San Jose launches 15‑month commercial anti‑displacement effort after state tenant-protection law

San Jose staff presented a commercial anti-displacement status report and a 15‑month work plan to the Unity and Economic Development Committee, describing next steps after the state’s new Commercial Tenant Protection Act (SB 1103) took effect in January.

Vic Farley, assistant to the city manager and lead on the anti-displacement effort, said the office defines commercial displacement as “the involuntary relocation of a business from its current location,” driven by redevelopment, rent escalation or rising land values. Using business license data, staff estimated more than 17,000 small-business commercial tenants in the city and reported that roughly 14,000 tenants (about 80% of the affected tenants in their categories) would qualify for protections under the state law.

Why it matters: Staff framed the effort as a practical response to mounting redevelopment pressures—particularly in neighborhoods that have seen rapid change—and to a statewide law that establishes notification, documentation and language-access obligations for landlords and tenants.

Highlights from the presentation - Pilot and outreach history: The city previously piloted neighborhood work in Alum Rock (ZIP code 95116). Outcomes included formation of the Latino Business Foundation, partnerships with Excite Credit Union and Somos Mayfair, and a new business center in Quetzal Gardens. During the pandemic outreach, staff said businesses in the area accessed more than $50 million in federal and state grants and loans. - State law: Farley summarized the Commercial Tenant Protection Act (formerly SB 1103), which requires certain landlords to provide specified notices, translated documents and transparent cost disclosures; staff noted the law aims to standardize process and notice rather than stop all displacement. - Outreach and next steps: Planned milestones include external stakeholder engagement, internal coordination, and reporting back to the Small Business Advisory Committee in fall 2025 and to the committee in spring 2026.

Questions and clarifications Councilmember Ortiz asked about home-based businesses and why business-license counts for residential parcels were excluded from the SB 1103 calculation. Staff clarified that home-based businesses remain eligible for city support but are outside the specific statutory definition used for the SB 1103 calculation, which focuses on commercial property and commercial tenants.

Action Committee members moved and approved the status report. Staff will proceed with stakeholder outreach, data analysis and internal coordination, and will return with interim updates as the work progresses.