SAW:HAH:CEG
4/09/2026
T-2966.002 / 2299634 1
Council Agenda: 04-21-2026
Item No.: 2.8
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1 RESOLUTION NO.
A RESOLUTION OF THE CITY OF SAN JOSE
AUTHORIZING THE HOUSING DIRECTOR, OR THEIR
DESIGNEE, TO ALLOW RENT AND INCOME
RESTRICTIONS TO INCREASE UP TO 60% OF THE AREA
MEDIAN INCOME IN THE FOLLOWING
CIRCUMSTANCES: (A) FOR NEW TENANTS IN
PROJECT-BASED VOUCHER-SUBSIDIZED UNITS UPON
EXPIRATION OR TERMINATION OF THE APPLICABLE
PROJECT-BASED VOUCHERS; AND (B) FOR ALL
TENANTS IN THE EVENT OF FORECLOSURE, PROVIDED
THE CITY HAS DETERMINED SUCH INCREASE IS
NECESSARY FOR THE FINANCIAL FEASIBILITY OF THE
AFFORDABLE HOUSING DEVELOPMENT AND THE
INCREASE IS PERMITTED UNDER ALL OTHER
APPLICABLE FUNDING SOURCES
WHEREAS,
currently, an affordable housing development seeking City funding must include a resolution to City Council approving loan terms to allow an increase of the Area Median Income rents and income restrictions within the City’s affordability restrictions ; and
WHEREAS, a potential future request by the developer for an increase in maximum rents or maximum income levels (i.e. “float up”) in the event of loss of subsidy or foreclosure would require the City to execute an amendment to the loan documents as governed under City of San José Municipal Code Section 5.06.340(A)(2); and
WHEREAS, the current ordinance language requires City Council approval when the request is to change more than 10% of units approved in the affordability mix authorized in the adopted Council resolution setting forth general parameters for the development under Section 5.06.215, exceeding the Director of Housing’s delegation of authority under Sections 5.06.335 and 5.06.340(A)(2); and
WHEREAS, this recommendation would grant the Housing Director, or their designee, authority to approve the inclusion of float-up language for a future increase of maximum SAW:HAH:CEG
4/09/2026
T-2966.002/2299634 2
Council Agenda: 04-21-2026
Item No.: 2.8
DRAFT - Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
rents and maximum income levels on a case-by-case basis for any City funded affordable housing development if it is determined that such approval is needed if, and only to the extent, and only for the period of time, necessary for project feasibility;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
1. The housing director, or their designee, is hereby authorized to allow rent and income restrictions to increase to up to 60% of area median income if it is determined that such approval is needed if, and only to the extent, and only for the period of time, necessary for project feasibility for new tenants in project -based voucher-subsidized units upon expiration or termination of the applicable proj ect- based vouchers, provided the City of San José has determined such increase is necessary for the financial feasibility of the affordable housing development and the increase is permitted under all other applicable funding sources.
2. The housing director, or their designee, is hereby authorized to allow rent and income restrictions to increase up to 60% of area median income if it is determined that such approval is needed if, and only to the extent, and only for the period of time, necessary for project feasibility for all tenants in the event of foreclosure, provided the City of San José has determined such increase is necessary for the financial feasibility of the affordable housing development and the increase is permitted under all other applicable funding sources.
SAW:HAH:CEG
4/09/2026
T-2966.002/2299634 3
Council Agenda: 04-21-2026
Item No.: 2.8
DRAFT - Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
City Clerk