Downtown High-Rise Program

High-rise residential projects located in the Downtown Planned Growth Area, as defined in the City’s General Plan, are eligible for certain fee reductions through the City’s Downtown High Rise Residential Program. In November 2022, the City Council approved an extension of the program reflected in the description below.

Construction taxes: Downtown high-rise projects obtaining a building permit by June 30, 2025 and obtaining certificate of occupancy by June 30, 2029 are eligible for a 50% reduction in both the Building and Structures (B&S) Tax and the Commercial, Residential, Mobile Home Park Construction Tax (CRMP) and a deferral of payment until the scheduling of final inspection for Certificate of Occupancy. For more information about the City’s residential construction taxes please visit the Development Construction Taxes webpage. 

Inclusionary Housing Ordinance (IHO) In Lieu Fee: The IHO In Lieu Fee for Downtown high-rise is reduced to $0 for residential high-rise projects that obtain a building permit by June 30, 2025, and receive a certificate of occupancy by June 30, 2029. See the chart below. For more information on the IHO please visit the Ordinances and Fees Programs webpage.   

Parks Fees: While not a part of the Downtown High Rise Residential Program, high rise projects in the Downtown Core are subject to a separate parks fee category specific to downtown high-rises. For more information visit the Developer Impact Parkland Program webpage.   

Residential projects interested in this program should contact the Office of Economic Development & Cultural Affairs, please email Jerad Ferguson at jerad.ferguson@sanjoseca.gov.

Further Background and Documentation

City Council Documents:

November 15, 2022 - City Council Memorandum on Downtown Residential High-Rise Program 

Additional Memorandum from Councilmembers Cohen and Jimenez  

Additional Memorandum from Councilmember Cohen (approved by Council) 

September 19, 2019 -  City Council Memorandum on Downtown High Rise Program Including Third Party Feasibility Analysis

November 5, 2019 – City Council Memorandum on Downtown High Rise Construction Tax Reduction and Affordable Housing Impact Fee Exemption 

Affordable Housing Impact Fee Resolution 

Construction Tax Reduction Ordinance 

November 5, 2019 – City Council Memorandum on Downtown Residential High Rise Inclusionary Housing Ordinance Fee 

August 18, 2020 City Council Memorandum on Downtown High Rise Inclusionary Housing Ordinance In Lieu Fee Reduction 

Inclusionary Housing Ordinance Resolution (a) 

Inclusionary Housing Ordinance Resolution (b)

City Council Memo, September 26, 2022: PUBLIC HEARING AND APPROVAL OF A DOWNTOWN HIGH-RISE RESIDENTIAL TAX AND FEE WAIVER FOR SCAPE AT 10 EAST REED STREET

Projects Approved for current High Rise Residential Program:  

27 West – 27 S. 1st Street 

The Carlysle – 51 Notre Dame Street