Earlier editions: 2026-09
Title 5 — HOUSING›Chapter 5.08 — INCLUSIONARY HOUSING
San Jose Municipal Code Part 2 Definitions
San Jose Municipal Code · 2026-10 edition · updated 2026-10-04 · San Jose
Cite as: San Jose Municipal Code Part 2 · Text as of 2026-10-04
5.08.100 - Definitions.¶
The definitions set forth in this Part shall govern the application and interpretation of this Chapter. Words and phrases not defined in this Part 2 shall be interpreted so as to give this Chapter its most reasonable application.
(Ord. 30538.)
5.08.105 - Affordable housing cost.¶
"Affordable Housing Cost" means the housing cost for Dwelling Units as defined by California Health & Safety Code section 50052.5 for owner-occupied housing and the affordable rent for rental units as defined by California Health & Safety Code section 50053, as applicable, except that: (a) the affordable rent for Moderate Income Rental Inclusionary Units that are located within the Market Rate Residential Development or provided pursuant to Section 5.08.590 shall be no more than thirty percent (30%) of one hundred ten percent (110%) of Area Median Income; (b) the affordable rent for Moderate Income Households in Rental Inclusionary Units that are not located upon the same site as the Market Rate Residential Development or Moderate Income Households in Rental Inclusionary Units that are located on the same site but are geographically concentrated shall be no more than thirty percent (30%) of one hundred ten percent (110%) of Area Median Income; (c) the affordable rent for Lower Income Households in a Rental Inclusionary Unit, as specified below, is either sixty percent (60%) of Area Median Income or eighty percent (80%) of Area Median Income; and (d) that the affordable rent for Dwelling Units that do not include private cooking and/or bathroom facilities shall be ninety percent (90%) of the otherwise applicable affordable rent for studio (0-bedroom) Dwelling Units.
(Ords. 30538, 31303.)
5.08.107 - Affordable housing developer.¶
"Affordable Housing Developer" shall mean an experienced developer of affordable housing developments in the City of San José meeting the criteria provided in the Inclusionary Housing Regulations.
(Ords. 30538, 31303.)
5.08.110 - Affordable housing development.¶
"Affordable Housing Development" means, for a rental Residential Development, a development that has a recorded affordability restriction that: (a) has a term of at least fifty-five (55) years; (b) limits the rental of all dwelling units except the manager's units, such that the rent of the restricted income units is in not excess of Affordable Housing Cost for Lower Income Households at thirty percent (30%) of eighty percent (80%) of the Area Median Income or as otherwise restricted at a substantially similar level as allowed under the Inclusionary Housing Regulations; (c) restricts at least ten percent (10%) of the units to very low income households at incomes up to fifty percent (50%) of Area Median Income; and (d) is made for the benefit of and enforceable by the City, Santa Clara County or a State or Federal Agency. "Affordable Housing Development" means, for a for-sale Residential Development, a development that has a recorded affordability restriction with a term of at least forty-five (45) years that limits the sale of all dwelling units to households with an income not exceeding one hundred ten percent (110%) of the Area Median Income at a price not exceeding Affordable Housing Cost and is made for the benefit of and enforceable by the City, Santa Clara County or a State or Federal Agency.
(Ords. 30538, 31303.)
5.08.115 - Affordable housing siting policy.¶
"Affordable Housing Siting Policy" means the collective goals and policies in the General Plan housing element and other policies adopted by the City Council (as may be amended or supplemented from time to time) to encourage the siting of affordable housing throughout all areas of the City of San José in order to provide greater opportunities to lower income households, and encourage racial and economic integration. The Inclusionary Housing Regulations will provide information on the application of the policy.
(Ords. 30538, 31303.)
5.08.120 - Affordable housing plan.¶
"Affordable Housing Plan" means a plan containing all of the information specified in and submitted in conformance with Section 5.08.610 of this Chapter specifying the manner in which Inclusionary Units will be provided in conformance with this Chapter and the Inclusionary Housing Regulations, and consistent with the San José General Plan and Title 20 of the San José Municipal Code.
(Ords. 30538, 31303.)
5.08.125 - Applicant.¶
"Applicant" or "Developer" means a person, persons, or entity that applies for a Residential Development and also includes the owner or owners of the property if the Applicant does not own the property on which development is proposed.
(Ord. 30538.)
5.08.130 - Area median income.¶
"Area Median Income" or "AMI" means the annual median income for Santa Clara County, adjusted for household size, as published periodically in the California Code of Regulations, Title 25, Section 6932, or its successor provision, or as established by the City of San José in the event that such median income figures are no longer published periodically in the California Code of Regulations.
(Ord. 30538.)
5.08.135 - Building permit.¶
The term "Building Permit" includes full structural building permits as well as partial permits such as foundation-only permits.
(Ord. 30538.)
5.08.140 - City manager.¶
"City Manager" means the City Manager of the City of San José or his or her designee.
(Ord. 30538.)
5.08.145 - Certificate of occupancy.¶
"Certificate of Occupancy" is the permit issued by the San José Building Division authorizing the initial occupancy of a residential unit, including a temporary certificate of occupancy.
(Ord. 30538.)
5.08.150 - Common ownership or control.¶
"Common Ownership or Control" refers to property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member, or family member of an investor of the entity owns ten percent (10%) or more of the interest in the property.
(Ord. 30538.)
5.08.155 - Construction phase.¶
"Construction Phase" means either:
A. The area included within one City approved tentative subdivision map for Residential Development where a single final map implements the entire approved tentative map;
B. The area included within each separate final map for Residential Development where multiple final maps implement the entire approved tentative map; or
C. An area designated as a Construction Phase in an approved Affordable Housing Plan.
(Ord. 30538.)
5.08.160 - Contiguous property.¶
"Contiguous Property" means any parcel of land that is:
A. Touching another parcel at any point;
B. Separated from another parcel at any point only by a public right-of-way, private street or way, or public or private utility, service, or access easement; or
C. Separated from another parcel only by other real property of the Applicant which is not subject to the requirements of this Chapter at the time of the Planning Permit application by the Applicant.
(Ord. 30538.)
5.08.165 - Deemed substantially complete.¶
"Deemed Substantially Complete" is a term that applies to an application for a specific land use entitlement or entitlements that is requested by the Applicant and in accordance with Title 20 (Zoning) and Title 21 (Environmental Clearance) herein, and means that such application:
A. Accurately includes all data required on the appropriate Planning Permit checklist that is utilized upon the date of receipt of the application;
B. Is duly executed by the Applicant or the Applicant's authorized representative;
C. Includes the full payment of all required fees;
D. Includes an accurate and complete application for environmental clearance; and
E. Includes the Affordable Housing Plan required by Section 5.08.610 A.
(Ord. 30538.)
5.08.170 - Density bonus units.¶
"Density Bonus Units" means those additional Dwelling Units approved in a Residential Development pursuant to California Government Code section 65915 et seq. that are in excess of the maximum residential density otherwise permitted by the San José General Plan.
(Ord. 30538.)
5.08.175 - Dwelling unit.¶
"Dwelling Unit" shall have the definition given for dwellings in Section 20.200.320, Section 20.200.330, and Section 20.200.340 of Chapter 20.200 of Title 20 of the San José Municipal Code and shall also include any type of dwelling allowed under Title 20 of the San José Municipal Code, except dwellings expressly excluded under the Inclusionary Housing Regulations.
(Ords. 30538, 31303.)
5.08.180 - Extremely low income household.¶
"Extremely Low Income Household" shall have the definition given in California Health & Safety Code section 50106.
(Ord. 30538.)
5.08.185 - First approval.¶
"First Approval" means the first of the following approvals to occur with respect to a Residential Development: development agreement, zoning, rezoning, pre-zoning, annexation, planned development permit, tentative map, parcel map, conditional use permit, special use permit, or building permit.
(Ords. 30538, 31303.)
5.08.190 - For-sale.¶
"For-Sale" means and refers to any separately conveyable Dwelling Unit, including a condominium, stock cooperative, community apartment, or attached or detached single-family home, for which a parcel or tentative and final map is required for the lawful subdivision of the parcel upon which the Dwelling Unit is located or for the creation of the unit in accordance with the Subdivision Map Act (California Government Code section 66410 et seq.) after compliance with the applicable requirements of the Subdivided Lands Act (California Business and Professions Code section 11000 et seq.) listed in the Inclusionary Housing Regulations or any Residential Development including such For-Sale Dwelling Units.
(Ords. 30538, 31303.)
5.08.192 - Inclusionary fee fund.¶
"Inclusionary Fee Fund" means a fund or account designated by the City to maintain and account for all monies received pursuant to this Chapter.
(Ord. 30538.)
5.08.195 - Inclusionary housing agreement.¶
"Inclusionary Housing Agreement" means an agreement or agreements in conformance with Section 5.08.600 of this Chapter between the City and an Applicant, governing how the Applicant shall comply with this Chapter.
(Ord. 30538.)
5.08.200 - Inclusionary housing guidelines.¶
"Inclusionary Housing Regulations" means the requirements for implementation and administration of this Chapter adopted by the City Manager, pursuant to Section 5.08.730 A of this Chapter.
(Ords. 30538, 31303.)
5.08.205 - Inclusionary unit.¶
"Inclusionary Unit" means a Dwelling Unit required by this Chapter to be affordable to extremely low, very low, lower, or moderate income households.
(Ord. 30538.)
5.08.210 - Lower income household.¶
"Lower Income Household" shall have the definition given in California Health & Safety Code section 50079.5.
(Ord. 30538.)
5.08.212 - Market area.¶
"Market Area" means a specific geographic area designated through the adoption by the City Council of a resolution or policy.
(Ord. 30538.)
5.08.215 - Market rate unit.¶
"Market Rate Unit" means a new Dwelling Unit in a Residential Development that is not an Inclusionary Unit as defined by Section 5.08.205.
(Ord. 30538.)
5.08.220 - Moderate income household.¶
"Moderate Income Household" shall have the definition given in California Health & Safety Code section 50093(b), except that for the purposes of moderate income rental Inclusionary Units that are located upon the same site as the Market Rate Residential Development rental units, "Moderate Income Household" means a household earning no more than one hundred ten percent (110%) of Area Median Income and for the purposes of moderate income rental Inclusionary Units that are not located upon the same site as the Market Rate Residential Development rental units or are geographically concentrated except as allowed under Section 5.08.590, Partnership for Clustered Units, "Moderate Income Household" means a household earning no more than one hundred percent (110%) of Area Median Income.
(Ords. 30538, 31303.)
5.08.222 - Moderate market area.¶
"Moderate Market Area" means a Market Area or other geographical area designated by or pursuant to a City Council resolution or policy based on findings, including findings regarding residential building activity levels for market rate housing.
(Ord. 30538.)
5.08.225 - Operative date.¶
"Operative Date" shall have the definition given in Section 5.08.300.
(Ord. 30538.)
5.08.227 - Opportunity area.¶
"Opportunity Area" means a geographic area designated by or pursuant to a resolution or policy adopted by the City Council.
(Ord. 30538.)
5.08.230 - Physical needs assessment.¶
"Physical Needs Assessment" means a report by a qualified housing professional identifying those items that are necessary repairs, replacements and maintenance at the time of the assessment or that will likely require repair or replacement within three (3) years of the assessment, and the estimated cost of all such items, which repair replacement and maintenance must be completed prior to the approval of the unit as an Inclusionary Unit. For the purposes of this Section, a "qualified housing professional" is a Physical Needs Assessment firm that is approved for that purpose by the California Housing Finance Agency, or as may otherwise be approved as qualified pursuant to criteria in the Inclusionary Housing Regulations.
(Ords. 30538, 31303.)
5.08.235 - Planning permit.¶
"Planning Permit" means a tentative map, parcel map, conditional use permit, site development permit, planned development permit, development agreement, or special use permit, or any discretionary or nondiscretionary approvals excluding general plan amendments, zoning and rezoning, annexation, specific plans, and area development policies.
(Ords. 30538, 31303.)
5.08.240 - Redevelopment project area.¶
"Redevelopment Project Area" means any area designated as a Redevelopment Project Area by the Council of the City of José pursuant to the provisions of the Community Redevelopment Law in California Health & Safety Code section 33000 et seq.
(Ord. 30538.)
5.08.245 - Rental.¶
"Rental" means and refers to a Dwelling Unit that is not a For-Sale Dwelling Unit, and does not include any Dwelling Unit, whether offered for rental or sale, that may be sold separately from any other Dwelling Unit as a result of the lawful subdivision of the parcel upon which the Dwelling Unit is located or creation of the unit in accordance with the Subdivision Map Act (California Government Code section 66410 et seq.), or any Residential Development including such Rental Dwelling Units.
(Ord. 30538.)
5.08.250 - Residential development.¶
"Residential Development" means any project requiring a Planning Permit or Building Permit for which an application has been submitted to the City, and where the Residential Development:
A. Would create twenty (20) or more new, additional, or modified Dwelling Units by:
The construction or alteration of structures,
The conversion of a use to residential from any other use, or
The conversion of a use to For-Sale residential from Rental residential use.
B. Is contiguous to property under Common Ownership or Control where the combined residential capacity of all of the Applicant's property pursuant to the General Plan designation or zoning at the time of the Planning Permit application for the Residential Development is ten (10) or more residential units.
(Ords. 30538, 31303.)
5.08.253 - Strong market areas.¶
"Strong Market Area" means a Market Area or other geographical area that designated by or pursuant to a City Council resolution or policy based on findings, including findings regarding residential building activity levels for market rate housing.
(Ord. 30538.)
5.08.255 - Surplus inclusionary unit.¶
"Surplus Inclusionary Unit" means any Inclusionary Unit constructed in connection with Residential Development without any City subsidy which exceeds the numerical requirement for Inclusionary Units for that Residential Development pursuant to this Chapter and satisfies all other requirements in the Inclusionary Housing Regulations.
(Ords. 30538, 31303.)
5.08.260 - Unit type.¶
"Unit Type" means any form of dwelling described in Section 20.200.320, Section 20.200.330, or Section 20.200.340, or any other section of Chapter 20.200 of Title 20 of the San José Municipal Code or in state law.
(Ord. 30538.)
5.08.265 - Utilities.¶
"Utilities" means garbage collection, sewer, water, electricity, gas and other heating, cooling, cooking and refrigeration fuels.
(Ord. 30538.)
5.08.270 - Very low income household.¶
"Very Low Income Household" means a household earning no more than the amount defined by California Health & Safety Code section 50105.
(Ord. 30538.)
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