COMMUNITY & ECONOMIC
DEVELOPMENT CITY SERVICE AREA
2025-2026 PROPOSED
OPERATING BUDGET
OUTCOMES:
- Thriving, inclusive, and attractive communities and vibrant public spaces - Strong, responsive, and equitable economy
- Accessible and diverse range of housing and business opportunities Presenters:
Erik Soliván, Director, Housing Department
Lee Wilcox, Assistant City Manager and
Acting Director, Office of Economic Development and Cultural Affairs
2025-2026 Budget Study Sessions
Slide 2
COMMUNITY & ECONOMIC DEVELOPMENT
Arts and Cultural Development
Business Development and
Economic Strategy
Real Estate Services
Regional Workforce Development
Planning, Building and Code
Enforcement
Fire
Public Works
Fire Safety Code Compliance
Citywide Land Use Planning
Development Plan Review and
Building Construction Inspection
Regulate/Facilitate Private
Development
Core Services
Economic Development and
Cultural Affairs
Housing
Affordable Housing Portfolio
Management
Housing Production and
Preservation
Neighborhood Investments
Rent Stabilization and T enant
Protections
Slide 3
COMMUNITY & ECONOMIC DEVELOPMENT
Business Outreach and Assistance
City Lease Administration
Cultural Grants
Workforce Development Services
Planning, Building and Code
Enforcement
Fire
Public Works
Building Development Services
Citywide Planning
Planning Development Services
Planning Environmental Review and
Historic Preservation
Fire Development Services
Public Works Development Services
Program Samples*
* For a complete list of programs, please refer to the 2025-2026 Proposed Operating Budget 2025-2026 Budget Study Sessions
Economic Development and
Cultural Affairs Affordable Housing Development Loans
Apartment Rent Ordinance Administration
CDBG – Infrastructure Investments
Property Maintenance and Inspection
Housing
OEDCA NEW CORE SERVICES AND PROGRAMS (TENTATIVE)
Core Services Programs
Economic Growth and Business Development
• Business Retention, Expansion and Attraction
• Real Estate Development
• Downtown
• Business District and Small Business Support
Cultural Affairs: Arts, Sports, and Entertainment
• Cultural Investments and Special Events
• Sports and Entertainment Planning and Coordination
• City-owned Venue Stewardship
• Public Art/Placemaking
• Convention Center and Destination Marketing
Workforce and Talent Development • Training, Education, and Career Support • Employer Hiring Initiatives
Strategic Support • Management and Administration
• Real Estate Asset Management
4 COMMUNITY & ECONOMIC DEVELOPMENT
PERFORMANCE MEASURE DASHBOARD
Slide 5
Retain, Expand, or Attract Jobs Average Daytime and Nighttime Downtown Foot Traffic
Development Project On-Time Reviews for
Planning Permit Process
Housing Production Rates Rent Stabilization Rates Development Project On-Time Reviews for Construction Process
71%
0%
20%
40%
60%
80%
100%
FY25-26
% of retained, expanded, or attracted jobs from
businesses receiving Business Development
assistance toward the 10,000-job growth goal for
FY25-26 and FY26-27 (OEDCA)
Actual Target Estimate
882,304
1,005,531
914,119
980,189
1,186,490
1,078,628
0 500,000
1,000,000
1,500,000
FY23-24 FY24-25 FY25-26
Average Downtown Foot Traffic per Month (OEDCA)
Daytime Actual Daytime Target Daytime Estimate
Nighttime Actual Nighttime Target Nighttime Estimate
70%
89%
100%
95%90%
0%
20%
40%
60%
80%
100%
FY22-23 FY23-24 FY24-25 FY25-26
% of development projects completed within
published timelines for first review (PBCE)
Actual Target Estimate
62%
70% 75%
65%60%
0%
20%
40%
60%
80%
100%
FY22-23 FY23-24 FY24-25 FY25-26
% of development projects completed within
published timelines for first review (PBCE)
Actual Target Estimate
40%
11%
27%
0%
20%
40%
60%
80%
100%
FY23-24 FY24-25 FY25-26
% of San José housing production compared
to yearly target for regional fair share number
(RHNA) target for total cycle units (PBCE)
Actual Target Estimate
56%
41%
50%
0%
20%
40%
60%
80%
100%
FY23-24 FY24-25 FY25-26
% of rent stabilized units under the Apartment
Rent Ordinance that did not have a rent
increase in the past year (Housing)
Actual Target Estimate
2025-2026 Budget Study Sessions
Slide 6
COMMUNITY & ECONOMIC DEVELOPMENT Budget Summary
Department
2024-2025
Adopted
2025-2026
Forecast
2025-2026
Proposed
% Change
from Forecast
OEDCA $74,337,414 $63,529,458 $66,620,208 4.9%
Fire* $8,734,866 $8,637,496 $8,427,073 (2.4%)
Housing* $111,336,129 $46,102,571 $46,220,121 0.3%
PBCE* $61,929,212 $62,330,695 $61,822,165 (0.8%)
Public Works* $20,542,748 $20,191,671 $20,144,798 (0.2%) CSA T otal $276,880,369 $200,791,891 $203,234,365 1.2%
Positions 483.14 479.32 481.77 0.5%
* The Fire, Housing, PBCE and Public Works Departments have additional funding budgeted in the Neighborhood Services (Housing, PBCE, Public Works) and Public Safety (Fire) City Service Areas.
COMMUNITY & ECONOMIC DEVELOPMENT
2025-2026 PRIORITIES / SERVICE DELIVERY
Slide 7
CSA NAME 7 2022-2023 Budget Study Sessions
• Implement the Economic Strategy Workplan approved by the City Council to retain/grow jobs and revenue; foster small business reliance and create thriving business districts; accelerate a thriving downtown; activate San José as the South Bay’s hub for sports, arts, and entertainment; and prepare residents to successfully participate in the local economy • Implement the 2026 Sporting Events Strategy
• Revise Inclusionary Housing Ordinance Regulations
• Issue Affordable Housing Notices of Funding Availability • Initiate General Plan Four-Year Review
• Streamline and improve the CEQA process, permit fees, and project tracking • Implement and publicize Development Services process improvements, including piloting an AI tool to streamline Planning and Building reviews for building permits
• Accelerate the development and delivery of large electrical load projects Picture
OK
Picture
OK
FUNDING OPTIONS FOR AFFORDABLE HOUSING
PRODUCTION
• Bond Financing
• Monetize the residual revenues receipts from prior permanent housing deals • Projected Funding: $40M to $75M
• Master Lease Financing
• Commitment to lease the units produced, financing a bond against lease revenue based on AAA credit strength of the City
• Projected Funding: $30M to $50M (subject to project variability) • Asset Refinancing
• Recapture City loans through the refinancing of five targeted assets • Projected Funding: $30M to $50M
• Combination of all the above
• Pilot master leasing, a mid-sized bond issuance, and refinance most distressed assets • Target about $100M in funding
8 2025-2026 Budget Study Sessions
Slide 9
COMMUNITY & ECONOMIC DEVELOPMENT Proposed Budget Actions Proposal Title Amount
Previously
Funded
One-Time?
2026 Sporting Events $1,500,000
Energy Customer Development T eam $1,182,386
Business Outreach and Development Staffing $525,084 Y
Storefront Activation Grant Program $350,000 Y
ProjectDox Software Upgrade $280,000
CEQA Process Improvement $250,000
Sports and Entertainment District Preliminary Development $250,000 Contracts Monitoring and Compliance Staffing $238,096
Small Business ADA Legal Support $120,000 Y
Supplemental Arts and Cultural Funding $100,000 Y
COMMUNITY & ECONOMIC DEVELOPMENT
SUMMARY
Slide 10
CSA NAME 10 2022-2023 Budget Study Sessions
• Boost economic growth
• Facilitate housing production
• Increase certainty in development services process
• Build sports and entertainment “infrastructure” to position the City as a premier destination for major events beyond 2026
COMMUNITY & ECONOMIC
DEVELOPMENT CITY SERVICE AREA
2025-2026 PROPOSED
OPERATING BUDGET
OUTCOMES:
- Thriving, inclusive, and attractive communities and vibrant public spaces - Strong, responsive, and equitable economy
- Accessible and diverse range of housing and business opportunities Presenters:
Erik Soliván, Director, Housing Department
Lee Wilcox, Assistant City Manager and
Acting Director, Office of Economic Development and Cultural Affairs