Housing Catalyst Team Work Plan Status
Report
Community and Economic Development Committee
February 23, 2026
Item (d)1
Erik L. Soliván, Director, Housing Department
Chris Burton, Director, Planning, Building and Code Enforcement Department Jerad Ferguson, Principal Planner, Planning, Building and Code Enforcement Department
Background
2 • June 2023: Housing Element Adopted & First
Housing Catalyst Work Plan
• January 2024: Certification of Housing Element
by State/Housing and Community Development
• February 2024 & February 2025: Annual Status
Reports on Housing Catalyst Work Plan to
Community and Economic Development
Committee
• March 2024 & March 2025: Annual Status
Reports to City Council with Housing Element
Annual Progress Report
Housing
Element
Housing
Catalyst
Team
OEDCA
Housing PBCE
PRNS
Housing Catalyst
Work Plan
3 Market Conditions & Incentive Programs
4 Market Conditions
• The housing market remains high-priced and competitive • Recent data show moderate price softening, after years of rapid growth • Affordability challenges persist amid high baseline prices • Continued limited inventory, in part due to the high cost of development Incentive Programs
✓ Multifamily Housing Incentive Program
✓ Downtown Residential Incentive Program
Building More Housing Focus Area
Goal 3.2: Initial Entitlement Analysis Summary
5 103
Total Projects
Entitled
31,375*
Total Units Entitled
Council District Applications Units
1 13% 2,825
2 1% 203
3 34% 15,310
4 13% 4,431
5 5% 728
6 21% 4,076
7 4% 1,858
8 0% 0
9 4% 973
*This is updated from the 10 6% 971
approximate number in the memo
May 29, 2019 –
December 31, 2026
Affordable/ Market-Rate Breakdown
May 29, 2019 – December 31, 2026 6
Project Feasibility/ Infeasibility
7 Entitled Projects analyzed for feasibility based on the Cost of Residential Development Study product types
0 2000
4000
6000
8000
10000
12000
14000
16000
Affordable
Housing
Market-Rate
Housing
Affordable
Housing
Market-Rate
Housing
Feasibility Breakdown by Housing Type
Feasible Infeasible
May 29, 2019 – December 31, 2026
Entitlement Analysis Findings and Next Steps
8 Findings
• Two-thirds of the entitled units are financially infeasible; one-third are financially feasible.
• Many projects remain stalled three or more years after receiving City approval.
Next Steps
• Staff is working to complete the comprehensive analysis by overlaying the data with, but not limited to, planned areas, approval years, incentive programs, Area Median Income (AMI) breakdown, and proposed rents. • Any additional findings will be presented at the June 15, 2026, Community and Economic Development Committee Focus Area update.
RHNA Progress
9 Units Permitted in Calendar Year 2025
Regional Housing Needs Allocation (RHNA) Progress
10 Total Units Permitted June 20, 2022, through December 31, 2025 General Plan Four-Year Review
11 • Significant 6th Cycle Housing Element (2023-2031) Housing Catalyst Work Items
• Small Multifamily Housing (P-35)
• Evaluation of Urban Village Planning Process (P-40)
• Prepare City for 7th Cycle Housing Element (2031-2040) • Due January 2031
• General Plan Task Force October 2025 to June 2026
Completed Items
12 • Allow “SB 9” Type Housing on Additional Properties (P-11) • Group Homes for Seven or More Persons (P-42)
• January 13th City Council approval
• Moderate-Income Housing Strategy (P-15)
• May 2025 Community & Economic Developement Committee
State Housing & Community Development
Emphasis on Specific Programs
13 ✓ City Infill Housing Ministerial Approval Ordinance (P-7) – complete ✓ Housing Balance Report (I-4) – complete
• Affordable Housing Tools for North San José (P-4)
• Reevaluate in the future based on annual cost of development • Diridon Affordable Housing Production Goal (P-9) – Ongoing efforts • Small Multifamily Housing (P-35) – Part of General Plan Four-Year Review • Evaluation of Urban Village Planning Process (P-40) – Part of General Plan FourYear Review • Review and Revise Planning Permit Conditions(P-41) – Anticipated by fall 2026 Key Anti-Displacement & Preservation Work Items
14 • Soft Story Program (R-13)
• Eviction Prevention Activities (S-12)
• Tenant Preferences that Help Fight Displacement (S-20) Newly Added Items
15 ✓ Inclusionary Housing Ordinance and Program Updates (PZ-2) – complete
• Mobilehome Rent Ordinance Updates (SZ-3) – in progress • Linking Land to Capital – Entitlement and Feasibility Analysis – in progress
Next Steps
16 • February 25, 2026 - Joint Study Session with Planning Commission and Housing and Community Development Commission
• March 10, 2026 - Focus Areas update at City Council
• March 24, 2026 - Combined City Council item on Housing Catalyst Team Work Plan and Housing Element Annual Progress Report • Ongoing - Updates to the Housing Catalyst Team Work Plan on the Planning, Building and Code Enforcement dashboard
16 Housing Catalyst Team Work Plan Status
Report
17 Community and Economic Development Committee
February 23, 2026
Item (d)1
Erik L. Soliván, Director, Housing Department
Chris Burton, Director, Planning, Building and Code Enforcement Department Jerad Ferguson, Principal Planner, Planning, Building and Code Enforcement Department