San Jose City Council Meeting - January 27, 2026

The San Jose City Council met on January 27, 2026, to discuss a range of housing and development policies, including updates on city services, transit-oriented development incentives, downtown residential incentives, multifamily housing incentives, inclusionary housing ordinance amendments, mobile home rent ordinance changes, and a seismic retrofit pilot program. The meeting included ceremonial recognitions, public comments, and multiple votes.

Consent Calendar

• Items 2.7 and 2.10 were pulled for individual discussion. Item 2.7 (appointment of Pat Waite to a citywide commission) was supported by Councilmember Candelas. Item 2.10 (Sokoway Farmhouse acquisition) was recognized by Councilmember Kamei. The consent calendar as a whole was approved unanimously.

Public Comments & Testimony

• Item 3.3 (Annual Report on City Services): No public comments.
• Item 8.1 (SB 79 – Transit-Oriented Development): Speakers included Toronto Crane (VTA) requesting further coordination; Allison Singalani (SV@Home) supporting staff recommendations but opposing deferral of historic resources exemption; Jeanette Holdsworth supporting a memo for increased density; Allie Saperman (Housing Action Coalition) urging broad application of TOD standards; Greg (Young Dems/DSA) supporting the ordinance; Josh Burrows opposing broad exemptions. Mike Sodergren (Preservation Action Council) supported Councilmember Mulcahy’s memo.
• Item 8.2 (Downtown Residential Incentive Program): Approximately 30 speakers. Supporters included developers (Hanover, Republic Urban), business groups (Chamber, Downtown Association), and labor unions (Building Trades, Sheet Metal Workers) who urged inclusion of prevailing wage and apprenticeship requirements. Opponents, including community advocates, called for deeper affordability and public benefit requirements.
• Item 8.3 (Multifamily Housing Incentive Program Extension): Speakers largely supportive, including developers, Housing Action Coalition, and Chamber. Some residents urged focus on lower-income housing.
• Item 8.4 (Inclusionary Housing Ordinance Amendments): Over 55 speakers. Many residents and advocacy groups (REAL Coalition, SURJ, CIREN, SV@Home) opposed weakening affordability levels, supported Councilmember Candelas’ memo to defer for more data. Developers and business groups supported staff proposal and Mayor’s memo.
• Item 8.6 (Mobile Home Park Ordinance Amendments): Over 60 speakers. The majority of mobile home residents opposed vacancy decontrol and capital improvement pass-throughs, citing loss of affordability and equity. Park owners and industry groups supported the amendments as necessary for long-term viability. Councilmember Duan and Campos memos opposing most changes were supported by residents.
• Item 8.5 (Soft Story Seismic Retrofit Pilot): No public comments.

Discussion Items

• Item 3.3 – Annual Report on City Services FY2024‑2025: City Auditor Joe Royce presented. Highlights: 55% of residents rated quality of life good/excellent; 59% satisfied with city services. Priority 1 police response averaged 8.1 minutes (target 6). Fire response to priority incidents met 63% of target (80%). Housing production at 28% of annual regional goal. Homeless count estimated 6,500. 1,400 households assisted into housing. Satisfaction with SJ311 declined to 64%. Council members discussed demographic shifts, police response times, and budget challenges.
• Item 8.1 – SB 79 Implementation: Staff (Chris Burton, Jared Ferguson) outlined complex regulations. Key proposals: exempt industrial employment lands (e.g., North San Jose) from SB 79 via ordinance by March; delay exemption for historic resources; evaluate higher density minimums in downtown. Council debated timing and staff capacity. Approved the joint memo (Mayor, Tordios, Campos, Cohen) with friendly amendment from Candelas to require staff to return in March with analysis on AB 130 impacts on historic resources.
• Item 8.2 – Downtown Residential Incentive Program: Staff proposed expanding program to office-to-residential conversions and waiving fees for first 500 units. Council debated labor standards and timelines. A joint memo (Mayor, Vice Mayor Foley, Tordios) and an alternative memo (Candelas, Kamei) were merged. Approved with amendments: timeline for phase one (500 units) set to December 2027; direction to explore workforce benefits (healthcare, lifeguard) and return with analysis. Vote: unanimous (11‑0).
• Item 8.3 – Multifamily Housing Incentive Program Extension: Staff recommended extending Phase 1 incentives to additional units. Council approved extension of the program without a hard sunset, adding 3,600 units eligible for 50% construction tax reduction. Vote: unanimous (11‑0).
• Item 8.4 – Inclusionary Housing Ordinance (IHO) Amendments: Staff proposed raising AMI bands (60‑80%), shortening affordability term to 55 years, and adding a surplus credit system. Substitute motion by Candelas (to defer) failed 8‑3. Underlying motion (joint memo from Mayor, Tordios, Kamei, Campos, Cohen plus memos from Mulcahy and Ortiz) passed 9‑2. Key changes: eliminate 110% AMI tier, add 50% AMI option at 7% of units, retain 30% AMI option at 5%, keep 99‑year affordability (amended to 55 by Casey’s friendly amendment), exempt projects under 20 units from density requirements, and direct staff to report back on alternative funding options.
• Item 8.6 – Mobile Home Rent Ordinance (MRO) Amendments: Staff recommended partial vacancy decontrol (10% increase upon sale), capital improvement pass-through, and resident protections. Substitute motion by Vice Mayor Foley (to defer and conduct joint outreach) passed 10‑1 (Duan opposed). The item will return in fall 2026 with analysis of the 10% decontrol impact and alternatives. State-mandated changes (AB 2782) will be implemented immediately.
• Item 8.5 – Soft Story Seismic Retrofit Pilot Program: Staff presented a $1 million pilot (plus $600k administrative) to fund voluntary retrofits of up to 15‑20 buildings, using low‑interest loans and grants. Approved unanimously. The pilot will test outreach and data collection for a future FEMA grant.

Key Outcomes

• Consent Calendar: Approved 11‑0.
• Item 3.3: Report received and filed.
• Item 8.1: Approved joint memo with amendment to staff; industrial land exemption ordinance to return in March.
• Item 8.2: Approved expansion of downtown residential incentive program with December 2027 timeline for phase one; staff to explore workforce benefits.
• Item 8.3: Approved extension of multifamily housing incentive program; 3,600 additional units eligible.
• Item 8.4: Approved IHO amendments as modified (9‑2); 30% AMI option retained at 5%; affordability term changed to 55 years; 20‑unit threshold for density exemption; staff to report on alternative funding for affordable housing.
• Item 8.6: Deferred major MRO changes to fall 2026; immediate compliance with state law; joint outreach with residents and park owners ordered.
• Item 8.5: Approved soft story retrofit pilot program (11‑0).
• Adjournment: Meeting adjourned in memory of Max Ryan, a Housing Department employee tragically killed in 2025.