San Jose leaders and developers are touting the benefits of a multifamily housing incentive program, crediting it with helping the city address the shortage of homes and challenging market conditions as a new urban village project breaks ground in North San Jose at the site of the former Sakuaye Family Farm.
With high interest rates, skyrocketing construction costs and high development fees bringing the housing market to a halt, San Jose officials implemented a new tool last year that waived in-lieu fees and 50% of construction taxes that stopped developers from putting shovels in the ground for projects that had submitted complete applications by June 2022 and received a building permit by the end of December 2025.
The Hanover Co.’s development, Coyote Creek Village, will eventually bring 18,965 square feet of commercial space and 1,472 housing units, the first batch of which are expected to come online in 2027…