Council approves $1.6M pilot to finance soft‑story seismic retrofits; staff to seek larger federal funding

The San Jose City Council on Jan. 27 approved a $1.6 million pilot to support voluntary soft‑story seismic retrofits and related unit preservation work.

Housing staff said the pilot is structured as a limited, voluntary demonstration: packaged low‑interest loans (around 3% over seven years) and grants administered with partner Working Solutions (a CDFI) and Guidehouse for program design. The pilot is designed so any resident pass‑through remains limited (staff noted a 5% annual pass‑through cap consistent with related policy) and will include tenant communications and protections. Staff said the pilot will test logistics, borrower outreach, contracting, and prioritization on a small number of buildings and create the administrative systems required to apply for larger federal FEMA resilience funding and other grants.

Councilmembers asked about timelines, selection criteria (first‑come, first‑served voluntary signups), and metrics the city will use to evaluate pilot success. Staff said they expect the pilot to support roughly 15–20 buildings depending on scope and cost and will return with progress reports and lessons learned.

Why it matters: Soft‑story buildings can present a seismic hazard in a major earthquake; financing retrofits can preserve housing stock and reduce disaster risk while protecting tenants if structured carefully.

What comes next: Staff will launch the voluntary enrollment process, work with partners to deliver loans and grants, and return with pilot outcomes and potential federal grant applications.