Joint Planning and Housing Commission Study Session on Housing Element Progress and Catalyst Team Work Plan - February 25, 2026

On February 25, 2026, the San Jose Planning Commission and Housing Commission held a joint study session to receive the 2025 Housing Element Annual Progress Report and the Housing Catalyst Team Work Plan. The meeting included presentations from staff on housing production progress towards the 2023-2031 Regional Housing Needs Allocation (RHNA) goals, updates on various housing programs and policies, and discussion of market conditions and development challenges. No formal votes were taken.

Public Comments & Testimony

• A speaker from the Senior Commission representing District 3 expressed that affordable housing is not truly affordable for seniors, citing a personal rent increase from $1,469 to $1,688 per month and noting that income requirements (2.5 times rent) make housing inaccessible. She suggested using a different word than “affordable” and highlighted the difficulty of living in San Jose for seniors.

Discussion Items

• Housing Element Annual Progress Report: Staff presented RHNA progress for the sixth cycle (2023-2031). Over 2023-2025, San Jose permitted approximately 17% of its 62,200-unit goal, with production falling short of annual targets across all income categories. Moderate-income units saw higher production due to market rate units counted in that category. Compared to peers, San Diego (25% through 50% of cycle) and Sacramento (27% through 50%) performed better, which staff attributed to lower development costs and different policy frameworks.
• Housing Catalyst Team Work Plan Updates: Staff highlighted completed programs, including SB9 changes allowing additional housing types in historic areas and R2 zones, and group home zoning ordinance changes (both approved January 2026). Ongoing work includes the General Plan Four-Year Review (due June 2026), the small multifamily housing program (P35, allowing 4-10 units in lower-density areas), evaluation of the urban village planning process (P40), and revision of planning permit conditions for state law compliance (P41, anticipated fall 2026).
• Market Conditions and Incentive Programs: Sarah Fields, Deputy Director of Housing, noted moderate price softening but persistent affordability challenges. The Multifamily Housing Incentive Program and Downtown Residential Incentive Program (including office-to-residential conversion) were extended by City Council on January 27, 2026. Staff also discussed the housing continuum, preservation efforts (e.g., $1.6 million city funds and $2 million congressional earmark for soft-story retrofits), updates to the inclusionary housing ordinance, and the linkage of land to capital feasibility study for entitled units.
• Commissioner Questions and Debate: Commissioner Cantrell criticized the cost of development study for using a “unicorn” two-acre rectangular site model that does not represent most of San Jose, questioning its usefulness. Staff defended the study as a reasonable approximation, noting it also examines real project performance. Other questions addressed SB9 low uptake (due to owner-occupancy requirements), the need for cooperative/limited equity housing models, the urban village planning process to prevent past issues, and the desire for materials to be sent in advance of future meetings.

Key Outcomes

• No formal votes were taken; this was a study session for feedback only.
• City Council will hear the Housing Element Annual Progress Report and Housing Catalyst Team Work Plan on March 24, 2026.
• Staff acknowledged feedback to provide materials ahead of meetings and to allow more time for future joint study sessions.
• Commissioners requested that future joint sessions be scheduled for longer durations to accommodate questions from both commissions.