San Jose Evolves Housing Policies to Unlock Fresh Neighborhood Possibilities

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

Misora Apartments Signal Continued Growth at Santana Row

Santana Row stands as a premier destination in San Jose, blending shopping, dining, and living spaces into a vibrant community hub. Federal Realty now plans to market the Misora apartment complex at 388 Santana Row, a 212-unit building completed in 2014 that spans about 222,000 square feet. This move follows the recent sale of the neighboring Levare apartments for $74 million to Hines in May, reflecting strong interest in high-quality residential properties within this sought-after area.

CEO Don Wood described such sales as a core part of the company's strategy, allowing reinvestment into mixed-use environments without affecting the retail and entertainment core. Misora, positioned across from Levare, offers modern living options that complement the lively atmosphere of Santana Row, where residents enjoy walkable access to boutiques, restaurants, and events. If priced similarly per unit to Levare, the complex could fetch upwards of $145 million, underscoring the value of San Jose's real estate market.

This transition opens doors for fresh ownership to enhance the property, potentially introducing new amenities or community features that build on Santana Row's appeal. As San Jose's west side continues to thrive, developments like this reinforce the area's role as a magnet for professionals, families, and visitors seeking a blend of urban convenience and leisure.

Source: SVBJ