Eviction Diversion Program, holding weekly
workshops at the Courthouse that offer a spectrum of
resources to all parties. Resources include rental
assistance, social services referral, mediation, and
legal assistance.
• Continue to conduct the eviction diversion program
during the unlawful detainer court calendars. Identify
funding to continue Eviction Diversion programming.
• Explore conversion of Superior Court Eviction
Diversion into a possible Collaborative Housing Court
model within the County’s Superior Court Process
that builds on the foundation of the weekly clinic and
Eviction Diversion Program, as appropriate.
• Increase funding to nonprofit legal organizations to
provide eviction counseling and defense.
3 Lack of knowledge of non-
citizens that they could
apply and be eligible for
lack of funding and
resources to provide
eviction help and pre-
eviction services
Gap in services for pre-
eviction services to
address conflicts that
easily escalate to eviction
Supported by rental
access working group
and veterans focus
group
Consistent with
Citywide Anti-
Displacement Strategy
Housing,
CAO
CW/No 2023-31
assumes
funding
available
Workshops held
Parties assisted
People connected
to new services
Funding secured
S-13 Affordable housing renter portal language access - Ensure that online tenant rental portal, Doorway, is
implemented with access in San José's top languages and accessibility to audio and visually impaired users.
3, 5 Lack of accessibility in
notification of affordable
housing opportunities
Suggested by
LGBTQ+ focus group
Housing CW/No 2023 and
ongoing
# languages
# applicants using
non-English
versions
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-36 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-
14 Advocacy for tenant-based vouchers –
• Prioritize use of rental vouchers to expand housing
choices for protected class, lower-income residents.
• Continue to use local funds for tenant voucher
programs. Advocate at the state and federal levels for
additional vouchers to meet local needs and expand
housing choices.
3 Need for housing for those
at lowest income levels
Increase housing choice
Suggested by equity
working group
Supported by veterans
focus group, disability
focus group and high
opportunity areas
working group
Housing,
IGR
CW/No 2024-26 Legislation passage
Support letters and
meetings on
vouchers
S-15 Tenant preferences in VTA station areas –
• Work with the Valley Transportation Authority to
implement the City's forthcoming affordable housing
tenant preferences and other policies on affordable
apartments in station area developments.
• Include in Anti-Displacement Tenant Preference all
publicly-owned sites, development agreement, and
negotiated developments to support this initiative.
3 Need to prevent
displacement and
prioritize most vulnerable
in non-homeless units.
Tenant preferences
supported at Housing
Element goals /
strategies community
meetings
Housing Site 2023 -31 By 2031: At least 2
sets of affordability
restrictions recorded
requiring tenant
preferences
70 restricted
affordable units
subject to
preferences
in station
areas
S-16 Affirmative marketing languages and best practices for affordable housing –
• For all City-funded affordable housing, require
affirmative fair housing marketing to be done in
English plus top 3 languages by 2027.
• Expand data collection and monitoring of affirmative
marketing of affordable apartments for initial lease-up and waitlist openings.
• Create library of best practices including sample
notices translated into multiple languages.
3 Lack of awareness of
affordable housing
opportunities
Increase accessibility of
affordable housing
Supported by
Indigenous Peoples
focus group
Housing,
CAO
CW/No 2026-27 2027: Requirement
rolled out
Data collected for
compliance
2027: Library
created & made
available
S-17 Local Fair Chance / "Ban the Box" ordinance –
• Complete a report to review best practices in housing formerly incarcerated people and assess the
feasibility, impact, and enforcement options of a Fair
Chance / Ban the Box ordinance for rental housing
applicants that would limit the use of criminal records by property managers when they are screening
prospective tenants.
3 Discrimination in housing
application to people with
criminal background
Idea from equity
working group
Supported by former
homeless focus group,
veterans focus group
and rental access
working group
Housing,
CAO
CW/No 2026-28 Report completed
Council
presentation made
Outreach done
Ordinance drafted
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-37 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS • Draft an Ordinance and create a program proposal
for the City Council’s consideration.
Program proposal
created
Council
consideration
S-18 Review data on City-monitored properties to identify Fair Housing issues –
• Analyze protected class information in the City's
affordable housing portfolio, identify outlier properties with unusual concentrations of certain types of
residents.
• Proactively meet with property managers and/or
owners to review affirmative marketing and lease-up
practices to solve potential fair housing problems.
3, 5 Lack of knowledge of
affordable housing
opportunities
Tracking and preventing
large scale fair housing
issues
General support from
disability focus group
and African Ancestry
focus group as to
improving affirmative
marketing and lease-
up practices
Housing CW/No Starting in
2025 and
ongoing
Dec 2025: First data
collection on
residents and
applicants, then
2027, 2029, 2031
Aug 2026: Outliers
analysis
Mar 2027: Meet with
100% of outlier
properties
Technical
assistance given
S-19 Certificate of Preference program –
Explore applicability of a Certificate of Preference program for the Diridon area to enable residents in danger of
indirect displacement or who have been displaced to apply through separate queues for affordable apartments and/or homebuyer programs.
3 Need to prioritize access
to affordable housing for
most vulnerable
From Diridon
Affordable Housing
Implementation Plan
Housing CW/No 2027 Jan 2025: Research
and legal analysis
conducted
Jun 2027: Findings
presented to
Council
If Council directed,
program developed
in 2027
S-20 Anti-displacement tenant preferences –
• To help mitigate displacement and serve the most
vulnerable local residents, develop fair-housing
compliant tenant preferences for this population.
• Seek Council approval for two tenant preferences: an
Anti-Displacement Tenant preference, and a
Neighborhood Tenant preference.
• If approved, implement the preferences on affordable
housing units subject to the preferences within 6
months of Council approval.
3 Displacement of residents Supported at Housing
Element goals/
strategies community
meetings
Consistent with
Citywide Anti-
Displacement Strategy
Housing,
CAO
UDP 2023-25 Jun 2023: Complete
disparate impact
analysis for 2
proposed
preferences and
submit to HCD for
review
Dec 2023:
Complete draft
ordinance and
present to
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-38 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS • Seek the State's approval to use both tenant
preferences within 12 months in HCD-funded
affordable housing developments.
applicable City
commissions and
committees for
review
May 2023: Council
approves ordinance
S-21 Facilitation of equal access to housing –
• Continue to fund nonprofit organizations to
affirmatively further Fair Housing throughout the City. • Develop metrics to better understand the City's
impact from funding fair housing grantees. Consult
grantees on appropriate metrics.
3 Discrimination in housing Supported at Housing
Element goals/
strategies community
meetings
Housing CW/No Metrics by
2024
Funding
ongoing
2023-31
Jul 2024 Metrics
developed by
collaboration with
and feedback from
at least 3 fair
housing grantees
funding to nonprofit
fair housing
providers
# people assisted
S-22 Fair housing services and support –
Confer annually with legal services, tenant advocates, and tenants to determine priorities for programs and funding on fair housing testing, outreach/education, and legal
representation.
3 Lack of legal
representation and legal
services for tenants
Discrimination in housing
Supported by rental
access working group
Housing CW/No Ongoing
2024-31
Annual meetings
held
Priorities
established jointly
S-23 Know Your Rights materials –
• Create basic ‘Know Your Rights and Responsibilities’
materials for landlords and tenants, including fair
housing information. Produce materials in multiple
languages with accessible vocabulary, pictures, and
infographics.
• Create an outreach strategy to share this information widely including partners such as schools,
community-based nonprofits, and housing providers.
• Provide links to additional resources including more
information on fair housing. Identify eligible ongoing
funding for this purpose.
3 Lack of awareness of
rental rights, and lack of
information in language of
users
Idea from rental
access working group
Supported by
Indigenous Peoples
focus group
Housing,
CAO
CW/No 2023-25 Jul 2024: Outreach
Strategy developed
Jan 2025: funding
source identified
# of
communications
pieces released
# of recipients of
communications
at least 2 partner
organizations
identified to assist in
outreach
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-39 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-24 Targeted fair housing outreach and enforcement –
• Increase fair housing education, monitoring, and
enforcement in target neighborhoods, especially on
source of income discrimination.
• Consult legal assistance partners to identify locations of complaints and analyze City data on higher
opportunity areas with racial/ethnic concentrations
different than the lower-income renter population to
determine target neighborhoods (for e.g., in westside
of the City there are several “high/higher resource”
neighborhoods with high concentrations of ARO
properties, see P-91 of Appendix B).
• Create a plan for outreach together with nonprofit and community-based partners.
• Identify more ongoing funding for this activity.
• Enter into contracts with qualified legal services
organizations, to the extent capacity exists to do
additional outreach work.
3 Source of income and
other discrimination in
housing.
Supported by rental
access working group,
Housing Element
goals/strategies
community meetings
Housing High Ongoing
2024-31
Dec 2024: Data
obtained from
nonprofit legal
organizations on
locations of
complaints
15% increase in
outreach in targeted
neighborhoods
identified
May 2025: Capacity
assessed of legal
assistance partners
to do new outreach
with community
partners
Jun 2025: Funding
identified
Jan 2026: Contracts
executed
# people assisted
# services delivered
S-25 Tenant-based vouchers in higher-resource areas –
• Partner with the Santa Clara County Housing
Authority to implement a strategy for their
administration of San José Section 8 rental vouchers
that reduces barriers to vouchers' use in higher-
opportunity areas and maximizes voucher holders'
housing choices.
• Work with the Housing Authority to capture
performance measures to determine residents' state
of health and educational attainment.
• Use the measures to identify possible program
improvements.
3 Lack of affordable housing
Not enough owners willing
to accept vouchers
Need for housing for
lower-income populations
General support for
increase in vouchers
from veterans focus
group, disability focus
group, and high
opportunity areas
working group
Housing High 2023-26 by Dec 2023: Meet
with SCCHA to
develop alignment
of policies and
measures
by Dec 2024: Seek
Council approval to
direct SCCHA to
capture relevant
performance
measures, if
necessary
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-40 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS by Jul 2026: Identify
possible program
improvements
7% increase of
vouchers used in
higher-resource
areas
S-26 Increased support for nonprofits to do tenant and
landlord outreach and education –
• Identify ongoing funding to increase nonprofit
organizations' support of San José tenants’ rights.
• Increase funding of nonprofits to do broad tenant
outreach, education, and legal representation on
housing issues, including fair housing issues, to all
tenants in the City.
• Support a nonprofit-run hotline for information and
referrals on general tenant/landlord issues (not legal
advice) for all tenants and landlords, regardless of
income or type of home.
3 Lack of knowledge of
renter rights and fair
housing services
Lack of capacity in legal
organizations and
nonprofits to provide legal
services, including fair
housing services
Support by rental
access working group,
Housing Element
goals/strategies
community meeting
Housing CW/No 2024-31 Jul 2025: funds
identified for hotline
Dec 2025: Launch
hotline
Funds budgeted
annually for tenant
and landlord
outreach and
education
Difference in
average funding per
year for tenant and
landlord outreach
and education from
2023 to 2031
Services provided
# Calls supported
# Clients served
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-41 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-27 Tenant/landlord education centers –
• Increase education and resources provided to
tenants and landlords on City programs and their
rights at tenant / landlord education centers located
throughout the City. Locations should include Diridon
Station Area, the City's forthcoming transit center, to maximize transit access as well as neighborhoods
with high displacement risk according to UC Berkeley
Urban Displacement Project analysis.
• Use digital tools, pop-ups, and/or mobile sites, and
partner with community-based organizations to
deliver services in ways that are convenient and
accessible for all users, especially those with
disabilities.
3 Lack of access and
awareness of renter rights
Supported by rental
access working group
and Indigenous
Peoples focus group
Consistent with Diridon
Affordable Housing
Implementation Plan
Housing DTW,
UDP
2025-31 2024: Updated
materials available
At least 3 locations
regularly served
each year
At least 400 tenants
and landlords
assisted per year
S-28 Right to Counsel or Alternative –
• Develop a San José Right to Counsel or alternative
housing collaborative court program proposal for the
City Council's consideration.
• Issue a Request for Proposals and work with selected
consultant to study costs and benefits of a right to
counsel program versus other court intervention
alternatives, identify necessary legal and other
resources, cost estimate, and potential funding
sources.
• Seek City Council approval of the program.
• Additionally, explore potential regional partnerships for a regional Right to Counsel study and
implementation as an alternative.
3 Lack of legal
services/representation for
tenants
Support from AFH
Advisory Committee
Consistent with
Citywide Anti-
Displacement Strategy
Housing CW/No 2025-26 2023: Collaborate
with Bay Area
Housing Finance
Authority on
protections policy
event including right
to counsel and
alternatives
2023: RFP Issued
2024: Consultant
hired
2025: Program
proposed to Council
for approval
If approved, start
program creation
within 12 months of
approval
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-42 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-29 Rent Stabilization Program Strategic Plan and
program assessment –
• Complete a Strategic Plan for the Rent Stabilization
Program and assess the efficacy of the program in
meeting its goals to protect and stabilize tenants’
housing. Include examination of the Program’s
effectiveness at helping to prevent Unlawful
Detainers and preventing evictions.
• Evaluate the current Apartment Rent Ordinance and
consider a set of possible amendments including
types of properties covered and alternate methods of
calculating maximum allowable rent increases.
3 Allowable rent increases
are a barrier to
maintaining housing
because increases are still
too high
Need for more renters to
be protected by tenant
protections.
Support from equity
working group, rental
access working group,
veterans focus group,
Indigenous Peoples
focus group, LGBTQ+,
African ancestry focus
group, Housing
Element goals /
strategies community
meetings to prevent
displacement and
protect tenants
Housing CW/No 2026 2023: Outreach,
program
assessment and
Strategic Plan
completed with
consultant
2025-26: Outreach
conducted with
stakeholders on any
report
recommendations
By 2026:
Amendments
presented to
Council, if any
S-30 Just cause eviction protection amendment –
Request that the City Council expand the Tenant
Protection Ordinance to not count immediate household
members against occupancy limits, to the extent allowed by State Health and Safety Code.
3 Need to protect renters
with families from
harassment and lease
violations when living in
smaller housing units
Idea from rental
access working group
Housing,
CAO
CW/No 2025 Analysis of issue
Presentation to
Council
Council
consideration
S-31 Tenant Protection Ordinance amendment for
affordable apartments –
Review the Tenant Protection Ordinance for ways it could apply to restricted affordable apartments and still be
consistent with rules for common funding sources such as low-income housing tax credits and State funding
programs and propose amendments to the City Council.
3 Prohibitive rent increases
in restricted affordable
housing
Support for increasing
tenant protections from
Equity Working Group
and Rental Access
Working Group
Housing,
CAO
CW/No 2027 Analysis of issue
Ordinance
amendment
Presentation to
Council
Council
consideration
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-43 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS S-32 Local enforcement of state tenant protections –
• Work with the state to establish that San José can
enforce AB 1482, the state's anti-rent spiking and just cause eviction protection law, source of income
discrimination laws, and other state tenant
protections that interact with City programs.
• Assess whether desired enforcement authority can
be granted administratively or if legislation is needed. • If needed, advocate for legislation such as SB 567
(2022) or with State HCD to establish authority of
enforcement.
3 Discrimination in obtaining
housing based on source
of income
Lack of ability to enforce
City’s Housing Payment
Equality Ordinance
Supported by
neighborhood equity
working group,
veterans focus group,
disability focus group,
and high opportunity
areas working group
From the Citywide
Anti-Displacement
Strategy
Housing,
CAO, IGR
CW/No 2023-26 State determined
pathway
Advocate for
existing bills that
could incorporate
local right to enforce
Sponsored State bill
if needed
Work with coalition
of rent stabilization
cities
Legislation passage
S-33 Job training with housing subsidies –
• Provide participants of local job training programs
with shelter and rapid rehousing subsidies to increase
their stability and access to living wage jobs.
• Advocate for ongoing funding from the State and
Federal government for this purpose.
3 Need for housing stability
during education to help
gain wealth
Support at Housing
Element goals/
strategies community
meetings, and by the
Community Plan to
End Homelessness
Housing CW/No 2023-31
ongoing,
pending
funding
availability
# housing-
subsidized
participants in job
training programs
Support letters and
meetings for
legislation / budget
requests
S-34 Economic opportunity strategies –
• Explore and establish strategies to increase
economic opportunities, self-sufficiency, and asset-
building for households and communities.
• Fund programs with federal funds from the U.S.
Department of Housing and Urban Development to
the extent uses are eligible, funds are available, and
work is in alignment with the City’s Consolidated Plan
2020-25, and other funds.
3, 4 High housing costs, need
for stability, building
wealth
Supported by
homeownership
working group
Retained from 5th
cycle
Housing CW/No Ongoing
2023-31
Strategies created
Strategies
implemented
Programs funded
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-44 City of San José Draft Housing Element, rev. June 2023
3.4 Goal 4: Healthy, thriving neighborhoods with access to good jobs, schools, transportation, and other resources
The San José General Plan and state laws express goals to create thriving neighborhoods that are open to all groups of people and that are close to jobs, schools, and everyday services. San José can direct contextual housing development into mixed-use growth areas that includes more affordable homes.
This helps everyone have equal access to these higher-resource areas. The City needs to prioritize investment of resources into lower-resource areas, especially those that have high racial/ethnic concentrations and very low incomes, to uplift the areas and ensure they do not fall further behind.
Goal 4’s strategies (Table 3-5) therefore focus on targeted neighborhood investments and access to higher-resource areas. Many Goal 4 strategies also cross-reference affordable housing production strategies under Goal 1 that strive to place more affordable housing in neighborhoods where it is now scarce, so as to maximize residents’ housing choices.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-45 City of San José Draft Housing Element, rev. June 2023
Table 3-5: Neighborhood Investments and Higher-Resource Neighborhoods
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS N-1 Equitable neighborhoods-based investment strategies • Focus the City's investments on increasing equity in
racially/ethnically concentrated neighborhoods with
extremely low incomes by engaging community
members and seeking a common data-informed
approach across initiatives.
• Engage residents in formerly redlined neighborhoods
with high race/ethnicity concentrations and lower
incomes to identify their investment priorities. Also
incorporate historically impacted individuals who are
at risk of displacement who do not currently live in
highly concentrated neighborhoods. Data-informed
approaches may consist of methods such as surveys
or an online participatory budgeting process, where
residents of under-resourced neighborhoods decide
on the types and nature of capital improvement
projects and other place-based improvements.
• Use this information to inform the City’s Consolidated Plan for the use of federal funds from HUD for the
2025-2030 cycle.
• Prioritize investing federal Community Development
Block Grant funds and other funds, to the extent
legally permissible, in capital projects and to deliver services to racially and ethnically concentrated areas
with a high proportion of lower-income residents.
• Align data indicators on income, race/ethnicity, and
protected classes where possible by coordination
with other departments through the data equity team.
• Identify resources and amenities that residents want
in their communities, including but not limited to
affordable housing, and co-create neighborhood
investment priorities that help mitigate displacement
consistent with the Citywide Residential Anti-
Displacement Strategy “3Ps” approach (production,
preservation and protection) and the City’s roadmap
priorities.
4, 5 Historic disinvestment in
racially/ethnically
concentrated, lower-
income neighborhoods.
Fragmentation of
community outreach.
Support for
reparations from
neighborhood equity
working group.
Support from both
African ancestry focus
group and Indigenous
Peoples focus group
for housing solutions
based on race.
CMO,
Budget,
ORE,
Housing,
PRNS,
PW, DOT,
ESD,
Library
LMI,
RECAP,
Low, Red,
UDP
2023-31 Dec 2023:
Neighborhood
engagement strategy
created
By Mar 2024:
Neighborhood
engagement
launched
Aug 2025: Council
approves
Neighborhood
investment priorities
created in draft
Consolidated Plan
At least 5 place-
based improvements
to low-to-moderate
resource
neighborhoods
during the planning
period
$5M in additional
funding sought to
support
neighborhood
investments and anti-
displacement
strategies by 2031
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-46 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS • Research data that may assess San José’s
community assets and identify areas that have
experienced under-investment.
• Identify new, additional funding sources to implement the co-created neighborhood investment and anti-
displacement priorities.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-47 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS N-2 Urban Village Plans with anti-displacement features - Complete update of Five Wounds Urban Village Plan (Five Wounds, Little Portugal, Roosevelt Park, 24th & Williams St.) to prepare for BART station area creation. Work with the Valley Transportation Authority and co-selected
consultant to identify & integrate residential and small business anti-displacement features. Use these features in other Urban Village plans as best practices.
4, 3,
1 Need to prevent
displacement of lower-
income residents and
small businesses.
Neighborhood
organizations on East
side.
PBCE,
Housing,
OEDCA
Site 2023-24
for Five
Wounds
2024: Consultant-
identified anti-
displacement
features for Five
Wounds UV Plan
Other UV Plans
ongoing beginning in
2025
N-3 Vacant and Neglected Buildings Program –
• Continue the Vacant and Neglected Building and
Storefronts Program to monitor all identified vacant or neglected buildings so that they remain safe and secure until they are rehabilitated and reoccupied. This
proactive program reduces the risk of loitering, illegal occupancy, and fire hazards.
• Analyze whether rates of high vacancies overlap with
areas needing additional City investment; if so, prioritize these areas.
4 Unsafe conditions at vacant
or neglected buildings.
Retained from 5th Cycle
and updated
PBCE CW/No Ongoing
2023-31
# buildings monitored
# buildings cited
# problems resolved
N-4 Preservation and Community Development Capacity
Building –
Establish programs to provide capacity building and
technical assistance to community-based nonprofit
organizations to engage in grassroots community
preservation and development activities partnered with
nonprofit developers in order to stabilize neighborhoods.
Preservation activities include acquisition and rehabilitation of existing low-cost housing, alternative community
ownership models, community stakeholder engagement,
and prevention of displacement of community small
businesses.
4, 5,
1 Lack of capacity of
community-based
nonprofits to acquire or
preserve existing
affordable housing
Lack of tenant
engagement in home
sales or transfer
Supported by
homeownership
working group,
Housing Element
strategies/goals
community meeting
Housing,
OEDCA
LMI,
RECAP,
Low, Red,
UDP
2023-27 By Dec 2024: $1M
total in capacity-
building grants
awarded to 3 or 4
organizations
N-5 Increase affordable housing production in higher-
resource areas -
• Fully implement and evaluate effectiveness of the
City’s new Affordable Housing Siting Policy.
• Allocate affordable housing subsidy awards to higher- resource neighborhoods to increase affordable
housing production there, providing more lower-
income and protected class residents greater choices
of where they can live.
4, 5 Lack of affordable housing
in high opportunity
neighborhoods
Support from housing
production focus group
Housing High 2026-27 Jul 2026: 35% of
funds awarded in
high-opportunity
areas since July
2021
Dec 2027: Complete
evaluation of Siting
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-48 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS Policy and present to
City Council
# residents in #
affordable units in
higher-opportunity
areas
N-6 Reduced transit fares for lower-income residents –
To reduce the cost of transportation + housing for lower- income residents, continue to coordinate with the Valley Transportation Authority to apply for and access federal funds to subsidize low-income resident transit fares. and promote Bay Area-wide means-based fare reduction
programs.
4, 5 High transportation costs.
Lack of transit options in
lower-income
neighborhoods
Supported by
Indigenous Peoples
focus group and high
opportunity areas
focus group
DOT, IGR CW/No 2023-31 Advocacy meetings
and letters
Federal funds
obtained for fare
reductions
N-7 External infrastructure funding to create complete, high-quality living environments –
• Continue to seek external funding for parks,
transportation, and other types of neighborhood
infrastructure that favor cities with a demonstrated
commitment to building affordable housing.
• Coordinate across departments to apply for funds for
the purpose of prioritizing investments in lower-
income neighborhoods with fewer amenities and
need according to City investment plans or other
amenity analysis to the extent that program rules
allow.
• Improve accessibility for residents with physical
disabilities through infrastructure work.
4, 5 Lack of resources and
infrastructure in lower-
income neighborhoods
Retained from 5th
Cycle and updated
Housing,
DOT, PW,
OEDCA,
PRNS
LMI,
RECAP,
Low, Red,
UDP
2023-31 Jun 2024: Implement
pilot project funded
by at least $2M in
CDBG for prioritizing
R/ECAPs and other
historically
disinvested
neighborhoods
Dec 2024: Plan with
goals/metrics and
timeline developed in
2024
N-8 Outside bond issuers –
• Analyze the merits of requiring that the City issue
private activity bonds for affordable housing.
Positives include increased City control, positive
neighborhood outcomes, and generation of revenue
for city staffing. Challenges include City workload and costs to developers for City fees.
• If a change is warranted, seek City Council approval
for an amendment to the City's bond issuance policy.
4, 1 Prevent / solve
neighborhood issues from
any problem properties
Need for revenues to staff
housing programs
In Housing Crisis
Workplan
Housing,
Finance,
OEDCA
CW/No 2025 Analysis done
Council request for
change to policy (if
warranted)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-49 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS N-9 Affordable transit-oriented development –
Facilitate development of transit-oriented affordable homes within ½-mile of future BART, Light rail, and Bus Rapid Transit (BRT) stations, including identification of
opportunities to develop publicly-owned parcels with
affordable housing.
. 4, 1 Increase mobility options
and decrease
transportation costs for
lower-income residents
Lessen environmental
impacts of new housing
development
Retained from 5th
Cycle and updated
Housing,
OEDCA,
PBCE
Site 2023-31
ongoing
8 parcels purchased
1,200 projected
affordable units
assisted
3.5 Goal 5: Racially and socially inclusive neighborhoods that overcome past and present discrimination
Housing has been, and continues to be, a major area of discrimination in American society, and San José is no exception. Ther e are disparities in homeownership, overcrowding, and access to opportunity. Because of past and present discrimination, there are large differences by race and income as to who owns a home. This widens the differences in wealth between races. Residents in other protected classes also may not be ev enly dispersed throughout the City’s neighborhoods. Reducing disparities among neighborhoods requires the City to work intentionally to dismantle existing patterns of segregation and promote fair housing. This goal aims to repair past practices that discriminated by race and other factor, create a housing landscape with choices that allow for equal opportunity for all.
San José has a diverse population to house. More than 40% of the City’s working households are lower-income, and San José’s lower -income residents are disproportionately non-White. More than 20% of residents in the San José metropolitan area are undocumented, and San José residents speak more than 100 languages. For these reasons, it is important for the City to ensure that housing opportunities address the diversity of San José’s population and foster housing choices that lessen existing racial and ethnic segregation in the City.
Goal 5’s strategies (Table 3-6) focus on housing for special populations. They also include systems-oriented strategies such as equity-focused outreach, decision making bodies, and planning and advocacy structures. The systems-oriented strategies put more protected class residents, and their lived experiences, into the City’s decision making process and program offerings. In the long-term, these changes should support improvements in neighborhoods’ inclusiveness and equity.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-50 City of San José Draft Housing Element, rev. June 2023
Table 3-6: Inclusive Neighborhoods
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS I-1 Persons with disabilities partnership and priorities - Create partnerships with organizations that provide
outreach to persons with disabilities.
Meet at least twice per year to collaborate on ways the City could improve how well its affordable housing portfolio serves residents with disabilities.
Conduct two tours of affordable sites to get partners'
feedback and identify challenges for residents with
disabilities, prioritize changes to developments the City could effectuate, identify potential changes to the City's affordable housing funding priorities and other
requirements, and promote lessons learned to the
development community.
5 Need to incorporate
affected persons into
decision-making
processes
Lack of accessible
housing units
Lack of input from
people with disabilities
in policy or decision-
making processes
Supported by AFH
Advisory group to center
experiences of people
with disabilities and
immigrants.
Supported by disability
focus group, veterans
focus group, LGBTQ+
focus group, Indigenous
Peoples focus group and
homeownership working
group.
Support by LGBTQ+
focus group to include
affected persons in policy
and decision-making
processes.
Housing,
PBCE,
CMO
CW/No 2023-26 # Meetings held
2025: Tours
conducted
Changes to NOFAs
Changes to
affordable housing
development
requirements
2026: Release
lessons learned
publication and
incorporate some or
all of the strategies
recommended from
the report during the
planning period.
I-2 Affirmative marketing to persons with disabilities - Implement practices to increase access to existing
affordable housing, especially those located near transit, for residents with disabilities.
Verify that affirmative marketing plans for affordable
apartments include outreach to persons with disabilities and organizations that represent them (i.e., San Andreas Regional Center, Housing Choices Coalition for Person
with Developmental Disabilities, Silicon Valley
Independent Living Center, and others).
Ensure that reasonable accommodation request forms are
in formats that are fully accessible.
Research and promote property management companies'
best practices that maximize the likelihood of applicants with disabilities being able to access affordable, accessible apartments.
5, 3,
4 Lack of accessible and
affordable housing
units.
Lack of access to
adapted accessible
homes for people with
disabilities.
Need for physically
disabled residents to
access transit-oriented
housing.
Suggested by disability
focus group, comments
from the Housing
Choices Coalition, and
public comments from
Diridon Affordable
Housing Implementation
Plan.
Housing,
CAO
CW/No 2024-27 Annually 2023-
2031: measure
review of affirmative
marketing plans
Sep 2024: Gather
best practices
Jul 2025: Implement
changes on
affirmative
marketing plan
requirements &
reasonable
accommodation
request forms
Goal: 95%
compliance by 3
years after rollout
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-51 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS Sep 2025: Hold
stakeholder
meetings
Sep 2026: Issue
best practices /
create a library of
materials
I-3 Farmworker housing - Update the zoning code to clarify that farmworker housing for 6 or less people shall be
treated the same as a single-family home, amend the
agricultural zoning district to ensure consistency with California Health & Safety Code 17201.6, revise Chapter
20.195 of the zoning code to ensure compliance with
California Health & Safety Code Section 17201.8.
Within six months of Housing Element adoption, revise
Chapter 20.195 of the zoning code to be consistent with the requirements of the Employee Housing Act. Pursuant
to Health and Safety Code section 17021.5, employee
housing for six for fewer employees shall be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. In addition, the City will amend the zoning code to comply with Health and Safety Code section 17021.6, which states employee housing of less than 36 beds or 12 units shall be deemed as an agricultural use.
.
5 Need for low-cost
farmworker housing
From Housing Crisis
Workplan and state law
PBCE CW/No Dec 2024 Council approval of
zoning code update
I-4 Create a Housing Balance Report –
Create a biannual Housing Balance Report that tracks the net gain and loss of all types of affordable and low-cost housing, analyzes it spatially, and compares to
demographics to determine the City's progress in
maintaining and increasing the availability of appropriate housing opportunities for all residents (including those in protected classes) across the City. Geographic analysis should also identify displacement risk and segregation, and analyze Urban Villages and neighborhoods or Council districts.
5, 1 Lack of demographic
data on resident
displacement and
housing attainment
From Citywide Anti-
Displacement Strategy
Supported by
neighborhood equity
working group
Housing CW/No 2025 By Dec 2025: First
report presented to
City Council
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-52 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS I-5 Accessibility plans, and guidance –
Actively enforce most recent building code to ensure new developments are fully accessible for residents with
physical mobility issues.
Work with an ADU partner to post a plan set for ADUs
consistent with universal design principles and fully
accessible for residents with physical mobility issues.
Issue guidance on how to create accessible pathways
between an ADU, the main residence, and the street to
promote independence and mobility of residents with
physical disabilities.
5, 1 Lack of accessible
units
Disruption and cost
when people must
move to accommodate
their aging needs
Support for universal
design from disability
focus group
Support from disability
focus groups for homes
that promote aging in
place
PBCE CW/No 2027 Plan set created
and posted
Pathways guidelines
created and
released
I-6 Universal design and ADA upgrades –
Through the City's Notices of Funding Availability, incent construction of universal design apartments and ADA
upgrades for existing buildings consistent with TCAC
guidelines to enhance accessibility and inclusion for
seniors and people with physical disabilities including those with developmental disabilities served by the San Andreas Regional Center.
5, 1 Lack of accessible
units in San José
Supported by veterans
focus group, disability
focus group, LGBTQ+
focus group, Indigenous
Peoples focus group,
Housing Choices
Coalition
Housing,
CAO
CW/No Periodic-
ally 2023-
31 By 2031: At least
50% of annual
NOFAs issued
incent units for
residents with
disabilities
By 2031: City funds
committed to 150
units with enhanced
accessibility per
TCAC guidelines
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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3-53 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS I-7 Inclusive and equitable community engagement –
Develop and implement inclusive and equitable community engagement strategies that center racial and social equity to inform and hear from San José residents in protected classes. Strategies are for use by City staff as well as developers and community groups.
Amend the City's outreach and engagement policies,
including Public Outreach Policy 6-30, to ensure that
outreach is robust and opportunities for meaningful public participation are fully supported with multi-lingual
materials, translation, and interpretation. Provide clear processes and methods to collect multi-lingual input and for input by persons with disabilities.
Adopt language access standards for Housing Department
outreach/public events and for Housing Department-
funded affordable housing and grantees.
Increase the availability of financial resources for all City staff to regularly partner with community-based
organizations who have community engagement,
relationship building, and education as core competencies to gather meaningful community input.
Continue to develop consistent equitable outreach
practices and coordination across departments. Provide
staffing from the City Manager’s Office to help manage, train staff to present effectively, and increase departments' staffing to do outreach and engagement.
Develop appropriate, culturally competent, place-based
outreach strategies and processes to engage community
members and members of protected classes both to those
who live in concentrated neighborhoods (related to N-1, above) and those who may be geographically dispersed.
5, 4 Lack of meaningful
public participation in
government
Lack of participation in
outreach from non-
English speakers and
from range of
demographics of
residents
Lack of knowledge of
available
programs/resources
Suggested by
neighborhood equity
working group.
Supported by rental
access working group,
schools focus group,
LGBTQ+ focus group,
HE goals/strategies
community meetings
CMO,
ORE,
PBCE,
Housing
CW/No 2026 Community
engagement
strategies drafted
City Auditor's
recommendations
on outreach closed
Amended outreach
policy drafted and
adopted by Council
Revised Language
Access plan for
Housing
Revised outreach
procedures for
PBCE
Budget for CBO-
based outreach
increased
I-8 Promotores-based outreach –
Fund a community based Promotoras/ Promotores
program to compensate residents who listen actively to
community members' needs, share their lived experiences, build trust, and help the City to do meaningful community outreach and engagement.
5 Need for more
meaningful
engagement between
City and vulnerable
residents
Support from LGBTQ+
focus group and Citywide
Anti-Displacement
Strategy outreach to
include vulnerable
residents into decision
making processes and to
CMO Short 2023-31 # promotores
contracts per year
# community
engagements
Budget spent per
year
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-54 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS Focus resources on hiring Promotoras/es from protected
classes to serve the City's subpopulations experiencing the greatest housing needs.
Make them available to all departments conducting
outreach and engagement.
compensate them for
their time
I-9 Equitable Representation of Historically
Underrepresented Communities on City Bodies -
Conduct an analysis of appointments to commissions and
advisory bodies to track the representation of protected classes, historically underrepresented neighborhoods, and those with other relevant characteristics.
Based on the outcomes of that analysis, develop and
implement guidelines, update the municipal codes where
needed to require an equitable distribution of seats for historically underrepresented populations, including low- income renters and homeless/formerly homeless
residents.
5 Lack of representation
of people most
affected in decision-
making processes
From Citywide Anti-
Displacement Strategy
(priority #4)
CMO,
Housing,
ORE,
PRNS
LMI,
RECAP,
Low,
Red,
UDP
2024-28 2026: Guidelines
developed
2027: Council
approval of
municipal code
updates
# of protected class
members and those
with lived
experience of
housing insecurity
added to
commissions and/or
advisory boards
I-10 Lived Experience with Homelessness seat on
Commission –
Fully implement the primary and alternate seats for a
commissioner with Lived Experience Seat with
homelessness on the Housing and Community
Development Commission.
Work with the Mayor's Office and the Clerk's Office to
ensure the primary and alternate seats are filled promptly and the primary seat remains filled ongoing.
Provide orientation, training, compensation, and other
supports as needed together with Destination: Home.
Perform a confidential evaluation with those two
commissioners, and other interested commissioners,
starting 12 months after the Lived Experience
commissioner seat is filled, and implement additional
recommended improvements to support the
commissioners.
5 Lack of participation in
policy development
and solutions from
people most affected.
Supported by LGBTQ+
focus group for including
LGBTQ+ persons in
policy and decision
making. LGBTQ+ focus
group support for
compensating people for
their time in City
outreach. Support for
centering tenants from
AFH Advisory
Committee.
Housing CW/No 2023-26 Feb 2023: Seats
filled
Feb 2023:
Orientation and
training provided,
compensation
provided
Feb 2024:
Evaluation
conducted
Jul 2025 to Jul
2026: Additional
improvements
made, as
appropriate
I-11 Representation of and priority for protected class members on City bodies – Combined with I-9.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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3-55 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS I-12 Resident-identified priorities –
Interview, survey and analyze the living experience of the City's lower-income residents, especially those in
protected classes, in all housing across the City.
Provide incentives as possible to promote robust resident participation.
Use the results to determine needs the City should track and endeavor to meet in the housing element planning
period.
5 Need for meaningful
engagement between
Housing Department
and vulnerable
residents
Supported by
neighborhood equity
working group, AFH
Advisory Committee and
LGBTQ+ focus group
Housing CW/No 2025-27 Jul 2025: Survey
designed & released
Jul 2025: Work with
Open House and
other stakeholders
to increase survey
response rate
Jul 2025 to Jul
2026: Survey
responses analyzed
Jul 2026: Resulting
changes proposed
to City programs
and efforts; release
Information Memo
I-13 Equity-focused metrics – This strategy was removed due to lack of staff capacity and complexity of changing
citywide metrics.
I-14 Assessment of Fair Housing Plan –
Complete the Assessment of Fair Housing Plan. Include
implementation actions that may build on the Housing
Element strategies in the Housing Catalyst Team Work
Plan.
5 Identify impediments
to fair housing and
housing and
neighborhood
investment strategies
Federal funding
requirements, and the
Housing Crisis Workplan.
Housing CW/No 2024 Sep 2023:
Completion of draft
Plan
Oct 2023: Adoption
by Council
Oct 2023:
Submission to HUD
I-15 Housing Catalyst Team Work Plan –
Beginning in fall 2023, create and implement Housing
Catalyst Team Work Plan that includes near-term priority staff work from the Housing Element and Assessment of
Fair Housing Plan to create a holistic, uniform approach to addressing the City’s fair housing issues in the planning period.
Report progress to the City Council annually.
Create a webpage on the City's website for transparency to the public.
5 Focus on housing
work as a priority
Public transparency
From Housing Crisis
Workplan
OEDCA,
Housing,
PBCE,
DOT
CW/No Annually
2023-31
Fall 2023: First
workplan brought to
council for approval.
Annual report to
Council
Jun 2024: Webpage
created
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-56 City of San José Draft Housing Element, rev. June 2023
# STRATEGY GOALS BARRIER / NEED CITED BY DEPT GEO TIMING METRICS I-16 Advocacy to close the racial homeownership gap –
As part of the Housing Department's ongoing leadership
around Fair Housing issues, engage in and support efforts at the state and federal levels to amend fair housing laws to allow for race-targeted housing assistance in
jurisdictions where the jurisdiction has made documented findings of fact that race-based housing discrimination has occurred.
5 Lack of housing for
members of protected
classes
Legal barriers to
provide housing based
on race
Support for set aside
housing based on race
supported by African
ancestry focus group and
Indigenous Peoples
focus group
Housing,
IGR
CW/No 2023-31 Support letters
issued
Advocacy meetings
held
I-17 Collaborative solutions to address housing needs - Work collaboratively on housing-related solutions with
other City departments, California jurisdictions, and
working groups such as the Santa Clara Grants
Management Group, Big 3 Cities Housing groups,
ABAG/MTC working groups, Santa Clara County Planning
Collaborative, Santa Clara County Association of Planning Officials, the Santa Clara County Cities Association, the Bay Area Housing Finance Authority, Destination: Home,
the County of Santa Clara, and others.
5 Work together to solve
interconnected
housing needs of
region and state
Retained and updated
from 5th Cycle
Housing,
PBCE
CW/No Ongoing
2023-31
Collaborative
initiatives
I-18 Advocacy on public policies and programs to facilitate production, preservation, protection, and
neighborhood investments –
Inform, support and advocate for public policies and
programs at all levels that create funding and other
assistance for affordable housing production and
preservation, tenant protections, and investments in
prioritized extremely low-income, racially segregated
neighborhoods.
5, 1 Lack of federal
protections for tenants,
funding for affordable
housing and historic
disinvestment in
racially segregated
neighborhoods
Support for reparations
from African ancestry
focus group and
neighborhood equity
working group.
Housing,
IGR
CW/No Ongoing
2023-31
Support letters
Working group
participation
I-19 Reasonable Accommodation - update ordinance to
streamline Reasonable Accommodation review process,
provide additional clarity, and ensure consistency with State and Federal laws and Affirmatively Furthering Fair Housing (AFFH).
• Identify ways to streamline the review of applications, which can reduce permit fees
• Publicize process and proposed changes on website,
social media, and newsletters
• Publicize process availability on the City’s website in City’s top three languages, in addition to English.
1 Addressing barriers to
the development of
special needs housing
HCD PBCE CW/No 2025 Council approval of
ordinance.
2 outreach meetings
conducted
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-57 City of San José Draft Housing Element, rev. June 2023
Implementation
The City and its partner agencies are committed to implementing the programs outlined in this chapter over the eight-year planning period. These implementation programs have been developed with extensive community input and with thoughtful consideration for what the City could feasibly accomplish during the planning period with current staff resources.
Short – Term (2023-2025)
# Strategy Milestones AFFH
H-1
Interim homeless housing
construction
2025: Units completed
Funds obtained for operations & services
No
H-11 Feedback from those
with lived experience in
homelessness in decision
making
2023-2031: Staff to attend meetings of LEAB or other lived experience groups at least once a year to ask for feedback on program priorities July 2024: Identify universe of applicable contracts and timeline for renewals
June 2025: Contracts renewed amended to include consultative language, and include in newly awarded contracts
By December 2025: Goal of 90% of homelessness contracts with amended language requiring lived experience consultations Yes
H-12 Neighborhood outreach
and education on
homeless housing and
other housing topics
Materials prepared CBOs under contract Funding allocated Households outreached to
Feedback sessions held
Yes
H-13 Regional homeless
response coordination
and planning
Council adoption of implementation plan No
H-14 Emergency Shelters 2024; necessary code amendments to comply with AB 2339 within one year of HEU adoption
No
I-1 Disabled community
partnership and priorities
# Meetings held
# Tours conducted
Changes to NOFAs
Changes to affordable housing development requirements
Lessons learned publication
Yes
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-58 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
I-2 Affirmative marketing to
disabled community
Annually 2023-2031: measure review of affirmative marketing plans September 2024: Gather best practices July 2025: Implement changes on affirmative marketing plan requirements & reasonable accommodation request forms
Goal: 95% compliance by 3 years after rollout
September 2025: Hold stakeholder meetings
September 2026: Issue best practices / create a library of materials Yes
I-3 Farmworker Housing Council approval of zoning code update No I-4 Create a Housing Balance
Report
Report published Report presented to City Council Yes I-8 Promotores-based
outreach
# promotores contracts per year
# community engagements
Budget spent per year
No
I-9 Equitable Representation
of Historically
Underrepresented
Communities on City
bodies
2025: Analysis completed
2026: Community outreach conducted
2026: Guidelines developed
2027: Council approval of municipal code updates
# of protected class members and those with lived experience of housing insecurity added to commissions and/or advisory boards Yes
I-10 Lived Experience with
Homelessness seat on
Commission
February 2023: Seats filled
February 2023: Orientation and training provided, compensation provided
February 2024: Evaluation conducted
BY July 2025: Additional improvements made, as appropriate Yes
I-14 Assessment of Fair
Housing Plan
September 2023: Completion of draft Plan
October 2023: Adoption by Council
October 2023: Submission to HUD
Yes
I-15 Housing Catalyst Team
Work Plan
Fall 2023: First workplan brought to council for approval. Annual report to Council
No
N-1 Equitable neighborhoods-
based investment
strategies
December 2025: Neighborhood engagement strategy created By March 2024: Neighborhood engagement launched
Yes
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-59 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
August 2025: Neighborhood investment priorities created in draft consolidated plan and Council approves
N-2 Urban Village Plans with
anti-displacement
features
Consultant-identified anti-displacement features for Five Wounds UV Plan
Other UV Plans ongoing
Yes
N-4 Preservation and
Community Development
Capacity Building
# and $ of capacity-building grants awarded
Nonprofits receiving education
No
N-7 External infrastructure
funding to create
complete, high-quality
living environments
June 2023: Implement pilot project funded by CDBG for prioritizing R/ECAPs and other historically disinvested neighborhoods December 2024: Plan with goals/metrics and timeline developed in 2024
Yes
N-8 Outside bond issuers Analysis done
Council request for change to policy (if warranted)
No
P-1 Align zoning with the
General Plan
Council approval of zoning changes No
P-3 North San José
Affordable Housing
Overlay Zones
December 2023: Council approval of General Plan and Zoning Code Amendments
January 2024: Overlay sites rezoned
Yes
P-4 Affordable housing tools
for North San José
Study created
Creation of draft tools
Council approval of tools
Creation of Plan
Council approval of Plan
Yes
P-6 Regular coordination
meetings for affordable
housing
Housing Navigator budgeted annually
# affordable housing developments assisted
No
P-7 City ministerial infill
approval ordinance
Outreach to developers
Council approval of Ordinance
No
P-8 General Plan Amendment
to remove commercial
requirements for
affordable housing
Council approval of General Plan amendment No
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-60 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
P-10 Standardize and
streamline permitting,
fees, applications
Policy resolution to Council on Fee Framework
Fees webpage created
Development applications tools improved
No
P-11 Explore Allowing “SB 9”
Type Housing on
Additional Properties
Council approval of zoning code amendment
Council approval of design standards
Yes
P-12 Cost of Residential
Development Study
update
Council presentations
Program or fee changes identified and made per updated analysis
No
P-13 Replacement of existing
affordable housing units
2024: Council approval of Policy
Dec 2024: Proposal created
Developer guidance created/ improved
Website amended
Yes
P-14 Housing in Business
Corridors
Council approval of zoning code amendment No
P-15 Moderate-income
Housing Strategy -
Council approval of strategy No
P-20 Mixed-income housing # of housing developments with market-rate or moderate-income units and ELI and/or VLI unit
No
P-21 Special needs housing
NOFA
NOFAs issued
Council commitments
# resulting affordable units
Yes
P-26 Accessory Dwelling Unit
(ADU) Amnesty program
July 2024: Program release
Dec 2031: Approximately 150 ADUs into in compliance by 2031 No
P-30 Updated feasibility study
for Commercial Linkage
Fee
Feasibility study update
Council approval of updated fees
$ CLF revenues collected
# affordable units subsidized
No
P-38 Adequate sites for lower-
income households on
nonvacant and vacant
sites identified in
previous housing element
Council approval of zoning changes No
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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3-61 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
cycles
P-40 Evaluate Urban Village
planning process
Conduct and Publication of 4-year review. No
P-41 Review Planning Permit
Findings
Council approval of ordinance amendments No
P-42 Group homes for seven
or more persons
Update ordinance No
P-43 Update City Density
Bonus Ordinance
Council approval of ordinance amendments No
P-46 Rezoning Program for
Shortfall, low income
sites
Council approval of rezoning ordinance changes No
R-1 Monitor at-risk
affordable units
Creation of risk-based reports
# meetings held
# units preserved
Yes
R-2 Establish a Preservation
NOFA
June 2024: Program guidelines completed
by December 2024: First NOFA issued at least every other year (i.e., at least 4 NOFAs during the Sixth Cycle compliance period) $5M average available per year per NOFA
by 2031: At least 110 units of newly-restricted affordable housing acquired by nonprofits and rehabilitated through city and external funding
Yes
R-9 Create a Preservation
Policy
Council approval of Policy Yes
R-12 Revised Anti-
Displacement Strategy
Best practices researched
Outreach conducted
Strategy drafted
Council approval
Yes
R-13 Soft Story Program Outreach conducted
Ordinance and program drafted
Council approval of Ordinance and program
Rebate program launched
# buildings receiving retrofits
No
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-62 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
$ funded for rebates
S-4 Updated relocation
assistance
Analysis complete
Stakeholder outreach on cost escalators and proposed changes Council approval of code updates
Yes
S-9 Anti-Displacement into
Urban Village Plans
Consultant identifies anti-displacement features for Five Wounds UV Plan
# of other UV Plans incorporating features
Yes
S-10 Study on rent increases
and burden in affordable
housing
January 2024: Research conducted
January 2025: Findings presented to the City Council
Yes
S-12 Eviction prevention Workshops held
Parties assisted
People connected to new services
Funding secured
No
S-13 Affordable housing renter
portal language access
# languages
# applicants using non-English versions
Yes
S-14 Advocacy for tenant-
based vouchers
State determination of enforcement path
State approval of local enforcement or legislation if needed Legislation passage
Support letters and meetings on vouchers
No
S-15 Tenant preferences in
VTA station areas
Affordability restrictions recorded requiring tenant preferences # affordable units in station areas
Yes
S-20 Anti-displacement tenant
preferences
June 2023: Complete disparate impact analysis for 2 proposed preferences and submit to HCD for review
Dec 2023: Complete draft ordinance and present to applicable City commissions and committees for review
May 2023: Council approves ordinance
Yes
S-23 Know Your Rights
materials
July 2024: Outreach Strategy developed January 2025: funding source identified
# of communications pieces released
# of recipients of communications
Yes
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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3-63 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
at least 2 partner organizations identified to assist in outreach S-25 Tenant-based vouchers in
higher-resource areas
Data obtained from nonprofit legal organizations on locations of complaints
Target neighborhoods identified
Capacity assessed of legal assistance partners to do new outreach with community partners
Funding identified
Contracts executed
# people assisted
# services delivered
Yes
S-26 Increased support for
nonprofits to do tenant
and landlord outreach
and education
July 2025: funds identified for hotline
Dec 2025: Launch hotline
Funds budgeted annually for tenant and landlord outreach and education
Difference in average funding per year for tenant and landlord outreach and education from 2023 to 2031
Services provided
# Calls supported
# Clients served
Yes
S-29 Rent Stabilization
Program Strategic Plan
and program assessment
Strategic Plan and program assessment completed with consultant Outreach conducted with stakeholders on any report
recommendations
Amendments presented to Council, if warranted
No
S-32 Local enforcement of
state tenant protections
State determined pathway
Sponsored State bill if needed
Work with coalition of rent stabilization cities
Legislation passage
No
Medium – Term (2025-2027)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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3-64 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
H-6 Housing with integrated
health care
By 2031: At least one new development with on-site health services No H-10 Racial and other bias of
protected classes in
homeless shelter and
supportive housing
systems
Dec 2023: Meet with County, service providers and property management staff on accessing data
2024, 2027, 2030: Collect data, analyze data
Within 12 months following each analysis completion: Work with partners to provide technical assistance sessions as needed Yes
I-5 Universal design
ordinance, plans, and
guidance
Ordinance approved by City Council
Plan set created and released
Pathways guidelines created and released
Yes
I-7 Inclusive and equitable
community engagement
Community engagement strategies drafted
City Auditor's recommendations on outreach closed
Amended outreach policy drafted and adopted by Council
Revised Language Access plan for Housing
Revised outreach procedures for PBCE
Budget for CBO-based outreach increased
Yes
I-12 Resident-identified
priorities
July 2025: Survey designed & released
July 2025: Work with Open House and other stakeholders to increase response rate
July 2025 to July 2026: Survey responses analyzed
July 2026: Resulting changes proposed to City programs and efforts; release Information Memo
Yes
N-5 Increase affordable
housing production in
higher-resource areas
July 2026: 35% of funds awarded in high-opportunity areas between July 2021 and June 2025
December 2027: Complete evaluation of Siting Policy and present to City Council
# residents in # affordable units in higher-opportunity areas Yes
P-19 Expanded City Density
Bonus program
Study completed
Council approval of Ordinance changes
# Affordable units created through Density Bonus. Number of units by AMI category
No
P-22 Transit-oriented
affordable housing near
NOFAs prioritizing area Yes
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-65 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
Diridon Station
P-25 Updated Inclusionary
Housing program fees
Fees study produced No
P-27 Accessory Dwelling Unit
(ADU) affordability
Feasibility analysis completed No
P-29 Fair Housing Equity
Analysis for Specific Plans
Plans with fair housing analysis integrated Yes
P-35 Small multifamily housing Feasibility analysis done Plans created
Design standards created
Council approval of land use changes, design standards
Publish financing
information
No
P-36 Alum Rock East Urban
Village Plan
Outreach conducted
Plan drafted
Council approval of Plan
No
P-37 CEQA analysis for Urban
Villages
Council approval of CEQA study No
P-44 Urban Villages Completion of evaluation No
R-3 Diridon Preservation Pilot Jan 2025: Pilot creation City Council approval of pilot
By Dec 2025: NOFAs issued
By Aug 2026: Council approval of funding commitments
55 homes preserved through acq/rehab in defined area around Diridon Station Area
Yes
R-5 Acquisition Loan Fund Request for Proposals Issued if needed; loan product defined and rolled out; # units acquired with Loan Fund(s) Yes
R-6 Mobilehome Park
General Plan designation
for remaining 56
mobilehome parks
2024: Council approval of General Plan Amendments and rezonings # mobilehome parks with new land use designation
Yes
R-8 Work with the Bay Area # transactions No
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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3-66 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
Housing Finance
Authority (BAHFA) on
Moderate-income
Financing Strategy
# newly-affordable homes at each income level
S-1 Tenant Resource Centers
and violations reporting
Tenant resource centers with Code assistance
# residents assisted
# Housing/Code meetings held
No
S-2 Rental property registry
improvement
% of City's rental units registered No
S-5 Code enforcement
improved case
management
January 2026: Phase 1 - New Case Management System Implemented.
Violation tracking system in place
January 2028: Phase 2 - Analysis of building performance complete.
January 2029: Phase 3 - Stakeholder outreach on cost escalators and proposed changes.
Council approval of code updates (if any).
January 2030: Phase 4 - Implementation complete.
Yes
S-6 Proactive Code
enforcement for more
rented residences
June 2025: Complete Study
December 2025: Recommendation
Yes
S-7 Financial literacy
programs for potential
homebuyers as funds
remain available
Services provided
Budget allocated
# buyers assisted
No
S-8 Homebuyer program
redesign
Feasibility analysis and plan created
Council approval of program
Yes
S-11 Alternative
documentation for non-
citizens
July 2024: Council approval
July 2025: Workplan complete
# properties implemented
Yes
S-16 Affirmative marketing
languages and best
practices for affordable
housing
Requirement rolled out
Data collected for compliance
Library created & made available
Yes
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-67 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
S-17 Local Fair Chance / "Ban
the Box" ordinance
Report completed
Council presentation made
Outreach done
Ordinance drafted
Program proposal created
Council consideration
Yes
S-18 Review data on City-
monitored properties to
identify Fair Housing
issues
Data collection on residents and applicants
Outliers analysis
# Meetings held with outlier properties
Technical assistance given
Yes
S-19 Certificate of Preference
program
Research and legal analysis conducted
Findings presented to Council
If Council directed, program developed
Yes
S-24 Targeted fair housing
outreach and
enforcement
Data obtained from nonprofit legal organizations on locations of complaints
Target neighborhoods identified
Capacity assessed of legal assistance partners to do new outreach with community partners
Funding identified
Contracts executed
# people assisted
# services delivered
Yes
S-27 Tenant/landlord
education centers
# Locations served
Materials available
# Tenants and landlords assisted
No
S-28 Right to Counsel or
Alternative
2023: Collaborate with bay area housing finance authority on protections policy event including right to counsel and alternatives 2023: RFP Issued
2024: Consultant hired
No
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-68 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
2024: Program proposed to Council for approval
If approved, start program creation
S-30 Just cause eviction
protection amendment
Analysis of issue
Presentation to Council
Council consideration
No
S-31 Tenant Protection
Ordinance amendment
for affordable apartments
Analysis of issue
Ordinance amendment
Presentation to Council
Council consideration
No
Long-Term (2027-2031)
No strategies are designated long-term.
Annual & Ongoing (2023-231)
# Strategy Milestones AFFH
H-2
Interim housing for
people experiencing
homelessness in hotels/
motels
# hotels acquired
$ of Homekey awards # residents housed
No
H-7 Safe parking programs # safe parking spaces for RV’s and car vehicles Amount of budget No H-8 Nonprofit-provided
homeless support
services
Funding to nonprofit service
providers
# people assisted
No
H-9 Street-based services for
unhoused residents
Funds budgeted
Services provided # clients served
No
I-6 Universal design and ADA
upgrades
By 2031: At least 50% of annual NOFAs issued incent units for residents with disabilities
By 2031: City funds committed to 150 units with enhanced accessibility per TCAC guidelines
Yes
I-16 Advocacy to close the Support letters issued Yes
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-69 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
racial homeownership
gap
Advocacy meetings held
I-17 Collaborative solutions to
address housing needs
Collaborative initiatives No
I-18 Advocacy on public
policies and programs to
facilitate production,
preservation, protection,
and neighborhood
investments
Support letters
Working group participation
No
I-19 Reasonable
Accommodation
Council approval of ordinance amendments Yes
N-3 Vacant and Neglected
Buildings Program
# Buildings monitored
# Buildings cited
# Problems resolved
No
N-6 Reduced transit fares for
lower-income residents
Advocacy meetings and letters
Federal funds obtained for fare reductions
Yes
N-9 Affordable transit-
oriented development
# parcels purchased
# projected affordable units assisted
No
P-2 Subsidize extremely low-
income housing including
permanent supportive
housing for homeless
% of City subsidies spent on ELI and PSH # of affordable homes created Yes P-5 Affordable Housing
Investments in North San
José
# of affordable homes restricted
# of sites acquired
# RFP awards & groundleases to affordable developers
Yes
P-9 Diridon affordable
housing production goal
By the later of Diridon Station Area Plan buildout or 2040: 25% of homes in Station Area as restricted affordable
Annual goal: Fund an average of 61 new affordable homes By 2031: 488 affordable homes funded by City
Yes
P-16 Groundleases for
affordable housing
# and % affordable developments that closed construction with public groundleases each year % of all funded restricted affordable properties with city or other public groundleases No
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-70 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
# existing deal land purchases
# affordable units permanently preserved
P-18 Loans for affordable
housing
NOFAs issued
Funds committed
Affordable homes created
Affordable homes preserved
No
P-23 Pursue AHSC funding
near Diridon Station
AHSC applications submitted
AHSC applications awarded
$ awarded
Yes
P-28 Predevelopment loans # predevelopment loans made
# affordable units assisted
No
P-31 Land acquisition for
affordable housing in
target locations
# parcels purchased
# projected affordable units assisted
Yes
P-32 Higher subsidies per unit Adjustments to NOFA/program guidelines Yes P-34 Affordable housing
funding advocacy
Support letters issued
Participation on working groups
No
R-7 Extend affordable
housing restrictions
By 2031: preserve at least 900 units of at-risk affordable housing, or an average of 112 units per year.
Yes
R-11 Owner-occupied home
preservation
# low-income households assisted Yes
S-3 Proactive Code
enforcement in identified
Project Hope Place-based
neighborhoods
Annually through 2031: At least 3 neighborhoods covered with enhanced multifamily inspections
Annually through 2031: Average 200-250 units per neighborhood inspected per year (total 600 750 units per year)
# of violations resolved within 150 days each year: Target of 2000 (includes mostly housing violations and some blight)
Yes
S-21 Facilitation of equal
access to housing
July 2024 Metrics developed by collaboration with and feedback from at least 3 fair housing grantees
$ funding to nonprofit fair housing providers
# people assisted
Yes
S-22 Fair housing services and
support
Annual meetings held
Priorities established jointly
Yes
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-71 City of San José Draft Housing Element, rev. June 2023
# Strategy Milestones AFFH
S-33 Job training with housing
subsidies
# housing-subsidized participants in job training programs Support letters and meetings for legislation / budget requests Yes
S-34 Economic opportunity
strategies
Strategies created
Strategies implemented
Programs funded
No
P-45 Pipeline Projects
Evaluation
Present findings during housing element annual reporting period No P-47 Accessory Dwelling Unit
(ADU) Monitoring and
Ordinance Compliance
Jan 2024: SLA activities completed
Dec 2025: Notices of Availability issued
No
P-48 Implement Surplus Land
Act
Jan 2024: SLA activities completed
# Notices of Availability issued
No
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-72 City of San José Draft Housing Element, rev. June 2023
Quantified Objectives
The Tables 3-10, 3-11 and 3-12 lay out the number of housing units that the City expects to be constructed, maintained and preserved within the planning period.
Table 3-10: Quantified Objectives
Extremely
Low and Very
Low Income
Low
Income
Moderate
Income
A
M
I
RHNA Target 15,088 8,687 10,711
Residential
Development Pipeline 974 4,370 178
ADUs 1,733 866
100% Affordable
Pipeline 1,200 1,300 600
Supportive Housing
Acquisitions – Pipeline
and Planned 0 204 0
Total Housing Units 2,174 7,607 1,644
Table 3-11: Households Served by HOPWA, HOME TBRA and
Eviction Help Center (8 year estimated total)
Extremely
Low and Very
Low Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
HOPWA 463 48 0 0 511
HOME TBRA 677 70 0 0 747
Eviction Help Center 1,192 160 0 0 1,352
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 3: Housing Goals and Strategies
3-73 City of San José Draft Housing Element, rev. June 2023
Table 3-12: Shelter, Transitional Housing, and Supportive Housing (Ongoing; numbers as of 2022)
Extremely
Low and Very
Low Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
Emergency Shelter or
Transitional Housing Beds 1,070 0 0 0 1,070
Permanent Supportive
Housing Beds 3,433 0 0 0 3,433
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
4-1 City of San José Draft Housing Element 4-1 City of San José Draft Housing Element Chapter 4
Constraints on Housing
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
4-2 City of San José Draft Housing Element 4-2 City of San José Draft Housing Element CONTENTS - CHAPTER 4
Contents
4.1 Introduction .................................................................................................................................................................... 4
4.2 Nongovernmental Constraints .................................................................................................................................. 5
4.2.1 Availability of Financing ................................................................................................................................ 5
4.2.2 Market-Driven Costs ...................................................................................................................................... 6 Price of Land ................................................................................................................................................ 6 Construction Costs ..................................................................................................................................... 7
4.2.3 Resident Opposition ..................................................................................................................................... 10
4.3 Governmental Constraints ........................................................................................................................................ 10
4.3.1 General Plan .................................................................................................................................................... 11 Urban Village Strategy ............................................................................................................................ 12
4.3.2 Zoning Districts ............................................................................................................................................ 13 Agricultural and Open Space Districts ................................................................................................ 15 Residential Districts .................................................................................................................................. 15 Commercial/Public/Quasi-Public and Industrial Districts .............................................................. 18 Downtown DC and DC-NT1 Zoning Districts ...................................................................................... 19 Urban Village and Mixed-Use Zoning Districts ................................................................................ 22
4.3.3. Other Land Use Controls .......................................................................................................................... 26 Secondary Unit Policies ........................................................................................................................... 26 Parking Standards ..................................................................................................................................... 28 Design Guidelines ..................................................................................................................................... 30 Building Codes ........................................................................................................................................... 31 On-Site and Off-Site Improvements .................................................................................................... 32
4.3.4 Residential Developer Affordable Housing Requirements ............................................................... 38 Inclusionary Housing Ordinance ........................................................................................................... 38 Commercial Linkage Fee ......................................................................................................................... 40
4.3.5 Affordable Housing Program ................................................................................................................... 40 Density Bonus Ordinance ....................................................................................................................... 40 Senate Bill 35 Streamlined Projects ..................................................................................................... 42 Senate Bill 330 / Housing Crisis Act of 2019 ...................................................................................... 42
4.3.6 Planning Process and Application Fees ...................................................................................................44 DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
4-3 City of San José Draft Housing Element 4-3 City of San José Draft Housing Element
4.3.7 Fees and Exactions ....................................................................................................................................... 52 Park Fees ..................................................................................................................................................... 52 School Fees ................................................................................................................................................. 52 Construction Taxes ................................................................................................................................... 53 Entitlement Fees ....................................................................................................................................... 53 Construction Fees ..................................................................................................................................... 53
4.3.8 Types of Housing ......................................................................................................................................... 56 Reasonable Accommodation ................................................................................................................. 56 Housing for Persons with Disabilities .................................................................................................. 57 Emergency Homeless Shelters .............................................................................................................. 57 Emergency Temporary Shelter Facilities ............................................................................................ 61 Low-Barrier Navigation Centers ........................................................................................................... 63 Transitional/Supportive Housing .......................................................................................................... 63 Single-Room Occupancy Housing........................................................................................................ 63 Housing for Agricultural Workers ........................................................................................................ 64 Factory-Built Housing .............................................................................................................................. 65 Manufactured Homes and Mobilehome Parks ................................................................................. 65
4.4 Response to Constraints ........................................................................................................................................... 66
4.5 Preservation of Affordable Homes at Risk of Conversion to Market-Rate.................................................... 68
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-4 City of San José Draft Housing Element, rev. May 2023
4.1 Introduction
T
he purpose of this chapter, per Government Code Section 65583(a)(5-6), is to identify actual and potential nongovernmental and governmental constraints that limit the development, maintenance, or improvement of housing. This includes constraints such as land and construction costs, access to financing, permit fees and taxes, and development standards. A thorough understanding of the constraints to development can help create appropriate policy responses to mitigate constraints and make it easier and more affordable to develop housing.
State law requires the Housing Element to include the following specific item that relates to discussion of planning processes (section 4.3.6).
• Time Between Project Approval and Permit Application Submittal - W e provide an analysis
of the length of time between receiving approval for a housing development and submittal of an application for building permit. A look at major development projects in the last 7 years show that the time between the approval of a housing development application and submittal of an application for building permits can be between one month and approximately three and half years. The City also allows applicants to begin the building permit process before a project is officially approved. See Table 4-11 and Appendix E for an reoverview of project timelines.
• Requests for lesser densities –the majority of approved projects on sites in the 5th Cycle Housing Element inventory were approved at or above the densities planned. Out of 73 sites, eight sites were approved with projects at densities below those planned for the 5th Cycle Inventory. It should be noted that the reduced densities were proposed by the project applicant and not due to constraints in terms of zoning, or land use controls. The table below identifies the sites and other characteristics of those projects.
5th Cycle
ID PROJECT NAME
FILE
NUMBER
TRACKING
APN/ADDRESS
PLANNED
UNITS/
DENSITY ACRES
NEW
DEVELOPMENT
FILE NUMBER New Units
New
Project
Acres
1 San Pedro Square H12-020
25932044
171 W. Julian Street
408
(190 du/ac) 2.14 N/A
381
(162 du/ac) 2.35
6 N/A N/A
25931070
255 W Julian Street
158
(175 du/ac) 1 SP21-037 0 1.79
5 N/A PDC06-125
26426006
341 Delmas Ave
144
(175 du/ac) 0.82 H15-046
120
(171 du/ac) 0.70
10 Newbury Park Mixed
Use PDC07-015
25404076
1855 Dobbin Dr.
742
(80 du/ac) 16.36 PD14-029
131
(22 du/ac) 5.88
9 Newbury Park Mixed
Use PD13-023
25404076
1745 Dobbin Dr.
230
(80 du/ac) 3.08 PD14-044
49 (32 du/ac) 1.50
18 N/A N/A
57754013
5827 Brasilia Way
16 (2du/ac) 7.88 PD16-014
10 1.25 du/ac) 7.94
16 N/A N/A
58311094
7257 Gold Creek Way
4 (2 du/ac) 1.8 PDA78-061-02
1 (1.25
du/ac) 0.80
7 N/A N/A
25946109
267 Delmas Ave.
294
(175 du/ac) 1.68 SP16-010
(76.5
du/ac) 0.47
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-5 City of San José Draft Housing Element, rev. May 2023
4.2 Nongovernmental Constraints
State law (California Government Code, Section 65583(a)(6)) requires housing elements to contain an analysis of nongovernmental constraints to the development, improvement, or maintenance of housing for all income levels, including the availability of financing, the price of land, and the cost of construction.
Nongovernmental constraints are largely determined by market conditions over which local jurisdictions have little control. However, local governments can influence market conditions and their associated costs, even if
only indirectly. Governmental interventions that
affect nongovernmental constraints will be
explored in more detail in Section 4.4.
4.2.1 Availability of Financing
The availability of financing is an important aspect of the ability to construct new housing. In San José in
recent years, the availability of financing has not been a constraint on the supply of housing. Construction
costs as discussed in the next section, have been the
most significant constraint. Prior to the COVID-19
pandemic, financing has been generally available at
reasonable rates for construction. Rates remained
very favorable through the majority of the pandemic,
Nongovernmental constraints are larg
ely
determined by market conditions. However,
local governments can influence market
conditions and their associated costs, even
if only indirectly.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-6 City of San José Draft Housing Element, rev. June 2023
but the market uncertainty caused by the pandemic has made lenders more cautious. The growth of inflation and rising interest rates in 2022 may start to have an impact on the availability of financing moving forward, but it remains to be seen what the long-term impact will be in San José.
As was the case in the previous housing element update, new construction in San José for multifamily housing is dominated by a handful of very large publicly-traded or privately-held firms and/or real estate investment trusts (REITs), which tend to have easy access to financing or the ability to finance projects themselves. Lenders also tend to favor multifamily rental housing over housing intended for ownership. This is likely due to the higher demand and return on investment with rental housing coupled with the increased associated liability risks with providing for-sale housing types.
Overall, the high demand for housing coupled with the strong regional job market has made San José an attractive location for investment, but other factors have constrained the supply of housing outside of financing availability.
For affordable housing construction, the availability of financing has been constrained by level of subsidy available. In recent years, the competitiveness in obtaining funds has greatly increased especially for Low- Income Housing Tax-Credit (LIHTC) financing making it more challenging for projects to obtain sufficient funds to start construction. Developments in San José have had to apply multiple times to receive a LIHTC award delaying the ability to start construction from six months to over two years in some instances. San José, and the larger Bay Area as a region, were recently disadvantaged due to scoring that elevated areas where construction costs were lower. This added to the difficulty in obtain financing. The City advocated for changes in the California Debt Limit Allocation Committee (CDLAC) program guidelines to better position affordable housing developments in San José for future allocations of tax-exempt bonds and tax credits.
Some of these changes were implemented in 2022 and in the coming years the City will be tracking the overall impact on affordable housing developments in San José and the Bay Area region as a result of these changes.
4.2.2 Market-Driven Costs
Price of Land
The price of land varies widely across the City of San José given its size, diversity of uses, and built densities. An analysis conducted in 2019 by the City’s consultant, David Paul Rosen and Associates, found that multifamily land prices have been trending upward since the Great Recession. From 2011 to 2015, land prices rose at annual rate of 23.6%. From 2015 to 2019, prices continued rising rapidly, particularly amongst properties designated for high density, with those increasing at a rate of 22.9%.
In real estate economics, land cost is traditionally somewhat elastic. While underlying land costs are generally informed by recent transactions within a submarket, projects that propose redevelopment of a property also factor in the residual land value — the amount a developer can afford to pay for the land when all other costs and revenues have been considered. Conventional thinking around residual land value suggests that while rents are high in San José, the high costs associated with construction would bring down the price of land. Land values should also take into account any increase in City fees and taxes. However, the above-mentioned analysis found that in San José there is “no apparent correlation between the sales price trends and the City’s land use and development fee regulatory actions affecting land. Rather the trends appear to primarily reflect market and economic cycles.” A number of factors affect
the relative high cost of land in San José:
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-7 City of San José Draft Housing Element, rev. June 2023
• Long-term landholders may be less incentivized to sell because they maintain a low tax base on the property;
• Multigenerational or multiple owners can make consensus on selling difficult to reach; • In urban village areas, of which several are transitioning from primarily commercial to mixed- use or residential, there may be properties already occupied by businesses that are paying good rent, and the owner is thus reluctant to sell; and • The perception of a strong real estate market, major employers moving in, and/or impending improvements, such as new transit and amenities, may create an expectation of higher future land values that the seller is willing to wait for.
In these instances, developers must either choose to pay over the residual land value for the property or look for other options.
Since this analysis in 2019, data from CoStar, an online real estate database, shows that price growth slowed in the multifamily sector in 2020 at the onset of the pandemic. Due to the uncertainty of the market, the volume of sales was down in 2020 and 2021. Additionally, analysis conducted in 2022 by Century Urban, a City consultant, found that the median land price per multifamily unit in San José was $50,000 and the maximum was $125,000 based on 17 comparable data points. Given the volume of sales during the pandemic, many property owners seemed to have wanted to wait for more market certainty before selling, however, sales started to trend upwards in early 2022. With this recent data, there is reason to believe that land prices in San José continue to reflect market and economic cycles rather than any City actions affecting land.
According to Redfin, an online real estate brokerage, the median single-family price in San José in April 2022 was $1,750,000, reflecting an increase of over 24% from April of 2021. Median prices for single- family properties vary widely throughout the City, with averages between $2,000,000 to $2,500,000 in the West San José and Evergreen areas and averages of $1,000,000 to $1,100,000 in Alum Rock and Central San José. All areas saw year-over-year increases of around 20% from 2021 to 2022.
Construction Costs
Construction costs have continued to increase and represent a major nongovernmental constraint on the supply of housing at all income levels in the City of San José. According to recent interviews with developers of both market-rate and affordable units in the City, construction costs rose 10-12% from 2021 to 2022, due to increases in both labor costs and materials, such as lumber. Labor costs were already a significant contributor to construction costs prior to the pandemic and have continued to increase. The ongoing challenges in global supply chain have further exacerbated material costs.
The City has been conducting regular analyses of the cost of multifamily residential development and has issued two reports to date working with a consultant. A third update was completed in November 2022 by the City’s consultant, Century Urban. This analysis uses a variety of prototypical developments in submarkets across the City with different building types, and resulting data on construction costs are summarized in Table 4-1. The table also shows the costs to build a typical single-family home; this data was also developed by Century Urban.
San José is at a unique disadvantage co
mpared to other nearby cities. Rents remain high in San José, but are still lower than rents in some nearby cities. However, the City is still subject to the same construction costs as those jurisdictions. For market-rate development, this has been a major setback to production of new units in recent years. New market rate development has also been limited to specific areas where rent levels are sufficient to support new development and has resulted in uneven development patterns DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-8 City of San José Draft Housing Element, rev. June 2023
across the City. Increased construction costs are also a constraint on the production of affordable housing by increasing the size of the subsidy that must be provided by the city, county, or state. The layering on of these additional funding sources adds time, which adds costs due to escalating construction costs. Additionally, these new funding sources may add on additional requirements to the project that can take time incorporate or add additional expense.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-9 City of San José Draft Housing Element, rev. June 2023
Table 4-1: Residential Construction Costs in San José (2022)
MULTIFAMILY CONSTRUCTION *
AVERAGE
UNIT SIZE
(SF)
TOTAL
HARD COSTS
PER UNIT
TOTAL
SOFT COSTS
PER UNIT
TOTAL
PER
SF
TOTAL
COST PER
UNIT **
Type I / Rental – Downtown 900 $688,800 $171,900 $956 $860,800 Type I / For Sale – Downtown 950 $797,400 $191,700 $1,041 $989,100 Type III / Rental – Central 900 $662,100 $216,300 $932 $838,400 Type III / Rental – West 900 $662,100 $213,500 $928 $835,600 Type III / Rental – North 900 $662,100 $186,800 $899 $808,900 Type V / Rental – Central 900 $552,900 $199,900 $836 $752,700 Type V / Rental – South & East 900 $552,900 $179,300 $813 $732,100 Type V / For Sale – South & East 1,150 $737,900 $233,500 $845 $971,400 Type V / For Sale – Central, West & North 1,150 $737,900 $228,600 $840 $966,500 * Type I is 22-story high-rise building; Type III is 7-story mid-rise building; Type V is 5-story low-rise building. ** Total Cost Per Unit includes hard and soft costs, parking, city fees, permits, and financing costs.
Location Map: https://csj.maps.arcgis.com/apps/webappviewer/index.html?id=8518bc095ae54f4ea025d7743c650881 SOURCE: Century Urban, prepared for City of San José 2022 Report on the Cost of Development.
SINGLE-FAMILY CONSTRUCTION
AVERAGE
UNIT SIZE
(SF)
TOTAL
HARD COSTS
PER UNIT
TOTAL
SOFT COSTS
PER UNIT
TOTAL
PER
SF
TOTAL
COST PER
UNIT
Single-Family - Small 2,600 $1,092,000 $365,000 $560 $1,457,000 Single-Family - Large 5,000 $2,625,000 $775,000 $680 $3,400,000 SOURCE: Century Urban, prepared for Bard + Driskell for County Collaborative Group, 2022.
Construction costs have
been the most significant
constraint on the supply of
housing.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-10 City of San José Draft Housing Element, rev. June 2023
4.2.3 Resident Opposition
As in many other cities in California and the United States, proposals for housing development in San José are often opposed by residents who raise various objections. These objections can be on procedural grounds (e.g., insufficient public consultation1 or violation of CEQA2) or concerns about project impacts (e.g., less parking and increased traffic3, increased crime3, reduced property value,4 etc.). This opposition can result in longer review periods, additional political intervention, and delayed construction through appeals after City approval. This in turn increases project risks and costs in multiple ways: it jeopardizes financing (private or public) that in turn affects the time value of money, and it pushes private developers toward more expensive projects with more favorable rates of return.5 It also often results in reduction in project unit delivery (either preemptively or due to backlash), eroding the ability of the City to deliver on its RHNA goals. Therefore, significant and sustained opposition by residents is a constraint on new housing.
To address this constraint, the Housing Element (Chapter 3, Strategy P-7) proposes the development of a City Ministerial Approval Ordinance that would allow the Director of Planning, Building, and Code Enforcement to approve certain projects that meet objective standards in a defined timeframe, without public approval hearings. The projects would still be subject to Council Policy 06-30 (Public Outreach for Development Projects) to ensure that residents of the surrounding neighborhood are aware of the proposal and have opportunities to voice any concerns and ideas for design improvements.
The Housing Element (Chapter 3, Strategy P-7) also proposes additional CEQA streamlining measures to reduce project timelines and reduce the risk of lawsuits against projects, in addition to increased outreach and education on future housing developments for currently unhoused people. Regarding outreach and education, these efforts will focus on the root causes and different housing approaches for homelessness, controversial topics related to equity and protected classes, and areas experiencing growth.
The intent of these interrelated actions is to increase predictability in the development review process and to support housing construction consistent with the General Plan, while still enabling transparency, public involvement, and environmental protection as part of the review process. These are all important values that the City balances in pursuit of housing goals.
4.3 Governmental Constraints
Governmental policies and regulations can result in both positive and negative effects on the availability and affordability of housing. This section, as required by Government Code Section 65583(a)(5), describes City policies and regulations that could potentially constrain the City’s ability to achieve its housing goals. Potential constraints to housing include land use controls (through General Plan policies
1 Ramona Giwargis, San Jose Mercury News, August 12, 2016, “San Jose council Oks controversial homeless housing project,” https://www.mercurynews.com/2016/06/28/san-jose-council-oks-controversial-homeless-housing-project/ 2 Grace Hase, San Jose Mercury News, July 28, 2022, “San Jose: Residents sue city over impact a Whole Foods store would have in El Paseo shopping center redevelopment,” https://archive.ph/BrpNK 3 Emily Deruy, San Jose Mercury News, August 21, 2019, “San Jose senior housing faces backlash from neighbors,” https://www.mercurynews.com/2019/08/21/senior-housing-development-faces-backlash-from-neighbors/ 4 Art Duran, Change.org, “No To Homekey Proposal in D2: Residence Inn on San Ignacio Avenue,” https://www.change.org/p/no-to- homekey-proposal-in-d2-residence-inn-on-san-ignacio-avenue 5 Jenny Schuetz, Brookings, January 17, 2020, “Who’s to blame for high housing costs? It’s more complicated than you think,” https://www.brookings.edu/research/whos-to-blame-for-high-housing-costs-its-more-complicated-than-you-think/ DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-11 City of San José Draft Housing Element, rev. June 2023
and zoning regulations), development standards, infrastructure requirements, development fees, and the development approval processes. While government policies and regulations are intended to serve public objectives and further the public good, the City of San José recognizes that its actions can potentially constrain the availability and affordability of housing to meet the community’s future needs.
To that end, the City has implemented several measures to reduce development costs and streamline the approval process, as described in this section.
4.3.1 General Plan
In November 2011, following significant community engagement, the City Council adopted the Envision San José 2040 General Plan, the blueprint for the city’s gro wth and development through 2040. The General Plan centers on 12 Major Strategies that reflect the community’s desire to see San José grow as a prominent city in the region, state and country. For future land use, the plan focuses growth into existing
infill areas along transit, thus limiting sprawl while creating new, vibrant urban villages that provide enough homes for all ages and income levels (see also the urban villages section that follows.) The General Plan influences housing in the City primarily through land use designations and the Land Use Map, which control where new homes can be built and at what density. Of the plan’s 23 land use designations, 11 allow for residential development, as listed in Table 4-2.
Table 4-2: General Plan Land Use Designations that Allow Residential Development
GENERAL PLAN LAND USE
DESIGNATION
MAXIMUM ALLOWED DENSITY
(dwelling units per acre)
CONFORMING
ZONE(S)
Agriculture 0.05 A
Open Hillside 0.05 OS
Lower Hillside 0.2 R-1-RR
Rural Residential 2 R-1-1, R-1-2
Residential Neighborhood 8 R-1-8, R-1-5
Mixed Use Neighborhood 30 MUN
Mixed Use Commercial 50 MUC
Transit Residential 50-250 TR
Urban Residential 30-95 UR
Urban Village 250 UV
Downtown 350 DC
SOURCE: City of San José Planning Division, 2022.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-12 City of San José Draft Housing Element, rev. June 2023
The General Plan also contains Housing and Implementation Policies that outline the City’s goals for new homes and execute the plan’s vision for the City. Of note are:
• Housing Policy H-2.9, which allows certain 100% affordable housing projects to be built outside of existing Growth Areas on small, underutilized infill lots; and • Implementation Policies IP-5.10 and IP-5.12, which allow market rate and affordable housing to be built in unplanned Urban villages, respectively.
Urban Village Strategy
The development of urban villages is the fifth of 12 Major Strategies embodied within the Envision San José 2040 General Plan. The urban villages concept is a policy framework to direct most new job and housing growth to occur within walkable and bike-friendly urban villages that have good access to transit and other existing infrastructure and facilities. The urban village strategy fosters:
• Revitalization of underutilized properties;
• Densities that support transit use, bicycling, and walking; and • Mixed residential and employment uses that are attractive to an innovative workforce.
City staff have engaged the community on the preparation of comprehensive land use plans for 14 urban village areas thus far and envision working on an additional 46 such plans (60 in total). These plans include minimum and maximum densities for each site, design guidelines and development standards, and goals and policies specific to each village. Urban village areas are shown on the General Plan’s Planned Growth Areas Diagram.
Prior to the adoption of urban village plans, most sites in these areas have a commercial land use designation (NCC or MUC) which outright does not allow for residential uses. However, to address the housing crisis and provide flexibility, the City allows residential uses to proceed ahead of an adopted urban village plan through two implementation policies:
• IP-5.10 - Allows market rate projects that conform to the General Plan’s signature project requirements. A signature project serves as a catalyst, promoting the future development of the entire urban village area.
• IP-5.12 - Allows 100 percent affordable projects (at 80% AMI or below) to be built on these commercially-designated sites.
The Urban Village strategy is a critical path to achieve multiple interconnected goals (environmental sustainability, transit supportive communities, fiscally sound city, etc.) and these areas also provide for significant residential growth capacity planned in the Envision General Plan 2040. Urban Village planning is critical for the City to achieve residential growth envisioned in the General Plan.
The urban village planning process however can be a constraint. Urban Village planning requires significant staff resources and advanced planning. Since the adoption of the General Plan in 2011, staff has planned 14 urban villages areas—roughly 1.2 every year. At this rate the City cannot reasonably expect to plan the remaining urban village areas (46) within the time frame of the current General Plan unless several changes are implemented to streamline the process. While housing development may proceed in unplanned urban villages through General Policies IP-5.10 and IP-5.12, these policies do not provide opportunities for residential and mixed-use residential development outside of 100% affordable developments and “Signature” (or outstanding/catalyst) projects. Essentially, unplanned urban villages are not primed yet to DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-13 City of San José Draft Housing Element, rev. June 2023
facilitate residential development.
The total staff and consultant cost to prepare an urban village plan ranges from $350,000 to $850,0000, and the time to prepare ranges from 18 months to 2.5 years. Pursuant to General Plan Policy IP-5.15, staff is encouraged to “actively pursue outside funding opportunities for the Village planning process.” However, given the limited Planning and fiscal staff positions in the Department, as well as the complexity of administering federal and state grants, it is inefficient for the Department to seek grant funds to wholly support urban village planning processes. In practice, planners are spending too much time administering grants than engaging in real, land use planning. Given this, as noted in Chapter 3 Housing Goals & Strategies, staff is considering amending Policy IP-5.15 to encourage the City to identify a stable, internal funding source to cover the majority of the planning process. Staff will continue to seek grants to support portions of the work, however, cannot rely on it as the only source.
In terms of streamlining the process, staff recommends including a program in the Housing Element (Chapter 3, Strategy P-40) that will reevaluate the urban village strategy including but not limited to:
reducing and consolidating urban village areas, reevaluating the required components of urban village plans, and accelerating the timeline while still supporting community engagement throughout the process.
One example of this type of streamlining effort is the development of the Capital Caltrain Station Area plan (also an urban village plan area) that is laying the groundwork for an expeditated planning process, while still providing opportunities for public engagement.
4.3.2 Zoning Districts
Title 20 of the San José Municipal Code (www.sanjoseca.gov/municipalcode), is commonly refe rred to as the Zoning Ordinance or Zoning Code. It guides, controls, and regulates future growth and development in the City while promoting the goals and policies of the General Plan. San José has a variety of zoning districts that can accommodate various housing needs.
The C
ity’s zoning ordinance regulates the uses within each zone and sets the standards for development including height, setback, and open space requirements, amongst other regulations. The zoning ordinance includes a variety of standard land use controls which are meant to ensure the orderly development and design of the build environment. Examples of standard land use controls include:
• Minimum lot area – The minimum lot area is meant to ensure uniformity of development patterns as well as providing for adequate space for development to meet building and fire safety codes. The zoning ordinance provides exceptions for smaller lots (Section 20.30.230 explains that parcels can be as small as 3,000 SF). • Setbacks – The setback regulations are meant to be free and unobstructed from structures, in residential zoning districts, setback areas effectively regulate open space.
Each zoning district chapter includes exceptions to setback standards, exceptions are typically related to architectural features/projections. ADUs and accessory structures may be permitted in setback areas or with reduced setbacks. • Height – Each zoning district includes regulations which limit building height. The heights are meant to facilitate the scale and intensity of the allowable density on the site. Multifamily Residential (RM) is one example of a zoning district which is has potential to constrain development because the building height is low in relation to the types of uses permitted in the zone. However, as further explained below, this zoning district is being phased out with a more permissive, denser district. There are additional height regulations as discussed in the Specific Height Restrictions Chapter, as discussed DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-14 City of San José Draft Housing Element, rev. June 2023
later in this document.
• Density/Floor Area Ratio (FAR) – All zoning districts conform with specific density and FAR regulations which are established by the General Plan and meant to facilitate the city’s vision of dense, walkable communities. Density and FAR effectively regulate the mass of the building on site; density is typically expressed in dwelling units per acre (du/ac). Single Family Homes in R1 zones are generally limited to 0.45 FAR and can increase the FAR through discretionary process. Accessory structures and ADUs are not counted as part of the FAR in Residential zones. The Urban Village and Mixed Use zoning districts are unique in that the zoning ordinance includes standards for density and FAR.
• Open Space – Open Space regulations for multifamily and mixed use developments in Urban Village and Mixed Use zoning districts are divided into two categories, common open space and private open space (Section 20.55.102). The minimum open space requirements for prospective development are based on the number and type of residential units proposed. There are multiple exceptions to open space requirements for example, projects which include less than 15 dwelling units and projects which are within a quarter mile of existing public open space can eliminate their obligation. There are also opportunities to reduce open space requirements in exchange for providing “POPOS” or Public Open Space on site. Staff included the open space regulations in the test fit analysis and demonstrated that the minimum requirements and exceptions allowed were feasible for development. In addition to the test-fit analysis, staff revised the regulations based on feedback from the public and local developers including the Building Industry Association (BIA). Public comments during the community meetings included increasing the minimum open space requirements in light of the pandemic (and increased demand for open space). While the BIA was opposed to this request, staff was able to find a middle ground.
• Parking – In December 2022 the City Council amended parking regulations throughout the city and became the first major city in the bay area to eliminate parking minimums.
The ordinance is set to become effective on April 10, 2023. Covered Parking and Guest Parking is no longer required for residential development, and in most cases parking regulations were completely eliminated.
In addition to standard land use controls the zoning ordinance includes two additional chapters dedicated to specific regulations for heights and land uses. • Specific Height Restrictions Chapter – The Specific Height Restrictions Chapter provides guidance for geographically based height restrictions, largely related to sites with proximity to the San José Mineta International Airport. The Airport Influence Area encompass a large portion of Downtown, The Diridon Station Area, and North San José, for the most part these areas are constrained by FAA regulations. This section also includes regulations for areas in Old Edenvale, New Edenvale, Coyote Planning Area, North First Street Transit Village, and Rincon South Urban Village. • Specific Use Regulations Chapter – Similarly, the Specific Use Regulations Chapter provides regulations for various types of residential development projects including Co- living, SROs, Emergency Residential Shelters, Safe Parking, Incidental Shelter, Live/work units, and Hotel Supportive Housing.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-15 City of San José Draft Housing Element, rev. June 2023
Definition of Family
To ensure no individual or group is excluded from a variety of housing, the Zoning Ordinance (Section
20.200.370) defines a family as being “one or more persons occupying a premise and living as a single housekeeping unit.” This definition is sufficiently broad and therefore does not constrain development of unique housing types, such as those for special needs populations or for unrelated persons in any zoning district where residential uses are permitted.
Agricultural and Open Space Districts
Chapter 20.20 focuses primarily on open space and
agricultural uses but both districts support single- family use with a conditional use permit and temporary farm labor
housing is similarly allowed but only in the Agricultural District. Single-family homes in either district may also be used for a residential care facility or residential service facility for six or fewer residents.
San José has a limited inventory of lands zoned for open space and agricultural use which limit the viability of these districts for housing uses, however, other zoning districts also support single-family and temporary farm labor
housing as discussed in later
sections that make up for this limitation.
Residential Districts
Chapter 20.30, commonly referred to as the Residential
Zoning chapter, establishes residential land use and
development standards. Standards include parameters
for the size of lots/buildings and the location/use of
structures in accordance with the City’s conventional,
i.e., non-planned development, zoning districts. See
Table 4-3.
The City’s Multifamily Residential (R-M) District has
typical setback requirements, but it has no density
limit and includes building height exceptions. R-M can
accommodate development of higher density, lower-
income housing, i.e., at least 30 units per acre, without the need for a Planned Development (PD) zoning/
permit.
6 The R-M district, however, is a legacy zoning
District that is being phased out and replace with a more permissive district. The City recently adopted six new
zoning districts that will help create a more vibrant
urban form in areas that are targeted for mixed-use
development and high-density residential uses, further
6 CA CODE § 65583.2(c)(3)(B)(iv)
HOW ZONING DISTRICTS ALLOW
FOR VARIOUS HOUSING NEEDS
Municipal Code Chapter 20 is
considered the Zoning Code
www.sanjoseca.gov/MunicipalCode
Chapter 20.20 Open Space & Agricultural
Districts - Housing uses include single-family
and temporary farm labor camps necessary to
the gathering of crops grown on site.
Chapter 20.30 Residential Districts - Housing
uses include single-family, two-family (duplex),
and multifamily.
Chapter 20.40 Commercial and Public/
Quasi-Public Districts - Housing uses include
supportive services like low barrier navigation
centers and mixed-use residential/commercial.
Chapter 20.50 Industrial Districts - Housing
uses include hotel supportive housing.
Chapter 20.55 Urban Village and Mixed-Use
Districts - Housing uses include single-family,
two-family (duplex), multiple dwelling, and
mixed-use development.
Chapter 20.70 Downtown Zoning Regulations
- Housing uses include multiple dwelling and
mixed-use development.
Chapter 20.75 Pedestrian Oriented Districts -
Housing uses include mixed-use residential and
supportive services like low barrier navigation
centers.
HOW ZONING DISTRICTS ALLOW
FOR VARIOUS HOUSING NEEDS
Municipal Code Chapter 20 is
considered the Zoning Code
www.sanjoseca.gov/MunicipalCode
Chapter 20.20 Open Space & Agricultural
Districts - Housing uses include single-family
and temporary farm labor camps necessary to
the gathering of crops grown on site.
Chapter 20.30 Residential Districts - Housing
uses include single-family, two-family (duplex),
and multifamily.
Chapter 20.40 Commercial and Public/
Quasi-Public Districts - Housing uses include
supportive services like low barrier navigation
centers and mixed-use residential/commercial.
Chapter 20.50 Industrial Districts - Housing
uses include hotel supportive housing.
Chapter 20.55 Urban Village and Mixed-Use
Districts - Housing uses include single-family,
two-family (duplex), multiple dwelling, and
mixed-use development.
Chapter 20.70 Downtown Zoning Regulations
- Housing uses include multiple dwelling and
mixed-use development.
Chapter 20.75 Pedestrian Oriented Districts -
Housing uses include mixed-use residential and
supportive services like low barrier navigation
centers.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-16 City of San José Draft Housing Element, rev. June 2023
described in the section on Urban Village and Mixed-
Use districts.
Table 4-3: Development Standards for Residential Zoning Districts
PRIMARY DWELLING SETBACKS
ZONING
DISTRICT
UNITS
PER LOT
MIN. LOT
AREA (SF)
MAX.
ADU
MAX.
JUNIOR
ADU
MAX.
HEIGHT
(FT)
FRONT REAR
INTERIOR
REAR
CORNER
SIDE
INTERIOR
SIDE
CORNER
R-1-1 1 1 acre 1 1 35 30 25 25 20 20
R-1-2 1 20,000 1 1 35 30 25 25 15 15
R-1-5 1 8,000 1 1 35 20 20 20 5 12.5
R-1-8 1 5,445 1 1 35 20 20 20 5 12.5
R-1-RR 1 5 acre 1 1 35 50 30 30 20 30
R-2 1-2 5,445 3 - 35 15 25 25 5 10
R-M * 1+ 6,000 25% ** - 45 10 25 15 5 7.5
R-MH - 6,000 - - 45 15 25 15 5 7.5
* For additional building height regulations for R-M, see Zoning Code Chapter 20.85, specific height restrictions. ** The Max ADU percentage is the total number of ADUs allowed equal to the percentage of realized/existing units. - If located in approved urban village area, refer to the urban village plan for height regulations.
SOURCE: City of San José Planning Division, 2022.
As required by state law, permanent supportive housing is a by-right use in the following districts:
Mixed-Use Commercial, Mixed-Use Neighborhood, Multifamily Residential, Public/Quasi-Public, Transit Residential, Urban Residential, and Urban Village. Permanent supportive housing provides focused assistance programs that promote long-term housing retention.7 Residential care and service facilities are also a by right use in all residential districts for six or fewer persons or conditionally permitted for seven or more persons in those districts named above and also in the Commercial districts.
Incidental use allows for the rental of rooms in each of the following residential zoning categories:
Single-family properties can rent rooms up to three guests, two-family (duplex) properties can rent rooms up to two guests by each family, and multifamily properties can rent rooms up to two guests per unit. Rental of rooms must be for a period longer than thirty days and there can be no more than six persons living in a dwelling. Other incidental uses include state-licensed family day care homes and transient occupancy for a period of 30 days or less.
8 A Single-Family House Permit may be required for single-family homes in limited circumstances, including new construction that exceeds 30 feet or 2 stories in height; a floor area ratio (FAR) more than
0.45; or a house or site that is designated as historic. This permit requires a public hearing under certain circumstances and can be a limiting factor on single-family zoned lots. This permit is not required, however, when an applicant applies for a project under Senate Bill 9 or is adding an accessory dwelling unit (ADU) to an existing single-family house.
7 CA CODE § 65582(g))
8 San José Municipal Code Ch. 20 § 20.30.110
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-17 City of San José Draft Housing Element, rev. June 2023
Impact of Senate Bill 9 on Residential Districts. In addition to the common uses of the Residential Districts, SB 9 was recently adopted into law as a method for densifying single-family neighborhoods.
Signed by Governor Gavin Newsom on September 16, 2021, SB 9 allows lots in the R-1 Single-Family District to be subdivided; enables ministerial approval of two units per lot with or without subdivision and may further allow ADUs; and prohibits development standards that would preclude dwellings from being less than 800 square feet on any lot9. More specifically:
• For lots not involving an SB 9 subdivision, an existing single-family home may be remodeled as a duplex or demolished and rebuilt as a duplex. After construction of the duplex, and as allowed by setback requirements, the owner may add up to two ADUs for a total of no more than four units on the property.
• For lots created by an SB 9 subdivision, no more than two units (including ADUs) may be built on each of the lots resulting from the subdivision.
• For lots that already contain a duplex or multifamily residence, these are not eligible to use the provisions of SB 9, but they may add ADUs.
The purpose of Table 4-4 is to compile all other zoning districts which permit some form of residential development. The standards for development for the Commercial, Downtown, Pedestrian Oriented, and the Urban Village and Mixed Use Zoning Districts are compiled in table above. Commercial zoning districts allow residential development under specific circumstances outlined by General Plan Policies IP 5-10 and IP 5-12 which allows residential/mixed use or 100% affordable housing development projects to move forward in advance of the Urban Village Planning Process and/or outside of planned growth areas.
9 CA CODE § 66452.6, 65852.21, 66411.7. Accessed March 2022: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_ id=202120220SB9
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-18 City of San José Draft Housing Element, rev. June 2023
Table 4-4: Development Standards for All Other Zoning Districts
SETBACK STANDARDS
ZONING
DISTRICT
UNITS
PER ACRE
MIN. LOT
AREA (SF)
MAX.
ADU
MAX.
JUNIOR
ADU
MAX.
HEIGHT
(FT)
FRONT SIDE
INTERIOR
SIDE
CORNER
REAR
INTERIOIR
REAR
CORNER
CP n/a 6,000* N/A N/A 50* 10 ft.
max.*
none* none* 25 ft. min* 25 ft. min*
CN n/a 6,000* N/A N/A 50* 10 ft.
min.*
none* 12.5 ft.
min.*
none* none*
CG n/a 1 acre** N/A N/A 65 15 ft. max. none 12.5 ft.
min.
none none
PQP n/a 6,000 N/A N/A 65 10 ft.
max.***
10 ft.
min.***
10 ft.
min.***
10 ft.
min.***
10 ft.
min.***
DC 800 N/A N/A N/A FAA
Reg.
N/A N/A N/A N/A N/A
DC-NT1 Refer to Table 4-5: Chapter 20.70, Section 20.70.220, Table 20-150
UV 55-250 6,000 N/A N/A 10 ft. max. 10 ft. max. 10 ft. max.
10 ft. min. 10 ft. min.
MUC Max 50**** 6,000 N/A N/A 85 10 ft. max. 10 ft. max. 10 ft. max.
10 ft. min. 10 ft. min.
MUN Max 30
Refer to Table C & Table D: Table 20-137
UR 30-95 6,000 N/A N/A 135 10 ft. max. 10 ft. max. 10 ft. max.
10 ft. min. 10 ft. min.
TR 50-250 6,000 N/A N/A 270 10 ft. max. 10 ft. max. 10 ft. max.
10 ft. min. 10 ft. min.
MSG
Refer to Table 4-9 & Table 4-10: Table 20-152
MSC
*or as established in approved Urban Village Plan
**(none if lot is located in a shopping center with shared access and shared parking among the lots) ***less than 10 if established in approved development permit **** only applies to mixed use, 100% residential isn’t allowed
Commercial/Public/Quasi-Public and Industrial Districts Residential uses, when allowed in Commercial/Public/Quasi-Public Districts and Industrial Districts, are most often conditionally permitted, see Table 4-4. Low barrier navigation centers are by right uses in all but the Commercial Office (CO) District. Permanent supportive housing is a by right use in the Public/ Quasi-Public District. Hotel supportive housing is conditionally allowed in all Commercial/Public/Quasi- Public and Industrial Zoning districts.
The Commercial General (CG ), Commercial Neighborhood (CN), and Commercial Pedestrian (CP) districts support mixed-use residential/commercial with a conditional or special use permit on parcels that have a General Plan land use designation that supports residential or mixed-uses. In the CP District, a special use permit is required if the site is in an urban village. City staff are proposing to modify the permit type from conditional/special use to a site development permit in 2024.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-19 City of San José Draft Housing Element, rev. June 2023
Downtown DC and DC-NT1 Zoning Districts
The Downtown Commercial (DC) and Downtown Neighborhood Transition (DC-NT1) districts allow a variety of residential uses at high densities. The DC District offers some of the greatest flexibility in relation to other areas of the City; as noted in Table A, there are no minimum setbacks required and maximum allowable building height is limited only by Federal Aviation Administration (FAA) regulations and the allowable density in downtown is allowed at 800 du/ac, the highest density range of any zoning district. The DC-NT1 zoning district, is geographically specific to a portion of the downtown area which is directly adjacent to the Market-Almaden Conservation Area. The area is characterized by mostly single family residences of Victorians and Craftsman bungalows dating from the late 1800s and early 1900s. The Market-Almaden Conservation Area, surrounded by the Downtown core, is located just west of S. Market Street bounded by Almaden Avenue on the west, Balbach Street on the north and W. Reed Street and I-280 on the south. As shown in Table 4-5, the development standards for DC-NT1 include references to specific streets in the downtown area, and they effectively act as daylight/stepback planes to protect the conservation area, which is comprised of a mix of R-1-8 and RM zoning, where building height are limited to 30 feet. The standards are meant to both provide sensitivity to the historic area and also to provide certainty to developers, by providing clear direction on allowable building heights.
Table 4-5: DC-NT1 Development Standards (Muni Code,Table 20-150)
Location Height
Limit*
Setback* Special
Conditions*
Supplemental
Standards*
Balbach (south side,
between Almaden
Avenue and Almaden
Boulevard)
10 feet 50-foot setback required
for portions of buildings
above 70 feet
Almaden Avenue (west
side between Balbach
and Reed Streets)
35 feet or 2 - 1/2 stories
Almaden Boulevard
(east side between
Almaden Blvd. and
Almaden Avenue
between Balbach Street
and I-280)
70 feet (to a maximum
depth of 100 feet)
Planning Commission
may allow heights up to
100 feet to a maximum
depth of 100 feet from
Almaden Blvd and at a
minimum distance of 50
feet from Balbach, if
design guidelines are
met
Portions of buildings
higher than 70 feet shall
be:
1. Limited to 100 feet in
length and a diagonal no
greater than 125 feet.
Shorter side to be
generally parallel to
Almaden Blvd.
2. Set back one foot
from common property
lines for each two feet in
excess of 70 feet
Market Street (west side,
Balbach to Pierce)
60 feet Front and side setbacks
not permitted
Setbacks allowed for
recessed entries
Market Street (west side,
Pierce to Hwy. 280)
120 feet Minimum 10 feet to
residential property line
Height may not exceed
a slope of 3:2, as
measured from ground
level at the adjacent
residentially zoned
property line
* Where no standard is specified, the development standards of the DC District shall prevail
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-20 City of San José Draft Housing Element, rev. June 2023
Table 4-6: Types of Housing Permitted in Zoning Districts PERMIT PROCESS: Not Permitted (-); Permitted by Right (P); Conditional Use Permit (C); Special Use Permit (S); Conforms with General Plan (GP)
Accessory Dwelling Unit (ADU) P P P -
Guesthouse - - P -
Living Quarters, Custodian, Caretakers - - - C
Mixed-Use Residential/Commercial - - S -
Mobilehome Parks - - - P
Multiple Dwelling - - P -
One-Family P P - C
One-Family Dwelling (Single-Family) P P P C
Permanent Supportive Housing - - P -
Residential Care Facility, Seven or More Persons - - C C Residential Care Facility, Six or Fewer Persons P P P P Residential Service Facility, Seven or More Persons - - C C Residential Service Facility, Six or Fewer Persons P P P P Single Room Occupancy Living Unit Facility - - C -
Sororities, Fraternities, Dormitories for Educational Institutions - - C - Travel Trailer Parks - - - C
Two-Family Dwelling (Duplex) - P P -
COMMERCIAL & PUBLIC/QUASI-PUBLIC DISTRICTS CO CP CN CG PQP Emergency Residential Shelter S S S S S
Hotel Supportive Housing C C C C C
Live/Work Uses - S S S -
Low Barrier Navigation Center - P P P P
Mixed-Use Residential/Commercial - C/S C C GP -
Permanent Supportive Housing - - - - P
Residential Care Facility, Seven or More Persons C C C C C Residential Care Facility, Six or Fewer Persons - - - - - Residential Service Facility, Seven or More Persons C C C C C Single Room Occupancy Residential Hotel - C C C -
Single Room Occupancy, Living Unit - C C C -
INDUSTRIAL DISTRICTS CIC HI IP LI TEC
Hotel Supportive Housing - C C C C
Emergency Residential Shelter, More Than 50 Beds C - - - - Emergency Residential Shelter, Up to 50 Beds P - - - -
Table Continues >
1 2
M
MH
APPLICABLE PERMIT PROCESS
RESIDENTIAL DISTRICTS R-1 R-2 R-M R-MH —
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-21 City of San José Draft Housing Element, rev. June 2023
CONTINUED - Table 4-6: Housing Types Within Various Zoning Districts PERMIT PROCESS: Not Permitted (-); Permitted by Right (P); Conditional Use Permit (C); Special Use Permit (S); Conforms with General Plan (GP)
APPLICABLE PERMIT PROCESS
URBAN VILLAGE & MIXED-USE DISTRICTS UVC UV MUC MUN UR TR Accessory Dwelling Unit (ADU) - P P P P P
Co-Living Community - S C C S S
Emergency Residential Shelter - S S S S S
Guesthouse S - S S S
Hotel Supportive Housing C - C - - -
Live/Work Uses - S S S S S
Low Barrier Navigation Center - P P P P P
Mixed-Use Development - P P P P P
Multiple Dwelling - P P P P P
One-Family - - - P P P
One-Family Dwelling (Single-Family) - - - P P P
Permanent Supportive Housing - P P P P P
Residential Care Facility, Seven or More Persons - C C C C C Residential Care Facility, Six or Fewer Persons - P P P P P Residential Service Facility, Seven or More Persons - C C C C C Residential Service Facility, Six or Fewer Persons - P P P P P Single Room Occupancy Living Unit Facility - - C - - -
Single Room Occupancy Residential Hotel C C C C C C
Two-Family Dwelling (Duplex) - - - P P P
DOWNTOWN DISTRICTS DC DC-NT1
Co-Living Community S S
Emergency Residential Shelter C GP -
Hotel Supportive Housing C GP C GP
Live/Work Uses P GP S GP
Low Barrier Navigation Center P GP P GP
Multiple Dwelling P GP P GP
Permanent Supportive Housing P GP P GP
Residential Care Facility, Seven or More Persons C GP C GP Residential Service Facility, Seven or More Persons C GP C GP Single Room Occupancy Living Unit Facility S GP S GP
Single Room Occupancy Residential Hotel S S
SOURCE: City of San José Planning Division, 2022.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-22 City of San José Draft Housing Element, rev. June 2023
Urban Village and Mixed-Use Zoning Districts
The Urban Village and Mixed-Use Zoning Districts were adopted by the City Council on May 25, 2021.
Staff developed six new zoning districts: Urban Village Commercial (UVC), Urban Village (UV), Mixed-Use Commercial (MUC), Mixed-Use Neighborhood (MUN), Urban Residential (UR), and Transit Residential (TR). As part of the process of creating the development standards, staff engage the Urban Land Institute (ULI) and local members of the development community to run a test fit analysis which also included the new Citywide Design Standards to ensure that the densities allowed by the General Plan were achievable and feasible based on the standards of development. As shown in Table A, the Urban Village and Mixed- use zoning districts offer a high degree of flexibility with regards to uses, with Multifamily and Mixed Use being Permitted uses. The heights and setback were crafted to ensure the maximum density is achievable without the need for density bonus or other waivers.
The Urban Village planning process emphasizes walkable, bike-friendly, and transit-served communities, and will support the General Plan’s Major Strategy #5, which aims to intensify job and housing growth.
The Urban Village and Mixed-Use zoning districts help to implement this strategy, and provide clarity and certainty for developers looking to build in growth areas.
As a charter city, the City of San José historically had not been required to have zoning districts and General Plan Land Use designations in alignment. The passage of Senate Bill 1333 in 2018 became the impetus for all charter cities to match their zoning districts and land use designations. The alignment work includes the rezoning of properties and is currently underway. This work is expected to be a two- to three-year process.
The Mixed-Use Neighborhood General Plan land use designation is a lower density designation than the other mixed use zoning districts. It calls for a variety of residential development types ranging from single-family homes, duplexes, triplexes, townhomes, multifamily homes, and small mixed-use development or 100% commercial development. Mixed Use Neighborhood is generally designated in areas where it provides a transition between denser development and single-family neighborhoods. The Mixed-Use Neighborhood zoning district includes additional regulations in order to address the variety of development types which are allowed, which include a higher degree of detail to provide development standards based on the type of development being proposed.
In order to address the high variation in housing product types, staff has provided two ways to facilitate a variety of development product types. The first is to offer two pathways for standards of development:
Conventional and Alternate. For the purposes of this chapter Conventional standards are defined as being applicable to developments where all lots have frontage on and direct access to a public street, and where all buildings provide a setback to property lines. Alternate standards are applicable to small- lot development characterized by access to lots provided off courts, driveways, and private streets, and/or with buildings without setbacks to property lines. As noted in Table 4-7 the two options provide different pathways for facilitating development based on specific criteria related to the proposed project, such as lot frontages and lot size and those factors directly correlate to the FAR which is allowed on site.
A developer may select either set of standards to use based on what is a better fit for the type of development being proposing.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-23 City of San José Draft Housing Element, rev. June 2023
Table 4-7 Mixed Use Neighborhood Development Standards
Regulations
Conventional Alternate
Minimum Lot Area
(excluding Accessory Dwelling
Units)
1,452 square feet per unit
No Minimum. Entire project must be covered by a
single development permit. Cannot exceed 30
dwelling units/acre
Lot Frontage Requirements to
Public Right-of-Way
Requires at least 30 ft. of contiguous frontage on a
public right of way, with vehicular and/or pedestrian
access to the right-of-way.
None required, provided all lots have access from a
public right-of-way provided by easement
Floor Area Ratio
100% Commercial FAR 0.25-2.0 100% Commercial development must follow Conventional Standards
Mixed use
FAR 0.25-2.0
du/ac Max. 30
100% Residential du/ac Max. 30
FAR for Single- family
Detached Residences,
not including ADUs
3,000 sq. ft. or less 0.6 Max FAR
Max. 2.0
across the entire development site 3,000 – 6,000 sq. ft. 0.5 Max FAR 6,000 or greater 0.45 Max FAR
The second way the City i s addressing variation in development product types in the proposed Mixed Use Neighborhood District is by requiring different development standards in order to control the form of various development product types, as shown in Table 4-8. For example, MUN has a maximum 35 ft height limit for Single family homes and duplexes which is consistent with lower density residential (R-1-8, R-1-5).
Townhouses in the MUN zone have a maximum height of 40 ft and Multifamily or mixed use development max out at 45 ft. The additional standards for the Mixed Use Neighborhood Zoning District are particularly important as this is the only mixed use zoning district that supports development of single-family homes which are not subject to the Citywide Design Standards and Guidelines.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-24 City of San José Draft Housing Element, rev. June 2023
Table 4-8: MUN Additional Development Regulations
Additional Development Regulations for Conventional and Alternate Single-Family dwelling
unit (Detached)
Two-family dwelling
unit (Duplex)
Townhouse or
Rowhouse
Multiple Dwelling,
Mixed use, or 100%
Commercial
Max. Building Height 35 ft. 35 ft. 40 ft. 45 ft.
Max. Number of Stories 2.5 2.5 3 4
Private Open
Space Requirements for 100%
Residential or Mixed use
Development
400 sq. ft.
per unit
300 sq. ft.
per unit
300 sq. ft.
per unit
60 sq. ft.
per unit
Minimum width for Private Open Space shall be 15 ft.
Common Open Space
Requirements
Mixed use Development which includes 15 or more units shall provide Common Open Space at a minimum of 75 sq. ft. per residential unit
100% Residential Development which includes 15 or more units shall provide Common Open Space at a minimum of 100 sq. ft. per residential unit
Pedestrian Oriented Zoning Districts
The Pedestrian Oriented Zoning districts, MS-G Main St reet Ground Floor Commercial (MS-G) and the MS-C Main Street Commercial (MS-C), are a combination of traditional zoning and form based zoning code standards and act as a hybrid of design standards and development standards which are specific to a geographic location in San José, located along Alum Rock Avenue. These districts serve as the basis for the Alum Rock Urban Village. MS-G and MS-C are examples of mixed use zoning districts which require a Conditional Use Permit for Multifamily and Mixed Use Development, unlike the Urban Village and Mixed Use Zoning Districts.
The
MS-G and MS-C zoning standards are unique to this neighborhood and crafted specifically for the properties included in the urban village, Table 4-9 shows how these districts include build to lines and setback regulations, which are not seen in other zones and do not apply anywhere else in the city. These regulations were crafted specifically for this area of the city and are meant to ensure development is built in compact urban form.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-25 City of San José Draft Housing Element, rev. June 2023
Table 4-9: Pedestrian Oriented Zoning Development Standards
Table 20-151 MS-G and MS-C Main Street Districts Required Build-to-Lines and Setbacks Regulations Main Street or Major
Cross Street Frontage
Minor Cross Street
Frontage
Residential Street
Frontage
Notes and Sections
Front build-to-line 5 ft. from front lot line 2 ft. from front lot line 15 ft, from front lot line Section 20.75.110B. and C.
Front setback 10 ft. maximum 10 ft. maximum
Percent of building
façade that is required to
be located on the build-
to-line or set back no
more than one foot from
the build-to-line1
70% minimum 30% minimum
Side interior setback2 None None
Minimum setback from
any lot line adjacent to a
property located in a
residential zoning
district3
15 ft. 15 ft. 15 ft. Section 20.75.120A.
Setback from any other
lot line
None None None Note 1
Source: 20.75.110 Building placement.
A. Building placement and building setbacks shall conform to the regulations set forth in Table 20-151.
As illustrated in Table 4-10, the Pedestrian Oriented Zoning Districts have a variety of height restrictions, which are dependent on the type of street they are located on and their proximity to other, lower density residential uses. For example, there is a 35 ft maximum height within 20 ft of residentially zoned property or 40 ft of a residential street. These regulations are meant to act as a stepback/daylight plane in order to provide a transition between the higher intensity development and the neighboring low density residential zones.
Table 4-10: Pedestrian Oriented Zoning Districts – Stories & Heights
Table 20-155 MS-G and MS-C Main Street Districts Maximum Stories and Height Category Requirement Notes and Sections
Maximum allowed stories 5 stories above grade
Maximum allowed height1 75 feet above grade Section 20.75.160B Maximum allowed height within 50 feet of
property located in a residential zoning
district allowing 8 units or less per acre2
35 feet maximum height within 20 feet of
the residentially zoned property, increasing
by one foot for every one additional foot of
setback
Section 20.75.160.B
Maximum allowed height within 50 feet of
property located in a residential zoning
district allowing 9 to 30 units per acre2
45 feet maximum height within 20 feet of
the residentially zoned property, increasing
by one foot for every one additional foot of
setback
Subsection 20.75.160.B
Maximum allowed height within 40 feet of a
residential street
35 feet above grade
20-156
Source: 20.75.160 Building height and story regulations.
A. Maximum height and stories. All buildings and structures in the MS-G and MS-C main street districts shall be limited to the number of stories and maximum height as set forth in Table 20-155.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-26 City of San José Draft Housing Element, rev. June 2023
TERMS
ADU - Accessory
dwelling units (ADUs)
are secondary units, also
known as granny flats or
backyard homes. May
be attached or detached
from the main home, or a
conversion of a basement
or garage.
JADU - A junior
accessory dwelling unit
(JADU) is built within the
footprint of the main
home.
THOW - A type of ADU
that is mounted on a
wheeled trailer chasis.
TERMS
ADU - Accessory
dwelling units (ADUs)
are secondary units, also
known as granny flats or
backyard homes. May
be attached or detached
from the main home, or a
conversion of a basement
or garage.
JADU - A junior
accessory dwelling unit
(JADU) is built within the
footprint of the main
home.
THOW - A type of ADU
that is mounted on a
wheeled trailer chasis.
4.3.3. Other Land Use Controls
Secondary Unit Policies
Secondary units provide an important potential source of affordable housing. In 1982, state law was enacted to encourage the creation of secondary units while maintaining local flexibility for unique conditions, which included the ability to set development standards, require minimum unit sizes, and establish parking requirements10. It wasn’t until 2005, however, that
the San José City Council
initiated a Secondary
Unit Pilot Program to
temporarily test and
evaluate a set of secondary
unit development
standards for a period of
one year — citing traffic,
infrastructure, and safety
concerns up to this point
as major reasons it took
this long to explore as
an option. San José later
adopted an ordinance in
2008 which permanently
allowed secondary units
that conform to modified
Zoning Code
requirements based on
the outcome of the trial
period. From 2 008 to
2014, the newly allowed
secondary-unit provision
of the Code resulted in
the construction of 150
secondary units — a less
than meaningful impact
on the supply of
affordable housing.
This ABODU ADU is one of many preapproved units that can go through the permit review process easily an quickly. Learn more at www.sanjoseca.gov/ADUs
10 CA CODE § 65852.2
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-27 City of San José Draft Housing Element, rev. June 2023
CHARACTERISTICS OF A TINY
HOME ON WHEELS (THOW)
1. Designed as a separate,
independent living quarters that
is no larger than 400 square feet.
2. Required functional areas that
support normal daily routines,
including a bathroom, a kitchen,
and a sleeping area.
3. Registered and titled to tow
legally under the California
Department of Motor Vehicles
(DMV).
4. Required compliance with
American National Standards
Institute (ANSI) 119.5 or National
Fire Protection Association
(NFPA) 1192.
5. Allowed as a type of ADU.
6. Required to meet zoning
regulations, including
development standards.
7. Required to obtain and establish
electric, water and sewer
connections.
CHARACTERISTICS OF A TINY
HOME ON WHEELS (THOW)
1. Designed as a separate,
independent living quarters that
is no larger than 400 square feet.
2. Required functional areas that
support normal daily routines,
including a bathroom, a kitchen,
and a sleeping area.
3. Registered and titled to tow
legally under the California
Department of Motor Vehicles
(DMV).
4. Required compliance with
American National Standards
Institute (ANSI) 119.5 or National
Fire Protection Association
(NFPA) 1192.
5. Allowed as a type of ADU.
6. Required to meet zoning
regulations, including
development standards.
7. Required to obtain and establish
electric, water and sewer
connections.
In 2019 the state passed Senate Bill 13, Assembly Bill 68, and Assembly Bill 881, all of which largely eased the construction of secondary units — now broadly known as accessory dwelling units or ADUs. These bills expanded what homeowners could do with respect to their property by right for both an ADU and a Junior ADU (JADU). In November of 2019, San José adopted Ordinance No. 30336 to align with the new state regulations on ADUs and JADUs. Then the City amended this section in 2020 with Ordinance No. 30353 in response to AB 3182, which required ministerial approval of ADUs, among other things. San José expanded on the section of the Zoning Code regarding ADUs on April 14, 2020 by adding Tiny Home on Wheels (THOWs) as a third dwelling option. THOWs are perceived as an affordable housing alternative to tackle the housing crisis because they are a smaller portable unit intended as a permanent housing option with substantially lowered costs of construction, installation, and maintenance.
The primary distinction between a THOW and a RV is that although a THOW is mounted on a wheeled trailer chassis, it is built to look like a residential dwelling, using conventional building materials and is thereby architecturally distinct from traditional mobile homes and recreational vehicles (see inset).
Between 2014 and 2018, there were approximately 301 permits issued and 260 secondary units built. After implementation of the state legislation and local ordinances discussed above, from 2019 to June 2022, the number of permits issued for ADUs (including THOWs) skyrocketed to 1,245 with 963 of these built. Most ADU sizes fall within the 501 to 700 square foot range.
Interior of a THOW. Photo credit: www.tinyhomesbayarea.com DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-28 City of San José Draft Housing Element, rev. June 2023
The success of this program is largely because of the state laws that eased parking requirements and eliminated parkland and school impact fees for ADUs under 750 square feet, but also because of other factors:
• Housing Trust Silicon Valley offered free educational workshops as well as financial assistance to Bay Area homeowners interested in an ADU.
• The City of San José made it a priority to promote ADUs and was first to establish a Preapproved ADU process, which reduces permitting costs by enabling ADU vendors to obtain approval of master plans that can be offered to their customers. • The City also added a dedicated staff position, the ADU Ally, to be a point of contact for helping homeowners and builders through the City’s permit process. The ADU Ally also participates in educational webinars sponsored by the City and housing organizations.
Parking Standards
In recent years, San José has committed to climate initiatives such as the International Paris Agreement, which is further supported through Climate Smart San José and codified in the Envision San José 2040 General Plan. As part of an ongoing effort to meet climate goals, the City Council directed a comprehensive modernization of parking standards, which have not been evaluated since 1965. Previous parking requirements were based on an outdated system of land use types and scale of activity and are not consistent with the community goals in these plans, such as reducing greenhouse gas emissions and traffic congestion, housing affordability, and designing more attractive and walkable neighborhoods.
Historically, the Zoning Code has regulated the provisions for off-street parking and loading 11, however, on
December 6, 2022 the San José City Council adopted sweeping reforms to parking regulations which included eliminating parking minimum requirements across uses and zoning districts, in addition this update introduced new Transportation Demand Management (TDM) requirements. Reforming the City’s parking standards by removing mandatory minimums and implementing further TDM strategies will help meet increasing transportation demand while also supporting the goals of these plans. The effective date of this ordinance work is April 10, 2023 after which the new parking regulations will take effect.
Table 4-11 below shows examples of some residential uses which were previously regulated by the “Parking and Loading” regulations. As noted in the table below many of the residential uses were required to provide parking based on the number of bedrooms in each unit, one exception to this rule was One-family dwelling which was only required to have two covered parking spaces, regardless of the number of bedrooms.
Effective April 10, 2023, there are no parking minimum parking requirements for residential uses.
11 SAN JOSÉ MUNICIPAL CODE Ch. 20 § 20.90
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-29 City of San José Draft Housing Element, rev. June 2023
Table 4-11: Previous Parking & Loading Regulations
TYPE OF RESIDENTIAL
LAND USE
PREVIOUS PARKING REQUIREMENTS NEW PARKING
REQUIREMENTS
One family dwelling 2 covered No minimum
Two-family dwelling
(duplex)
NUMBER OF
BEDROOMS
OPEN
PARKING
ONE-CAR
GARAGE
TWO-CAR
GARAGE
No minimum
0 Bedroom (Studio) 1.5 1.5 2.0
1 Bedroom 1.5 2.0 2.0
2 Bedroom 2.0 2.0 2.0
3 Bedroom 2.0 2.0 2.0
Each Additional
Bedroom
0.25 0.25 0.25
Multiple dwelling NUMBER OF
BEDROOMS
OPEN
PARKING
ONE-CAR
GARAGE
TWO-CAR
GARAGE
No minimum
0 Bedroom (Studio) 1.25 1.6 2.2
1 Bedroom 1.25 1.7 2.3
2 Bedroom 1.7 2.0 2.5
3 Bedroom 2.0 2.2 2.6
Each Additional
Bedroom
0.15 0.15 0.15
Emergency residential
shelter
1 per 4 beds and 1 per 250 sq. ft. of area that is used as office space. May have up to a 100% reduction in required off-street parking with a development permit or exception if no development permit is required.
No minimum
Residential care or service
facility
1 per first 6 client beds, plus 1 additional space for up to 4 client beds (or portion thereof) above the first six, plus 1 additional space for each additional four client beds (or portion thereof), plus 1 space for each employee or staff member.
No minimum
SOURCE: City of San José Planning Division, 2022.
In addition to revising existing parking standards the recent update also introduced Transportation Demand Management regulations (TDM). Removing parking minimums is a key component in achieving the City’s climate goals but alone is not enough; helping people to use transit, walk, and bike more through TDM is an important complement to the removal of parking minimums. TDM can provide or incentivize convenient amenities and viable, affordable transportation options. Growing data shows how effective TDM is in reducing congestion and greenhouse gas emissions. This concept is gaining traction throughout the country, as other cities in the US have already adopted very similar TDM requirements, along with the removal of parking minimums. This includes cities such as such as San Francisco and Buffalo, New York. Regionally, Mountain View, Sunnyvale, Fremont and Pleasanton all have mandated TDM requirements.
Envision San José 2040 goal TR-11 calls for reducing vehicle miles traveled (VMT) by 45% by 2040 by improving transportation options beyond single-occupant vehicles. An effective TDM program will reduce VMT, and therefore carbon emissions, and parking demand, from every new development subject to the TDM ordinance. This update will no longer connect TDM requirements to the pursuit of parking reductions. Instead, it streamlines our process by creating one menu of TDM requirements for all projects. The measures contained in the menu would also qualify as CEQA mitigation measures if a project is required to reduce their VMT as part of that process. By unifying these two elements of the development process, this change will make the process more transparent for developers while helping the City achieve its transportation goals.
Since the introduction of TDM measures have yet to be tested or put into practice, it is not clear whether or not t
hey may become a constraint to development.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-30 City of San José Draft Housing Element, rev. June 2023
Design Guidelines
The City of San José has adopted design guidelines to assist in the design, construction, review, and approval of residential development. By defining criteria for new residential development occurring within the City, the design guidelines benefit the development community by providing more clarity and reducing the soft costs of producing housing. Developers can incorporate standards from the guidelines into a project during the early stages of design rather than having to revise plans significantly during later stages of the review process.
The Citywide Design Standards and Guidelines were effectuated in March of 2021. They apply to the portions of San José within the Urban Growth boundary, excluding single-family residences and the rehabilitation, modifications, or addition to historic buildings or their adaptive reuse. These guidelines do not apply in Downtown San José and the Diridon Station Area, where the Downtown Design Guidelines and Standards instead apply.
The Downtown Design G
uidelines and Standards were updated and effectu ated in April of 2019. They replace the 2004 Guidelines and provide information on site planning, access and design, form, and building design, appearance in the larger cityscape, and building interface at the pedestrian level.
These guidelines define d
esign objectives for elements that determine the image of the general area of Downtown, translating them into an operational document, which increases predictability for various stakeholders and results in reduction of overall permitting costs.
The Downtown Guidelines apply to the General Plan Downtown Growth Area and the Diridon Station Area Plan Area, which is bounded in the south by Highway 280, on the north by Coleman Avenue, on the west by Diridon Station, and on the east by San José State University. While the San José State University (SJSU) campus is not within the boundary of the Downtown Growth Area, SJSU contributes significantly to the vitality of Downtown and is part of its larger context. Therefore, SJSU is included within the proposed Downtown Design Guidelines boundary.
Combined, the above design guidelines provide a common understanding of the minimum design standards to be applied to various land uses, development types, and locations to facilitate efficient design. Design quality focuses on the functional aspects of development (e.g., buildings, parking, setbacks, etc.) rather than requirements of expensive materials. Design guideline standards are objective requirements that are quantifiable and verifiable. Guidelines describe best practices and serve as overarching design guidance.
Affordable and market rate
housing are subject to the
design guidelines, resulting in
high quality affordable housing
acceptable to neighborhoods
throughout the city without
unduly constraining housing
development in San José.
Any projects in urban villages, or areas with Specific Plans, are subject to the standards and guidelines within their respective applicable documents. Should a specific document be present but silent on a particular design standard, then the Citywide Guidelines and Standards apply.
Resources to Alleviate Constraints Relating to Design
Guidelines. The development standards used in the design guidelines are intended to allow residential projects to achieve the maximum densities permitted by General Plan residential land use designations. The setback and landscaping requirements are not excessive and do not require inordinate development expenditures, and they contribute to a quality DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-31 City of San José Draft Housing Element, rev. June 2023
living environment. Affordable and market rate housing are subject to the design guidelines, resulting in high quality affordable housing acceptable to neighborhoods without unduly constraining housing development. The Downtown Design Guidelines and Standards and Citywide Design Standards and Guidelines also include an exception process.
Exception to Design Standards and Guidelines
A project applicant may request an exception or exceptions to the design standards contained in the Design Standards and Guidelines. The exception process set forth in the Design Standards and Guidelines is in addition to concessions or waivers possible under State Density Bonus law. The request must be made in writing as part of the Planning permit application for the proposed project. The application for an exception must contain detailed information on the design standard that is requested to be waived; how the physical constraints and unique situations of the project site make it infeasible to comply with that design standard; and how the request meets each exception requirement. The decision-maker (Planning Director, Planning Commission, or City Council, as applicable) will consider the request and information provided and make findings to approve or deny the request. The decision- maker shall only grant an exception if all the following findings are made:
• There is a physical constraint or unique situation that: 1. Is not created by the project applicant or property owner; and 2. Is not caused by financial or economic considerations. • Approving the exception will not create a safety hazard or impair the integrity and char acter of the neighborhood in which the subject property is located. • The proposed project meets the intent of the design standard to the extent feasible. If any of above findings cannot be made, the decision-maker may still grant the exception if all the following findings are made:
o The project advances the Major Strategies Chapter 1 of the General Plan; o The project is consistent with the Values and Guiding Principles of Section 1.2.1 of the Design Guidelines;
o The project achieves the stated Rationale of the section of the Design Guidelines as set forth for each applicable Standard; and
o There are counterbalancing considerations that justify the inconsistency.
Building Codes
The State Building Standards Commission (BSC) publishes triennial editions of the California Code of Regulations (CCR), Title 24, also known as the California Building Standards Code. Most recently, on July 1, 2019, the BSC published the 2019 edition of these standards, which apply to any building or structure for which application for a building permit is made on or after January 1, 2020. The State allows local governments to modify the standards to make them more restrictive (not less), provided findings are made that the proposed modifications are necessary due to local geologic, topographic, or climatic conditions that can affect the health, welfare, and safety of local residents. Any local amendments must be made prior to the effective date of the State codes.
On November 5, 2019, the City Council approved an ordinance amending Title 24 of the San José Mun
icipal Code and adopting the 2019 editions of the California Building, Residential, Electrical, Mechanical, and Plumbing Codes, the California Historical Building Code, the California Existing Building Code, the California Green Building Standards (CALGreen) Code, and the California Building Energy DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-32 City of San José Draft Housing Element, rev. June 2023
Efficiency Standards. This ordinance included a staff proposal to adopt local amendments for certain structural design requirements, fire sprinkler regulations, and other building requirements based on the following findings:
1. The San Francisco Bay Area region is densely populated and located in an area of high seismic activity. San José is bounded by the Hayward and San Andreas faults capable of producing major earthquakes.
2. Concern for fire/life safety associated with a structural failure due to a seismic event, considering the increasing number of buildings in the region, the use of new structural systems, the poor performance of certain materials, and the quality of construction.
3. Severe seismic events could disrupt communications, damage gas mains, cause extensive electrical hazards, and place extreme demands on limited and widely dispersed fire prevention resources to meet the fire and life safety needs of the community.
4. The local geologic, topographic, or climatic conditions pose an increase hazard in acceleration, spread, magnitude, and severity of potential fires in San José, and may cause a delayed response from emergency responders, allowing further growth of the fire.
Reach Code Ordinance. In September 2019, San José City Council approved a building reach code ordinance that encourages energy efficiency and greenhouse gas reduction through building electrification; solar-readiness on nonresidential buildings; and electric vehicle (EV)-readiness and EV equipment installation.
In October 2019, the City Council approved an ordinance prohibiting natural gas infrastructure in new detached accessory dwelling units, single-family, and low-rise multifamily buildings that would supplement the reach code ordinance. On December 1, 2020, Council approved an updated ordinance prohibiting natural gas infrastructure in all new construction in San José, starting on August 1, 2021.
Resources to Alleviate Constraints Relating to Building Codes. The City of San José is in the forefront of identifying the need for building code amendments. The City assumes a leadership role at the regional and state levels to reduce individual differences between cities and counties, and informs and educates the public about new requirements. To establish uniformity in adopting code amendments, the City is an active participant in the Tri-Chapter Uniform Code Program, whose greater Bay Area membership stretches from Contra Costa County in the north to San Benito County in the south. City staff conducted free training sessions in early 2020 to introduce various stakeholders to the significant changes between the 2016 and 2019 California Building Codes as well as the local amendments. Such sessions are anticipated in early 2023 to highlight the changes between the 2019 and 2022 California Building Codes.
The 2019 Building Codes and amendments do not unduly constrain residential development or the City’s ability to accommodate special housing needs groups in San José, including persons with disabilities. In fact, the codes and amendments contain design elements that address limited lifting or flexibility (e.g., roll-in showers, grab bars, etc.), limited mobility (e.g., push/pull lever faucets, wide swing hinges, etc.), and limited vision (e.g., additional stairwell and task lighting, etc.) that are consistent with the Americans with Disabilities Act (ADA) standards, as implemented under Title 24.
On-Site and Off-Site Improvements
New residential development in San José may be responsible for both on-si te (private) and off-site
(public) improvements that are directly related to the impacts associated with a particular development project: Site improvements may include those related to streets, sidewalks, water and sewage, DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-33 City of San José Draft Housing Element, rev. June 2023
landscaping, recreation amenities, and any other public improvements found necessary to mitigate the impacts of new development, additional site improvements may be required in the City’s Urban Village and Specific Plan areas. Off-site infrastructure improvements may be required to satisfy California Environmental Quality Act (CEQA) requirements, depending on the potential transportation impacts and the location of the site development.
• On-site improvements may include public roads, private driveways and walkways, fencing, landscaping, grading and drainage, stormwater treatment facilities, etc. These improvements are either required by State Law, the Zoning Code or negotiated through the development review process as conditions of approval. • Off-site improvements may include standard curbs, gutters, sidewalks, landscaping, street lighting, and the installation of underground utilities (including the undergrounding of existing overhead utilities). Depending on the extent of project impacts, such public improvements may be required not only for the subject property but also for areas not located on the development site (e.g., a traffic signal to address operational impacts to the intersection).
Although the costs of site improvements can vary based on the location, type, and scale of development, site improvements generally have greater impact on the cost of housing in areas where infrastructure (streets, sewers, curbs, gutters, utilities, bus stops, parks, etc.) is not in place or where the infrastructure exists but does not meet current standards and needs to be expanded, modified, or replaced. For example, site improvements are generally costlier in locations near the edge of the Urban Growth Boundary/Urban Service area than on an infill site in Downtown. Identification of specific improvements for a proposed development is often determined in conjunction with environmental analysis of the project.
On-site and off-site improvements are not deemed an undue constraint as the City has well-established infrastructure standards that are communicated to developers at the earliest stages of the development review process, so that these costs can be appropriately factored into the design of a project.
Complete Street Design Standards and Guidelines
The Complete Streets Design Standards & Guidelines is a comprehensive set of street design standards and guidelines to guide how the City of San José builds and retrofits streets, intended to serve as a manual of design options to achieve the City’s Envision 2040 General Plan vision of being a “walking and bicycling first” city. As such, it seeks to ensure that new and retrofitted streets are enhanced with “Complete Streets” design elements embracing all travel modes and activities appropriate for the facility.
Complete Streets principles provide standards and guidelines for the design and implementation of streets that are comfortable and welcoming for all modes of travel. This includes design in accordance with “Vision Zero” principles that support the goal of eliminating traffic related deaths and severe injuries. These standards and guidelines represent the best practices that are currently being applied in California and nationwide to meet standards set by the California Complete Streets Act.
Overall, these standards and guidelines supports San José’s public life, neighborhood livability, economic vital
ity, and environmental sustainability. In San José, street design is predominantly guided by street typologies established in the Envision San José 2040 General Plan and functional classifications. The Director of Transportation defines and maintains the City’s Functional Classification Diagram of roadways (e.g., Local, Collector, or Arterial). Each street in San José has both a typology and a functional classification, described in Table 4-12, as referenced in the Complete Streets Design Standards and DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-34 City of San José Draft Housing Element, rev. June 2023
Guidelines. These dimensions are intended to be used where space is limited due to previous development patterns or existing physical constraints, should be interpreted as minimum widths that are compatible with existing street configurations. These minimum dimensions allow for flexibility while at the same time providing the minimum space required for safety and comfort.
Table 4-12: Standard Right-of-way (ROW) Widths
Functional Classification Street Designation ROW Width (ft) Minimum Centerline Radius (ft)
Local Narrow Residential 40, 44, 46, or 48 150
Minor Residential 50, 52, 54, 56, or 60 150
Collector Neighborhood Collector 56, 60, or 64 300
Neighborhood Collector 70 600
Major Collector 80, 84, 86 or 90 600
Arterial Minor Arterial 106 600
Major Arterial 120 or 130 1000
Expressway
134 or 220 1000
SOURCE: City of San José Complete Streets Design Standards and Guidelines
Transportation Demand Management (TDM) Ordinance
The City’s Transportation Demand Management (TDM) ordinance requires developers to incorporate programs and/or public improvements into their development projects that will reduce single occupancy vehicle trips, thereby reducing Vehicles Miles Traveled (VMT), while also making options for other modes of transportation more viable for tenants of the project. This includes things such as purchasing transit passes for tenants, installing bike share stations, and building enhanced pedestrian infrastructure off the project site. The City of San José has recently approved amendments to the existing parking and Transportation Demand Management regulations, taking effect on April 10th, 2023.
In the previous Zoning Ordinance, TDM was used as a method to allow developments to reduce their parking requirements below the existing minimums. The process often requires a lengthy negotiation, prolonging the development approval timeline. Developers faced uncertainty on how much TDM they will need to provide for their project to be approved with the amount of parking proposed, and the process of identifying and selecting TDM measures was not transparent to the public. The recent update streamlines the City process by creating one menu of TDM requirements for all projects, simplifying the program to create more predictable outcomes. Under San José’s previous rules, developing TDM Plans was unclear, complicated, and expensive; the amendments to the TDM ordinance create a clear approach to standardizing TDM plans. In addition, the
San José Transportation Analysis Handbook contains technical guidance so that the complete set of requirements for transportation analysis in San José is in one document.
The ne
w regulations include categories which are based on the type of travel and/or parking demand each respective use generates, and the type(s) of TDM measures most effective in reducing vehicle trip demand.
• Home-End Uses are uses whose parking demand and VMT are largely determined by vehicle ownership rates and use frequency among the residents of these uses. TDM measures for these uses focus on reducing automobile ownership rates among Project’s residents. • Commute-End Uses are uses whose parking demand and VMT is largely determined by the volume of commuters driving to jobs generated by these uses. TDM measures for these uses DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-35 City of San José Draft Housing Element, rev. June 2023
focus on reducing drive-alone commuting to, and automobile parking demand at, a Project. • Visit-End Uses are uses whose parking demand and VMT are largely determined by the volume of visitors driving to access goods, services, and social connection provided through these uses. TDM measures for these uses focus on increasing non-drive-alone visitor access to a Project.
• Other Uses are uses that typically generate moderate or minimal parking demand for personal vehicles and/or are typically minimally responsive to TDM measures.
There are two Project Levels as defined in Table 4-13 (Table 20-250 of the zoning code). The Level applied to a Project consisting of an addition or change of use is based on the new floor area or the number of residential units contained in the newly constructed floor area or total floor area subjected to the change of use. Not all projects will be subject to the TDM requirements, projects that meet the TDM screening criteria will not require a TDM Plan, including: Single-family detached residential projects of 15 or fewer units, Single-family attached or multi-family residential projects of 25 or fewer units, or 100% deed restricted affordable units at a minimum density of 35 units per acre and located within ½ a mile of an existing major transit stop or along a high-quality transit corridor.
Table 4-13: Project Level Thresholds, Muni Code Chapter 20.90, Table 20-250
Use Category
Level 1
If a project meets ANY of the criteria below, it is
classified in Level 1
Level 2
If a project meets ANY of the criteria below, it is
classified in Level 2.
Home End
Uses 16-299 dwelling units 300+ dwelling units
Commute End
Uses
10,000-149,999 sf of gross floor area 150,000+ sf of gross floor area Visit End Uses 100,000-249,999 sf of gross floor area 250,000+ sf of gross floor area
Other Uses 30,000 sf or more of gross floor area 300,000 + sf of gross floor area Special Uses
hotel/motel with 150-249 guest rooms, or suites of
rooms
hotel/motel with 250+ guest rooms, or suites of
rooms
school, college, or university (which requires
building permits from City of San José) with 250
or more students
N/A
The TDM point requirement was identified based on how much VMT reduction is needed for a project to help the City advance its 2040 carbon reduction goals of 45% below the 2017 level. Under CEQA, projects are subject to the significance thresholds for VMT that are 15% below a citywide or regional average. In other words, in addition to transportation evaluation under CEQA, the City needs a TDM program that can DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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help projects achieve an additional 25 to 30% reduction in VMT. When developing a TDM Plan, projects would compile a list of TDM measures to meet the 25 TDM points. Each of the TDM measures has a corresponding point value based on its general effectiveness on reducing VMT per empirical research, with one TDM point being equivalent to approximately 1% reduction in VMT. Table 4-14 includes the menu of TDM measures and Table 4-15 describes the project levels and their corresponding requirements.
In December 2021, City staff collaborated with Latinos United for a New America to engage with three equity priority communities – the Bonita (District 3), Tropicana-Lanai (District 5), and Santee (District 7) neighborhoods. These equity priority communities helped City staff identify which TDM measures should be labeled equity-forward and prioritized by developers in their TDM Plan. After understanding the specific needs for the communities, City staff refined the TDM program to include a list of “equity measures”, such as infrastructure improvements on local streets beyond project frontages, that would benefit not only the future tenants of the new projects but also the low-income and historically underserved neighborhoods where the project would be located. Projects would receive twice as many TDM points by selecting the following equity measures in their TDM Plan.
• Provide bike and micromobility network improvements beyond project frontage • Provide transit network improvements beyond project frontage • Provide neighborhood street improvements beyond project frontage • Provide pedestrian network improvements beyond project frontage • Provide transit fare subsidies to low-income families in the local community • Provide alternative transportation benefits to low-income families in the local community
Table 4-14: Menu of TDM Measures and Applicability
Category Measure [ID]
TDM Point Values
Home-End
Uses
Commute-
End Uses
Visit-End
Uses Other Uses
Project
Characteristics Provide Affordable Housing 1 – 4 - - - Multimodal
Network
Improvements
Provide Bike and Micromobility
Network Improvements 1 – 4 1 – 4 1 – 4 1 – 4
Provide Transit Network
Improvements 1 – 4 1 – 4 1 – 4 1 – 4
Provide Residential Street
Improvements 1 – 4 1 – 4 1 – 4 1 – 4
Provide Pedestrian Network
Improvements 1 – 4 1 – 4 1 – 4 1 – 4
Parking
Right-size Parking Supply 1 – 20 1 – 20 1 – 20 -
Provide Bike Parking Facilities 1 – 2 1 – 2 1 – 2 -
Provide Shared Parking 1 – 2 1 – 2 1 – 2 -
Programmatic
TDM
Provide School Pool Programs 1 - - -
Provide Bike Share Stations 1 – 2 1 – 2 1 – 2 -
Provide Car Share Station 1 – 4 1 – 4 1 – 4 -
Provide Education, Marketing,
and Outreach 1 – 2 1 – 2 - -
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-37 City of San José Draft Housing Element, rev. June 2023
Category Measure [ID]
TDM Point Values
Home-End
Uses
Commute-
End Uses
Visit-End
Uses Other Uses
Join a Transportation
Management Association (TMA) See note (1) See note (1) See note (1) - Provide Parking Cash-out - 2 - -
Provide Transit Subsidies 1 – 8 1 – 8 1 – 8 -
Provide Flexible Work Schedules - 1 – 4 - -
Provide Private Shuttle/ Transit
Service 4 – 8 4 – 8 4 – 8 -
Price Workplace Parking - 2 1 -
Provide Alternative
Transportation Benefits 1 – 8 1 – 8 1 – 8 -
Provide a Neighborhood School 2 - - -
Provide Ride-Share Programs 1 1 - -
Subsidize Public Transit Service
Upgrade or Expansion 1 – 4 1 – 4 1 – 4 -
Provide Targeted Behavioral
Interventions 1 – 2 1 – 2 1 – 2 -
Unbundle Parking Costs from
Property Cost 1 – 2 - - -
Provide Vanpool Incentives 1 – 4 1 – 4 1 – 4 -
Provide Voluntary Travel
Behavior Change Program 1 – 2 1 – 2 1 – 2 -
Table 4-15: Project Requirements, Chapter 20.90, Table 20-255
Project Level Point Target for
HEU/VEU/CEU
Uses
Point Target for Other
Uses
TDM Plan and Annual
TDM Plan
Compliance
Documentation
TDM
Monitoring
Report
Level 1 Projects 25 Points 5 Points Required Not
Required
Level 2 Projects 25 Points 5 Points Required Required
Since the TDM program has yet to go into effect, there is no current data indicating it is a constraint to housing development. As changes occur within the evolving field of TDM, potential updates to the TDM menu may become necessary. Allowing for adjustments ensures that TDM measures listed in the menu reflect the most up-to-date research on the effectiveness of a TDM measure. Over time, City staff will continue to analyze data and collect research to maximize the effectiveness of the measures in reducing VMT.
The TDM program was developed to give project applicants greater certainty about transportation impr
ovement needs during the development review process and reduce unnecessary delays. The updated TDM program aims to streamline the development review process by (1) making sure that the TDM menu is the same as the menu being used for transportation review under CEQA, and (2) establishing a points DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-38 City of San José Draft Housing Element, rev. June 2023
system that is based on objective criteria with greater certainty about the cost of TDM measures. The City has well-established infrastructure standards that are communicated to developers at the earliest stages of the development review process, so that these costs can be appropriately factored into the design of a project. While on- and off-site improvements increase the costs of development, they are required to mitigate the impact of new development on the City’s infrastructure and are largely unavoidable.
4.3.4 Residential Developer Affordable Housing Requirements Inclusionary Housing Ordinance
The Inclusionary Housing Ordinance (IHO), reflected in Chapter 5.08 of San José Municipal Code, was adopted in 2010. The IHO requires all residential developers that create new, additional, or modified for- sale or rental units to provide either 15% of housing on-site or 20% of housing off-site that is affordable to income-qualified buyers or renters. See Table 4-16.
Due to legal challenges, full implementation of the ordinance was stalled for both for-sale and rental housing. In 2014, the City adopted an impact fee program, the Affordable Housing Impact Fee (AHIF), that applied to new rental projects. In 2015, the California Legislature passed AB 1505 that restored the authority of the City to require inclusionary housing on new rental developments. Also in 2015, the California Supreme Court affirmed a district court ruling upholding the City’s IHO that applied to new for-sale construction. In 2017, the City adopted changes to transition from the AHIF to the IHO for rental projects.
The City Council approved amendments to the Inclusionary Housing Ordinance in 2021 to encourage production of more affordable housing units on-site through the addition of the following four new compliance options:
1. Mixed compliance option (on-site rental with an adjusted in-lieu fee);
2. Option to purchase real property;
3. Option to dedicate SB 35 entitled property; and
4. Option for a partnership with clustered units.
All projects may choose to pay the in-lieu fee rather than construct units. As part of the 2021 update, the in-lieu fee was also restructured from a per-unit to a per-square-foot basis to allow for easier estimation and administration of the fee. The fee varies by location: Areas determined to be in strong market areas pay a higher fee than those determined to be in moderate markets. The initial fee was set at $43 per square foot in strong market areas and at $18.70 per square foot in moderate market areas with an annual increase tied to the index published by Engineering News-Record. The latest increase was 5.26% with the fee increasing to $45.26 in strong market areas and $19.68 in moderate market areas.
Additionally, projects can choose the mixed compliance option to provide a portion of units on-site and pay an adjusted in-lieu fee depending on the affordability of the units provided to satisfy the City’s inclusionary housing ordinance. Units that satisfy state density bonus law are eligible to be counted towards the units required under the IHO. The fee amount, market areas, and new compliance options were added to encourage greater production of units and were added based on findings from f easibility analysis conducted by a consultant in 2019. The City plans to update this study regularly through updates to the Cost of Residential Development Study.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-39 City of San José Draft Housing Element, rev. June 2023
Table 4-16: Inclusionary Housing Ordinance Compliance Options
OBLIGATION FOR SALE RENTAL
On-Site*
15%
Purchasers must be at or
below 120% AMI
5% at 100% AMI
5% at 60% AMI
5% at 50% AMI
OR 10% at 30% AMI
Off-Site*
20% Purchasers must be at or
below 110% AMI
5% at 80% AMI
5% at 60% AMI
10% at 50% AMI
In-Lieu Fee*
20% (applied to
all units -based
square foot)
$25 per square foot
applied to interior
residential square foot
Per square footage which requires a change in
methodology towards the entire building
Strong Market: $45.26/ft2
Moderate Market: $19.68/ft2
Mixed
Compliance
Option
20%
Not applicable
Strong Market: Pay 5% at 100% AMI plus pay in-lieu
fee of $19.68/ft2 in-lieu for all rentable areas
Moderate Market: Pay 5% at 100% AMI plus pay in-
lieu fee of $12.49/ft2 in-lieu for all rentable areas
Dedication of
Land
20%
Marketable title, general plan designation zoned for residential development and at a density required, and suitable for inclusionary units. Must comply with the requirements as listed in the Municipal Code 5.08.530.A.
Credits and
Transfers
20%
Developers may purchase or transfer credits for affordable housing units that are available for occupancy concurrently with market rate units. Must comply with the requirements as listed in the Municipal Code 5.08.540.C.
Acquisition and
Rehab of Units*
20%
Rehabilitate existing market rate units for conversion to units affordable to Lower and Very Low Income Households. Number of Rehabilitation units must be 2 to 1 of the base inclusionary obligation. Must comply with the requirements as listed in the Municipal Code 5.08.550.
HUD Restricted
Units*
20%
Developers may provide units that are restricted to Affordable Housing Cost for Lower or Very Low Income Households through entering into an agreement with the U.S. Department of Housing and Urban Development (HUD). Must comply with the requirements as listed in the Municipal Code 5.08.560.H.
Combination of
Methods
20%
Developers may propose any combination of methods to satisfy the project’s inclusionary housing obligation. Must comply with the requirements as listed in the Municipal Code 5.08.570.
Option to
Purchase
20%
This compliance option allows developers to purchase a property and dedicate the entitled property to the City. Must comply with the requirements as listed in the Municipal Code 5.08.580.
Partnership for
Clustered Units
15%
If located on an immediately adjacent parcel and in close proximity to the market rate building, then subject to only the 15% requirement. Must have Low Income Housing Tax Credit Financing or other public financing that requires separation. Establish a minimum contribution from market rate developer to affordable developer equivalent of 75% of the required in-lieu fee obligation. Must comply with the requirements as listed in the Municipal Code 5.008.590.
SOURCE: City of San José Planning Division, 2022.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-40 City of San José Draft Housing Element, rev. June 2023
Commercial Linkage Fee
Since November 1, 2020, the City has charged a Commercial Linkage Fee (CLF) on commercial development to fund affordable housing. The CLF was adopted after a Nexus Study was completed in July 2020 that establishes the linkage between new non-residential buildings, the jobs created through that development, and the demand for new affordable housing. Projects pay the fee based on gross square footage by each use. The fee amount varies based on location, use, and size. The CLF for Downtown and nearby areas is shown in Table 4-17.
Table 4-17: Commercial Linkage Fee
NON-RESIDENTIAL USE FEE PER SQUARE FOOT
Office (≥ 100,000 sq.ft.)
$12.63 when paid in full prior to issuance of building permit; OR $15.79 when paid in full prior to scheduling of final inspection; OR $15.79 paid over five installments secured by bond or letter for credit plus 3% annual interest that accrues from the scheduling of the final building inspection.
Office (<100,000 sq.ft.) No Fee ($0) for all square footage ≤50,000 sq.ft.; and $3.16 for all remaining square footage
Retail No fee ($0)
Hotel $5.26 excluding Common Area
Industrial/Research and Development
(≥100,000 sq.ft.)
$2.53 paid in full prior to issuance of building permit; OR $3.16 paid in full prior to scheduling of final inspection; OR $3.16 paid over five installments secured by bond or letter of credit Industrial/Research and Development
(<100,000 sq.ft.) No fee ($0)
Warehouse $5.26
Residential Care $6.32 excluding Common Area
SOURCE: City of San José Planning Division, 2022
4.3.5 Affordable Housing Program
Density Bonus Ordinance
The California State Density Bonus Law was first enacted in 197912. This legislation was passed to address the State’s lack of affordable housing and incentivize its development. The incentives for developers who have affordable housing units at certain percentages within their projects include allowing them to increase the density for their projects, among other development benefits. Over the years, the law has been modified to be more prescriptive about the granting of density bonuses and incentives.
Per state law, San José may grant a density bonus when an applicant requests a bonus and agrees to execute and record a Regulatory Agreement for the construction and maintenance of affordable rental or
12 CA CODE § 65915
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-41 City of San José Draft Housing Element, rev. June 2023
ownership of housing units, senior citizen, foster youth, disabled veterans, homeless persons, or student housing development uses. Developers may be entitled to incentives and concessions even without requesting a density bonus.
The City of San José adopted its own Density Bonus ordinance in 2018. The Zoning Code defines affordable rental or ownership of housing units as restricted affordable units and anything not within this category as non-restricted units13. To ensure affordable units are being constructed, the Code requires concurrent construction of restricted affordable units with non-restricted units unless an alternative schedule is agreed to in the regulatory agreement and that restricted affordable units be dispersed throughout the project, without concentration. Likewise, to protect against singling out affordable housing, restricted housing should be of similar character to non- restricted units and the overall project including construction, material, and quality, both inside and out, and should be functionally equivalent to that of non-restricted units.
A density bonus may be applied to residential projects
of five or more units that provide affordable, senior,
or special needs housing. The greater the affordability levels, the greater the density bonus to allow more
dwelling units — by 50% in most cases and up to 80%
for affordable-only housing projects — than otherwise
allowed by the applicable zoning district and General
Plan land use designation. Density bonus may be
approved only in conjunction with a development
permit. As required by State law, the Code also
identifies bonuses in response to certain donations
of land and the inclusion of childcare centers in some
developments.
Under the Density Bonus Chapter (20.190), the City
allows up to four incentives and/or concessions to be
used for each development project depending on the
ratio of affordable units, see inset.
In addition to incentives and/or concessions, developers can also apply for waivers from, or modifications to,
development standards. Waivers and/
or reduction of development standards do not count as
an incentive or concession and there is no limit on the number of these that can be requested or granted.
Given the many changes in State Density Bonus Law
since 2019, staff will implement a program to update the City’s existing density bonus ordinance to ensure
compliance with State Law (See Ch. 3, P-43).
13 San José Municipal Code Ch. 20 §20.190.020
INCENTIVES & CONCESSIONS TO
PROMOTE USE OF DENSITY BONUS
As outlined in the
San Jose Municipal Code
www.sanjoseca.gov/MunicipalCode
Table 20-290 – Number of parking spaces
required by restricted affordable units or
category regardless of proximity to transit.
Table 20-300 – Reduction of front setback
area by housing type based on percentage of
restricted affordable units up to no more than
5 feet.
Table 20-310 – Reduction of rear interior
setback area by housing type based on
percentage of restricted affordable units up to
no more than 5 feet.
Table 20-320 – Reduction of rear corner
setback area by housing type based on
percentage of restricted affordable units up to
no more than 3 feet in R-MH, CO, CP, CN, CG,
PQP, MS-G, MS-C, or 5 feet otherwise.
Table 20-330 –Reduction in the number of
parking spaces for SRO facilities within ½ mile
of major transit stops or not within ½ of an
existing transit stop.
OTHER INCENTIVES
An applicant may request any Incentive(s)
specified above, or others, so long as the
incentive would result in identifiable and actual
cost reductions to provide for Affordable
Housing Costs or Affordable Rents for
Restricted Affordable Units
INCENTIVES & CONCESSIONS TO
PROMOTE USE OF DENSITY BONUS
As outlined in the
San Jose Municipal Code
www.sanjoseca.gov/MunicipalCode
Table 20-290 – Number of parking spaces
required by restricted affordable units or
category regardless of proximity to transit.
Table 20-300 – Reduction of front setback
area by housing type based on percentage of
restricted affordable units up to no more than
5 feet.
Table 20-310 – Reduction of rear interior
setback area by housing type based on
percentage of restricted affordable units up to
no more than 5 feet.
Table 20-320 – Reduction of rear corner
setback area by housing type based on
percentage of restricted affordable units up to
no more than 3 feet in R-MH, CO, CP, CN, CG,
PQP, MS-G, MS-C, or 5 feet otherwise.
Table 20-330 –Reduction in the number of
parking spaces for SRO facilities within ½ mile
of major transit stops or not within ½ of an
existing transit stop.
OTHER INCENTIVES
An applicant may request any Incentive(s)
specified above, or others, so long as the
incentive would result in identifiable and actual
cost reductions to provide for Affordable
Housing Costs or Affordable Rents for
Restricted Affordable Units
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4-42 City of San José Draft Housing Element, rev. June 2023
Senate Bill 35 Streamlined Projects
Senate Bill 35 (2017) requires local governments to streamline review and approval of eligible affordable housing projects when the number of total issued building permits are less than the Regional Housing Needs Allocation (RHNA) for the current reporting period. Streamlining involves facilitation of ministerial approval for qualifying projects and projects may continue to apply for streamlining until the next reporting period. For a project to qualify, a locality must either not have submitted a production report, or an annual housing element report for at least two years, or meet any of the following:
• If the production report reflects that there were fewer units of above moderate-income housing approved than were required. In addition, if the project contains more than 10 units of housing, the project seeking approval dedicates a minimum of 10 percent of the total number of units to housing affordable to households making below 80 percent of the area median income (AMI).
• If the production report reflects that there were fewer units of housing affordable to households making below 80 percent of the area median income that were issued building permits than were required. The project seeking approval dedicates 50 percent of the total number of units to housing affordable to households making below 80 percent of the area median income.
• If production report reflects fewer units of housing affordable to any income level described in clause (i) or (ii) that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period, the project seeking approval may choose between utilizing clause (i) or (ii).
• If any localities Zoning Ordinance requires greater allocation for either clause (i) or (ii) the Ordinance applies.
San José has not met its RHNA allocation for households with incomes below 80 percent AMI which means projects that meet the above requirements may proceed under SB 35. Ministerial review for SB 35 projects are based on compliance with objective standards. Qualifying projects are not subject to environmental review under the California Environmental Quality Act (CEQA).
Per SB 35, City staff must review applications for qualifying housing developments within a statutory time frame. Staff must determine if the project is eligible for streamlined approval within 60 days of application submittal for projects of 150 or fewer units, or within 90 days for larger projects. If the application is eligible for review under SB 35, then the jurisdiction must review the project within 90 days after application submittal for projects of 150 or fewer units, or within 180 days for larger projects.
In 2019, the City codified SB 35 streamlining provisions (as well as those for AB 2162 and AB 101) in the zoning code under Chapter 20.195 Ministerial Approvals. The City also provides eligibility information on its website and there is a separate SB 35 development application available for these types of projects.
As of May 2023, San José has approved more than 2,500 units under the SB 35 process.
Senate Bill 330 / Housing Crisis Act of 2019
To accelerate housing production, Senate Bill 330, also known as the Housing Crisis Act of 2019, prevents certain land use and zoning restrictions to alleviate or remove constraints preventing construction As of May 2023, San
José has approved more
than 2,500 units under
the SB 35 process.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-43 City of San José Draft Housing Element, rev. June 2023
of new housing, including affordable housing, by limiting the way local governments may reduce capacity of residential on properties.
To help remove barriers, SB 330 allows a developer to submit a preliminary application in which they can provide information on the proposed development before a formal planning submittal. Upon submittal of the preliminary application and payment of fees, a housing developer can “freeze” other applicable fees and development standards that apply to their project while they assemble the rest of the material necessary for a full application submittal
14.12 San José has a formal SB 330 Preliminary Application in place for developers interested in taking advantage of this option.
Impact of SB 1333 (2018). By 1974, state law required cities, excepting charter cities, to align their zoni
ng districts with their General Plan documents15. Senate Bill 1333, which passed in 2018, requires charter cities, including San José, to also align their zoning districts with their General Plan land use designations. SB 1333 does not circumvent the Housing Crisis Act which means that to comply with SB 1333, San José will also have to account for “no net loss” of residential capacity under SB 330.
Senate Bill 940 authorizes the City of San José to proactively change zoning to a more intensive use, commonly referred to as upzoning, and bank the resulting capacity for use in lowering other zones to a less intensive use and avoid the “no net loss” provision of the Housing Crisis Act. This only applies to zoning actions and may not be used in conjunction with other changes that are subject to SB 330
16. To comply with the Housing Crisis Act and SB 1333, San José created a multiyear process:
• Phase 1(a) was approved by City Council in June 2019, which included changes to permitting requirements across all zoning districts.
• Phase 1(b) was approved by City Council in June 2021 and created six new Urban Village and Mixed-Use zoning districts to support areas that are planned for mixed-use development and high-density residential or commercial uses.
• Phase 2 entails rezoning select areas of the City. Phase 2 is estimated to rezone approximately 1,140 properties before the end of the 2022 fiscal year. Property owners are notified in advance of the rezoning, which also involves a public hearing before the City Council.
14 CA CODE § 65589.5, 65940, 65943, 65950, 65905.5, 65913.10, 65941.1. Accessed March 2022. https://leginfo.legislature.ca.gov/faces/ billTextClient.xhtml?bill_id=201920200SB330
15 CA CODE § 65860(a)
16 CA CODE § 66300. Accessed March 2022. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB940
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-44 City of San José Draft Housing Element, rev. June 2023
4.3.6 Planning Process and Application Fees
The City of San José maintains an internet website with all pertinent development information including links to information about zoning, development standards, and fees on the City’s website.
Zoning regulations, including descriptions of zoning districts and their development standards can be found in Title 20 of our municipal code; our Zoning Code webpage (https://www.sanjoseca.gov/your-government/departments-offices/planning-building-code -
enforcement/planning-division/ordinances-proposed-updates/zoning-code-title-20) includes an interactive map highlighting the zoning for all the properties within the City of San José and the site also includes a link to Title 20 and the full municipal code which is hosted through the “Municode” website,
(https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=SAN_JOSEMUCO). In addition, our website includes links to the current fee schedule, which breaks down all the fees associated with various types of development.
The ho
using development process can face challenges which in turn constrain development; long permit processing times can result in uncertainty or unexpected expenses which ultimately diminish the feasibility of housing development projects. The necessary approval process depends on several factors, including the applicable zoning district, the project type, size, and complexity, and the degree to which the project requires variances, conditional use permits, rezoning, or general plan amendments. Housing development applications can generally be grouped into two categories, ministerial and discretionary.
Ministerial Review
A ministerial action is when a decision maker, such as a City staff member or a public official, applies the law to the facts as presented, but uses little or no personal judgment in the decision process.
Projects subject to ministerial review are permitted by right and are granted through reference to objective standards. Ministerial planning permits are not subject to CEQA and do not require ca community meeting or a public hearing for approval/denial. Projects that are currently subject to by- right review and not subject to CEQA are limited to ADUs, affordable housing and supportive housing streamlining projects (SB 35 and AB 2162), and SB 9 lot splits. In 2020, the City adopted Chapter 20.195, Ministerial Approvals, which specifies how the City will implement the review and approval requirements of California Government Code Sections 65650 et seq., 65660 et seq., and 65913.4.
Affordable housing developments under Government Code Section 65913.4, commonly referred to as an SB 35 project, are subject to streamlined, ministerial approval. The City maintains and regularly updates information regarding SB 35 streamlining process on its website. Prior to submitting an application for streamlined ministerial approval under SB 35, an applicant must first submit a notice of intent pre-application to the City, which commences the tribal scoping consultation process in accordance with AB 168. Only when the tribal scoping consultation is completed may an applicant submit an application for streamlined ministerial approval. Approvals must be completed within 90 days of submittal (for eligible projects involving 150 or fewer units) or 180 days of submittal (for eligible projects containing more than 150 housing units). As ministerial approvals, these projects are not subject to CEQA under CEQA Guidelines Section 15268.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Discretionary Review
A discretionary action is when a decision maker, such as a City staff member or a public official, can use their judgment in deciding whether and how to carry out or approve a project. Only discretionary actions (decisions) can be appealed. Discretionary review projects are subject to all city regulations, typically requiring outreach, noticing, environmental analysis, and opportunities for public comment.
The City works with developers and project applicants to expedite approval procedures and eliminate unnecessary time constraints on development. A Preliminary Review Request is available to applicants through which City staff can offer early guidance on zoning conformity and necessary permitting processes.
Determining which process a residential or mixed-use pr oject must go through depends on the size
and complexity of the proposal, whether code deviations and/or variances are requested, and whether other Zoning Code regulations (e.g., for conditional uses, Historical Resources, etc.) apply.
The City has various permit review processes with prescribed timelines and initial fees, as shown in Table 4-18. Project review, as well as any required public hearing or community meetings, may pose a constraint to the development of multifamily projects. Properties designated as historic or located in a historic conservation area may require additional review.
This section explores the typical process for a development application in the City of San José. • Preliminary Review (Optional). Complex proposals that involve multiple permit approvals may elect to go through a voluntary preliminary review process. Through this process, staff will evaluate the proposal, review compliance with the General Plan and Zoning Code, determine appropriate applications and fees, offer comments on the proposal to meet the General Plan objectives and Zoning Code development standards, identify related non- planning issues, and describe the permit process and timeline. This step can help provide some certainty in the early stages of a potential project. • Application for Development Review. Site plan and design review ensures that proposed developments are consistent with the General Plan and any applicable community or specific plans, as well as the zoning code and design guidelines. In addition, this review ensures that utilities and infrastructure are enough to support the proposed development and are compatible with City standards. Residential Development may require one of two application pathways.
o Single Family House Permit – depending on the project’s zoning, proposed FAR, and building height a Single Family House Permit may be required, o Development/Use Permit – which covers a range of permits including, Site development permit, Conditional use permit, Special use permit, and Planned development permit.
The objective of design review is to enhance street level design, aesthetic quality of the streetscape, and create variety in new construction that culminates in a unique identity or special physical character in a given area. Design is considered in new construction, site planning, landscaping, signage, among others, and encompasses aesthetic, architectural, or urban design quality and compatibility with surrounding development. The City incorporates objective urban and community design standards in the General Plan, Zoning Code, the Citywide Design Standards and Guidelines, and other design standards documents such as the Downtown Design Guidelines, Diridon Station Area Plan, and Urban Village plans.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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• Environmental Review. Pursuant to the California Environmental Quality Act, projects are required to undergo environmental review to identify significant environmental impacts.
Infill development consistent with the General Plan and zoning requirements may be exempt from such review when it complies with specific criteria such as: meeting minimum densities, providing affordable units, or locating in close proximity to high quality transit stations.
• Public Hearing. There are three different types of public hearings, all of which are open to the public, and available in a hybrid format (virtual and in-person): Director’s Hearing, Planning Commission, and City Council. Agendas, including links to all pertinent details for development projects are available at least seven days prior to the meeting; agendas are posted on the City’s website and on the information board at City Hall. The public is welcome to attend and comment on any of the issues under discussion. o Director’s Hearing, The Director of Planning, Building and Code Enforcement oversees the planning process in San José. The Director is a City staff member and is authorized by the City Council to issue certain types of development permits. Director’s Hearing are held weekly, offering the most regular opportunity for projects to be approved. Director’s Hearing is also where most residential projects are heard/approved, including Single Family House Permit, Special Use Permit, or a Site Development Permit.
o The Planning Commission, an eleven-member body appointed by the City Council, meets twice a month to review proposed development projects, Zoning Ordinance changes, and new plans or plan amendments. The Planning Commission makes recommendations to the City Council; however, it is also charged with the authority to approve Conditional Use Permits and Tentative Maps.
o The City Council is the highest decision-making authority within City government; it adopts plans, sets policy direction, and reviews all legislative items, including the rezoning of property and General Plan amendments after considering recommendations made by City staff and the Planning Commission.
The City Council is the final decision-maker on appeals of Planning Commission decisions.
The time required to process an application depends primarily on the permit type, size, and complexity of the project and the number of approvals required. Typical timelines for common applications, as well as the relevant approval body, are provided below in Table 4-18. Further description of permits and processing procedures are provided in the subsequent sections of this chapter. The initial fees for a use permit entitlement are based on staff hours that include application intake, initial review, project routing, plan check, site inspection and visits, letters to applicants, review Through the funding of the Destination: Home planner position, the City prioritizes affordable hous
ing development during the entitlement process, and actively works with affordable housing developments to ensure that projects can smoothly go through the entire approval process. This is a grant-funded position that reviews one-hundred percent affordable projects with a minimum percentage of units dedicated to permanent supportive housing or extremely-low income units. The planner helps facilitate the process and supports affordable housing developers during the pre- application phase with questions around zoning, and entitlement processes.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Table 4-18: Permit Process
TYPE OF PERMIT OR APPROVAL
INITIAL
SUBMITTAL
FEES
TYPICAL
APPLICATION
TIMELINE
PUBLIC HEARING
INITIAL DECISION
MAKING BODY
APPEAL DECISION
MAKING BODY
SB 35/AB 216 Streamlined Ministerial Permit $ 9,304 3 months N/A (Ministerial) Single Family House Permit (administrative) $718 - $2,727 2 months N/A N/A Single Family House Permit (with public
hearing) $9,318 6 months Dir ector’s Hearing N/A
Site Development Permit $12,952 7 months Director’s Hearing Planning Commission Special Use Permit $ 8,593 4-7 months Director’s Hearing Planning Commission Conditional Use Permit $22,950 7 months Planning
Commission City Council
Planned Development Permit $13,023 7 months Director’s Hearing Planning Commission Rezoning (conventional) $13,212 5 months City Council N/A Rezoning (conforming) $12,429 5 months City Council N/A Tentative Map $12,882 6 months Planning
Commission City Council
General Plan Amendments $34,235 9-12 months City Council N/A
Historic Landmarks Commission
The Historic Landmarks Commission (HLC) is established in accordance with the San José Municipal Code, Chapter 13.48 and Part 26. Seven members are appointed by the City Council and are residents of San José, unless specifically authorized otherwise. They bring a range of expertise related to historic preservation. The HLC meets once a month and serves as a public hearing body and is responsible for forwarding comments and recommendations to the Director of Planning and City Council on:
o Historic Preservation permits for alterations to a City Landmark or within a City Landmark Historic District;
o Nominations for City Landmark, City Landmark Historic District, and Conservation Areas; o Mills Act Historic Property Contracts; and
o Preservation, exhibition, and protection of the History San José Museum.
HLC also maintains the City's Historic Resources Inventory, using this to provide comments and recommendations on development proposals that may impact cultural resources. As appropriate, HLC may recommend adding properties identified through development proposals to the Historic Resources Inventory.
Major Permits
The following is a summary of the typical major permit application process. Most of the steps are applicable to each type of major application; however, both the CEQA process and the public hearing process may vary a little, depending upon project type.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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1. Preliminary Review Request (Optional). Before the applicant files the application, a preliminary review is recommended for most projects. A project manager will review the proposal and can point out many of the potential problems that may affect or delay the application, as well as provide other useful information to the applicant. Preliminary review is a voluntary step that allows a proposed project to be reviewed prior to going through the formal application process. A preliminary review allows the applicant to become familiar with the City’s codes, policies and development review processes and how they will affect the project. Preliminary review also can help reduce the time and money spent on revising plans to meet City standards before going to a public hearing.
2. Application Filed by Applicant. The applicant files a formal application and pays the necessary fees. For most applications, a well-drawn set of plans is necessary as part of the application submittal in order for the formal review process to begin. All newly-filed applications are posted on the Department’s website and are available for public review.
3. City Staff Review. The application is reviewed by the Department of Planning, Building, and Code Enforcement. Other City departments (which may include Police, Fire, Public Works, and Transportation) and outside agencies (e.g. Caltrans, the Valley Transportation Authority, and the Santa Clara Valley Water District) also review the project application for compliance with health and safety standards.
4. Environmental Review (CEQA). Besides meeting General Plan policies and development standards, most projects must receive an environmental clearance. State law requires a separate assessment of every project’s environmental impacts through the environmental review process. Applications for environmental review must therefore accompany each major application request.
5. Community Meeting. The purpose of community meetings is to inform property owners, residents and other interested parties about the proposed development, answer questions, receive public comment, and address project issues before the Public Hearing. All development permits which require community meetings follow the requirements set forth in Council Policy 6-30 Public Outreach Policy for Pending Land Use and Development Proposals. For Large and/or Significant Community Interest Proposals, there should be at least one community meeting no less than 45 days following the filing of the application nor less than 30 days prior to the Public Hearing. The meeting is typically held as early as possible in the process, to allow applicants and interested parties to share their goals and concerns before proposal details are finalized.
6. Notice of Public Hearing/Public Input. Once the review process is completed, the applications are set for hearing. All major permits require an open hearing that allows the public to provide input. Generally, a notice of the public hearing is sent to all property owners and residents within 500 feet of the project site. (A smaller or larger radius may be used, depending upon the project type and/or scale.) The public notice will provide a brief description of the project, the project address, the project contact, and the date of the public hearing. This provides the public an opportunity to learn about the project, to provide input, and to participate in the public hearing process.
7. Public Hearing. Discretionary projects will seek approval through one of three public hearing options:
Director’s Hearing. So
me major permit applications are forwarded with recommendations from City staff to the Director of Planning, Building, and Code Enforcement for a decision.
The Director conducts a public hearing to receive input from members of the community DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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prior to issuing a decision. The Director’s decision is subject to appeal to the Planning Commission.
Planning Commission. For some major permits, the Department of Planning, Building, and Code Enforcement forwards a recommendation to the Planning Commission that is based upon a review of the project for conformance to the General Plan and other related laws and regulations. The Planning Commission’s public hearing provides the applicant and neighboring residents an additional opportunity to voice their opinions. The Commission acts upon conditional use permits, environmental impact reports, and appeals of Planning Director decisions. The Commission also provides a recommendation on rezoning and General Plan amendment applications to the City Council, as well as on proposed Zoning Ordinance changes.
City Council. The City Council makes the final decision on legislative acts such as rezoning or General Plan amendments. The City Council’s public hearing provides the applicant and neighboring residents an opportunity to voice further opinions. The City Council approves the project with conditions of approval or denies the project.
Single Family House Permit
A single-family new construction project may be approved in about 12 weeks from date of plan submission, with the issuance of a Building Permit, as long as no variances, exceptions, or zone changes are needed, and if the project submittal does not need revisions and resubmittal. The City of San José does not require design review of single- family projects if the project meets the development standards of the Zoning Code. Thus, the time required for development approval of single-family projects do not result in substantial constraints to housing developers.
A Single-Family House Permit is required if the house (new construction, remodeling, or new addition)
meets any of the following criteria:
o If it exceeds 30 feet or two stories in height; or
o If the floor area ratio (FAR) of the house exceeds .45; or o If the house or site is a designated City Landmark; or o If it is listed on the City’s Historic Resources Inventory; or o If it is in a Historic District; or
o If it is in a Historic Conservation Area.
Site Development Permit
Site Development Permits are land development permits issued for all zoning districts other than a Planned Development (PD). Their purpose is to make sure that each project conforms to the Zoning Ordinance and City policy. There are separate design guidelines for industrial, commercial and residential developments. A Site Development Permit is required to construct, enlarge, or install a building or a structure. Any exterior alteration, pavement of a lot, or underground installation requires a permit. A Site Development Permit Amendment allows for the amendment of an existing Site Development Permit.
The development of new multifamily housing requires a Site Development Permit, which is processed through t
he Director’s Hearing. The public hearing allows the City to review the proposed project and ensure that the proposed project is functionally and architecturally compatible with adjacent structures, as well as to place conditions on the permit that would enhance the project and reduce any effects on surrounding properties. The permit process also allows the public an opportunity to voice their opinions DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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about the proposed project.
SITE DEVELOPMENT PERMIT FINDINGS
The proposed project must be:
1. Consistent with and will further the policies of the general plan and applicable specific plans and area development policies.
2. Conforms with the zoning code and all other provisions of the San José Municipal Code applicable to the project.
3. Consistent with applicable city council policies, or counterbalancing considerations justify the inconsistency.
4. The interrelationship between the orientation, location, and elevations of proposed buildings and structures and other uses on-site are mutually compatible and aesthetically harmonious.
5. The orientation, location and elevation of the proposed buildings and structures and other uses on the site are compatible with and are aesthetically harmonious with adjacent development or the character of the neighborhood.
6. The environmental impacts of the project, including but not limited to noise, vibration, dust, drainage, erosion, storm water runoff, and odor which, even if insignificant for purposes of the California Environmental Quality Act (CEQA), will not have an unacceptable negative affect on adjacent property or properties.
7. Landscaping, irrigation systems, walls and fences, features to conceal outdoor activities, exterior heating, ventilating, plumbing, utility, and trash facilities are sufficient to maintain or upgrade the appearance of the neighborhood.
8. Traffic access, pedestrian access and parking are adequate.
Planned Development Permit
For development within a Planned Development zoning district, a Planned Development Permit is necessary to implement the zoning and to allow the issuance of Public Works clearance and Building Permits. The Planned Development Permit application process, similar to the Site Development Permit process, reviews the proposed project’s site planning, building design, landscaping, circulation, signage, and other development requirements. Planned Development Permit applications are approved through the Director’s Hearing
PLANNED DEVELOPMENT PERMIT FINDINGS
The proposed project must be:
1. Consistent with and furthers the policies of the general plan
2. Conforms in all respects to the planned development zoning of the property
3. Consistent with applicable city council policies, or counterbalancing considerations justify the inconsistency
4. The interrelationship between the orientation, location, mass and scale of building volumes, and elevations of proposed buildings, structures and other uses on-site are appropriate, compatible and aesthetically harmonious
5. The environmental impacts of the project, including, but not limited to noise, vibration, dust, drainage, erosion, storm water runoff, and odor which, even if insignificant for purposes of the California Environmental Quality Act (CEQA), will not have an unacceptable negative effect on adjacent property or properties.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Conditional Use or Special Use Permit
The Municipal Code specifies uses which are allowed in each zoning district, additionally uses can be approved through the Conditional Use Permit or Special Use Permit. The Conditional use permits (CUPs) and Special use permits (SUPs) processes allows the City to review the proposed use and determine whether the site is appropriate for that type of activity and place conditions on the use that would enhance the project and reduce any possible negative effects on surrounding properties. It also allows members of the public an opportunity to voice their opinions about the proposed use.
Conditional use permits are approved by the Planning Commission and appealable to the City Council.
Conditional Use permits (CUP) are required in specific zones for fraternity uses, residential care facilities, temporary residential shelters, and residential hotels or Single Room Occupancy (SROs). SUPs are approved through the Director’s Hearing and appealable to the Planning Commission. An SUP may be required for live/work uses, co-living communities, guesthouses, and emergency residential shelters.
CONDITIONAL USE PERMIT OR SPECIAL USE PERMIT FINDINGS
The proposed project must be:
1. Consistent with and will further the policies of the general plan and applicable specific plans and area development policies.
2. Conforms with the zoning code and all other provisions of the San José Municipal Code applicable to the project.
3. Consistent with applicable city council policies, or counterbalancing considerations justify the inconsistency.
4. Use at the location requested will not: Adversely affect the peace, health, safety, morals or welfare of persons residing or working in the surrounding area; or impair the utility or value of property of other persons located in the vicinity of the site; or be detrimental to public health, safety, or general welfare.
5. Site is adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and other development features prescribed in this title, or as is otherwise required in order to integrate the use with existing and planned uses in the surrounding area.
6. Site is adequately served by highways or streets of sufficient width and improved as necessary to carry the kind and quantity of traffic such use would generate; or by other forms of transit adequate to carry the kind and quantity of individuals such use would generate; by other public or private service facilities as are required.
7. Environmental impacts of the project, including but not limited to noise, vibration, dust, drainage, erosion, storm water runoff, and odor which, even if insignificant for purposes of the California Environmental Quality Act (CEQA), will not have an unacceptable negative affect on adjacent property or properties.
Staff have found that these consistency findings are neither a constraint on housing production nor that they slow the City’s ability to recommend approval of projects. City staff understand that projects that comply with objective development criteria cannot be denied or reduced in density, subject to a narrow health and safety exception. Instances of discretion applied during the Site Plan and Design Review process are limited to comments suggesting cohesiveness with the surrounding environment, such as bulk control and mass articulation. However, to ensure that findings for all permits are interpreted in an objective manner, the City is proposing to review and modify findings language as necessary to ensure consistency with State Housing laws (See Ch. 3, P-41).
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4.3.7 Fees and Exactions
The City collects impact fees, taxes and exactions from new residential development to finance new public infrastructure, such as parks; to cover the cost of adding new capacity to existing public infrastructure such as wastewater; or to cover the cost of processing permits.
A study performed by the consultant Baird + Driskell in 2022 showed that the City of San José’s fees fall below that of many other cities in Santa Clara County. Additional analysis done in 2022 by the consultant Century Urban, as a part of the City’s regular Cost of Development Study shows the typical fees for multifamily development, see Table 4-19. Overall based on the analysis from the City’s Cost of Residential Development Study, the City’s fees and exactions for multifamily, including entitlement fees, represent from 3.4% to 4.5% of the total costs per unit depending on the location and construction type of the unit. For singe family development, city fees and taxes represent approximately 2.9% of the total costs to construct a unit. Given that all fees represent less than 5% of total unit’s costs, the City does not believe its fees and exactions represent an undue burden on development.
Table 4-19: Estimate of City Taxes and Fees On New Multifamily Construction, 2022 Does not include Inclusionary Housing Ordinance In-Lieu Fees or potential traffic impact/mitigation fees.
TYPE OF FEE OR TAX
DEVELOPMENT TYPE AND LOCATION *
TYPE III ** TYPE V **
WEST CENTRAL NORTH SOUTH & EAST
Planning and Building Fees Per Unit $ 4,781 $ 4,781 $4,781 $ 5,657 Construction Tax Per Unit $ 6,556 $ 6,556 $ 6,556 $ 6,332 Total Parkland In-Lieu Fees (w/o credit) $20,800 $22,600 $13,800 $13,100 Typical Parkland In-Lieu Fees (w/ credit) *** $14,560 $15,820 $ 9,660 $ 9,170 School Fees Per Unit $ 2,756 $ 3,915 $ 2,520 $ 2,396
Total Fees Per Unit $28,653 $27,157 $23,517 $36,655
City Fees as % of Total Cost per Unit**** 3.7% 3.9% 4.5% 3.4% * Location Map: https://csj.maps.arcgis.com/apps/webappviewer/index.html?id=8518bc095ae54f4ea025d7743c650881 ** Type III is 7-story mid-rise building; Type V is 5-story low-rise building. *** Assumes a 30% reduction in fee based on credits for provide improvements or build recreation space. ****Excludes School Fees Per Unit which are set by school district.
SOURCE: City of San José and Century Urban, 2022.
Park Fees
In 1988, the City Council adopted the Parkland Dedication Ordinance to help meet the demand for neighborhood and community parks generated by new residential development. In 1992, the City Council adopted the Park Impact Fee, which applied parkland dedication requirements to new units in non-subdivided residential projects. Both processes require that new housing projects either dedicate land for public parks, pay an in-lieu fee, construct new park facilities, or a combination of these.
School Fees
As permitted under state law, school districts in San José may impose an impact fee on new DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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development. There are 19 school districts in San José. Depending on the location of a project, property owners may pay fees to a unified district or to both elementary and secondary school districts. These fees are collected by the school districts, and the City requires proof of payment as part of the building permit issuance process.
Construction Taxes
San José imposes four construction-related excise taxes on residential development:
• Building and Structure Tax
• Commercial-Residential-Mobilehome Park Building Tax
• Construction Tax
• Residential Construction Tax
The Building and Structure Tax and Commercial-Residential-Mobilehome Park Building Tax are assessed based on the building valuation. The Construction Tax and the Residential Construction Tax are assessed based on the number of dwelling units. These taxes are either restricted or have historically been used to finance transportation improvements, such as the construction, replacement, widening, and modification (but not maintenance) of City roadways.
The City also collects taxes for regional or statewide programs/funds. The fees are collected at the time of issuance of a building permit and subsequently transmitted to other agencies. These programs/funds include the California Strong Motion Instrumentation Program (CSMIP) that pertains to geologic analysis and the Building Standards Administration Special Revolving Fund (BSARSF) related to implementation of green building standards. In addition, the Santa Clara Valley Habitat Agency, a Joint Powers Authority composed of the cities of San José, Morgan Hill, and Gilroy along with the County of Santa Clara, initiated the collection of Habitat Conservation Plan fees in October 2013.
Entitlement Fees
The City imposes entitlement fees based on a cost-recovery model. These fees cover City staff time necessary to process permits, including completing internal review, conducting community meetings and public hearings, and performing inspections consistent with the General Plan, Zoning Ordinance, Building Code, and other applicable laws such as the California Environmental Quality Act (CEQA). Table 4-20 below provides a summary of entitlement fees associated with the processing of a residential project pursuant to the Planned Development zoning/permit process.
Construction Fees
Construction fees cover permit, plan check, and inspection fees for services provided by the City’s Building Division, Public Works Department, and Fire Department. Initial fees are charged based on a historical analysis of time required to perform the services and/or the number of inspections typically required for a project type. When the value of the services provided (based on an hourly rate) exceeds the initial fee, additional service time must be purchased.
Resources to Alleviate Constraints Relating to Fees and Exactions. The City has been active on a number of fronts to alleviate constraints associated with the payment of construction related fees and taxes and to further the goals and policies of the General Plan. These actions include:
• In 2010, the City Council amended the schedule of parkland fees specifically for low income housing units, setting the rate at 50% of the fees normally applicable to each housing type.
Previously the entire fee was waived for affordable housing developments but was raised DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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to the current 50% reduction to generate additional parkland revenue, while continuing to provide some incentive for the construction of affordable housing in San José. • In 2013, the City Council expanded and extended the Downtown High Rise Development Incentive Program, temporarily suspending the collection of 50% of the construction taxes for qualified projects. This program recognizes that a completed high-rise tower adds $150 million or more in assessed value to a site, thereby increasing tax rolls and providing a net- positive financial impact to the City, and constitutes the most environmentally sensitive means of accommodating substantial anticipated population growth, resulting in a net reduction in greenhouse gas emissions and vehicle-miles-traveled (VMT) over any alternative.
• In 2022, after focus group discussions with affordable housing developers on the cost of development, staff has begun to explore the temporary suspension of Construction Taxes for affordable housing. Staff will bring forward a recommendation to the City Council in fall 2023.
In summary, the fees and exactions applicable to residential development in San José are comparable or lower, on average, than that of other cities in the South Bay region and represent less than 5% of the total costs of multifamily housing thus are not an undue constraint; see Table 4-20. For affordable housing, the City intends to further lower fees and exactions by implementing a suspension of construction taxes in addition to the 50% reduction provided for park impact fees.
Table 4-20: Comparison of Housing Development Fees Across Cities in Santa Clara County Includes Entitlement, Building Permit, and Impact Fees
JURISDICTION SINGLE-FAMILY SMALL
MULTIFAMILY
LARGE
MULTIFAMILY
Campbell $72,556 $20,599 $18,541
Cupertino $136,596 $77,770 $73,959
Gilroy $69,219 $40,195 $39,135
Los Altos Hills $146,631 N/A N/A
Los Gatos $32,458 $5,764 $3,269
Milpitas $77,198 $74,326 $59,740
Monte Sereno $33,445 $4,815 $4,156
Morgan Hill $55,903 $41,374 $36,396
Mountain View $90,423 $69,497 $82,591
San Jose $43,005* $36,655** $23,410***
Santa Clara $14,653 $6,733 $2,156
Saratoga $64,272 $17,063 $15,391
Sunnyvale $133,389 $126,673 $98,292
Unincorporated /County $25,166 N/A N/A
SOURCE: Provided by Santa Clara County Regional Planning Collaborative * Updated calculations by City of San José. The previous fee calculation for single-family included in the first draft of the Housing Element did not include park impact fees and incorrectly calculated the City’s construction taxes. ** City of San José and Century Urban estimate for Cost of Development report in 2022 for Type V multifamily construction which DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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represents small multi-family in the south and east regions of the City. *** City of San José and Century Urban estimate for Cost of Development report in 2022 for Type III multifamily construction which presents large multifamily in the west area of the City.
The fees, taxes, and other exactions applicable to residential development in San José are comparable or lower, on average, than that of other cities in the South Bay region, and thus are not an undue constraint.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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4.3.8 Types of Housing
The City of San José encourages and facilitates the development of a variety of housing types, including accessible housing, emergency shelters (i.e., temporary residential shelters), transitional housing, supportive housing, housing for agricultural employees, and single-room-occupancy (SRO) units.
The following analysis explains how the City facilitates these housing types consistent with state law requirements.
Reasonable Accommodation
Chapter 20.160, Requests for Reasonable Accommodation (RRA), describes the application process for making a request for reasonable accommodation, whose intent is to accommodate housing needs of persons with disabilities to the greatest extent feasible. Requests are evaluated individually on a case- by-case basis.
The City’s Reasonable Accommodation process provides flexibility in the application of the City’s Zoning Code regulations for housing. Unlike the use permit and variance processes, the reasonable accommodation criteria are set up to assess whether an accommodation is necessary for relief from zoning regulations in order to afford individuals with disabilities to have equal opportunity to use and enjoy a dwelling. When making a determination, staff shall consider the following factors:
1. Special need created by the disability;
2. Potential benefit that can be accomplished by the requested modification;
3. Potential impact on surrounding uses;
4. Physical attributes of the property and structures;
5. Alternative accommodations which may provide an equivalent level of benefit;
6. In the case of a determination involving a One-family Dwelling, whether the household would be considered a Single Housekeeping Unit if it were not using special services that are required because of the disabilities of the residents;
7. Whether the requested accommodation would impose an undue financial or administrative burden on the City; and
8. Whether the requested accommodation would require a fundamental alteration in the nature of a program.
Consideration of the potential impact on surrounding uses helps staff to identify and disclose how a requested accommodation could potentially impact the health and safety of surrounding occupants who may also have special needs. For example, a requested accommodation could be for installation of equipment within a minimum required setback. Upon investigation, there could be a finding that the equipment might emit fumes or odors that could unduly impact a neighboring occupant with a respiratory disability. In such a situation, the City could impose mitigation measures in the requested accommodation to address such a potential impact to a
surrounding use. This review helps to maintain compliance with fair housing laws.
A review of RRA applications dete
rmined that more applications are approved than disapproved; however, it also revealed that many applications are withdrawn. It is not always clear why applications are withdrawn. In some instances, it can be due to the cost of the application, lack of support for an approval, or that the application was not necessary in the first place. Since the current zoning ordinance has not DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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been updated since its adoption in 2001, staff is including a program to update Chapter 20.160 to ensure the process and findings do not pose a constraints on persons with disabilities (See Ch.3, I-19).
Housing for Persons with Disabilities
San José allows licensed residential care facilities or group homes in any area zoned for residential use for six or fewer persons by right. A special use or conditional use permit are required for facilities with seven or more persons. At time of application, staff consider only the City’s design review requirements and do not impose special occupancy permit or business license requirements for the establishment or retrofit of structures for residential use by persons with disabilities. If structural or architectural improvements are needed, then a building permit is required. Requirements for building permits and inspections are straightforward to avoid delays or rejection for retrofitting. The City has no authority to approve or deny either a residential-care facility or group home of six or fewer people except for compliance with building code requirements.
The City provides reasonable accommodation for persons with disabilities, which may include retrofitting or converting existing buildings or construction of new buildings to meet the need of persons with disabilities. The City does not restrict occupancy of residences to related individuals. Staff is proposing a program (Ch. 3, P-42) to update the zoning code as it relates to group homes, to ensure consistency with State and Federal laws.
Emergency Homeless Shelters
Housing Element law requires the identification of one or more zoning districts where emergency homeless shelters are allowed without a discretionary permit, and the identification of adequate sites for emergency shelters and adequate provisions for the needs of existing and future projected shelters17. To enable this, state law limits development standards and locational restrictions as applied to emergency shelters and requires the identification of by right zoning districts that can accommodate the homelessness point-in-time count from the previous planning period18.
San José complies with state law by defining emergency residential shelters as a place “…where emergency temporary lodging is provided to persons who are homeless, and where on-site supervision is provided whenever such shelter is occupied19.” The length of stay at any emergency residential shelter is specified in the Specific Use Regulations section of the Zoning Code, which stipulates a maximum of 60 days unless a conditional use permit makes findings for an exception20. Exceptions may not exceed 18 months and must include enrollment of person(s) in drug/alcohol recovery or treatment provided on-site. Any shelter with a conditional permit must also submit a management plan that includes good neighbor issues, transportation issues, client supervision, client services, and food services. The management plan would also include written and objective findings that comply with state law21.
San José created the Combined Industrial/Commercial (CIC) Zoning district through Ordinance No. 29218 in April 2013, permitting both conditionally and by right, Emergency Residential Shelters in Industrial Districts, see Table 4-622. Since 2013 San José has expanded the zoning districts to permit the use of Shelters to Commercial and Urban and Mixed-Use Zoning districts with a Conditional or Special Use Permit, see Table 4-6.
17 CA CODE § 65583
18 CA CODE § 65582(a)(4)
19 San José Municipal Code, Ch. 20 § 20.200.360
20 San José Municipal Code Ch. 20 § 20.80
21 CA CODE § 65582(a)(4)
22 City of San José Ordinance 29218. Accessed March 2022. https://records.sanjoseca.gov/Ordinances/ORD29218.PDF
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Additionally, the Housing Element includes a program to update the Zoning Code pursuant to AB 2339 (2022). Staff will also work to amend the Specific Use Regulations for Emergency Shelters in Chapter
20.80, (Part 6, Section 20.80.500) to further facilitate the development of emergency shelters (See Ch. 3, H-14).
Capacity for Emergency Homeless Shelters. State law requires the Housing Element to demonstrate that wherever emergency shelters are allowed by right, that sufficient capacity exists to accommodate the most recent point-in-time homelessness count conducted before the start of the planning period.
Due to limitations relating to the COVID-19 pandemic, San José must rely on the January 2019 homeless census and survey, which counted 6,097 persons experiencing homelessness.23 As described above, Emergency Residential Shelters with 50 or fewer beds are permitted by-right in the CIC District. Development regulations for this district are objective criteria required by other similar districts; see Table 4-21.
Table 4-21: Combined Industrial/Commercial Development Regulations
LOT SIZE
Minimum Lot Size: 6,000 sq.ft.
Minimum Non-Residential Unit Size: 4,000 sq.ft.
SETBACKS
Front: 15 ft
Front, Parking/Circulation: 20 ft
Front, Truck/Bus Parking: 40 ft
Below, from an adjoining residential use, apply the greater number Front, Loading Dock: 60 ft or 100 ft
Side: 0 or 25 ft
Side, Parking/Circulation: 0 or 25 ft
Side, Truck/Bus Parking: 0 or 25 ft
Side, Loading Dock: 0 ft or 100 ft
Rear: 0 or 25 ft
Rear, Parking/Circulation: 0 or 25 ft
Rear, Truck/Bus Parking: 0 or 25 ft
Rear, Loading Dock: 0 ft or 100 ft
HEIGHT AND FRONTAGE
Maximum Height**: 50 ft
Minimum Street Frontage: 60 ft
** Specific height restrictions and exceptions may apply, see Municipal Code Chapter 20.85
SOURCE: City of San José Planning Division, 2022.
23 “City of San José Homeless Census & Survey Comprehensive Report 2019”. Applied Survey Research. Accessed March 2022: https:// www.sanjoseca.gov/home/showdocument?id=38890
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Currently there are 89 parcels in San José with CIC zoning. If we assume that these sites can provide 50 or fewer beds (required for by right purposes), then the total theoretical maximum beds possible is 4,450. The deficit between theoretical beds possible and the point-in-time homelessness count of 2019 is 1,647. Staff has included a program in the Housing Element to address this deficit, see Chapter 3:
Housing goals, objectives, policies and programs.
The shelters that exist today are conditionally permitted and none of these exist in the CIC district. The inventory of beds these shelters provide fluctuates by month in the following categories: ear-round, seasonal, and overflow. The total number of beds in each category are as follows:
• Year-round has approximately 673 to 738 beds;
• Seasonal has 15 beds; and
• Overflow has 50 to 170 beds.
The total number of beds by month are further broken down into total number of beds available each night for the month. This total is compared to the number of beds used each month, by the three categories described previously, see Figure 4-1, 4-2 and 4-3.
What these figures show is that despite a high utilization rate of year-round shelters, they are not at maximum capacity. The seasonal and overflow charts show lower utilizations rates and surplus beds.
What these charts may be showing are locational issues, i.e., shelters are not close to the populations they serve, or it could be some other factor. Based on this analysis, the City will include a program to evaluate next steps for providing sufficient by-right shelters (see Chapter 3).
Figure 4-1: Emergency Residential Shelters - Year-Round Analysis of Bed Usage
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Figure 4-2: Emergency Residential Shelters - Seasonal Analysis of Bed Usage
Figure 4-3: Emergency Residential Shelters - Overflow Analysis of Bed Usage
-
100
200
300
400
500
July
2018
Aug
2018
Sept
2018
Oct
2018
Nov
2018
Dec
2018
Jan
2019
Feb
2019
March
2019
April
2019
May
2019
June
2019
Fiscal Year 2018-19 Emergency Residential
Shelter (Seasonal) Analysis of Total Bed Night
Utilization
Bed Nights Bed-Nights Utilized
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Strategies for Providing Emergency Shelters. Project Homekey is an opportunity for state, regional, and local entities to develop a broad range of housing types (e.g., hotels, hostels, single-family homes, apartment buildings, adult residential facilities, manufactured housing), and to convert commercial properties and buildings to permanent or interim housing.
The City completed round one of the Project Homekey program, which focused on conversion of motels/hotels into permanent supportive housing. As part of round two, San José has been engaging with the community through City Council study sessions and one-on-one stakeholder engagement between residents and stakeholders. Round two has identified several opportunities for increasing housing so far, which include rapid rehousing (quickly re-housed and stabilized) emergency shelters, and permanent housing. Permanent housing under round two has a total of 764 units under construction and an additional 675 units planned.
In addition to providing new units, San José is planning to increase the total number of shelters with emergency interim housing. The City operates five interim housing communities, also called Bridge Housing Communities (BHC). The first BHC opened in January 2020 to provide interim housing for formerly unhoused individuals. The purpose of interim housing is to give participants an opportunity to stabilize their lives and work toward self-sufficiency. The City does not charge people rent while they live at BHCs or other interim housing sites.
Program participants have access to numerous resources to help them succeed in their efforts to find permanent housing and remain stably housed. These resources include job placement assistance, mental health counseling, life skills training, and assistance in applying for permanent housing.
While living in interim housing, program participants have individual rooms. Amenities such as kitchen, pantry and laundry facilities are shared by all residents. It is typical for program participants to live in interim housing for a few months before moving into permanent housing. The first two BHC sites are located on Mabury Road near the Berryessa BART station, and on Felipe Avenue near Story Road with plans to increase the number of BHC sites under the Project Homekey program.
Emergency Temporary Shelter Facilities
San José first enacted a shelter crisis, pursuant to the provisions of the State’s Shelter Crisis Act, 24 in
December of 2015.25This resolution allowed four City owned facilities to be used as overnight warming shelters for homeless persons against severe weather for the duration of the crisis period. Every year since, San José has declared a shelter crisis during periods of inclement weather to provide shelter for the homeless.
In April of 2020, the City Council adopted an emergency order and declared a shelter crisis in response to the COVID-19 pandemic, which ordered a suspension of Zoning Code and General Plan requirements, among others, where applicable to shelters either established or expanded during the COVID-19 pandemic.
26San José adopted several resolutions in the early years of COVID-19 to support housing homeless persons at risk of exposure during the duration of the shelter crisis, see Table 4-22. The shelter crisis has not been lifted to date.
24 CA CODE § 8698
25 City of San José Resolution 77606. Accessed March 2022: https://records.sanjoseca.gov/Resolutions/RES77606.PDF 26 City of San José Memorandum. Accessed March 2022: https://sanjose.legistar.com/View.ashx?M=F&ID=8233034&GUID=3E82A8D0- B560-42CF-9E72- A94D73384913
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During the COVID-19 pandemic, the City of San José built three Emergency Interim Housing (EIH) communities. These are similar to the BHC facilities described previously although the site design and construction are different. The EIH communities have been used to house medically vulnerable unhoused residents who are at risk of severe illness or death if they contract COVID-19.
Table 4-22: Resolutions in Support of Emergency Residential Shelters
RESOLUTION NO. DESCRIPTION
79490
Execute agreements and amendments with Homefirst services of Santa Clara county, Allied Housing, inc., and the Health Trust for increased or additional temporary sheltering operation services necessary for COVID-19
79750
As a result of COVID-19 City Council redirected $17,232,510 of State Homeless Housing Assistance and Prevention funds toward purchase and/or construction of emergency housing, including prefabricated modular units, for homeless persons impacted by the COVID-19 pandemic. The City then developed three emergency interim housing communities on Monterey and Bernal Road, Rue Ferrari near Highway 101, and Evans Lane.
79517
Enter into agreement with Adobe Services in the amount of $728,855 to operate 90-unit emergency non-congregate shelter trailers provided by provided by the Governor’s Office of Emergency Services.
79780 San José partnered with County of Santa Clara to share housing cost for homeless persons from San José not to exceed $1,794,447.
79788
Provide for shower/laundry trailers, portable restrooms/hand washing stations, and temporary fencing for homeless until 2025, not to exceed approximately $1.5 million, to support temporary shelters which were not equipped with these facilities to accommodate these populations.
SOURCE: City of San José Planning Division, 2022.
The Zoning Code also permits temporary and incidental shelter use in places of assembly. Incidental shelters are defined as an incidental use to an existing primary assembly use for homeless persons so long as the incidental use occupies less than 50% of the usable square footage of the assembly building(s). The shelter must be inside the existing building(s) and is considered separately from an emergency residential shelter.
Assembly uses in the Zoning Code include, but are not limited to, religious assemblies, gymnasiums, libraries, theaters, schools, and community centers. Assembly uses can provide incidental shelter if they first either have or obtain a conditional permit that allows it, or otherwise amend a conditional permit or planned development zoning district for the same purpose and provide a management plan for the incidental shelter use. Sites suitable must be larger than 3,000 square feet and can provide shelter to no more than the total occupancy allowable in the building area designated for an incidental shelter use, but not to exceed more than 50 persons in any 24-hour period. Any person staying at the shelter must eat and sleep within the assembly building and no temporary facilities are allowed. 27 27 San José Municipal Code, Ch. 20 § 20.80 part 17
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Low-Barrier Navigation Centers
Low-barrier navigation centers, as defined by the state, are shelters focused on moving formerly homeless occupants into permanent housing while case managers connect them to services. Qualifying navigation centers must be equipped with information systems to support transitions to permanent housing and have reduced barriers to entry into a navigation center.
Assembly Bill 101 requires a Low-Barrier Navigation Center be a use by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses if it meets specified requirements, including:
• Access to permanent housing
• Use of a coordinated entry system, i.e., Homeless Management Information System • Use of Housing First according to Welfare and Institutions Code section 8255. (Gov. Code, § 65662) by right.
Effective June 2021, San José established the Urban Village and Mixed-Use Districts, including Urban Village (UV), Mixed-Use Commercial (MUC), Urban Residential (UR), and Transit Residential (TR) districts and deemed low barrier navigation centers as a by right use in those districts.28 These navigation centers are also by right in the Commercial Pedestrian (CP), Commercial General (CG), Commercial Neighborhood (CN), Public/Quasi-Public (PQP), Downtown (DT), and Pedestrian Oriented districts.29
Transitional/Supportive Housing
In 2010, the City amended its Zoning Code to add definitions for transitional/supportive housing, and allow permanent supportive housing use in Residential, Commercial, Public/Quasi-Public, and Downtown Districts. Transitional housing is treated like a residential use subject to the same residential use standards of the applicable district they are under.30
San José complies with Assembly Bill 2162 (2018), which requires supportive housing be allowed by right in zones where multifamily and mixed use is allowed.31 In 2019, the City codified AB 2162 in the Zoning Code under Chapter 20.195 Ministerial Approvals. The Planning Division has created a separate application for these projects and a webpage with information on how the City processes these types of applications. To date, the City has processed and approved approximately 580 units under the AB 2162 streamlined process.
Single-Room Occupancy Housing
Single-room occupancy (SRO) living unit facilities and residential hotels are subject to discretionary permit processes to ensure specific criteria for approval. A conditional or special use permit is required depending on the zoning district and use type. The districts that allow SROs and the required permits can be seen in Table 4-4.
The Specific Use section of Zoning Code Chapter 20.80.1300 outlines the necessary criteria for approval of SRO facilities and residential hotels. Criteria include:
28 SAN JOSE ORDINANCE 30603. Accessed March 2022: https://records.sanjoseca.gov/Ordinances/ORD30603.pdf 29 SAN JOSE MUNICIPAL CODE Ch. 20.
30 SAN JOSE MUNICIPAL CODE Ch. 20 § 20.200.1265 & 20.200.1283. 31 CA CODE § 65583. Accessed March 2022: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB2162
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• Minimum unit sizes
• Number of persons per unit
• Entrance location and integration
• Management plan
• Laundry facility ratios
• Interior common space requirements
• Kitchen and bathroom facility requirements
Housing for Agricultural Workers
Agricultural workers are defined as persons whose primary income is derived from permanent or seasonal agricultural labor. Permanent farm laborers work in the fields, process plants, or support activities generally on a year-round basis. When workload increases during harvest periods, the labor force is supplemented by seasonal workers, often supplied by a labor contractor. For some crops, farms may hire migrant workers, defined as those whose travel prevents them from returning to their primary residence each evening.
The U.S. Department of Agriculture Census of Farmworkers shows that the number of permanent farm workers in Santa Clara County has increased from 1,696 in 2002 to 2,418 in 2017.
32 The state’s Current Employment Statistics (CES) for 2021, covering the San José, Sunnyvale, and Santa Clara areas, show that there are as few as 4,100 or as many as 6,100 farm laborers, depending on the season. The 2019 American Community Survey (ACS) estimates approximately 1,500 agriculture, forestry, fishing, hunting, and mining employees 16-years or older living in San José.
33 Seasonal farm workers on the other hand have decreased from 3,760 to 1,757.34 Seasonal labor decreases are further supported by data from the San José Unified School District, which tracks migrant student enrollment. For the FY2016-17 period, migrant student enrollment totaled 376 and by FY2020-21, it dropped to 36. For this same period, Santa Clara County saw a decrease from 978 to 681.
35 This data suggests that San José shares
part of the regional housing need for farm laborers and that seasonal laborers are declining while permanent laborers are increasing.
San José permits temporary farm labor camps for gathering of crops grown on site in the Agriculture District with a conditional use permit. The Employee Housing Act Section 17021.6 requires farmworker housing of up to 36 beds in a group quarter or 12 units be deemed an agricultural use; no discretionary permit, zoning variance, or other zoning clearance is required.required
36 32 California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Da ta (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020); “Data Quest.” California Department of Education. Accessed March 2022:
https://dq.cde.ca.gov/dataquest/
33 “Current Employment Statistics (CES).” State of California Employment Development Department. Accessed March 2022: https:// dq.cde.ca.gov/dataquest/dqcensus/EnrEthGrd.aspx?cds=4369666&agglevel=district&year=2020-21; ACS needs citations (2019 American Community Survey 1-year estimate)
34 U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor 35 California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020); “Data Quest.” California Department of Education. Accessed March 2022:
https://dq.cde.ca.gov/dataquest/
36 CA CODE § 17021.6
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To-date, there are no records on file for this type of use either under San José’s temporary farm labor camp or the state provision. The City’s business license records show no active farm or agricultural uses within the incorporated city and those businesses that were identified as agricultural-related industries are either offices for farm operations or industrial operations that manufacture equipment and machinery for agricultural purposes.
San José has very few sites with an Agricultural District inside of the Urban Growth Boundary, which may explain the lack of farm labor housing under either the local Zoning Code or under the state provision. Agricultural jobs exist in San José, as data from CES and ACS suggests, and San José largely accomplishes long- and short-term farm labor housing through incidental use of residential property under Section 20.30.110 and 20.80.150 — complying with the Employee Housing Act Section 17021.5 which requires employee housing to be permitted by right in single-family zones for six or fewer employees.
37 Since the zoning code does not explicitly state that employee housing for six or fewer employees shall be treated as a single-family residential use. a program has been added to clarify that intent and to be consistent with Health & Safety Code sections 17021.5, 17021.6 and 17021.8 (See Ch. 3., I-3).
Factory-Built Housing
Factory-built housing, also commonly known as modular or prefabricated homes, are a burgeoning response to the housing crisis because entire homes or components of homes can be efficiently constructed off-site which makes inclusion of affordable units in projects easier.38 Factory-built housing is defined by the State Health and Safety Code Section, in summary, as any residential building, dwelling, or room, or combination thereof, or building component, assembly, or system which cannot be inspected before installation but does not include a mobile home, recreational vehicle, or a commercial modular. 39 San
José does not specifically make reference to this type of housing in the Zoning Code but definitions for different dwelling types are sufficiently broad that factory-built housing is not precluded. The City to date has permitted several projects that have incorporated modular construction in combination with affordable or supportive service housing.
Manufactured Homes and Mobilehome Parks
State law requires that manufactured homes be allowed on lots zoned for conventional single- family dwellings without unique permitting requirements or similar processes compared to other single-family development, including but not limited to roof overhangs.40 Other consideration for manufactured homes include the State Accessory Dwelling Unit definition which indicates manufactured homes are a permissible accessory housing type. 41 The state requires that mobilehome parks be similarly permitted on all land planned and zoned for
37 CA CODE § 17021.5. Accessed March 2022. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=HSC& sectionNum=17021.5.
38 “An Overview of Emerging Construction Technologies,” McCoy, Andrew, Yeganeh, Armin. March 2021. Accessed March 2022: https:// www.researchgate.net/publication/350975155_An_Overview_of_Emerging_Construction_Technologies 39 CA CODE § 19971. Accessed March 2022. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=HSC§ion Num=19971#:~:text=%E2%80%9CFactory%2Dbuilt%20housing%E2%80%9D%20means,installation%20at%20the%20building%20site 40 CA CODE § 65852.3—65852.5
41 CA CODE § 65852.2.
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residential use but specifically constrains such a use where residential is allowed under the General Plan designation.42 San José’s Zoning Code aligns with the state definition of mobilehome and manufactured home and implements the Mobilehome District (R-MH), which is designed to reserve land for the construction, use, and occupancy of mobilehome development. There are no unique standards placed on mobilehome park land uses, which include manufactured homes and, in some cases, development regulations are more permissible than single-family zoned properties, see Table 4-3. To better align with state law, San José will include a program to expand the Mobilehome Park use to all zoning districts as a permitted use wherever these zoning districts and applicable General Plan land use designations allow residential. In addition, San José has created an ADU program which lists vendors who have standardized construction plans that have been preapproved by the city — of which several include manufactured homes.43
4.4 Response to Constraints
San José made significant efforts to help alleviate constraints on the production of housing for all income levels during the previous 5th Housing Element Cycle. This included the City Council adopting the Housing Crisis Work Plan in 2018 that contained an evolving list of programs and strategies to help encourage housing production and eliminate constraints. To date, the following actions have been taken through this work plan and other avenues to help alleviate constraints:
• Updated the City’s Vision for Downtown San José that included updated environmental analysis to increase residential capacity to shorten timelines for approval. • Updated Accessory Dwelling Unit and Garage Conversion Ordinance to streamline approval
and create more opportunities.
• Created an interactive mapping tool to help identify suitable sites for housing in the City. • Eliminated commercial space requirements in many affordable housing developments. • Adopted new downtown and citywide design guidelines to facilitate a consistent and efficient
review process of proposed developments.
• Continued to complete urban village plans to allow for new opportunities for housing in commercial corridors.
• Established a dedicated planner that streamlines entitlements and provides additional support to 100% affordable developments that reserve at least 30% of the units for extremely low- income or permanent supportive households.
Constraints to building new housing remain; the most significant being the cost of
42 CA CODE § 65852.7
43 “Preapproved ADUs.” San José. Accessed March 2022. https://www.sanjoseca.gov/business/development-services-permit-center/ accessory-dwelling-units-adus/adu-permit-plan-review-process/adu-single-family-master-plan-program
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construction in San José. These costs have only increased during the pandemic and continue to make it extremely difficult for new housing projects to move to construction.
However, the City understands that there are measures it can take to help reduce governmental constraints and continues to look for ways it can reduce barriers to housing construction.
Focus group findings. As part of the process to develop this Housing Element Update, the City convened several focus groups of market rate and affordable home builders with experience in San José. Staff then identified strategies to address the barriers raised within these focus groups. The following highlighted strategies included in this Housing Element Update are intended to reduce the identified constraints:
• Expand City Ministerial Ordinance - The City will develop a ministerial process for approving infill housing development that conforms with its General Plan and adheres to certain objective standards.
> Discretionary processes coupled with the required environmental analysis add to project timelines and creates uncertainty that creates a barrier to all housing and this new process would help reduce timelines.
> Ministerial processing through state streamlining created through SB 35 and AB 2162 has reduced project timelines in San José and other projects could benefit from a similar process.
• City-Initiated CEQA Analysis – The City will conduct CEQA analysis for approved urban village plans to speed up review of future individual projects. > Environmental review raised as a barrier by developer focus groups. The San José Downtown Strategy that included plan area environmental analysis was cited as something that was beneficial.
> The San José City Auditor in a March 2022 report also recommended this as a strategy worth consideration to help speed up environmental review process. • Affordable Housing Building Permit Assistance – The City will create a new staff position to serve as a single point of contact to help assist affordable housing projects obtain the necessary permits to start construction post entitlement. > Feedback received from experienced affordable developers appreciated the dedicated planner for obtaining their entitlements and wanted a similar contact and process for obtaining the building permits to start construction. • Fee Estimation and Administration – The City will develop clear information on fee estimates based on square feet and make this findable in one location. > Developers indicated that obtaining estimates could be easier.
The City will continue to work to identify and alleviate constraints to reduce barriers to development through its ongoing work to address the City’s housing shortage.
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4.5 Preservation of Affordable Homes at Risk of
Conversion to Market-Rate
Preservation of deed-restricted affordable housing at risk of conversion to market-rate properties is an important strategy that can often provide housing that is less expensive to produce than new construction, is faster to complete and, most importantly, can prevent displacement. San José is in the process of developing new Preservation strategies. Future initiatives may include creating a “no net loss” Preservation policy; improving the City’s tracking system for monitoring expiration of affordability restrictions; and creating a new Citywide Housing Balance Report to better analyze and identify problem areas for potential loss of affordable housing. State law requires local governments to include in their Housing Element an analysis of existing multifamily affordable housing units lost and at risk of conversion to market-rate housing.
Units Lost in the Last 10 Years
Table 4-23 shows the number of affordable units lost from the City’s hous ing inventory from 2012 to
2022 due to expiring affordability restrictions.
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Table 4-23: Apartments with Expired Affordability Restrictions, 2012 to 2022
Name & Address Type of Assistance Nonprofit
Sponsor
?
Affordability
Expiration Date
Total
Affordable
Units
Total
Elderly
Units
Total Non-
Elderly Units
Carlton Plaza
380 Branham Lane
City issued tax
exempt bonds
9/15/2014 28 28
Foxchase Drive Apartments
1070 Foxchase Drive
City issued tax
exempt bonds
11/15/2017 29 29
Fairway Glen
488 Toyon Avenue
Bond / Tax credits 11/17/2017 29 29
Vendome Apartments
155 W Santa Clara St
RDA funded 8/5/2018 32 32
Calvin
3456 Calvin Avenue
City funded Y 8/29/2020 1 1
Mahalo House
1720 Merrill Drive
City funded Y 8/29/2020 6 6
Homebase
865 Calhoun St.
City funded / HUD
202
Y 9/28/2020 12 12
Colonnade
201 S 4th Street
City funded 9/30/2020 16 16
1726 Ross
1726 Ross Circle
City funded Y 12/4/2020 4 4
Cape Cod Court
3680 Cape Cod Court
City funded 8/15/2021 28 28
1713 Ross
1713 Ross Circle
City funded Y 9/1/2021 4 4
1731 Ross
1731 Ross Circle
City funded Y 9/1/2021 4 4
Barker
3825 Barker Drive
City funded Y 9/1/2021 4 4
Branham
1579 Branham Lane
City funded Y 9/1/2021 2 2
Curtner
1824 Curtner Avenue
City funded Y 9/1/2021 1 1
Donna
1794 Donna Lane
City funded Y 9/1/2021 4 4
Minnesota
1231 Minnesota Avenue
City funded Y 9/1/2021 1 1
Miraido Village Mixed-use
566 N Sixth Street
Bond / Tax credits 7/20/2022 36 36
Almaden Lake Village
1045 Coleman Avenue
City issued tax
exempt bonds
3/27/2012? 50 50
TOTAL EXPIRED UNITS: 291 28 263
*Note: “City funded” includes assistance from the former San José Redevelopment Agency DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-70 City of San José Draft Housing Element, rev. June 2023
The City lost 291 deed-restricted affordable homes from 2012 to 2022, out of which 28 were affordable to seniors. About 41% (119) of the affordable apartments that converted to market-rate were assisted with City funds. The other 172 units (59%) were funded only through Private Activity Bonds (bonds) and/or Low-Income Housing Tax Credits (tax credits). Approximately 15% (43 apartments) were sponsored by nonprofit organizations, while the vast majority (85%) of apartments lost to affordability were sponsored by for-profit developers.
Units Expiring in the Next 10 years
Table 4-24 shows the number of restricted affordable units at risk of conversion to market-rate in the next 10 years, by 2032.
The assessed risks of affordability loss –
High (H), Moderate (M), Low (L) – are based on the following:
• California Housing Partnership Corporation’s 2022 Affordable Homes at Risk Report, https://chpc.net/?sfid=181&_sft_resources_type=preservation.44 • National Housing Preservation Database, https://preservationdatabase.org/ • San José Housing staff assessment.
44 Please note, staff identified several discrepancies between the City’s records and the California Housing Partnership Corporation’s 2022 report. For a more detailed analysis of these differences, please see Appendix B, Section III.B.4.b.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-71 City of San José Draft Housing Element, rev. June 2023
Table 4-24: Apartments with Affordability Restrictions Anticipated to Expire 2012 to 2032
Name
Type of
Assistance
Received*
Nonprofit
Sponsor
?
Affordability
Expiration
Date
Total
Affordable
Units
Total
Elderly
Units
Total
Non-
Elderly
Units
Risk
Kimberly Woods Apartments
925 Willowleaf Drive
City issued
bonds
12/29/2024 42 42 L
Arbor Apartments - 1582 Kooser Road HUD assisted 8/31/2025 122 122 H Villa Torino - 29 West Julian Street City funded 9/30/2025 85 85 H Almaden Garden Apartments
947 Branham Lane
HUD assisted 4/30/2026 36 36 H
San José Apartments
1500 Cunningham Avenue
HUD assisted 9/30/2026 214 214 H
Willow Lake - 1331 Lakeshore Circle Inclusionary 8/4/2027 12 12 H YWCA Villa Nueva
375 S. 3rd Street
City funded Y 3/4/2028 62 62 M
Enclave / Siena at Renaissance
4349 Renaissance Drive
City funded &
Inclusionary
4/13/2028 271 271 M
Masson Building Rehabilitation
161 West Santa Clara Street
80%
redevelopmen
t funds
7/31/2028 4 4 M
Giovanni - 85 S. 5th Street City funded &
HUD 202
Y 11/12/2028 24 24 0 M
Hoffman – 5629 Hoffman Court City funded Y 10/28/2029 4 4 Monterey Grove
6100 Monterey Road
Inclusionary 11/4/2029 34 34
Burning Tree - 239 Burning Tree City funded 4/1/2030 1 1 Waterford Place - 1700 N. 1st Street Inclusionary 4/5/2030 36 36 Market Gateway Housing
535 S. Market Street
Inclusionary 4/21/2030 22 22
Village @ Museum Park
465 W. San Carlos Street
Developer
agreement
2/1/2031 19 19
101 San Fernando
101 E. San Fernando St.
Inclusionary 8/29/2031 65 65
North Park The Cypress I
65 Rio Robles East
Inclusionary 10/29/2031 35 35
North Park The Cypress II
75 Rio Robles East
Inclusionary 10/29/2031 37 37
College Park
190 Ryland Street
Inclusionary 12/14/2031 46 46
Casa Camino - 96 South 10th Street City funded 4/1/2032 4 4 Santa Familia - 4984 Severance Drive City funded Y 4/28/2032 79 79 Avenida Espana Gardens
181 Rawls Court
City funded &
Tax Credit
Y 10/26/2032 84 84 0
Moreland Apartments
4375 Payne Avenue
HUD assisted 2/1/2019 160 160 M
Las Casitas - 632 N. Jackson Avenue HUD assisted 2/28/2021 168 168 H Dent Commons - 5363 Dent Avenue Tax credits Y 3/5/2021 23 23 DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-72 City of San José Draft Housing Element, rev. June 2023
Name
Type of
Assistance
Received*
Nonprofit
Sponsor
?
Affordability
Expiration
Date
Total
Affordable
Units
Total
Elderly
Units
Total
Non-
Elderly
Units
Risk
Lion Villas - 2550 S. King Road Tax credits 5/24/2029 109 109 N/A - 1810 Alum Rock Avenue HOME
assisted
Y 8/4/2026 24
TOTAL AFFORDABLE UNITS AT RISK OF EXPIRING: 1,826 108 1,718 *Note: “City funded” includes assistance from the former San José Redevelopment Agency.
By 2023, 1,826 units are at risk of conversion, out of which 108 units (6%) are affordable to seniors. About 34% (618 units) of these units received City funding, while the others received funding only from tax credits, bond issuances or HUD, or were made affordable through inclusionary housing requirements or developer agreements. Only approximately 17% (304 units) of the affordable units at risk of conversion were sponsored by nonprofit developers, who are likely more amenable than for-profit sponsors to extending apartments’ affordability restrictions given their mission and nonprofit status. This indicates that the risk of conversion to market-rate is higher for the remaining 1,522 apartments (83%) owned by for-profit owners.
Cost of Preserving Affordability
Based on a study of recent Preservation projects and New Construction projects, the City estimates that there are a range of total costs that are plausible for Preservation estimates. However, San José’s data indicates that preservation of an existing affordable home is considerably less expensive than building a new affordable home.
The first Preservation cost estimate both physically preserves the apartments and creates new long-term affordability restrictions. This estimate assumes an ownership transfer of existing affordable apartments followed by a complete financial restructuring. The restructuring includes resyndication with new tax credits, new conventional debt, significant rehabilitation, extension and recasting of existing City loans, and new recorded affordability restrictions of at least 55 years. This ‘full Preservation’ scenario recently has cost approximately $556,000 per unit. This is a weighted average among seven developments, with the total cost ranging from approximately $303,000 to $732,000 per unit.
The second Preservation cost estimate focuses on physical preservation of apartments and short extensions of affordability without a change in ownership. This estimate assumes refinancing of existing conventional loans, some rehabilitation, no resyndication or ownership change, no recasting of an existing City soft loan terms, and short extensions of recorded affordability restrictions. These transactions averaged $170,000 at the time of simple refinancing. This is a weighted average among three developments, with the total cost ranging from approximately $96,000 to $590,000 per unit. Given this small sample size and the wide variation in rehabilitation scopes among the samples, this estimate will no doubt change over time.
The New Construction cost estimate is a weighted average of six recent developments, with the approximate total development costs ranging from $514,000 to $855,000 per affordable apartment. It is worth noting that two of the six developments were built on land acquired years prior by the City or former redevelopment agency before land use entitlements were approved. Therefore, land costs for two of the six sample developments are likely lower than usual.
For all transactions, it is worth noting that given recent significant increases in construction costs, these figures are likely lower than current costs would be. Table 4-25 contains more information.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 4: Constraints on Housing
4-73 City of San José Draft Housing Element, rev. June 2023
Table 4-25: Per Unit Preservation Costs vs. New Construction
Method of Creating or Preserving Affordability
Acquisition
Cost (incl.
land cost)
Rehab/
Construction
Cost
Financing /
Other Costs
TOTAL
COST
Acquisition/Rehab and Financial Restructuring with
Ownership Change $382,000 $69,000 $105,000 $556,000
Rehab and Refinancing with No Ownership
Change N/A $31,000 $139,000 $170,000
New Construction $48,000 $441,000 $176,000 $664,000
Based on these estimates, which are likely lower than current costs, it would cost between $0.3 billion (if all units refinanced) to $1 billion (if all units changed ownership) to preserve 1,826 units. Alternatively, it would cost at least $1.2 billion for the new construction of 1,826 units to replace those that are at risk of expiring in the next 10 years. For a listing of possible City sources of funding to preserve at risk affordable housing, please see Appendix D.
This data confirms that preservation of existing affordable homes is a less expensive alternative than new construction. In addition, given the limited availability on tax credit and bond awards for new affordable homes, preservation may be more feasible to finance than new construction.
Chapter 3 contains policies and programs to help address the City’s need to preserve the affordability and condition of existing restricted affordable housing in San José. These include:
• P-16 Groundleases for affordable housing
• R-1 Monitor at-risk affordable units
• R-7 Extend affordability restrictions.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
5-1 City of San José Draft Housing Element, rev. MayJune
Chapter 5
Adequate Sites for Housing
Miro Apartments, downtown San José
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
5-2 City of San José Draft Housing Element, rev. MayJune
CONTENTS - CHAPTER 5
Contents
5.1 Sites Inventory Requirements .............................................................................................................................. 3
5.2 RHNA Allocation ...................................................................................................................................................... 3
5.2.1 RHNA Targets for San José, 2023-2031 ................................................................................................. 4
5.3 Sites Inventory & Methodology ........................................................................................................................... 5
5.3.1 Pipeline Approved Units ........................................................................................................................... 5
5.3.2 Projected ADUs........................................................................................................................................... 7
5.3.3 Opportunity Sites ....................................................................................................................................... 8
5.3.4 Suitability and Availability of Infrastructure .....................................................................................23
5.3.5 Environmental Constraints ....................................................................................................................23
5.3.6 AB 725 Compliance .................................................................................................................................25
5.4 Non-Vacant Sites ..................................................................................................................................................25
5.5 Rezoning for Inventory Sites .............................................................................................................................. 27
5.6 Sites and Affirmatively Furthering Fair Housing ............................................................................................28
5.6.1 Integration and Segregation Trends .................................................................................................. 29
5.6.2 Racially/Ethnically Concentrated Areas of Poverty (RECAPs) and Racially Concentrated Areas of Affluence (RCAAs) ............................................................................................................................... 31
5.6.3 Disparities in Access to Opportunity ...................................................................................................35
5.6.4 Disproportionate Housing Needs/Displacement Risk .....................................................................38
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
5-3 City of San José Draft Housing Element, rev. MayJune
5.1 Sites Inventory Requirements
The Housing Element must include an inventory of land suitable and available for residential development to meet the regional housing needs allocation (RHNA) for San José by income level. This inventory is known as the Sites Inventory. In addition, this chapter:
• Identifies alternative methods of satisfying the RHNA; • Provides an analysis of the inventory’s compliance with Affirmatively Furthering Fair Housing (AFFH) requirements; and
• Identifies the need for rezoning to accommodate the RHNA allocation.
The analysis demonstrates that, during the 6th cycle, the City can accommodate its allocation of 62,200 units, of which 23,775 units are Lower Income.
5.2 RHNA Allocation
The RHNA provides housing targets for cities to plan for in their Housing Elements and to facilitate development over the 8-year RHNA period. In addition to analysis of sufficient land zoned to accommodate their RHNA, cities must analyze constraints to meeting its RHNA and propose policies to address them in their Housing Elements. Cities must also report the number of units permitted each year relative to RHNA to the State’s Department of Housing and Community Development (HCD).
HCD is responsible for determining the regional housing need for each regional Council of Governments, which is the Association of Bay Area Governments (ABAG) in the Bay Area. The regional housing need is based on a forecast of population, households, and jobs developed by the California Department of Finance with input from regional agencies. New for 2023-2030, the RHNA also addresses existing needs such as housing cost burdens, overcrowding, and vacancy, which has increased the RHNA for the Bay Area and other regions.
The total RHNA for the region for 2023-2030 is 441,190 units divided into income groups based on the region’s current household distribution relative to Area Median Income (AMI) in the following categories:
Very Lower income (up to 50% of AMI), Lower income (50-80% of AMI), Moderate Income (80-120% of AMI), and Above-Moderate Income (above 120% of AMI).
ABAG created an advisory Housing Methodology Committee (HMC) made up of elected officials, local staff, and advocates to study how to distribute the RHNA to the 108 jurisdictions in the Bay Area. The HMC recommended a methodology that was adopted by the ABAG Executive Board in January of 2021 and the final RHNA plan for allocations to cities were adopted by ABAG Executive Board were adopted in in December, 2021
.
The RHNA methodology must meet the following statutory objectives:
• Increase the housing supply and mix of housing types, tenure, and affordability. • Promote infill development and socioeconomic equity, protect environmental and agricultural resources, and encourage efficient development patterns. • Promote an improved intraregional relationship between jobs and housing. • Balance disproportionate household income distributions. • Affirmatively furthering fair housing.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-4 City of San José Draft Housing Element, rev. MayJune 2023
5.2.1 RHNA Targets for San José, 2023-2031
For the planning period 2023 to 2031 (also known as the 6th housing cycle), San José must plan for at least 62,200 new units, a 77 percent increase from the prior cycle’s allocation of 35,080 new units. Table 5-1 shows the income breakdown of the RHNA.
Table 5-1: San José ’s 6th Cycle RHNA Targets
INCOME CATEGORY NUMBER OF UNITS PERCENT OF TOTAL
Very-Low Income 15,088 24%
Low Income 8,687 14%
Moderate Income 10,711 14%
Above-Moderate income 27,714 45%
Total 62,200
SOURCE: City of San José Planning Division, 2022
The uncertainty caused by the COVID-19 pandemic continues to have a lingering effect on building permit activity. In calendar year 2021, San José issued building permits for 1,663 new residential units.
Although this is a 20% increase from building permits issued in 2020 for 1,380 units, it is still lower than the average annual building permits issued in this RHNA cycle prior to 2020, which was about 2,520 permits per year. In 2021, building permits were issued for 933 market-rate units (58% of the annualized goal) and 730 affordable units (31% of the annualized goal). Economic factors such as the high cost of construction along with supply-chain issues in 2021 continued effect building permit activity.
Investment in affordable housing from local and federal funding sources has helped sustain affordable housing permit activity. Overall, the City continues to be well ahead in its market-rate housing permits, although it remains behind in its affordable housing permits. During the eight years of the 8.8-year RHNA period (90% of the way through the period), the City has reached more than 105% of its total market-rate housing goal but has only reached 24% of its affordable housing goal.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-5 City of San José Draft Housing Element, rev. MayJune 2023
SOURCE: City of San José Planning Division, 2022
5.3 Sites Inventory & Methodology
The Sites Inventory is made up of four main categories discussed further below:
1. Pipeline Approved Units: these are units in projects that have been approved but not yet pulled building permits, under review by the Planning Division, or under construction.
2. Projected ADUs: Cities may consider the development potential of accessory dwelling units (ADUs) or junior ADUs (JADUs) to help meet the RHNA, using past building permit approval patterns since 2016.
3. Opportunity Sites: These are sites that either vacant or underutilized and cover the bulk of the site inventory needs.
5.3.1 Pipeline Approved Units
Jurisdictions may take RHNA credit for units that have been approved, under review, or received a certificate of occupancy since the beginning of the RHNA projection period toward meeting their RHNA allocation based on the affordability and unit count of the development. The projection period for the Association of Bay Area Governments’ 6th Cycle is from June 30, 2022 to December 31, 2030, while the planning period lasts from January 31, 2023 to January 31, 2031.
San José’s residential development pipeline includes many projects in various stages of the housing Housing Units 40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0 ELI
VLI
LI MOD Total Affordable Total Market Total All Housing Housing Rate
Income Level
Production to-date
Figure 5- 1 Cumulative 2014-2021 RHNA Residential Building Permit Performance DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-6 City of San José Draft Housing Element, rev. MayJune 2023
development process including projects that have received approvals from the City Council, Planning Commission and/or Planning Department or projects that are awaiting Planning approvals or that have filed for building permit. Projects in the pipeline range from the addition of a single unit to an existing building to new residential towers with hundreds of units. The pipeline includes both market rate and affordable developments.
Based on an analysis conducted in 2019 on approved planning entitlements, staff found that approximately 60% of those units were in construction or pre-construction stages
1.Therefore we conservatively estimate
that 40 percent of the pipeline projects (under Planning review and approved but not yet filed for building permits) will not proceed to construction. These categories have therefore been discounted. The following table illustrates the breakdown of units by project status and income level. Approximately 20,000 RHNA units can be satisfied through the project pipeline. The list of projects can be found in Appendix G.
The affordability levels for the units in Appendix G under Table 1 (approved not commenced) and Table 2 (under review) are determined by project description in each planning permit issued and planning permit application submitted. The projects in Table 3 (under construction) that are identified as affordable have recorded deed-restrictions (regulatory agreement) on the property. Any project that is not identified as affordable is assumed to be above moderate income.
As noted above, approximately 60 percent of entitled projects in the City move forward with construction permits. The total units identified in Tables 1 and 2 include that discounted rate. In addition, the City of San José has recently funded a new position, Affordable Housing Navigator, that will support the Housing Catalyst Team's efforts to facilitate and promote both market rate and affordable housing opportunities by guiding affordable housing developers through the process to obtain the necessary permits to start construction following entitlement. The addition of this position is intended to compliment the dedicated Planner that oversees affordable housing entitlements. The Housing Catalyst Team assists housing developers to navigate the City's permitting and entitlement process and coordinates the implementation of the housing catalyst work plan. Staff is including a program in the workplan, P-45, Pipeline Projects- Evaluation that will require a bi-yearly evaluation of Pipeline projects to determine if the inventory buffer can accommodate projects that do not commence to building permit stage.
Table 5-2: Number of Projects in the Residential Development Pipeline
Project Status Very Low
Income
Low Income Moderate
Income
Above
Moderate
Income
Total
Building permit fil ed 563 699 0 3,452 4,714
Planning Approval but no
building permit yet 193 1,750
693
118 4,77272
8 6,83373
3 In Planning Review 218 1,922
717
59 6,65265
0 8,85164
4 Total 1974974 4,370
109
178 14,877
830
20,399
091
SOURCE: City of San José Building Division, 2022
1 City Council Agenda, Sept. 24, 2019, Item 4.2, Housing Crisis Workplan Update; https://sanjose.legistar.com/View.ashx?M=F&ID=7709215&GUID=A16E72E7-4B8A-4F9A-9B57-A7D36262211E DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-7 City of San José Draft Housing Element, rev. MayJune 2023
5.3.2 Projected ADUs
In 2019, the San José City Council voted to update San José’s Zoning Code regarding ADUs to align with new California State laws that went into effect in 2020. The Council further updated the Zoning Code to allow for tiny homes on wheels, a type of mobile and detached ADU. Along with these changes, City staff implemented the following: Improved the ADU program website at www.sanjoseca.gov/ADUs to clearly de
scribe the ADU permit process.
• Launched a Preapproved ADU Program that offers fast and easy permitting of ADUs by vendors who have obtained the City’s approval of ADU master plans. • Created an ADU Ally staff position, who helps applicants with getting permits.
Since these changes and improvements have gone into effect, ADU applications and production in San José have increased. Table 5-3 lists the number of ADU permits issued by year. The yearly average from 2018 to 2022 is 361 permits. Using the methodology from the HCD Guidebook, we are projecting issuance of 2,888 ADU permits over the eight-year Housing Element planning period. The City is using ABAG’s survey data to distribute the projected units by income category;2 see Table 5-4.
Based on this data, the City is able to meet about 35% of its RHNA through ADUs and the pipeline, leaving another 38,913 units on the sites in the Sites Inventory, as shown in Table 5-5.
Table 5-3: ADU Permits Issued by Year, 2018-2022
SOURCE: City of San José Building Division, 2022
Table 5-4: Affordability levels of Projected ADUs
2 ABAG “Using ADUs to Satisfy RHNA” technical memo, received on March 10, 2022
YEAR BUILDING PERMITS
ISSUED
2018 192
2019 416
2020 331
2021 421
2022 447
Total 1,807
INCOME CATEGORY PERCENTAGES TOTALS
Very Low 30% 866
Low 30% 867
Moderate 30% 866
Above Moderate 10% 289
Total 100% 2,888
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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5-8 City of San José Draft Housing Element, rev. MayJune 2023
Table 5-5: Contribution of Projected Pipeline Projects
and ADUs to RHNA
INCOME CATEGORY
LOW MODERATE ABOVE
MODERATE TOTAL
RHNA 23,775 10,711 27,714 62,200
Pipeline/Approved Units 5,387083 178 14,87783
0 20,3992,009
1 ADUs 1,733 866 289 2,888
Remaining RHNA 16,69895
9 9,667 12,54859
5 38,91339,22
1 5.3.3 Opportunity Sites
State law requires each jurisdiction to demonstrate that sufficient land is zoned to provide housing capacity that is adequate to meet the RHNA for each income level. To determine housing capacity, City staff and the consultant team at Tolemi conducted a comprehensive inventory of all vacant and non- vacant developable land within the City limits that allows for housing and available to develop within the Housing Element planning period. This section describes the methodology used to calculate the housing capacity on developable housing sites.
The final list of sites can be found in Appendix F and online at www.sanjoseca.gov/housingelementupdate.
As Table 5-6 demonstrates, the Housing Element is able to accommodate the City’s share of RHNA at all income levels. The combined buffer is 3733%, with income category buffers of 2523%, 20%, and 66% for lower, moderate, and above moderate income units, respectively.
Table 5-6: Summary of Residential Capacity to Accommodate 2023-2031 RHNA
UNIT CATEGORY LOWER MODERATE ABOVE
MODERATE TOTAL
Pipeline/Approved Units 5,387083 178 14,877830 20,442091 ADUs 1,733 866 289 2,888
Opportunity Sites 20,811 10,545 20,874 52,230
Total 27,931627 11,589 36,04035,993 75,560209
Buffer on Opportunity Sites 2523% 20% 66% 3733%
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-9 City of San José Draft Housing Element, rev. MayJune 2023
Methodology for Opportunity Sites. City staff focused the inventory of opportunity sites to those primarily located in Growth Areas and Urban Villages where the City encourages most new housing to align with the General Plan’s Major Strategy #3 Focused Growth, among others. Opportunity sites are found in the following areas:
North San José
North San José is the City’s largest employment district, home to many important leading technology companies and a key growth area for the City. It is also an area that can accommodate significant residential growth and help the City meet its RHNA goals. North San José is a suitable area for housing due to its proximity to jobs, transit and services. It is a prime area for affordable housing as well as most of it is designated highest, high or moderate resource area per the State’s CTCAC/HCD Opportunity Area Maps
3. Until May 2022, commercial, industrial, and residential development in this area was governed by the North San José Area Development Policy (NSJADP). Adopted in 2005, the NSJADP planned for 32,000 homes, more than 25 million square feet of office and industrial space, 3 million square feet of retail and commercial space and 1,000 hotel rooms. Due to litigation with neighboring jurisdictions, an agreement was reached to implement a phased development approach with transportation improvements to accommodate concerns about the impacts of growth. While the plan saw early success, with some 8,000 housing units created as part of the first phase, development soon stopped due to the structure of the litigation agreement. This further exacerbated the region’s affordability crisis.
San José has demonstrated its commitment to ensuring affordability of North San José’s future development, including adopting a policy requiring that 20% of the new housing constructed be rent-restricted, and affordable. In 2020, San José voters approved Measure E, which generated nearly $110 million last year alone that the Mayor and City Council will allocate towards the development of affordable housing citywide. The opportunity to connect new housing to the multi-billion-dollar transit investments throughout the VTA light rail corridor along North 1st Street and around the nearby Berryessa BART station presents a unique opportunity for transit-oriented development in our city.
Given the continuous affordability crisis and the substantial increase in San José’s fair share of housing to plan for in the 6
th Cycle, staff accelerated work to amend the policy and incentivize housing in North San José. On May 17, 2022, the San José City Council approved a series of amendments to the NSJADP that effectively retired the 2005 plan with respect to future development, no longer requiring a phased approach and in essence allowing for new housing units to proceed. Staff is also developing strategies and incentives to enable housing development more readily in North San José in alignment with the timeframe of the 6
Th Cycle Housing Element.
The following policies have been incorporated into the draft Housing Element with respect to North San José:
Program P-3 - North San José Affordable Housing Overlay Zones • Identify areas for housing to be integrated into North San José and propose
3 https://www.treasurer.ca.gov/ctcac/opportunity.asp
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-10 City of San José Draft Housing Element, rev. MayJune 2023
changes to the General Plan, zoning code, and Rincon South Urban Village Plan to facilitate the production of all 24,000 planned housing units in North San José. • Integrate affordability by creating North San José-specific Affordable Housing Overlay Zones that support only Industrial Park uses, 100% affordable housing, or market-rate housing that integrates affordable units into their developments. • Identify locations and rezone sites in the North San José Affordable Housing Overlay Zones through the Sites Inventory rezoning process. • Communicate to the development community about the new program.
Program P-4 -Affordable Housing tools for North San José • Produce an analysis of new programs and tools to help ensure 20% of all North San José homes are restricted affordable for lower-income residents. • Conduct a feasibility study to examine the affordability levels that would be feasible for developers to construct affordable homes onsite, both standalone and combined with a proposed North San José Density Bonus program. • Create a North San José Affordable Housing Implementation Plan that identifies strategies and projects for affordable units created through these tools and City subsidies.
Program P-5: Affordable Housing Investments in North San José • Direct City resources to help ensure 20% of all North San José homes are restricted affordable for lower-income residents.
• Prioritize City land acquisition in North San José for future 100% affordable housing and new construction opportunities, then conduct Requests for Proposals to award land control through ground leases to developers.
• Ensure that affordable development proposals in North San José are prioritized with the City’s funds.
Staff is also working to develop a Mixed-Income Housing Overlay to provide a residential development alternative that would apply to several contiguous properties within the Core Area and three sites that are currently designated Industrial Park further north. Staff proposes a minimum density of 75 dwelling units per acre be applied to these sites and that a 25% affordable requirement be applied as well, five percent higher than what is required in the Inclusionary Housing Ordinance. This policy work, general plan amendments, and rezoning will be concluded after the adoption of the Housing Element but before January 31, 2024.
Downtown and Diridon Station Area:
The Envision San José 2040 General Plan reinforces the importance of San José’s Downtown as the physical and symbolic center of the City. Planned growth capacity and the General Plan policies are intended to further support the growth and maturation of the Downtown as a great place to live, work or visit. As shown on the Planned Growth Areas Diagram, the Downtown Growth Area includes most of the Diridon Station Area Plan area. Ambitious job and housing growth capacity is planned for the Downtown. This growth capacity is important to achieve multiple City goals, including support for regional transit systems and for the development of Downtown as a regional job center. It also helps to advance all elements of the General Plan Vision.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Diridon Station Area
The City of San José first adopted the Diridon Station Area Plan (DSAP) in 2014 after years of community engagement. In 2019, the City initiated amendments to the 2014 Plan to reflect major changes that had occurred since its adoption. Major changes include expanding the 2014 Plan boundary, adding development capacity, increasing building height limits, and updating sections on land use, urban design, open space, and mobility.
The DSAP reflects Google’s Downtown West Mixed Use Plan, incorporates and refers to the Diridon Affordab le Housing Implementation Plan, integrates equity considerations, and provides a guide for private development and public investments.
The D
iridon Station is a major transit hub. With the addition of BART and planned California High Speed Rail (HSR) service, the station area will emerge as one of the premier multimodal stations in California. The DSAP envisions the transformation of the station area — which is currently dominated by parking lots and old industrial buildings — into a dynamic mixed-use urban neighborhood anchored by the SAP Center and a world-class transportation hub.
Specific Plan Areas:
Specific Plan areas have played a central role in the City’s ongoing commitment to providing new housing through transit-oriented development projects. The City’s adopted Specific Plans (10 in total) generally have a residential orientation, providing significant capacity for residential and mixed-use development at important infill sites throughout the City and often in proximity to the Downtown.
Neighborhood Business Districts (NBDs):
The City of San José has a total of seven Neighborhood Business Districts areas where commercial uses exist along both sides of a street, which function in their neighborhoods or communities as central business districts, providing community focus and identity through the delivery of goods and services. Neighborhood Business Districts (NBDs) contain a variety of commercial and noncommercial uses which contribute to neighborhood identity by serving as a focus for neighborhood activity.
In 2022, the City Council approved a new NBD overlay as a strategy to tackle the affordability and housing crisis. This designation is applied to predominantly commercial land use designations and allows residential uses in Japantown (Taylor Street only), North 13th Street, and Willow Glen Neighborhood Business District. New residential or mixed-use developments in these areas would be subject to the objective development standards described in the overlay language (Chapter 5, Page 24)
4. Urban Villages with adopted plans (“Planned UVs”):
The City of San José’s General Plan, Envision San José 2040 established the Urban Village concept to create a policy framework to direct most of San José’s new job and housing growth to occur within walkable and bike friendly Urban Villages that have good access to transit and other existing infrastructure and facilities. Creating complete Urban Villages is how the City will plan for that new growth. Preparation of a written document or Urban
4 City of San José General Plan, Envision 2040,
https://www.sanjoseca.gov/home/showpublisheddocument/22359/637928744399330000#page=262 DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Village Plan for each Urban Village area will provide for continued community involvement in the implementation of the 2040 General Plan and for land use and urban design issues to be addressed at a finer level of detail.
Urban Village areas were selected specifically as the best areas of the City for new growth to occur. By concentrating new development in these newly designated areas it will help the City meet its environmental, fiscal, economic, and transportation goals, including but not limited to:
• Support and encourage increased transit use.
• Protect open spaces and hillsides.
• Reduce greenhouse gases.
• Promote economic development.
• Build more healthy communities.
The City has 15 adopted Urban Villages plans. While all plans have similar land use designations (Urban Village for example) the permitted density does vary given the existing neighborhood context. In any case, this is where the city is planning for the majority of the growth during the life of the General Plan and is where we will see the more generous residential densities.
Urban Villages without adopted plans (“Unplanned UVs”):
There are approximately 40 urban village areas that do not have adopted plans, also known as “Unplanned Urban Villages.” Most sites in unplanned urban villages have a non- residential land use designation. This means that while it is unplanned, a development project may proceed so long as it is consistent with the designation. In this case, commercial and other non-residential uses can proceed through the development process.
Given that residential development is limited in these cases, in 2016 the City Council adopted General Plan Policy IP-5.12. The policy allowed for residential projects that were 100% affordable to proceed under an existing commercial designation so long as the project followed the criteria in the policy.
Several affordable housing developments have received entitlements pursuant to the policy. However, the commercial replacement requirement has been noted by developers as a constraint to housing. In 2021, as part of the General Plan Four-Year Review, the City Council adopted an amendment to the policy removing all criteria and now reads as follows:
Residential projects that are 100 percent affordable deed restricted by a public entity for a period not less than 55 years to low-income residents (earning 80 percent or less of the Area Median Income) can proceed within an Urban Village without an approved Urban Village Plan. Such affordable housing projects are excepted from and shall not be approved in the Capital Caltrain Station Area Urban Village pursuant to this Policy IP-
5.12 This amendment effectively ended the requirement for ground floor commercial uses which w
as considered a constraint to affordable housing developers. There continues to be interest in this policy and several development applications have been approved and are currently under review. All sites identified in the sites inventory within unplanned DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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urban village areas are consistent with Policy IP-5.12 and therefore allow for residential uses. There is no need to rezone these sites as they permit development consistent with this policy.
Other sites
A number of opportunity sites outside of growth areas are included in the Sites Inventory, specifically those sites that are consistent with General Plan Policy H-2.9 (1.5-ac Rule) and those that can accommodate smaller unit projects, consistent with smart growth goals;
General Plan Policy H-2.9 reads as follows:
To increase the supply of affordable housing, one hundred percent deed restricted affordable housing developments that are deed restricted by a public agency for a period not less than 55 years to low income residents (earning 80% or less of the Area Median Income) would be allowed on sites outside of the existing Growth Areas on properties with a Mixed Use Commercial or Neighborhood/Community Commercial land use designation if the development meets the following criteria:
1. The site is 1.5 gross acre or less.
2. The site is vacant (no buildings or structures) or underutilized. “Underutilized” means the site is one of the following: a. Standalone surface parking lot; or b.
Has a structure with a Floor Area Ratio (FAR) of 0.2 or less; or c. If FAR is greater than 0.2, the structure or structures shall be vacant (no tenants) for five (5) years or more.
3. The site shares a property line with a parcel that has a residential General Plan Land Use / Transportation Diagram designation.
4. The site shall be at least 1,000-feet from any property with a Heavy Industrial or Light Industrial General Plan land use designation, and at least 500-feet from any property with a Combined Industrial Commercial or Industrial Park general plan land use designation.
5. The site is located within a one-half (0.5) mile of an existing transit line with a minimum of 30-minute peak headway.
6. The development shall adaptively reuse any existing structures on the site that are on, or are eligible for, inclusion on the City of San José’s Historic Resources Inventory.
7. If the site has existing occupied rental dwelling units that are proposed to be removed, the project shall provide relocation assistance to those tenants, consistent with State and federal relocation laws and the City’s Ellis Act Ordinance, as may be amended from time to time.
Publicly-Owned Sites. The opportunity sites inventory includes five (5) City-owned sites that are part of the Housing Departments 2021 Request for Proposals for development of affordable housing (RFP# CSJ HSG 12-17-21) and one (1) County- owned site. The following is a discussion on each site’s potential for redevelopment.
There are no plans to sell the properties listed below during the planning period; the inte
ntion is to ground lease the sites to an affordable housing developer. The City will comply with the Surplus Land Act; the most recent compliance report on the SLA was submitted on April 1, 2023 to HCD with the 2022 HE APR.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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City-owned Sites
260/240 N Montgomery St, San José, CA, 95110 (APNs: 259-29-012 & 259-29-103).
This site is comprised of two adjacent parcels with a combined size of approximately
0.46 acres or 20,038 square feet in size located in City District 3. The site is zoned Downtown – Primary Commercial and the General Plan land use designation is Downtown which allows up to 800 dwelling units per acre, a Floor Area Ratio up to 30, and the number of stories at a minimum of 3 to a maximum of 30. The City expects a 170-unit lower income capacity. The neighboring area is comprised of business complexes, SAP Center, single family homes, a shopping plaza, Diridon Station, and public park. Several bus stops and the Diridon Station are within 1/2 mile of the site.
1488 N 1st St, San José, CA, 95112 (APN: 235-02-031). This site is comprised of a single parcel of approximately 1.44 acres or 62,726 square feet in size located in City District 3. The site is zoned Commercial General and the General Plan land use designation is Urban Village (The Rincon South Specific Plan) which allows up to 250 dwelling units per acre, and a Floor Area Ratio of up to 10. The City expects a proposal that will consist of the operation of the existing property (hotel) as a rental Single Room Occupancy (SRO) serving formally homeless individuals and couples and to continue to provide for supportive services to households with 30% AMI or below, through September 8, 2026 and a plan to subsequently redevelop the site for affordable housing development with a mix of affordability levels below 60% AMI that will include a minimum of 76 apartments for formally homeless individuals and couples. Presuming unit sizes of 700-1,000 square feet, combined with an inspired alternate transportation plan, it is conceivable that up to 140-155 apartment units could be achieved within the 65’ height limitation. The Project site is located within 1/3 of a mile of a VTA light rail station, and within 1/2 of a mile of a medical facility and a pharmacy. The neighboring area is comprised of retail, apartments, businesses, other motels, schools, and single- family homes. The site is 1/2 of a mile away from a major bus line and freeway entrances. Bike paths are present on First Street and on major cross-streets.
3707 Williams Rd, San José, C
A, 95117 (APN: 299-32-074). This site is comprised of a single rectangular shaped corner parcel approximately 0.47 acres or 20,370 square feet in lot size located in City District 1. The site is zoned Public/Quasi-Public and its General Plan land use designation is Public-Quasi Public which allows for development of 100% Permanent Supportive Housing with no restrictions on unit density or Floor Area Ratio.
The City expects a proposal that provides affordable rental housing development on this site with a mix of affordability levels, up to 60% AMI. The City believes an apartment building with maximum allowable dwelling units per acre that will serve a mix of income levels below 60% AMI may be a good fit. Multi-bedroom units for families are encouraged. Innovative alternative forms of affordable housing construction including modular housing can be explored for this site. Currently, the site has an active community center that is partially leased to the Silicon Valley Korean American Federation, and a suite reserved for the San José Police Department for occasional use.
It is expected that the Developer will engage a relocation consultant and work on a relocation plan for the current tenant(s) which will be subject to City review and approval. The neighboring area is comprised of single-family homes, several schools, a DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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public park, neighboring apartment complex, laundromat, and convenience store. The site is within one block of several bus stops.
1749 Mt Pleasant Rd, San José, CA, 95148 (APN: 647-24-042). This site is comprised of a single parcel approximately 0.482 acres or 21,000 square feet in size located in City District 5. The site is zoned R-1-8 Single-Family Residential, and its General Plan land use designation is Residential Neighborhood which allows for typically 8 dwelling units per acre, a Floor Area Ratio up to 0.7, and up to 2.5 stories. The City’s objective for this site is to have a proposal that provides the most affordable for sale housing on the parcel. The City is also interested in homeownership models that protect the long-term affordability of the homes while providing a fair return to the owners. Typically, the City provides site control to the developer via long term ground leases if an affordable for- sale proposal is accepted, it is anticipated the fee interest in the land would be conveyed, subject to any options on the for-sale units. The building, formerly used as a fire station, is situated on the north portion of the site and has no tenants, while the south portion has a large, paved parking area. The primarily residential neighboring area is comprised of single-family homes, several schools, and a public park. One mile from the site are several bus stops.
2078 Evans Ln, San José, CA, 95125 (APNs: 456-09-016 & 456-09-017). This site is comprised of two adjacent, rectangular parcels with a combined size of approximately
5.93 acres or 258,310 square feet located in City District 6. The site is zoned Planned Development RM(PD), and its General Plan land use designation is Urban Residential which allows maximum of 95 dwelling units per acre with a Floor Area Ratio up to 4 for Residential/Commercial mixed-use projects. The City expects a 463-unit lower income capacity. The site is currently being used to support 49 emergency prefabricated housing units for approximately 188 tenants. The City expects proposals for a mixed income housing development on this site to be developed in phases so as to minimize the disruption to the existing community. Due to funding restrictions, some portion of the development will need to be subdivided and developed for neighborhood public services. Priority will be given to development plans that provide replacement homes for the existing families that live in the emergency shelter, with a minimum of 49 units to be restricted to households at 30% AMI or below. This site may also include affordable for-sale proposals that serve moderate-income households as well as households with 70% AMI or below and/or rental proposals that serve households with 60% AMI or below, preferably a mixture of for-sale and rental for this site. The City has held several community meetings regarding this site and has obtained feedback that their priorities for this site would include a community garden, dog park, and a library.
The site is bound on the west by Almaden Expressway and on the east by a mobile home park and Highway 87. Immediately north of the site is an apartment community.
Immediately to the south is a wellness and recovery center. To the west across Almaden Boulevard lies a condominium development, church, and mobile home park. The Curtner VTA Light Rail station is less than 1/2 of a mile to the southeast and about a 10- minute walk from the site. The site is also 1/2 of a mile away from several bus stops.
The neighboring area is comprised of single-family homes, mobile home park, businesses, and retail.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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County-owned site
1390 S Winchester Blvd, San José, CA, 95128 (APN: 279-25-014). The site is located within the Winchester Urban Village plan, which envisions commercial and mixed-use development to accommodate the city’s growth. It has a General Plan designation of Urban Residential which allows residential density between 45 and 95 dwelling units per acre. While this designation requires all new development with frontage along Winchester Boulevard to include active ground floor uses along Winchester Boulevard, one-hundred percent affordable projects are exempt from this requirement per a recently adopted General Plan Policy update, GPT22-003
(https://sanjose.legistar.com/LegislationDetail.aspx?ID=5949624&GUID=16D15EB6- A362-441E-B5E8-C9C600A45327&Options=&Search=). The site has a Commercial Pedestrian Zoning, which allows for mixed-use residential developments and those permitted pursuant to the General Plan policy change noted above. It is scheduled to be rezoned to Urban Residential (which also allows mixed-use and stand-alone residential) by June 2023. The site is currently occupied with an office building; the lease expiration is not yet known at this time. The is suitable for housing and affordable housing as it is located directly in front of a transit stop and within a quarter of a mile from another transit stop and 1 mile from a light rail stop. There are two public elementary schools, grocery stores, personal service shops, and a large public park within walking distance from this site.
Whe
n identifying sites for the inventory, City staff filtered for parcels that had characteristics more conducive to development during the planning period. While the exact methods varied depending on location, they generally included filtering out properties which:
• have existing multifamily uses—existing residential uses on potential redevelopment sites can be considered an impediment, especially those sites that require compliance with the City’s Ellis Act Ordinance and relocation provisions;
• Are identified as a Major Development Project—this is a list maintained by the City’s Office of Economic Development that monitors construction and entitlements of significant commercial, industrial and residential projects; • have Planning permits issued within the last 4 years—indicates that redevelopment will occur soon;
• have new construction Building permits issued in the last 8 years—this includes any building permit, such as additions to an existing structure, which signals an investment of the current use and that the likelihood of redevelopment is low; • Are on the City’s Historic Resources Inventory; and
• are smaller than 0.5 acres—this is consistent with HCD’s Site Inventory Guidebook. Exceptions to this are sites in Downtown and the Diridon Station Area Plan (which only remove sites if they were smaller than the smallest site developed during the last planning period and added a new filter for historic buildings).
Sites smaller than 0.5-acres and lower-income housing
Only eight properties identified in the draft
inventory to accommodate housing for low-income housing, are below one-half acre in size. All of those sites are adjacent to other properties in the inventory and DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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described further below.
240 & 260 N. Montgomery St – These two sites are adjacent and owned by the City. Combined they are 0.49 acres.
3707 Williams Rd – This is City owned property located in a high resource area with at total size of 0.45 acres.
1999 Camden Ave & adjacent parcel (APN 414-24-037) – The combined site totals 0.32 acres and is owned by the same entity. The City has fielded inquires to develop lower income housing at this location. Given its corner location and previous interest, the City believes this combined property should be included in the sites inventory.
1564 McKee Rd – This is a 0.14 site located adjacent to 1570 McKee Rd that is 0.60 acres. The sites are currently owned by the same entity and used as a place of worship.
APN 484-44-063 – Site is currently a 0.24-acre parking lot adjacent to 325 S. Capitol Ave. that is 1.89 acres and owned by the Valley Transportation Authority.
2112 Canoas Garden Ave – This is a 0.07-acre site adjacent to a 0.50-acre site. The site is own by the same entity and the City has received a preliminary application for an affordable housing development.
Sites larger than ten acres and lower-income housing
There are only six sites in the draft inventory that are greater than 10 acres, and of those none are designated exclusively for the lower-income housing. There are four sites that have been included in the mixed-income category and all four are located in North San José. One of those sites is owned by the Valley Transportation Authority which requires inclusion of lower income housing in redevelopment of sites owned by the agency. The four sites will also contain the overlays created in Program P-3 discussed above that will require the inclusion of lower income units within a portion of the site.
Capacity Analysis of Opportunity Sites
To calculate the realistic capacity of the selected parcels, the City leveraged the BuildingBlocks platform from Tolemi, which integrates data from various City systems on parcel zoning, General Plan, and Urban Village designations; allowable density & floor area ratios; historic Planning and Building permits; property sales; businesses & employee counts; and other parcel-level factors into a map-based analytical & data modeling tool. The City was already using BuildingBlocks to identify Housing Opportunity Sites and to build its Housing Site Explorer tool. The City worked with data engineers from Tolemi to design a three- step methodology to estimate density of future development based on previous historic development in the City.
1. First, an allowed residential unit capacity (“Allowable Capacity”) was calculated for each draft inventory parcel using the parcel size and the maximum density allowed on the parcel based on its General Plan designation. For sites that have a General Plan designation which does not have an assigned residential capacity an assumed maximum capacity was used to calculate an allowed DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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residential unit capacity. The assumed maximum capacity for sites without an assigned residential capacity was determined through past development trends. Table 5-7 below details how the assumed capacity was determined for sites designated Neighborhood Community Commercial (NCC). As discussed in the methodology for selecting opportunity sites, all sites included in the draft inventory allow for residential development.
2. Second, the City looked to historic production trends and build-out yields to inform realistic (versus potential) capacity calculations. For each parcel in the Draft Inventory, BuildingBlocks identified a set of five similar properties (“Comparables”) where residential development occurred in the previous Housing Element Cycle (Jan. 1, 2014 through Dec. 31, 2021). These Comparables were based on 19 factors outline in the table below:
Factor name match type Does the Comparable property have… area name match yes/no …the same neighborhood/area
allowed density match percent …a similar allowable density in uv or ga match yes/no …any Urban Village or General Plan designation general plan match yes/no …the same General Plan designation lot size acres match percent …a similarly sized lot
current use ‘parent’ match yes/no …the same ‘parent’ assessor use code current use ‘child’ full match yes/no …the same ‘child’ assessor use code available unit capacity match percent …a similar available capacity business count match percent …a similar number of active businesses land assess per sf match percent …a similar assessed value of the land total assessed per sf match percent …a similar assessed value of the total parcel residential units match percent …a similar number of existing residential units residential units per sf match percent …a similar number of existing res. units / sq. ft. sale price per sf match percent …a similar last sale price owner property count match percent …a similar number of parcels owned by the owner owner location match yes/no …the same owner location (in-state / out-of-state, e.g.) owner type match yes/no …the same owner type (LLC / individual, e.g.) sale year match yes/no … the same last sale year
Based on these 19 factors five Comparables for each parcel were identified in the Draft Inventory.
3. Finally, for each Comparable, the actual residential dwelling units per acre that were developed during the last Housing Element was calculated. This approach required some re-assembly of large sites that were subdivided into single- and multi-family residential parcels and research to determine the maximum allowable density at the time of redevelopment. For every parcel in the Draft Inventory, density was averaged across the five Comparables, the average was then used to estimate the realistic density for the inventory site.
Overall, the method utilized to determine capacity is rooted in data and grounded in the real-world experience in the jurisdiction over the course the previous Housing Element.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Additional Discussion of Capacity Analysis and Assumptions
The assumed maximum capacity determined for sites that do not have an allowed residential density in the General Plan is intended to serve as a theoretical maximum residential capacity. In this example for the NCC designation, the assumed maximum capacity was determined to be 90 DU/AC, which was set above the median of previous development, but still consistent with previous development densities in this General Plan designation. The assumed maximum capacity in this example is a conversative estimate as there are several past developments that exceed 90 DU/AC. These estimates were conservatively derived to ensure that the calculated densities estimated for sites are realistic. However, given that the assumed maximum capacity is less than some previous developments and does not represent a true allowed capacity, it is possible that a site’s estimated capacity may exceed 100%. For sites that do exceed 100% of capacity, as with all sites in the inventory, the estimated capacity is based on the identified Comparables that represent real previous residential development projects within San José.
Table 5-7: Assumed Maximum Capacity of Neighborhood / Community Commercial sites
Address date Units Acres DU/AC
1030 N 4th St 4/26/21 94 0.96 98
399 Blossom Hill Rd 242 6/21/21 147 2 74
3100 S Bascom Ave 1/13/22 79 0.65 122
4610 Almaden Expy 8/21/17 200 3.52 57
Almaden Rd & Redbird Dr 8/24/16 24 0.74 33
1510 Parkmoor Ave 5/1/21 81 1.62 50
2388 S Bascom Ave 4/7/22 64 0.63 102
2180 The Alameda 1/10/17 104 0.94 111
Sierra Rd & N Capitol Ave 4/4/14 31 0.63 49
2001 The Alameda 4/6/22 109 2.73 40
1371 Kooser Rd 12/17/21 189 1.62 117
Mean 77.6
Median 74
Assumed Maximum Capacity 90
The capacities determined through the Building Blocks platform for sites within the draft inventory do not assume uniform 100% capacity. As demonstrated in Table 5-8 below, the majority of sites are estimated below their maximum allowed capacity.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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Table 5-8: Property Count and Percent for Allowed Capacity
In the entire draft inventory of 474 parcels, there are 88 that have a capacity estimate of 100% or greater.
These 88 parcels account for 6,915 projected units, or approximately 13% of the total projected units in the total Draft Inventory. Of those 88 parcels, 54 (representing 9% of the total projected units) used an assumed maximum capacity because their General Plan designation does not have an assigned residential density. All parcels identified in the site inventory all for housing. Those sites with a General Plan designation that does not have an assigned residential density are eligible to develop to housing through the use of an overlay or a General Plan policy.
Selected Sites Demonstrating Capacity Analysis
Sites with existing 100% nonresidential uses
The City addressed the likelihood of residential development in zoning where 100% nonresidential uses are allowed by identifying Comparables that underwent redevelopment in the last cycle that had similar General Plan land use designations that permit 100% nonresidential uses.
4880 Stevens Creek Blvd (296-22-052) is designated Mixed Use Commercial in an Urban Village. This designation allows housing but also allows for 100% commercial development. For this site, the past development Comparables sites are a strong match to the inventory site. Four of five Comparables are in an Urban Village and the other is in an Employment Area. All are either designated Mixed Use Commercial like the site or are Neighborhood/Community Commercial which both allow 100% non-residential uses.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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1900 Camden Ave (419-12-049) is designated as Neighborhood/Community Commercial (NCC) on a 1.18 acre site in an Urban Village. The estimated projected density after development is shown at 86 DU/AC based on the Comparables analysis. The five Comparables identified for this parcel were all also designated NCC, and four of them were in an Urban Village. The resulting density after development of the five Comparables ranged from 50 du/ac to 111 du/ac, so the projected density of the inventory site is approximately the median of those Comparables.
808 N 10th St (249-08-034) is a 1.38 acres site in an identified growth area in the General Plan and is designated as Mixed Use Neighborhood, thus allowing 100% non-residential uses. It was estimated at 35 units, or 25 DU/AC, which is 85% of the allowed capacity. All five past development comparable sites are in growth areas with four in Employment Areas and the other in an Urban Village. All five Comparables allow 100% non-residential use and up to 30 DU/AC. Four are designated as Mixed Use Neighborhood and the other is Combined Industrial/Commercial, though the latter was developed at 26.5 du/ac. They were developed with between 17 and 40 DU/AC and between 56% and 134% of the allowed capacity.
Example Analysis of Likelihood of Redevelopment
The capacity analysis addresses the likelihood of converting existing uses to higher density of residential development by identifying Comparables with similar variables. Current use of each draft inventory parcel is included in the list of factors used to identify Comparables. Therefore, if a draft Inventory parcel is listed as a single-family residence, the approach prioritizes single-family parcels that underwent residential development during the last cycle to flag as Comparables for the purpose of estimating likelihood and density of future residential development.
An additional factor included in the analysis was utilizing the number of active businesses licenses located at the address to determine the likelihood of converting to higher density residential development. Because the current use from the County Assessor is often a lagging indicator of the actual use of a parcel, including indicators of active businesses allowed us to generate a more accurate and up-to-date accounting of existing use based on commercial activity. We have access to historical records for active business licenses / tax accounts, which allowed us to apply the same criteria to our selection of Comparables.
This is all in addition to the criteria applied through the methodology for the selecting of opportunity sites as explained in the previous section, which also considered factors relating to the likelihood of development, i.e., recent building permits, age of building, existing multi-family uses, etc.
14656 Camden Ave (419-12-050) has several existing retail businesses. Of the five past comparable developments used, three had existing active retail businesses prior to development. Two of these were restaurants and one was a furniture store. A fourth comparable development had active single-story offices and the fifth had a grocery store that was vacant several years prior to development.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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507-533 W San Carlos St, 506-514
Lorraine Ave, and 255-293 Josefa St is a
combined 1.3 acre site of 13 parcels in
Downtown. For the combined site, we have
estimated a total of 337 units out of an
allowed total of 466, or 72% of capacity. The
current use is split evenly between
residential (many single-family) and retail
(primarily tire and auto repair shops with
adjacent paved surfaces). The area of
combined site appears to be evenly split
between auto related business structures,
paved surfaces, and residential lots, with one restaurant on the corner of San Carlos and Josefa. County tax records indicate that there are three distinct owners of these 13 parcels. However, a close analysis reveals strong evidence that all three entities controlled by the same beneficial owner(s).
Selected sites with capacity estimates at or above 100% capacity
The capacity estimate for each parcel is individually based on the Comparables identified. Therefore, any parcels in the draft inventory that are at or close to 100% capacity have been found to have Comparables that underwent similarly dense development at or near the high-capacity estimate given for the Draft Inventory parcel.
1086 N 1st St has an estimate that is 100% of the capacity. It has an Urban Residential designation, is 0.7 acres, and has an allowed maximum density of 95 DU/AC, which would be a capacity of 65 allowed units. Of the 5 past developments used as Comparables, 4 are Urban Residential and one is Neighborhood/Community Commercial. The Comparables have build out percentages between 71% and 137% and built densities of between 67 and 130 du/ac. Therefore the high capacity assumption is reasonable given these Comparables.
325 S Capitol Ave has an estimate that is 118% of the capacity. It has an NCC (Neighborhood/Community Commercial) designation, is 1.89 acres, and has an assume maximum capacity of 90 DU/AC, which would be a capacity of 170 allowed units. Of the five past developments used as Comparables, three are also NCC (90 DU/AC), one is Combined Industrial/Commercial (90 DU/AC), and one is Urban Residential (95 du/ac). They have build-out percentages between 44% and 169%, with all but the lowest over 100%, and built densities of between 40 and 160 DU/AC, with all but the lowest over 100 DU/AC. Therefore the assumption is within the bounds of identified Comparables.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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5-23 City of San José Draft Housing Element, rev. MayJune 2023
5.3.4 Suitability and Availability of Infrastructure
The Envision San José 2040 General Plan Environmental Impact Report (EIR) was adopted/approved by City Council in 2011. Assuming the development of capacity that was already anticipated in Envision San José 2040 General Plan, there should be no unexpected constraints since they were analyzed in the EIR. The overall conclusion for the total impacts to public utilities/services is that "Implementation of the proposed Envision San José 2040 General Plan in accordance with proposed policies and actions would result in less than significant impacts from construction of utilities and service systems, as needed, to serve increased demand and no mitigation measures are required. Such policies and actions reduce increased demand for utilities and service systems, limit development until services can be provided and avoid or mitigate for the construction of facilities for the provision of these services." This analysis can be found in the Utilities and Service Systems section of the GP 2040 FEIR (Starts on page 321 of the linked web PDF - https://www.sanjoseca.gov/home/showpublisheddocument/22039/636688304347700000)
5.3.5 Environmental Constraints
Some areas of San José are potentially subject to impacts from floods and seismic activity. There are also some areas in the City that could contain cultural artifacts, particularly areas near creeks. There are also several sites that could provide habitat for various protected species of flora or fauna. There are other sites that could contain hazards including but not limited to naturally occurring asbestos or soil contamination from previous agricultural practices onsite. These areas are analyzed in the Envision San José 2040 General Plan EIR. The existence of these environmental features would not preclude development of the sites identified in the list of Opportunity Sites (also referred to as the Sites Inventory) at the projected residential densities and capacities stated in the Housing Element Update, which are conservatively calculated at the lower to mid-range of that density allowed under the General Plan land use designations for each parcel listed.
Generally, the Envision San José 2040 General Plan EIR determined potential environmental constraints related to flooding, seismic hazards, cultural resources, and protected species of flora and fauna. These constraints as they pertain to the 2023-2031 Housing Element Update are discussed below.
Flooding
The shift of residential units from north San José to the Opportunity Sites would result in development and redevelopment in areas with potential to be impacted by 100-year and 500-year flood events because of the numerous creeks and rivers that run through the City. Implementation of the policies and actions in the Envision San José 2040 General Plan would ensure that any flood related impacts are less than significant, and no mitigation measures are required.
Seismic
Alquist-Priolo Earthquake Fault Zone maps show that portions of the Urban Growth Boundary are within the Hayward Fault Zone. The shift of residential units from north San José to the Opportunity Sites would result in development and redevelopment that is subject to seismic hazards such as ground shaking and liquefaction. However, since North San José has soils that are most prone to lateral spreading, moving those units to the urban villages would result in less significant seismic impacts. Liquefaction could occur in sites that are adjacent to the Guadalupe River and Coyote Creek. Implementation of the policies and actions in the Envision San José 2040 General Plan would ensure that any seismic impacts are less than significant, and no mitigation measures are required.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-24 City of San José Draft Housing Element, rev. MayJune 2023
Cultural Resources
The presence of significant subsurface prehistoric and historic archaeological resources and Native American resources within the City has been demonstrated by finds encountered during the development of housing, commercial, industrial, transportation and flood control projects over the past 80 years. Project related excavations have exposed many significant buried archaeological resources including major Native American villages along major water courses. Although most of the Opportunity Sites in the urban villages are in already developed areas, the potential exists for prehistoric and historic archaeological and Native American resources to occur. Implementation of the policies and actions in the Envision San José 2040 General Plan would ensure that any impacts to cultural resources are less than significant, and no mitigation measures are required.
Protected species of flora or fauna
The shift of residential units from North San José to the Opportunity Sites would not result in direct impacts to natural communities and habitats, impacts to native fish and wildlife movement, or impacts to special status plants and animals because the Opportunity Sites are in developed areas within the Urban Growth Boundary. New development and redevelopment on sites that are adjacent to riparian corridors may have potential to impact protected species. Implementation of the policies and actions in the Envision San José 2040 General Plan would ensure that any impacts to protected species of flora and fauna are less than significant, and no mitigation measures are required.
Numerous residential developments over several decades successfully addressed these types of environmental features, which are not unusual environmental features within the region in which the City of San José is situated.
Resources to Alleviate
Constraints
The environmental hazards and limitations discussed above are largely beyond governmental control, but nonetheless do not unduly constrain residential development needed to achieve San José’s Regional Housing Need Allocation (RHNA). The City’s Urban Growth Area totals approximately 140 square miles, defining the area where services and facilities provided by the City of San José and other public agencies are generally available and where urban development requiring such services should be located, in large part to avoid unnecessary conflict with hazards situated outside the Urban Growth Area. An exception is Downtown, portions of which fall within the southernmost extent of the Mineta Airport AIA, yet adherence to FAA regulations has clearly not been a constraint to construction of Downtown high-rise residential projects.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-25 City of San José Draft Housing Element, rev. MayJune 2023
5.3.6 AB 725 Compliance
For jurisdictions like San José that are considered Metropolitan, the Housing Element must identify at least 25 percent of the remaining moderate and above moderate RHNA on sites that should allow at least four units of housing (e.g., four plex or greater) (Gov. Code section 65583.2, subd. (c)(4)). The following table demonstrates San José’s compliance with AB 725.
Compliance with AB 725
UNIT CATEGORY MODERATE ABOVE MODERATE
RHNA Target 10,711 27,714
Units on Moderate sites that
allow between 4 and 100 units 6,248 -
Units on Above Moderate sites
that allow at least 4 units - 25,010
Percent of RHNA Target 58% 90%
5.4 Non-Vacant Sites
In the 1990s the City strengthened its commitment to environmental leadership and growth management by incorporating its Urban Growth Boundary (UGB) into the General Plan. Adoption of the Urban Growth Boundary identified the limits of the City’s potential expansion and today permanently limits urbanization in San José to those areas already developed and/or already planned for urban development. Maintaining the Urban Growth Boundary helps preserve the beauty and natural resources of the rural and hillside areas, the fiscal health of the City, and directs private and public investment within identified growth areas, and precludes development in areas subject to natural hazards.
The City of San José is largely built out to its Urban Growth Boundary. Analysis conducted by the Department of Public Works in December 2022 using available data such as identified current use, demolition requests, and manually reviewing satellite imagery, determined that out of 250,849 parcels, there are approximately 681 vacant parcels in the City. This is less than 0.27% of all parcels in the City. Out of these 681 parcels, 373 of these parcels are less than 0.5-acres, 178 were included in the previous Housing Element cycle, and 37 parcels are included in the draft sites inventory. Additionally, 19 parcels have active entitlements for either residential or other uses. Based on this analysis it is reasonable to assume that nearly all new residential development in the City over the next cycle will occur on non-vacant land.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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5-26 City of San José Draft Housing Element, rev. MayJune 2023
The City identified units currently under construction and identified use at time of construction in Appendix K. Initially, given existing data available at the time, there were 15 sites that appeared to be developed on vacant properties. However, further analysis of historical satellite data and permit records indicate that many were not vacant as previously assumed and had a variety of previous land uses that were demolished before construction of the new development. This additional analysis showed that only four sites were truly previously vacant undeveloped properties. Therefore, 93% of residential development under construction was built on land previously non-vacant.
The analysis and additional review of major residential development projects included in Appendix K from the last five years shows that existing prior uses such as retail, supermarkets, churches, office, or single- family homes, do not significantly impede additional residential development on a site. In San José, the value of the land as residential and the opportunity for new housing often exceeds the value of current uses, especially for sites with nonresidential uses. With regards to the projects in Appendix K, redevelopment of sites with existing multifamily uses was not as common in the past cycle as shown in the data. Only two developments had more than five units previously. Additionally, sites with existing multifamily require compliance with newer policies such as the City’s Ellis Act Ordinance (SJMC Chapter
17.23) and other relocation provisions. Therefore, existing multifamily residential uses on potential redevelopment sites can be considered an impediment. To ensure realistic development, the methodology for the draft sites inventory excludes parcels with more than two existing residential units as those sites would be subject to the Ellis Act Ordinance.
The anal
ysis of past development on non-vacant sites also further informed the City’s methodology for site selection. As discussed in the methodology section, the age of current buildings on a property and recent building permit activity were factors in the site selection criteria. Below are several selected non-vacant sites that redeveloped in the last cycle, along with similar properties in the sites inventory.
Selected Non-vacant Site Development in Past Cycle
Address /
Property
Filing
Year
Prior Use Lot
Size
(acres)
Units Similar Property
Identified in
Inventory
Characteristics
3090 S.
Bascom
Ave.
2020
Retail Store
– 2-story
11,382 sq.
ft. building
0.65 90 units –
lower income
housing
1888 Saratoga
Ave.
0.77-acre site with
older 8,000 sq. ft.
2-story office in
unplanned urban
village.
1710
Moorpark
Ave
2019 Church 1.08
106 units –
lower income
housing
2030 Camden
Ave.
0.76-acre site with
current faith-
based use in an
unplanned urban
village.
477 S.
Market Ave. 2018 Auto Repair 0.42
130 units –
above
moderate
income
housing
701 Miller St.
Older 2-story
office building on
0.89-acre site in a
planned urban
village.
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Chapter 5: Adequate Sites for Housing
5-27 City of San José Draft Housing Element, rev. MayJune 2023
1330 S.
Bascom 2018 Retail
Center 6.98
590 – above
moderate
income
housing
3580 Stevens
Creek Blvd.
4.63-acre retail
center in a
planned urban
village.
447 North
1st St. 2019
Office –
2-story /
4,398 sq. ft.
building
0.47 115 units –
lower income
housing
1025 S. Bascom
Ave.
0.60-acre site with
1-story office
building in
planned urban
village.
The City has recently taken several steps to encourage and facilitate more housing on infill properties including the following actions:
• In December 2022, the City Council approved an ordinance to eliminate minimum parking requirements for both commercial and residential (multifamily) uses in the City which will allow for greater flexibility in redevelopment of nonvacant parcels. • In 2021 and 2022, the City Council revised General Plan Policies (IP-5.12 5 and H-2.96) to eliminate
commercial requirements for one-hundred percent affordable, deed restricted multifamily housing.
These policies apply to sites within unplanned Urban Village areas. • In December 2022, City Council adopted a new policy to eliminate commercial requirements for affordable developments citywide.
• In 2021, the City Council approved new Urban Village and Mixed-Use zoning districts for dense mixed- use development in growth areas within the City to implement the Urban Village strategy in the General Plan and promote more dense, walkable and integrated neighborhoods.
Additionally, as noted in Chapter 3: Housing Goals and Strategies, the City is proposing Program P-7,”City Ministerial Infill Approval Ordinance” to create a by-right approval process for infill development.
5.5 Rezoning for Inventory Sites
As shown in Appendix F, there are 1824 properties on the sites inventory in North San José requiring both a general plan and zoning overlay to allow for housing. This work must be completed by January 31, 2024 per Housing Element law (Gov Code 65583(c)(1)A). This work to create overlay zones is included in the new Housing Element as a program (Chapter 3, Housing Goals and Policies, Program P-3). There are also a number of sites in the inventory that were previously used in the 4 th and 5th cycles and thus require a
rezoning to allow for by-right uses. The Housing Element includes a program (Chapter 3, P-38) to complete this rezoning pursuant to State Law.
Oppor
tunity sites within Unplanned Urban Villages and those that qualify for affordable housing under General Plan Policy H-2.9 generally have a CP Commercial Pedestrian zoning. This zoning district prohibits
5 See Envision San José General Plan 2040:
https://www.sanjoseca.gov/home/showpublisheddocument/22359/638030751322370000#page=358 6 https://www.sanjoseca.gov/home/showpublisheddocument/22359/638030751322370000#page=210 DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
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5-28 City of San José Draft Housing Element, rev. MayJune 2023
residential, mixed-uses unless the site is consistent with General Plan Policy IP-5.12 and General Plan Policy H-2.9, respectively. These policies act as a housing overlay to these sites; a rezoning is not necessary to facilitate housing.