Spending Plan Approved for Multi-Million Dollar Property Tax Measure in San Jose

The real property transfer tax will tax the transfer of properties valued over $2 million if it passes

NBCUniversal, Inc.

San Jose lawmakers on Tuesday approved a spending plan for a multi-million dollar home tax that will be on voters' March 2020 ballot.

In the spending plan announced Tuesday, San Jose Mayor Sam Liccardo said the city will see up to $70 million per year in cash for affordable housing if voters approve the upcoming ballot measure.

The real property transfer tax will tax the transfer of properties valued over $2 million if it passes.

The plan allocates about 45 percent of the possible tax revenue for permanent and affordable rental housing for residents making less than 30 percent of the area median income. About 35 percent will go toward earners making 30 to 80 percent of AMI, and 10 percent for homelessness prevention and rental help for homeless students, victims of domestic violence, seniors and families.

About 10 percent would be available for people looking to buy below-market rate housing or those looking for moderate-income rental housing who make up to 120 percent of AMI.

Part of the same 10 percent may be used for forgivable loans for rent-restricted accessory dwelling units, down payment assistance and to help first-time homebuyers who earn up to 120 percent of AMI.

The spending plan passed the council by a majority vote, with just councilmembers Sergio Jimenez and Johnny Khamis dissenting.

Jimenez said Tuesday he would not be supporting the spending proposal because it doesn't include significant language specific to spending on interim housing solutions like tiny homes for transitional housing or a navigation center with additional shelter beds for unhoused people.

Copyright BAYCN - Bay City News
Contact Us