San Jose leaders have approved more than $10 million in combined construction tax and fee waivers for two new housing projects as the city continues to leverage incentives to counter the challenging economic conditions that are hindering development.
After the city saw zero new construction starts for market-rate multifamily developments over 20 units last year due to high interest rates and rising costs, the City Council created a new incentive program that waived in-lieu fees and 50% of construction taxes for the first 1,800 units of projects in designated growth areas that had submitted complete applications by June 2022.
The Hanover Co., SummerHill Homes and The Pacific Cos. ’s Coyote Creek Urban Village project at 0 Seely Avenue and Federal Realty’s proposed development at 358 Hatton St. are the latest projects to receive financial perks.
“I don’t think I could overstate the efficacy, the impactfulness of the (multifamily housing incentive) program,” Federal Realty senior vice president Patrick McMahon said. “We’ve been working on this project – 258 units on Hatton Street at Santana Row – for a very long time. This package of economic incentives is the tool, is the lever that will enable this project to move forward now, versus continuing to remain on hold for the indefinite future.”
Read the full story in the Mercury News Article.
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