Nearly one year after enacting a policy aimed at speeding up approvals for large-scale infill housing developments, San José has approved its first project under the new rules, cutting the permitting time by more than half.
The city has greenlit Holland Partner Group’s proposal to build a 540-unit mixed-use development at 3896 Stevens Creek Blvd, replacing six commercial buildings on the 4.72-acre lot.
While the average review time for multi-family housing projects that proceed to a planning director’s hearing is about 20 months, Holland Partner Group’s approval took eight months.
“It takes longer to get a permit to build housing in California than it does for a couple to bring new life into the world,” Mayor Matt Mahan said in a news release. “That’s absurd — and it’s why we’re moving faster. If we don’t fix this now, our kids will grow up with the exact same housing crisis we’re struggling with today. In San José, we’re removing barriers, streamlining approvals, and showing the rest of the state the path forward — because delaying change means denying the next generation a chance at homeownership.”
As part of its approved housing element, San José must plan for 62,200 new units by 2031.
But the city has struggled to keep pace — issuing permits for only a few thousand units and failing to start any market-rate multi-family developments with more than 20 units in 2024 — primarily due to high development costs. This prompted the city to propose new policies to help get shovels into the ground.
Along with turning to different incentive programs to make projects pencil, the city also has pursued policies to cut some of the red tape that has made development so onerous.
The streamlined process approved last year removes the need for public hearings and the California Environmental Quality Act review process for infill projects that meet all objective standards.
The minimum qualifying criteria require projects to have a density of at least 40 units per acre, be located in growth areas, such as planned urban villages, and be near transit.
Projects with planned development zoning, within the airport area and within 300 feet of a creek or 100 feet of a city landmark are not eligible for the fastracked review.
“The City’s Planning, Building and Code Enforcement Department continues to implement policies and process improvements for development services, creating a responsive and more efficient experience for applicants,” City Manager Jennifer Maguire said. “This effort contributes directly to the City Council Focus Area of Building More Housing and supports the City’s commitment to sustainable growth and development.”
Holland Partner Group’s project includes two eight-story buildings with approximately 60,000 square feet of common open space, podium parking, and approximately 13,678 square feet of retail space.
The first building, located on the western end of Saratoga Avenue, contains 264 units, including 11 studios and 177 one-bedroom and 76 two-bedroom apartments. The second building, located at the corner of Stevens Creek Boulevard and Northlake Drive, will contain 276 units, including 21 studios, 163 one-bedroom and 92 two-bedroom apartments.
While the vast majority of the units are market-rate, 27 apartments will be available to households at 50% of the area median income.
“We are excited to bring more vibrancy to the Stevens Creek corridor,” Holland development project manager Alden Smith said. “The City’s streamlined approval process gave us the confidence to invest at a higher density and deliver a project that meets the needs of the growing city. This partnership shows what can happen when the public and private sectors work together toward a shared vision.”