Councilmember Ortiz’s memo proposing scaled development fees, fee deferrals referred to workload analysis

Council Member Ortiz introduced a joint memo asking the Rules & Open Government Committee to place on a future City Council agenda three strategies intended to reduce barriers to housing development in San Jose: a scaled development-fee framework tied to project characteristics, deferral of development impact and public-works off-site fees until certificate of occupancy, and aligning notices of funding availability with the state's business cycle for affordable housing developers.

Ortiz said the proposals "came directly out of the cost of development study session" and argued the strategies would not waive fees but would improve cash flow and feasibility by allowing payment at certificate of occupancy rather than at entitlement or permit issuance. Ortiz asked for committee support to place the memo on a future council agenda.

During public comment, Blair Beekman called the proposals "really interesting" and wished the committee luck. Jean Dresden, identifying herself as a park advocate, warned of consequences for park funding if fees are deferred, noting that "park fees are already discounted to the 2017 land value" and that deferral "lowers their value when collected even years later," urging staff to provide a full report and to consider fees that might not be collected if projects enter bankruptcy.

Vice Mayor Foley moved to refer the memo to a workload analysis; staff estimated the analysis would be completed in "a week or two." Chair Cohen, a co-author on the memo, said the proposals offered concrete steps after repeated conversations about affordability. The committee voted to refer the memo to workload analysis, and the referral carried 5-0.

Next steps: staff will perform the workload analysis and return the findings to Rules for additional consideration before the item is placed on a City Council agenda.