City leaders have adjusted the Inclusionary Housing Ordinance to breathe life into dormant projects. The update shifts affordability tiers for rental units from 50, 60, and 100 percent of area median income to 60, 80, and 110 percent, easing the path for developers to move forward. This pivot aims at households caught between subsidized options and soaring market rates, fostering a broader mix of homes that reflect the city's diverse rhythms and needs.
With Santa Clara County's median income hovering around $195,200 for the current fiscal year, these changes promise to make building viable again in a market slowed by financing hurdles. Developers now face lower thresholds for affordable units if they opt for deeper affordability levels, or they can choose in-lieu fees or offsite construction. Separate guidelines remain for for-sale properties, ensuring a balanced approach that could sprinkle new townhomes and apartments across neighborhoods.
Past rules, while well-intentioned, led to stalled progress with minimal affordable units emerging. By tweaking the framework, San Jose is experimenting with strategies to amplify supply, potentially slowing rents climb through sheer volume. Meanwhile, dedicated programs like the Gap Financing initiative keep the focus sharp on deeply affordable developments, weaving a safety net for lower-income residents amid the growth.
Source: SVBJ
