December 30, 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), as well as an overview of the Inclusionary Housing (IH) Ordinance.  

 

The Housing Department has scheduled an additional series of meetings to provide the most up-to-date information on the AHIF Program (with specific information on how developer's may apply for the pipeline exemption), and Inclusionary Housing Ordinance, during the months of February through June 2016.

 

Please plan to attend one of the following meetings as listed below: 

 

Date

Time

City Hall Wing Location

 

January 25, 2016

   

  9:30 a.m.- 

10:30 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

February 10, 2016

 

  9:30 a.m.- 

10:30 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

February 17, 2016

 

  9:30 a.m.- 

10:30 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

March 14, 2016

 

  3:00 p.m.- 

4:00 p.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

March 24, 2016

 

  2:00 p.m.- 

3:00 p.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

April 11, 2016

 

  2:00 p.m.- 

3:00 p.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118


May 18, 2016

 

  10:30 a.m.- 

11:30 a.m.

San Josť City Hall

200 E. Santa Clara St.

San Josť, CA 95113

Wing Room 118

 

June 13, 2016 

 

 1:30 p.m. -

2:30 p.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.

 

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.

 

Citywide Inclusionary Housing Ordinance (IH)

 

On January 12, 2010, the City Council approved the Citywide Inclusionary Housing Ordinance (IH) which requires that fifteen percent (15%) of all new market rate for-sale developments of 20 or more units be price-restricted and transferred to moderate-income purchasers. 

 

Under the Ordinance, developers may satisfy their Inclusionary Housing requirement by providing affordable units in their projects, paying in-lieu fees, dedicating developable land and/or purchasing surplus inclusionary units from other developers.

 

The Citywide Inclusionary Housing Ordinance was scheduled to take effect on January 1, 2013, but implementation was delayed by action of the Santa Clara County Superior Court, followed by the City's appeal of this earlier decision.  The California Supreme Court heard oral arguments in the case of the California Building Industry Association v. City of San Josť, on April 8, 2015, and issued an opinion that validated the City's Inclusionary Housing Ordinance on June 15, 2015.

 

In early 2016, it is expected that the City Council consider several items associated with the implementation of the Ordinance.  We encourage developers to attend one of the meetings to obtain pertinent information related to the implementation of the Inclusionary Housing Ordinance.

 

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

 

Sincerely,

 

Jacky Morales-Ferrand

Director of Housing 

City of San Jose - Housing Department

408-535-3860