NVF:CPA:CEG
3/6/2025
T-44482.003.002\2188918 1
Council Agenda: 3-18-2025
Item No.: 8.2 (b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE APPROVING THE TAX AND FEE WAIVER
ESTABLISHED UNDER THE MULTIPLE HOUSING
INCENTIVE PROGRAM FOR THE 905 NORTH CAPITOL
AVENUE PROJECT AND AUTHORIZING THE HOUSING
DIRECTOR, OR HIS D ESIGNEE, TO NEGOTIATE AND
EXECUTE DOCUMENTS AND DOCUMENT
AMENDMENTS RELATED TO IMPLEMENT ING THE
MULTIFAMILY HOUSING INCENTIVE PROGRAM
WHEREAS, on December 10, 2024, City Council for the City of San José (“City Council”) adopted the Multifamily Housing Incentive Program (“MHIP”) under Resolution 2024-420, which provides for specified projects, upon meeting conditions, a reduction of certain fee and tax requirements, including a reduction in the Inclusionary Housing Ordinance In-Lieu Fee, and a 50% reduction to the Commercial, Residential, Mobile Home Park (“CRMP”) and Building Structure (“B&S”) construction taxes (collectively, “Fee Reduction”) for the first 1,500 units that obtain City building permits by December 31, 2025; and
WHEREAS, under Resolution 2024-420, the Fee Reduction permitted under MHIP is not a subsidy subject to Chapter 14.10 of the San José Municipal Code; and
WHEREAS, the MHIP requires that the qualifying projects must provide at least five percent of the residential units as deed-restricted affordable units made available at an affordable rent to households earning no more than 100% of Area Median Income, and otherwise meets the requirements of the Inclusionary Housing Ordinance (“IHO”); and
WHEREAS, 905 North Capitol Avenue is a proposed multifamily development located on a 2.12-acre site, consisting of a seven-story, mixed-use building, with approximately 3,000 square feet of office space, including 364 parking spaces and up to 345 apartment units (“905 North Capitol Avenue Project”); and NVF:CPA:CEG
3/6/2025
T-44482.003.002\2188918 2
Council Agenda: 3-18-2025
Item No.: 8.2 (b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the 905 North Capitol Avenue Project is included in the MHIP; and
WHEREAS, in compliance with the MHIP, City Council approval will provide a Fee Reduction in the amount of $4,905,022 for the 905 North Capitol Avenue Project; and
WHEREAS, consistent with Resolution 77135 and State law, a staff report providing a cost/benefit evaluation was prepared and posted on the City of San Jose’s website twenty-eight (28) calendar days ahead of Council considering the Fee Reduction for the 905 North Capitol Avenue project; and
WHEREAS, City Council approval will also authorize the Housing Director, or his designee, to negotiate and execute documents related to implementation of the MHIP, including, but not limited to, affordable housing compliance plans, inclusionary housing agreements, and project completion agreements, with the developer of the 905 North Capitol Avenue Project; and
WHEREAS, the 905 North Capitol Avenue Project must comply with its affordable housing compliance plan and record an amended Inclusionary Housing Agreement against the project site, memorializing the requirements under the MHIP and the IHO before building permit issuance;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
A. The above recitals are true and correct.
B. The Fee Reduction of $4,905,022 for the 905 North Capitol Avenue Project is approved consistent with the Multifamily Housing Incentive Program.
NVF:CPA:CEG
3/6/2025
T-44482.003.002\2188918 3
Council Agenda: 3-18-2025
Item No.: 8.2 (b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
C. The Housing Director, or his designee, is authorized to negotiate and execute forms and agreements to implement the Multifamily Housing Incentive Program including, but not limited to, affordable housing compliance plans, inclusionary housing agreements, and project completion agreements.
ADOPTED this _____ day of ___________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
City Clerk