What is the 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 to 19 dwelling units to pay an impact fee per livable square foot to satisfy its affordable housing requirement.
- The AHIF increases by 2.4% annually. Please see the following rate schedule:
|Fiscal Year||Per Livable Square Foot Rate|
|July 1, 2017 - June 30, 2018||$17.41|
|July 1, 2018 - June 30, 2019||$17.83|
|July 1, 2019 - June 30, 2020||$18.26|
|July 1, 2020 - June 30, 2021||$18.70|
Which projects are subject to the AHIF?
- Developments in San Jose that create 3 to 19 new, additional or modified dwelling units for RENT are subject to the requirements of the AHIF. At this time the AHIF does NOT apply to For-Sale dwelling units (an Affordable Housing Compliance Plan still must be submitted - as described below).
- All Residential Projects with 20 units or more are now subject to the Inclusionary Housing Ordinance (IHO).
- The Housing Department has prepared the following documents that outline the process for fulfilling the AHIF requirements.
- For a quick summary, please see the linked AHIF Fact Sheet.
What is the Affordable Housing Compliance Plan?
In order to determine the extent of the affordable housing obligation, and whether any exemptions may apply, all development projects with residential dwelling units seeking permits are required to submit an Affordable Housing Compliance Plan application. Developers who claim their project is exempt or waived from the AHIF must comply with this process in order for the claim to be evaluated by Housing Department staff.
A formal submittal of the Compliance Plan does require a developer to also submit an application fee. The Compliance Plan does have information that may be used for estimation purposes. Please download a copy of the Compliance Plan to your computer to activate the functionality, including a fillable worksheet to estimate the AHIF obligation.
To learn more about the Affordable Housing Impact Fee please see the following documents:
- Interim Regulations for the Affordable Housing Impact Fee Program*
- Resolution 77218 - Establishing the AHIF
- Resolution 77784 - To Amend and Est Fees and Charges - Effective July 1 2016
- Resolution 78210 - To Amend and Est Fees and Charges - Effective July 1 2017
- Resolution 78010 - To Amend the Provisions Exempting For-Sale from AHIF
- Resolution 78392 - Amending to Revise Definition of Dwelling Unit
- Resolution 78473 - To Provide for a Transition to the IHO - Effective December 19 2017
- Resolution 78576 - To Update Provisions for the Transition to the IHO - Effective May 8 2018
* 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) firstname.lastname@example.org|
|Tina Vo||(408) email@example.com|
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