"San Jose has approved a slew of housing initiatives and incentives including some for office-to-residential conversions downtown to jump-start the construction of thousands of units previously stalled by unfavorable market conditions. Despite the city approving tens of thousands of housing units since 2020, fewer than a third have broken ground, leaving San Jose well behind the state's mandate to plan for 62,200 units by 2031."
"With the office market still in shambles post-pandemic, the San Jose City Council has decided to modify its downtown high-rise incentive program to include significant tax and fee reductions for select office conversions, which could prove cheaper and quicker for adding housing. The city is also extending its multifamily incentive program, which has proven fruitful in getting some shovels in the ground after zero new market-rate starts in 2024."
San Jose approved multiple housing initiatives and incentives, including downtown office-to-residential conversion provisions, to accelerate construction of thousands of stalled units. The city approved tens of thousands of units since 2020, yet fewer than one-third have broken ground, leaving it behind the state planning mandate of 62,200 units by 2031. The City Council modified the downtown high-rise incentive program to add significant tax and fee reductions for select office conversions as a potentially faster and cheaper route to housing. The city extended its multifamily incentive program after zero new market-rate starts in 2024. High interest rates, rising costs, and severe financial feasibility challenges continue to impede downtown high-rise development, with Bay Area development costs substantially higher than many other regions.
Read at www.mercurynews.com
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