Commencing Thursday, May 22, 2018 the San Jose Housing Department is taking a proposed set of Ellis Act amendments to the Housing and Community Development Commission that will codify strict provisions for the conversion of obsolete and dilapidated apartments to new homes. The amendments could make conversions of obsolete rental housing stock virtually impossible by imposing the City’s 5% annual cap rent control on the greater of either 50% of new apartments built or the total number of old apartments demolished. Additionally, all net new units would come under a 10% rent control cap. The builder would be allowed take an exemption from this requirement only by building up to 20% affordable units onsite (in addition to the 15% Inclusionary Housing Ordinance requirement.) The schedule for the Ellis Act Amendments has the City Council taking this issue up at its April 24, 2018 meeting. To read the Staff Report on the Ellis Act Amendments click here.
