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Council expands downtown and multifamily incentives and revises inclusionary rules amid fierce public debate
Summary
Council extended and broadened downtown conversion and multifamily incentive programs and approved changes to the Inclusionary Housing Ordinance after extended public comment and negotiations; the IHO amendments raise some AMI thresholds, add alternative compliance paths, and align affordability terms with federal programs.
San Jose Councilmembers on Jan. 27 approved a package of housing incentive extensions and changes intended to catalyze stalled projects and increase housing production, while also updating the city's Inclusionary Housing Ordinance (IHO).
Housing staff described several near‑term actions: expand the downtown residential incentive to include office‑to‑residential conversions (phase 1 catalytic target ~500 units; later phase targets a larger cohort), extend the Multifamily Housing Incentive Program capacity, and adjust the IHO…
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