March 11, 2026
200 E. Santa Clara Street, San José, CA 95113
Re: Letter of Support, The Cost of Residential Development in San José Dear Mayor Mahan and Councilmembers Kamei, Campos, Tordillos, and Cohen, The Housing Action Coalition (HAC), Bay Area Council, and SV@Home write in support of your memo directing the City Manager to expand the scope of the next Cost of Residential Development Study. This is exactly the kind of evidence-building the City needs to make informed, defensible policy decisions and we commend you for advancing it.
San José has approved tens of thousands of homes over the past several years. Most of them have not been built. The gap between approval and construction is the central housing challenge this city faces, and closing it requires a clear understanding of what it actually costs to build and why.
The annual Cost of Residential Development Study has already proven its value as a policy tool, informing incentive programs that are now getting shovels in the ground. Expanding its scope will make it even more useful.
We are particularly supportive of the additions related to single-stairwell and small multifamily buildings, which can unlock more homes on more sites; parking ratio analysis, which will help quantify a cost driver that is well understood by the development community but rarely modeled in policy; and the sensitivity analysis on development review timelines, which will finally put a number on the cost of delay. The off-site improvements analysis is also long overdue. The conditions placed on individual projects can represent significant and poorly tracked costs that chill investment.
We encourage the City to ensure the analysis of Reach Codes and local amendments is conducted with full context, including the long-term benefits of energy efficiency for residents and the regional climate goals these codes serve. Cost data is an important input, but it should inform a balanced policy conversation rather than serve as the sole basis for rolling back local sustainability standards.
San José has shown it is willing to act when it has the data. This expanded study will give the Council the evidence base it needs to tackle some of the most arduous barriers to housing production. We look forward to engaging on the findings and the policy decisions that follow.
Thank you for your continued leadership on housing production.
Sincerely,
Ali Sapirman
Advocacy & Policy Manager
Housing Action Coalition
Louis Mirante
SVP of Public Policy
Bay Area Council
Regina Celestin Williams
Executive Director
SV@Home