City leaders recently greenlit over $10 million in tax and fee waivers for two major housing projects, proving that San Jose is serious about getting more homes built. With high interest rates and rising costs slowing construction across the Bay Area, this incentive program is a lifeline for developers and a big win for residents eager for more housing options.
The two projects cashing in on these perks are the Coyote Creek Urban Village at 2620 Seely Avenue and Federal Realty’s development at 358 Hatton Street near Santana Row. Together, they’re saving developers more than $10 million, with Coyote Creek slashing over $6 million and Federal Realty pocketing nearly $4.5 million in savings. This will move forward a projected 1,278 new units, including 64 affordable ones, bringing much-needed homes to both market-rate buyers and lower-income families.
The city’s incentive program offers a 50% cut in taxes and fees for projects that lock in permits by the end of this year, with a second phase kicking in 2026 offering a 25% reduction. It’s a practical approach that’s already jumpstarted other developments, like The Hanover Co.’s 345-unit project and The Aquino apartment building in Downtown San Jose. With only 2,700 permits issued last year against a state goal of 62,200 new units by 2031.
Source: The Mercury News
