Connect with CP&DR

facebook twitter

Follow us on Facebook and Twitter

Subscribe to our Free Weekly Enewsletter

San Jose Adopts Inclusionary Housing Requirement

After years of study and negotiations, the San Jose City Council has adopted a citywide inclusionary housing ordinance. The measure, which takes effect in 2013 (unless certain market conditions improve), requires market-rate developers to make 15% of new units available to households with incomes of no more than the median. If developers choose to meet the mandate off-site, the affordable housing requirement rises to 20%. The city has had similar requirements for the downtown area for years.

The City Council's decision on citywide inclusionary regulation came only three months after the council suspended a rule requiring 45-year restrictions on 20% of new units in redevelopment project areas to ensure their availability to low- and moderate-income households. Because prices for market-rate and affordable units are so close these days, there is no incentive for buyers to buy an income-restricted unit, city officials concluded. Developers asked for the relief, which city officials say they will revisit when the market changes.