San Jose Expands Housing Incentives to Drive More Homes and Vibrant Communities

"The Downtown Residential Incentive Program, previously focused on high-rise projects, now encompasses commercial-to-residential conversions in Downtown San Jose. This expansion allows eligible developments to skip certain fees and taxes, such as the structure construction tax, with even greater reductions available for those meeting elevated labor and workforce standards. Converting unused office spaces into homes presents a cost-effective way to revitalize underused properties and boost tax revenues."

"In a parallel effort, the Multifamily Housing Incentive Program saw its capacity doubled from 1,800 to 3,600 eligible units for developments securing building permits by February 2027. Targeting high-density builds in strategic growth areas, this program provides similar financial relief to spur construction. Seven projects are now vying for inclusion under the expanded phase one, while five others totaling 1,444 units are already underway, representing over $20 million in waived fees and taxes."

San Jose expanded two incentive programs to accelerate housing production by offering tax breaks and fee waivers to developers facing financial challenges. The Downtown Residential Incentive Program now includes commercial-to-residential conversions, permitting eligible projects to skip fees like the structure construction tax and receive larger reductions for meeting higher labor and workforce standards. Converting underused office space is positioned as cost-effective revitalization that can increase tax revenues. The Multifamily Housing Incentive Program doubled capacity from 1,800 to 3,600 units for projects with building permits by February 2027, targeting high-density growth areas. Several projects are pursuing inclusion, and over $20 million in fees have been waived.

Read at Thesanjoseblog