San Jose loosens rent caps at distressed affordable housing projects

San Jose
City Council Meeting
April 28, 2026

TL;DR

• The council gave the Housing Director more room to raise rents at financially distressed affordable housing projects, but only at units that go vacant. Six public commenters argued the item should have gone through the Housing and Community Development Commission first.
• A 108-condo project at the former Cinnabar Elementary School site cleared the council under the state's builder's remedy law. 8 units are reserved for extremely low-income households.
• The council split its e-bike advocacy in two: push the state for speed limits, age rules, and manufacturer accountability, but don't back anything that restricts access. A 7th grader in District 8 died on an e-bike last month.
• The council accepted the police overtime audit. Overtime hit $72 million last year, up 53% in five years.
• A new 1.2-acre park at the end of Rinconada Drive will be named Bill Kee Park, after a Chinese American business leader who tried to save the last building of San Jose's lost Chinatown in the 1940s.

What happened

1. The Housing Director can now raise rents at distressed affordable projects, but only at empty units
   1. The council expanded the Housing Director's authority to allow rent and income limits to climb up to 60% of the area's median income at units funded by the city's Low and Moderate Income Housing Asset Fund, and up to 120% AMI at units funded by Measure E. The change applies only when a unit is vacant, never to current tenants, and only to the extent and for the time needed to keep a distressed project financially viable. Housing Director Eric Solivan told the council the tool targets "severely distressed 100% PSH buildings that are financially in disrepair." Six public commenters objected that the item sat on the consent calendar instead of going through the Housing and Community Development Commission. The vote was 10-0, with Mahan absent.
   2. What this means for you: Future tenants at distressed permanent supportive housing could see rents shift. Vacant LMIHAF-funded units could be re-rented at up to 60% AMI, and vacant Measure E units at up to 120% AMI. Anyone already living in one of these projects sees no rent change from this vote. Councilmember Tordillos said at least two 100% affordable projects in District 3 are under "severe financial distress."
2. A Little League field becomes 108 condos under builder's remedy
   1. The council approved a 108-unit townhome project at 5670 Camden Avenue, on the ball fields of the former Cinnabar Elementary School. 8 units are reserved for extremely low-income households. The project moved under the state's builder's remedy because the application was filed in May 2023, before San Jose had a compliant housing element. The Union School District is exchanging the land for an income-producing asset. Board president Vickie Brown said the district is the lowest state-funded in Santa Clara County, and the exchange will generate over $1 million a year for the schools. The fields will be rebuilt at Dartmouth Middle School. The vote was 9-1, with Cohen recused under the Levine Act and Mahan absent.
   2. What this means for you: The project required a Statement of Overriding Considerations because it adds more car trips than the city's climate rules allow. Instead of paying roughly $2 million to offset those trips, the developer will build a new traffic signal at Camden Avenue and Singletree Way plus new crosswalks. The project is 100% electric. 41 trees will be removed.
3. The council split e-bike advocacy: push for safety rules, but don't restrict access
   1. The council adopted two memos on e-bike legislation. The Mahan-Candelas-Campos-Cohen-Kamei memo directs the city's lobbying team to push state regulators for speed limits, age requirements for riders, and accountability standards for manufacturers and users. The Foley memo adds two guardrails: don't take a supportive position on any bill that unduly restricts access to e-bikes as a transportation mode, and consult the Silicon Valley Bicycle Coalition and the city's Bicycle and Pedestrian Advisory Committee before formally backing or opposing e-bike bills. The combined direction passed 10-0.
   2. What this means for you: Councilmember Candelas said a 7th grader in his district died on an e-bike last month, wearing a helmet and riding on the sidewalk. The council's lobbying team will now apply a two-part test to every e-bike bill in Sacramento: does it improve safety, and does it preserve access for residents who rely on e-bikes to get to work, school, or transit
4. Police overtime hit $72 million last year, up 53% in five years
   1. The council accepted the city auditor's follow-up to its 2021 police staffing report. Overtime now accounts for nearly one-quarter of all sworn hours worked. 124 sworn staff each worked more than 1,000 hours of overtime in fiscal year 2024-25. Priority 1 response times averaged 8.1 minutes, exceeding the 6-minute target. The council also passed a memo from Mahan, Campos, Cohen, and Candelas directing the City Manager to add overtime-by-assignment-type metrics, a qualitative analysis of how recent overtime controls are working, and a progress report on a new report-writing technology tool. The vote was 10-0.
   2. What this means for you: The audit found that overtime was frequently spent on follow-up and report writing, often without required documentation or supervisory approval. The department updated those controls in February 2026. Walking beats have been cut citywide except in the downtown core. The county-funded San Jose TRUST mental health response vehicle ran out of funding before its year was up, and there is currently no dedicated San Jose TRUST vehicle.
5. A new 1.2-acre park will carry the name of a Chinese American businessman who tried to save Chinatown
   1. The council approved a master plan for a 1.2-acre neighborhood park at the terminus of Rinconada Drive, adjacent to Almaden Expressway. The council also adopted "Bill Kee Park" as its official name. The park is funded by Public Works Measure T Clean Water and helps the city comply with a San Francisco Baykeeper Consent Decree that requires green stormwater infrastructure investments by August 2026. It includes a 9,000-square-foot bioretention basin, play equipment, pollinator gardens, and a walking trail connecting Rinconada Drive and Pebble Beach Drive. Bill Kee managed the National Dollar Store in downtown San Jose from 1939 to 1947 and led a 1940s effort to save the Ng Shing Gung Temple, the last building of Heinlenville Chinatown. The city demolished it anyway. His 93-year-old daughter spoke at the meeting. The vote was 10-0.
   2. What this means for you: District 9 gets a new park on a parcel that previously sat undeveloped, along with a stormwater basin that helps the city meet an August 2026 federal consent decree deadline. The walking trail will give residents a new connection between Rinconada Drive and Pebble Beach Drive. Construction costs come from Public Works Measure T, not the parks budget.

What residents brought up

• Six public commenters objected to the affordable-housing rent flexibility item sitting on the consent calendar instead of going through the Housing and Community Development Commission. Commenters with Students for a Democratic Society at San Jose State and SEIU 521 said the policy could make permanent supportive housing unaffordable for current and prospective tenants. A daily outreach worker from the Jungle encampment said the change would discourage unhoused residents from pursuing permanent supportive housing placement.
• A District 3 resident chairing the city's Bicycle and Pedestrian Advisory Committee asked the council to spend SB 1 pavement funds on safety upgrades beyond asphalt, including plastic delineators and no-parking zones at intersections. He warned that AB 1557's 250-watt motor cap would make e-bikes harder to ride uphill. He also flagged Mineta Transportation Institute research showing 90% of "e-bikes" parked at 12 surveyed schools were actually unregulated electric motorcycles.
• Three residents raised police response time concerns. One reported a 7-hour wait for an officer. Another described police never responding to a stolen bike tracked by AirTag less than a mile from the Oakridge Mall precinct. A San Jose Downtown Association director said downtown depends heavily on overtime for regular policing.

Also happened

• Three lawsuit settlements cleared the council: Loessberg v. City of San Jose for $198,890, Villareal v. City of San Jose for $85,000, and Gradetech Inc. for $675,000.
• The Bay Area Urban Areas Security Initiative MOU was extended for up to four years.
• The construction contingency for the Milligan Parking Lot Project rose from 25% to 32%, adding $293,198 for a new total of $1,304,844.
• The Park Ranger Trainee PT hourly pay was set at $40.46 and the Community Programs Administrator salary range climbed to $117,769.60–$143,478.40, effective May 10, 2026.
• The 2026-2027 SB 1 pavement maintenance project list was adopted.
• The Janet Gray Hayes Rotunda was cleared for free use during Lick Observatory's 150th Anniversary Celebration on August 22, 2026.
• City Council Policy 1-16, the policy for issuing multifamily housing revenue bonds, was amended.

For any updates or corrections, please email steven@polisdesk.com