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Affordable Housing Impact Fee (AHIF) Program
The Affordable Housing Impact Fee (AHIF) Program

On November 18, 2014, the City Council adopted Resolution Number 77218 approving implementation of the AHIF Program. This Resolution requires new market-rate rental housing developments with three or more units to pay a one-time Affordable Housing Impact Fee of $17 per finished livable square foot.

The impact fee is a payment required as a condition of rental-market developments to cover the associated impact costs.

To learn more about the City's AHIF Program, and how the Program may affect a proposed project, access one or all of the following links:

Overview of Pipeline Exemption

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.

A development project may be exempt from the AHIF if it meets all of the following conditions:
  1. Prior to June 30, 2016, a proposed rental housing development receives approval for one of the following permits for the residential development, 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. Developer submits a completed Affordable Housing Impact Fee Pipeline Exemption Application Packet to the Housing Department and pays the associated fee of $3,200 payable to the "City of San José".  Additionally, the packet must include evidence that the aforementioned permits will be issued before June 30, 2015, and the application will receive approval by June 30, 2016.

    To the extent that a project needs a rezoning, the City Council's first and second reading of the Ordinance must occur before June 30, 2016.  If a project that qualifies for the AHIF exemption is appealed, the Housing Department will monitor the appeal process and, if the appeal is denied, the project will still qualify for the AHIF exemption.  If the appeal is granted, and any permit is modified or a new permit is required, the project will not be eligible for the AHIF exemption.

  3. Prior to January 31, 2020, the rental housing development must receive a Final Certificate of Occupancy (COO) for at least 50% of the residential buildings and units, as listed in the application.

  4. Please contact Patrick Heisinger by email , or by calling 408.975.2647 with any questions.