City Council - 2026-01-27

Council approved expanding the Downtown Residential Incentive Program to include office-to-residential conversions with Phase 1 targeting 500 units and Phase 2 targeting 1,000+ units. Incentives include waiving in-lieu fees, deed-restricted unit requirements, construction taxes, and parkland in-lieu fees. Phase 1 deadline set for December 2027.

Council approved extending Phase 1 of the Multifamily Housing Incentive Program, expanding the 50% construction tax reduction capacity from 1,800 to 3,600 units. Program has already catalyzed over 1,400 units under construction with another 2,000 expected.

Council approved amendments to the IHO adjusting AMI bands from 30-110% to 60-80% for on-site units at 15% of total units, with new alternative compliance option of 7% at 50% AMI or 5% at 30% AMI. Affordability term reduced from 99 years to 55 years to align with state law and LIHTC requirements. First 20 units exempted regardless of density.

Council deferred proposed changes to the Mobile Home Rent Ordinance including 10% vacancy decontrol and capital improvement pass-throughs. Only state law compliance changes (AB 2782) were approved. Staff directed to conduct additional outreach with residents and park owners.

Council approved a $1.6 million pilot program for soft story seismic retrofits using $1 million from housing resources. Program will be voluntary, first-come-first-served, targeting 15-20 buildings. Loans structured at 3% over 7 years with pass-through limited to existing 5% cap.

Council directed staff to return in March with ordinance exempting industrial employment hubs from SB 79, including six areas totaling 250+ acres primarily in North San Jose and Old Edenvale. Staff also directed to analyze AB 130 impacts on historic resources.