San Jose Races to Exempt Areas From New California Housing Law – SB 79

by Chief Editor

San Jose officials are working to exempt portions of the city from the provisions of a new California law designed to increase housing density near public transit. Senate Bill 79, signed into law in October, is set to take effect statewide in July.

SB 79 and San Jose’s Response

Senator Scott Wiener’s SB 79 aims to encourage denser housing construction around transit hubs. In San Jose, the law would apply to approximately 40,000 parcels, potentially increasing height and density limits for new residential buildings.

Did You Know? San Jose officials began lobbying Sacramento during the drafting of SB 79 to secure an exemption for industrial land.

While some city leaders welcome the potential for increased housing, others express concern over the impact on San Jose’s existing character and local control. Vice Mayor Pam Foley stated, “This is a mess. It’s a mess what it’s going to do potentially to our community,” and added she “really dislike[s] when local control is taken away from city council.”

City officials have identified six areas for potential exemption: North San Jose, Old Edenvale, Monterey Business Corridor, East Gish, Mabury, and Berryessa International Business Park. They also plan to seek an exemption for parcels lacking direct walking paths to transit stops and are reviewing the law’s implications for historic properties.

Economic Concerns and Varied Impacts

A key concern for city leaders is the potential impact on the city’s tax base. Mayor Matt Mahan noted that employment-designated land currently comprises around 13% of San Jose, and preserving this land is “vital for good high-paying jobs.”

Analysis by the Department of Planning, Building, and Code Enforcement suggests the impact of SB 79 will vary across the city. Around the Berryessa BART Station, existing zoning already allows for density comparable to what SB 79 would require. However, the Snell Station area could see a more than tenfold increase in allowable housing, rising from roughly 3,200 homes to 37,000.

Expert Insight: The city’s attempt to carve out exemptions from a state law highlights the ongoing tension between state-level efforts to address housing shortages and local control over land use planning. This situation is common as California cities grapple with implementing new housing mandates.

Despite the city’s efforts to secure exemptions, some housing advocates believe the proposed exclusions are too broad. Land use consultant Erik Schoennauer suggested a “more surgical approach,” arguing that some parcels in North San Jose could benefit from the increased density allowed by SB 79.

Mayor Mahan indicated the possibility of refining the exemptions after the initial implementation, acknowledging that “We are in a race against the clock and need to get this right.”

Frequently Asked Questions

What is Senate Bill 79?

Senate Bill 79, signed into law in October, aims to encourage denser housing construction around transit hubs throughout California.

Which areas of San Jose are being considered for exemption?

Six areas are currently being considered for exemption: North San Jose, Old Edenvale, Monterey Business Corridor, East Gish, Mabury, and Berryessa International Business Park.

What is the deadline for San Jose to certify its exemptions?

San Jose must certify its exemptions with state authorities before July 1, when SB 79 officially takes effect.

As San Jose navigates these complex considerations, what balance will the city strike between state mandates, local control, and the need for increased housing options?

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