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San Jose Considers Expanding Inclusionary Housing To Include Rentals

San Jose City Hall

Following the state legislature's passage of a set of housing bills that await the governor's signature, San Jose could broaden its own affordable housing laws. The city passed an inclusionary housing law seven years ago that requires developers to set aside 15% of units for low-income residents, but it applied only to for-sale housing, the Mercury News reports.

A 2009 court ruling said inclusionary ordinances for apartments were against the law and provided an illegal form of rent control. San Jose, instead, began charging about $17/SF for affordable housing projects. This could soon change with the potential passage of AB 1515, which would allow a city to require subsidized housing for new rentals.

Under the new law, San Jose could expand its inclusionary housing to require 15% of rental units be set aside as affordable. The city also may consider expanding the law for for-sale units to include buildings with three or more units — the current law exempts buildings with fewer than 19 units.