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Affordable Housing Impact Fee

What is Affordable Housing Impact Fee (AHIF)?

  • On November 18, 2014, the San José City Council approved the adoption of an Affordable Housing Impact Fee (AHIF) to help address the need for affordable housing connected with the development of new market rate residential rental units.
  • AHIF requires all projects with 3 or more units to pay an impact Fee of $17.41 (FY 17-18, increases by 2.4% annually) per livable sq/ft to satisfy the affordable housing requirement.
  • To learn more about the analysis and outreach conducted to establish the AHIF please see the AHIF Archive linked to this page. 

Which projects are subject to AHIF?

  • Any proposed project that the owner intends to market as “Rental” by creating 3 or more new, additional or modified units. 
  • All Residential Projects with 20 units or more are now subject to the Inclusionary Housing Ordinance (IHO). Although a transition program is available for a limited period of time allowing qualifying rental developments to remain under AHIF. Please see transition process below. 


The Affordable Housing Impact Fee has several components and thus the following section describes how the San José Housing Department implements the AHIF. 

For a quick summary, please see the linked AHIF Fact Sheet

What is a Compliance Plan Application?

Developers are required to submit a signed Affordable Housing Compliance Plan Application (Compliance Plan Application), IHO Transition Waiver, and a $3,200 processing fee to the Housing Department for approval. This Compliance Plan Application will provide the Housing Department with enough information to calculate the Housing obligations associated with the development. The information obtained will be included in the project’s conditions of approval. 



On September 29, 2017, the Governor signed AB 1505, explicitly authorizes cities and counties to adopt ordinances that require, as a condition of the development of residential rental units. As a result, on December 19, 2017, the San José City Council approved the transition from the Affordable Housing Impact Fee (AHIF) to the Inclusionary Housing Ordinance due to Assembly Bill (AB) 1505. Projects may still fall under AHIF, if:

  • By June 30, 2018:

  1. Submits Planning Application with the following types of eligible entitlements: Conditional Use, Site Development, Planned Development or Special Use and payment of all planning application fees to PBCE.
  2. Submits an updated Affordable Housing Compliance Plan ApplicationIHO Transition Waiver, and $3,200 fee to Housing.
  3. Records An Affordable Housing Agreement Prior to the issuance of building permits.

  • By June 30, 2020, submits final approved building plans to Housing and pays the current AHIF


Documents and Contact Information

To learn more about the Affordable Housing Impact Fee please see the following documents:

* As such, the City reserves the right to modify or supplement this document as the need arises and further information is developed.

All questions pertaining to the development of the Inclusionary Housing Ordinance and the Affordable Housing Impact Fee should be directed to:

Amy Chen 408-975-4489  
Tina Vo 408-975-4416  

To receive automatic e-mails with information on the Affordable Housing Impact Fee and Inclusionary Housing Ordinance, please sign-up and select "Affordable Housing Impact Fee and Inclusionary Housing