In 2024, the City Council approved two construction incentive programs to boost the production of new residential projects.

• Downtown Residential High-Rise Incentive Program
• Growth Area Multifamily Housing Incentive Program

The program objectives are to help the City create an abundant housing stock, incentivize the construction of both market-rate and affordable housing, and spur construction activity – there were zero market-rate housing starts in San José during 2024.

The incentives include substantial reductions in construction taxes, inclusionary housing fees (also known as in-lieu fees), and parks fees.

Presentation

The Housing Director gave a presentation about these programs during a community meeting on March 6, 2025. You can view the meeting and the Director’s presentation here. The presentation includes a detailed breakdown of the financial incentives in both programs.

Downtown Residential High-Rise Incentive Program

• Agenda for the City Council meeting on June 18, 2024, when an extension to the Downtown Residential High-Rise Incentive Program was approved
  • Item 8.2 on the agenda.
  • Approved Council Action

Multifamily Housing Incentive Program

• Agenda for the City Council meeting on December 10, 2024, when the Multifamily Housing Incentive Program was approved
  • Item 8.2 on the agenda (This agenda item included multiple memos and documents.)
  • Approved Council Action