October 13, 2015

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Dear Valued Partner:          

 

In August 2015, the Housing Department notified developers and other stakeholders of a series of informational meetings regarding the implementation of the Affordable Housing Impact Fee (AHIF) and the Inclusionary Housing (IH) Ordinance.  Due to the importance of this topic, the Housing Department has scheduled additional meetings during the months of November, December, and January.

 

At these meetings, staff will: 1) provide information on the AHIF/IH Programs; 2) discuss pertinent timelines; 3) provide additional information on the AHIF Pipeline Exemption Application Process; and 4) review the anticipated roll-out process for the IH Ordinance.

 

Although you may have already attended one of the previous meetings, it may be prudent to attend one of the upcoming meetings as new information may be presented.

 

Please plan on attending one of the following meetings as listed below: 

 

Date

Time

City Hall Wing Location

 

October 29, 2015

   

  2:00 p.m.- 

3:30 p.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 120

 

November 9, 2015

 

  2:00 p.m.- 

3:30 p.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

November 18, 2015

 

  9:30 a.m.- 

11:00 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

December 4, 2015

 

   9:30 a.m.- 

11:00 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

December 16, 2015

 

  9:30 a.m.- 

11:00 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

January 13, 2016

 

  9:30 a.m.- 

11:00 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118


January 25, 2016

 

9:30 a.m.- 

11:00 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

There is limited room space, so please RSVP by contacting Karen Goodman at 408-975-4416, or by email at karen.goodman@sanjoseca.gov.

 

For your convenience, more information on both programs is listed below.

 

Citywide Inclusionary Housing Ordinance (IH)

 

On January 12, 2010, the City Council approved the Citywide Inclusionary Housing Ordinance (IH). Although the IH was scheduled to take effect on January 1, 2013, its implementation was prevented by an injunction imposed by the Santa Clara County Superior Court, as a result of a challenge by the California Building Industry Association v. City of San Josť. The 6th District Court of Appeal overturned that injunction and the ordinance was held to be valid.

 

The case was remanded to the Superior Court to render a decision consistent with the decision of the Appellate Court.  However, CBIA then appealed that decision to the California Supreme Court.

 

On June 15, 2015, the California Supreme Court issued its decision affirming the Court of Appeals' determination, thus upholding the IH and remanding the case to the trial court.

 

On September 14, 2015, the CBIA filed a petition for a writ of certiorari with the U.S. Supreme Court seeking review of the California Supreme Court's unanimous ruling that upheld the City's IH.

 

CBIA's filing does not automatically stay the California Supreme Court decision and, thus, the June 15, 2015 decision remains valid.  The U.S. Supreme Court accepts only a small percentage of cases seeking review.  Staff will continue to update the City Council as more information becomes available.

 

In November, staff intends to provide an update to the City Council associated with the implementation of the Ordinance.  That said, it will be beneficial for developers to attend one of the meetings to obtain pertinent information related to the implementation of the IH.

 

Affordable Housing Impact Fee (AHIF)

 

On November 18, 2014, the City Council adopted a resolution that established an Affordable Housing Impact Fee (AHIF) of $17.00 per net livable square foot on new market-rate rental housing developments of three or more units in San Josť.  Under the AHIF, all market-rate multi-family housing developments of three (3) or more units that have not pulled all building permits by June 30, 2016, are subject to the AHIF.  In an effort to minimize negative financial impacts on development projects that are already in the pipeline, the AHIF does include a grandfathering (and other) exemption(s), contingent upon certain conditions.  Please visit www.sjhousing.org/AHIF
for more information.

 

Information on the Pipeline Exemption Application Process

 

A development project may be exempted from the AHIF if it meets all of the following conditions:

    1. Prior to July 1, 2016, a proposed rental housing development received approval for one of the following permits, which is current and unexpired as of June 30, 2016:

a. Planned Development Permit (PD)

b. Site Development Permit (SD)

c. Conditional Use Permit (CUP)

d. Special Use Permit (SU)

 

   2.  Submit, and have approved by the City, a completed                     Pipeline Application with evidence of the required permit,             and pay the associated fee of $3,200 to the Housing                   Department no later than April 1, 2016; and

 

 3.  Prior to January 31, 2020, the rental housing development           receives a Final Certificate of Occupancy for at least 50%           of the buildings.

 

If you have additional questions please do not hesitate to email Patrick Heisinger at patrick.heisinger@sanjoseca.gov.

 

Sincerely,

 

Jacky Morales-Ferrand

Interim Director of Housing 

City of San Jose - Housing Department

408-535-3860