Local zoning · San Jose

San Jose — Overlay Districts

Overlay Districts under the San Jose local zoning and planning code, with the controlling citations.

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Last reviewed: July 2, 2026

Overview

Overlay districts in San José are special zoning layers that sit on top of the underlying zoning and change allowable uses, densities, or development standards for parcels mapped in the Envision San José 2040 General Plan and the Zoning District Map. The City’s overlay rules live in Title 20 (Zoning), primarily Chapter 20.65, and they must be read together with the underlying district standards and other Title 20 provisions (for example parking and development standards) when preparing projects. See the City overview for context at San Jose zoning & planning overview. § 20.65.010

Important: where an overlay applies, projects may only use the standards and allowed uses that the overlay authorizes for that mapped site; many overlays explicitly defer to the underlying zoning for setbacks or to other Title 20 chapters for parking or open space. § 20.65.010

How Chapter 20.65 is organized (short)

Chapter 20.65 establishes the overlay districts, defines terms, requires regulatory agreements in many cases, and contains five mapped overlay types: TERO (Transit Employment Residential Overlay), AHO (Affordable Housing Overlay), MIHO (Mixed‑Income Housing Overlay), HERO (Housing Element Residential Overlay), and the Neighborhood Business District (NBD) Overlay (with subareas for Willow Glen, Japantown (Taylor Street only), and North 13th Street). Each Part includes purpose, applicability (where it applies), affordable‑housing or other project requirements, and development standards. See § 20.65.010 – § 20.65.280 for the chapter and part breakdown.

District-by-district breakdown

TERO — Transit Employment Residential Overlay

  • Purpose: The TERO overlay encourages residential and commercial development in parts of North San José intended to support nearby industrial employment centers. § 20.65.040
  • Where it applies: Sites identified with the Transit Employment Residential Overlay on the General Plan Land Use/Transportation Diagram and the Zoning District Map. § 20.65.050
  • Typical permitted uses: Residential and supporting commercial uses consistent with the overlay and the underlying zone; specific allowed uses will follow the overlay’s use list and the underlying district. § 20.65.060
  • Key dimensional / program standards (decision‑relevant):
    • Minimum lot area (mixed use): 6,000 sq. ft. (but mixed‑use allowed with no minimum or maximum FAR in some categories). § 20.65.060
    • Residential density: 75–250 DU/AC for 100% residential range listed in the table for North San José overlays. § 20.65.060
    • Maximum building height: up to 270 ft (where table applies). § 20.65.060
    • Setbacks: Front maximum 10 ft; Side/Rea r minimum 10 ft or as indicated; many notes defer to Section 20.55.102 for common/private open space and detailed setback rules. § 20.65.060
  • Notes: Parking and lighting reference Chapter 20.90 and Section 20.55.103 for open space/parking specifics. Verify applicable North San José urban design standards and Citywide Design Standards for ground‑floor commercial frontage and other details. § 20.65.060

AHO — Affordable Housing Overlay

  • Purpose: The AHO overlay targets sites in North San José appropriate for development of 100% affordable housing, subject to chapter requirements. § 20.65.070
  • Where it applies: Mapped AHO parcels in the General Plan / Zoning District Map. § 20.65.080
  • Typical permitted uses: Residential developments composed of 100% affordable units (rental or for‑sale) as required by the overlay; underlying nonresidential uses are not the primary intent. § 20.65.090
  • Key dimensional / program standards:
    • Min lot area (mixed use): 6,000 sq. ft. for certain mixed use standards (table). § 20.65.100
    • Residential density: 75–250 DU/AC range and max height up to 270 ft in the table for North San José overlay standards. § 20.65.100
    • Setbacks: front maximum 10 ft and side/rear minimum 10 ft in many North San José overlay tables (also refers to 20.55.102). § 20.65.100
  • Application timing / process: Projects must comply with the Chapter’s regulatory agreement requirement and may be eligible for local ministerial approval under Chapter 20.195 (ministerial approval for qualifying housing projects). § 20.65.110

MIHO — Mixed‑Income Housing Overlay

  • Purpose: The MIHO overlay supports mixed‑income residential development in North San José, encouraging a mix of affordable and market units. § 20.65.120
  • Where it applies: Sites mapped as MIHO in the General Plan and Zoning District Map. § 20.65.130
  • Typical permitted uses: Residential development with an affordability requirement (see below), plus supporting commercial where allowed. § 20.65.140 – § 20.65.150
  • Key requirements / standards:
    • Affordable unit requirement: 25% of units must be affordable (rental or for sale), consistent with the chapter’s Affordable Housing rules. No permit shall be issued without inclusion of required affordable units. § 20.65.140
    • Min lot area (mixed use): 6,000 sq. ft.; 100% residential density 75–250 DU/AC; max height 270 ft in North San José tables. § 20.65.150
    • Setback rules and ground floor commercial frontage requirements reference North San José Urban Design Guidelines and Citywide Design Standards; setbacks often defer to Section 20.55.102. § 20.65.150
    • Timing: Ministerial paths are available for projects that meet the overlay’s affordability and timing conditions (e.g., affordable units built concurrently or first). § 20.65.140

HERO — Housing Element Residential Overlay

  • Purpose: The HERO overlay identifies Housing Element sites where residential development is allowed by right if the project provides a minimum affordable set‑aside. § 20.65.180
  • Where it applies: Mapped HERO sites on the Zoning District Map (tied to the City’s housing element). § 20.65.190
  • Key requirements:
    • Mandatory affordable set‑aside: Projects must include at least 20% of units affordable to Lower Income Households; where met, residential uses may be allowed by right and eligible for ministerial approval under Chapter 20.195. § 20.65.200 – § 20.65.230
    • Minimum density: Housing developments must allow a minimum of 30 DU/AC. § 20.65.200
    • Allowed uses and standards otherwise follow the underlying zoning district unless the overlay specifies otherwise. § 20.65.210

Neighborhood Business District (NBD) Overlay — Willow Glen, Japantown, North 13th Street

  • Purpose: Recognize and preserve commercial corridors and neighborhood identity in small commercial districts. § 20.65.240
  • Where it applies: Specific mapped areas — Willow Glen, Japantown (Taylor St—only), North 13th Street (see Zoning District Map). § 20.65.250
  • Typical permitted uses: Mixed commercial/residential uses tailored to neighborhood character. Detailed allowed uses and standards are provided in Tables for each NBD subarea. § 20.65.260–20.65.280
  • Key standards (examples from tables):
    • Willow Glen: Mixed use allowed, no minimum or maximum FAR in some cases; Max residential density: 50 DU/AC (sites <1.5 ac); Max height: 50–65 ft depending on site area; commercial frontage and minimum street frontage/ground‑floor commercial rules apply when adjacent to primary street frontages. Setbacks follow the underlying zoning. § 20.65.260
    • North 13th Street: Max residential density 50 DU/AC; Max height 50 ft; ground floor commercial continuity requirements along primary street. § 20.65.280

Downtown overlays (Ground Floor Active Use Area Overlay — AUA)

  • The Downtown regulations (Chapter 20.70) establish additional overlays within downtown, including the Ground Floor Active Use Area Overlay (AUA) which applies within parts of the DC zoning district to require active ground floor uses in mapped areas. § 20.70.020; § 20.70.520

Quick reference table — selected decision‑relevant standards

Overlay / Topic Most decision‑relevant standard(s) Code Reference
TERO Mixed‑use min lot 6,000 sq.ft.; 75–250 DU/AC; max height 270 ft; setbacks generally 10 ft front / 10 ft side/rear references § 20.65.060
AHO 100% affordable units required; 75–250 DU/AC; max height 270 ft; 6,000 sq.ft. min lot for mixed use § 20.65.090 – § 20.65.100
MIHO 25% affordable units required; 75–250 DU/AC; 6,000 sq.ft. min mixed‑use lot § 20.65.140 – § 20.65.150
HERO 20% affordable set‑aside; minimum 30 DU/AC; right‑to‑ministerial approval if requirements met § 20.65.200 – § 20.65.230
NBD — Willow Glen Max 50 DU/AC (<1.5 ac), max height 50–65 ft, ground floor commercial frontage requirements along primary streets § 20.65.260
Parking and loading Overlays generally defer to Chapter 20.90 for parking and loading; see overlay tables referencing Section 20.55.103 and Chapter 20.90 § 20.65.060; § 20.65.100; § 20.65.150

Practical guidance & comparisons (plain‑English synthesis)

  • Where an overlay is mapped, its numeric and programmatic controls (density floor/ceiling, required affordable percentage, and special frontage or open‑space rules) can supersede or refine the underlying zoning for matters the overlay addresses — but most overlays explicitly state that setback regulations, parking, and some open‑space rules continue to be governed by the underlying Title 20 chapters unless the overlay table says otherwise. Verify with § 20.65.010 and the specific overlay part. § 20.65.010; § 20.65.100
  • Affordable‑housing overlays (AHO, MIHO, HERO) carry mandatory affordability and timing rules (e.g., 100% in AHO; 25% in MIHO; 20% in HERO) and may require regulatory agreements prior to approval. These affordability obligations frequently are prerequisites to ministerial approval routes. § 20.65.090; § 20.65.140; § 20.65.200; § 20.65.030
  • For projects in North San José overlays, expect to coordinate with the North San José Urban Design Guidelines and applicable Citywide Design Standards (ground‑floor commercial standards called out in overlay tables). When an overlay table refers you to a different Title 20 section (for example 20.55.102, 20.55.103) or to Chapter 20.90 for parking, you must pull those rules into your application package. § 20.65.060; § 20.65.150
  • Design and frontage obligations in the Neighborhood Business District overlays are prescriptive about continuity of commercial frontages on primary streets; where commercial frontage is required, the overlay will specify frontage percentage and design standards to meet Citywide Design Standards. § 20.65.260; § 20.65.270; § 20.65.280

Useful cross‑references you will likely need during plan preparation: San Jose Development Standards, San Jose Parking, San Jose Design Review, San Jose ADUs, and the California Building Standards Code (Title 24).

Checklist (what an applicant must satisfy when an overlay applies)

  • Confirm whether the subject parcel is mapped in an overlay on the Zoning District Map / Envision San José 2040 General Plan (Verify mapping). § 20.65.050; § 20.65.080; § 20.65.130; § 20.65.190
  • Confirm whether the overlay imposes mandatory affordability (AHO/MIHO/HERO) and the exact percentage, affordability term, and timing requirements; prepare regulatory agreement if required. § 20.65.090; § 20.65.140; § 20.65.200; § 20.65.030
  • Pull the overlay’s development standard table (height, density, lot area, setbacks) for inclusion in the project narrative; if the table refers to another Title 20 section, include those provisions (for example 20.55.102/103 for open space and parking rules). § 20.65.060; § 20.65.100; § 20.65.150
  • Demonstrate compliance with parking and loading requirements from Chapter 20.90 and note any overlay references that alter parking obligations. § 20.65.060; § 20.65.100
  • If required by the overlay or referenced design standards, show conformance with North San José Urban Design Guidelines and Citywide Design Standards (ground‑floor requirements). § 20.65.150; § 20.65.260
  • Determine permit pathway (ministerial under Chapter 20.195 vs discretionary) and attach regulatory agreement to proposed permit as required by the overlay. § 20.65.110; § 20.65.230; § 20.65.030

Risks & Ambiguities

Issue Why it matters What to verify
Overlay mapping vs parcel lines An overlay only applies where mapped; an incorrect map interpretation can change required affordability or allowable uses Confirm parcel overlay mapping on the Zoning District Map and General Plan diagram; verify with Planning staff. § 20.65.050
Which standards control (overlay vs underlying) Overlays sometimes override only certain items (density/affordability) and defer to underlying code for setbacks, parking, etc. Read the overlay table notes and cross‑check § 20.65.010 and the overlay’s “Overlay regulations and development standards” part; where ambiguous, “Verify with the jurisdiction.” § 20.65.010
Affordable‑housing timing conditions MIHO/HERO may require affordable units constructed first or concurrent, which affects financing/timing Confirm the timing triggers in § 20.65.140 and related application timing sections; include regulatory agreement terms. § 20.65.140; § 20.65.230
Ground‑floor commercial continuity NBD overlays mandate frontage percentages in some locations; unclear frontage requirement affects program Pull the specific NBD table (Willow Glen / Japantown / North 13th) and Citywide Design Standards; confirm primary street definitions. § 20.65.260; § 20.65.270; § 20.65.280
Ministerial approval eligibility Projects that meet overlay affordability thresholds may be eligible for ministerial approval, but only if all overlay conditions are met Confirm ministerial pathway reference in overlay application sections and Chapter 20.195; verify whether any discretionary exceptions are needed. § 20.65.110; § 20.65.230

Plain‑English Summary

If your San José parcel sits inside a mapped overlay (TERO, AHO, MIHO, HERO, or an NBD overlay), the overlay adds or changes what you must provide — typically density floors/ceilings, required affordable percentages, and special frontage or design rules — and may permit a ministerial (by‑right) approval only if you meet the overlay’s affordability and timing rules; read Chapter 20.65 and the overlay’s specific part before sizing a project and preparing parking, setback, and design responses. § 20.65.010 – § 20.65.280

Source References

  • § 20.65.010 – 20.65.030 (Chapter intro, definitions, regulatory agreement for overlays) — San José Zoning (Title 20).
  • § 20.65.040 – 20.65.060 (TERO Transit Employment Residential Overlay: purpose, applicability, standards) — Title 20.
  • § 20.65.070 – 20.65.110 (AHO Affordable Housing Overlay: purpose, applicability, 100% affordable rules) — Title 20.
  • § 20.65.120 – 20.65.170 (MIHO Mixed‑Income Housing Overlay: purpose, 25% affordability, standards) — Title 20.
  • § 20.65.180 – 20.65.230 (HERO Housing Element Residential Overlay: 20% set‑aside, 30 DU/AC minimum) — Title 20.
  • § 20.65.240 – 20.65.280 (Neighborhood Business District Overlay — Willow Glen, Japantown, North 13th Street tables and notes) — Title 20.
  • Downtown overlays and AUA references: Chapter 20.70; § 20.70.020; § 20.70.520.

Sources

Retrieved passages

  • San Jose Zoning Code (chapter establishes) High relevance
  • San Jose Zoning Code (Title 20) High relevance
  • San Jose Zoning Code (Section 65583.2) High relevance
  • San Jose Zoning Code (Chapter 20.65) High relevance
  • San Jose Zoning Code (§ 20.65.260) High relevance
  • San Jose Zoning Code (§ 20.65.170) High relevance
  • San Jose Zoning Code (Chapter 20.65) High relevance
  • San Jose Zoning Code (Section 20.55.102) Medium relevance

Cited sections

Frequently asked questions

What does it mean if my lot is in the TERO overlay in San José?

If your lot is in the TERO overlay it means the parcel is mapped for Transit Employment Residential development in North San José and your project must follow the overlay’s allowed uses and tables (density 75–250 DU/AC, possible heights up to 270 ft, mixed‑use minimum lot references). Setbacks and parking often reference other Title 20 sections, so pull the full TERO table and referenced sections. § 20.65.040 – § 20.65.060

Can an AHO parcel be developed for market‑rate housing?

No — the AHO overlay requires 100% affordable units for a residential development on an AHO parcel; the overlay is specifically intended for deed‑restricted affordable housing and the overlay’s application requirements and regulatory agreement must be satisfied. § 20.65.070 – § 20.65.100

If my project meets the HERO affordability percentage, do I get a ministerial approval?

Potentially yes — the HERO overlay allows residential uses by right for housing developments in which at least 20% of units are affordable to lower income households, and ministerial approval may be available under Chapter 20.195 if the project includes the required affordable units; you must still meet any other overlay conditions (e.g., minimum density 30 DU/AC) and the regulatory agreement requirement. § 20.65.180 – § 20.65.230

Do the overlays change parking requirements for my project?

Usually overlays either reference or defer to the City’s parking chapter; most North San José overlay tables refer applicants to Section 20.55.103 and Chapter 20.90 for parking/loading requirements, so you must calculate parking under Title 20’s parking chapter unless the overlay expressly changes the standard. § 20.65.060; § 20.65.100; § 20.65.150

Where do I find the setback and open‑space rules the overlay references?

Many overlay tables say “Setback regulations shall follow the underlying Zoning District” or refer to Section 20.55.102 for common/private open space rules; that means you must read the overlay table together with underlying district setback rules and the referenced Section 20.55.102. If the overlay specifies a different setback, the overlay’s table controls for that item. § 20.65.100; § 20.65.260

What are the Neighborhood Business District overlay commercial frontage requirements?

NBD overlays (Willow Glen, Japantown Taylor St, North 13th) include ground‑floor commercial continuity requirements — for example, where properties abut existing commercial frontages the overlay may require commercial frontage along at least 60% of the primary street frontage and compliance with Citywide Design Standards for ground‑floor spaces. Check the specific NBD table for your subarea. § 20.65.260; § 20.65.280

Do overlay affordable units count toward San José’s inclusionary housing obligations?

Yes — units constructed under the Housing Element Residential Overlay (HERO) may count toward fulfilling the City’s inclusionary housing requirements where the overlay and Chapter 5.08 align; review the overlay’s compliance language and Chapter 5.08. § 20.65.220

If an overlay is silent about ADUs, do ADU rules still apply?

Not found in retrieved materials specifically for overlays vs ADUs. In general, accessory dwelling units remain governed by the City and State ADU rules; verify any overlay‑specific restrictions and cross‑check San José ADUs and California ADU law before assuming ADU permissibility. Verify with the jurisdiction. Not found in retrieved materials

Does Downtown have its own overlays separate from Chapter 20.65?

Yes — Downtown has its own overlay(s) within Chapter 20.70, including the Ground Floor Active Use Area Overlay (AUA) that applies within mapped areas of the DC Downtown Primary Commercial district and imposes ground‑floor active use requirements; consult § 20.70.020 and § 20.70.520. § 20.70.020; § 20.70.520

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