1 T-44482.003.064/2342283
Council Agenda: 9-15-2026
Item No.: 8.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
SAW:CPA:MMV
8-31-2026
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE APPROVING THE TAX AND FEE WAIVER IN AN
AMOUNT UP TO $6,934,618 FOR PHASE 1 OF THE 3896
STEVENS CREEK BLVD RESIDENTIAL DEVELOPMENT
AND AUTHORIZING THE HOUSING DIRECTOR, OR
THEIR DESIGNEE, TO NEGOTIATE AND EXECUTE
DOCUMENTS AND DOCUMENT AMENDMENTS
RELATED TO IMPLEMENTING THE MULTIFAMILY
HOUSING INCENTIVE PROGRAM, SUCH AS
CONSTRUCTION PROGRESS AGREEMENTS
WHEREAS, on December 10, 2024, the City of San José (“City”) adopted the Multifamily Housing Incentive Program (“MHIP”), which provides eligible multifamily residential developments with reductions in the Inclusionary Housing Ordinance (“IHO”) in-lieu fee and certain construction taxes to encourage housing production; and
WHEREAS, on May 13, 2025, the City amended the MHIP to increase the number of units eligible for specified construction tax reductions from 1,500 to 1,800 units and became effective on June 20, 2025, and on January 27, 2026, further amended the MHIP to increase program capacity to 3,600 units and extend the Phase I benefit application deadline to February 28, 2027, effective on March 5, 2026; and
WHEREAS, the residential development located at 3896 Stevens Creek Blvd (“Development”) is a 4.72-acre site that is planned as two eight-story buildings containing 575 residential units, 13,627 square feet of ground-floor retail space, and 778 parking spaces; and
WHEREAS, Holland Partner Group and its affiliates (collectively, “Developer”) are seeking MHIP benefits for Phase 1, consisting of Building 2 with 311 residential 2 T-44482.003.064/2342283
Council Agenda: 9-15-2026
Item No.: 8.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
SAW:CPA:MMV
8-31-2026
units, including 295 market-rate units and 16 very low-income units affordable to households at or below 50% of area median income; and
WHEREAS, the residential portion of Phase 1 is estimated to generate $2,911,909 in standard Building and Structure and Commercial, Residential, Mobile Home Park construction taxes and is eligible under the MHIP for an estimated 50% reduction of $1,455,954 in those construction taxes; and
WHEREAS, under the IHO Mixed Compliance option, Phase 1 is estimated to have an IHO in-lieu fee waiver of $5,478,664 based on 253,173 net residential square feet and the Fiscal Year 2026-2027 applicable fee rate for a strong market area, which fee is eligible for reduction under the MHIP; and
WHEREAS, the total proposed tax reduction and fee waiver for Phase 1 of the Development is $6,934,618, meets the requirements of the Multifamily Housing Incentive Program, pursuant to California Government Code Section 53083 (“CGC Section 53083”) and Open Government Resolution No. RES2024-99 Section
2.3.2.6.C (“Open Government Resolution”); and
WHEREAS, proceeds from these taxes are used to fund transportation capital improvement projects, which may include repairs and redevelopment of existing transportation-related projects and improvements, such as pavement maintenance, complete streets, pedestrian safety, and traffic calming projects; and
WHEREAS, Holland Partner Group is identified as the benefiting business entity for purposes of the economic development subsidy reporting requirements, and the City has considered the information required by the CGC Section 53083 and Open Government Resolution in connection with the public hearing on the proposed waiver; and
3 T-44482.003.064/2342283
Council Agenda: 9-15-2026
Item No.: 8.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
SAW:CPA:MMV
8-31-2026
WHEREAS, the Development must continue to satisfy applicable MHIP and IHO requirements, including approval of its Affordable Housing Compliance Plans and recordation of an Inclusionary Housing Agreement against the site prior to building permit issuance;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
1. The City Council hereby approves an economic development tax and fee waiver pursuant to the Multifamily Housing Incentive Program in an amount not to exceed $6,934,618 for Phase 1 of the residential development located at 3896 Stevens Creek Blvd, including a $5,478,664 reduction of the Inclusionary Housing Ordinance in-lieu fee and a $1,455,954 reduction of Building and Structure and Commercial, Residential, Mobile Home Park construction taxes applicable to the Development’s residential portion, subject to the Development satisfying all applicable Multifamily Housing Incentive Program and Inclusionary Housing Ordinance requirements.
2. The Director of Housing, or their designee, is hereby authorized to negotiate and execute documents and document amendments necessary to implement the Multifamily Housing Incentive Program for Phase 1 of the Development, including construction progress agreements.
4 T-44482.003.064/2342283
Council Agenda: 9-15-2026
Item No.: 8.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
SAW:CPA:MMV
8-31-2026
ADOPTED this_____ day of September, 2026, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
City Clerk