On behalf of The Silicon Valley Organization (The SVO),  we are writing to urge the Council to adopt a 1-for-1 replacement policy of rent-controlled units for new residential projects under the Ellis Act. By way of background, The SVO is the Silicon Valley’s premier business advocacy organization representing nearly 1,200 companies that employ over 300,000 workers, and we represent our membership as the region’s largest Chamber of Commerce.

Any revisions to the Ellis Act re-control rules should preserve the existing supply of rent-controlled housing units, while avoiding unnecessary policies that would make residential projects infeasible for redevelopment opportunities. The city’s existing 50% re-control rules on new construction projects makes it extremely difficult for housing developers to obtain adequate financing to increase the city’s housing stock. The key to solving the housing crisis is to significantly accelerate housing production at all income levels – we must do everything we can to remove impediments to housing and the Council must not impose a 50% re-control rule that would be counterproductive to the city’s housing production goals.

According to a recent staff report on the Housing Crisis Work Plan, an average of 2,800 residential units were built between 2010 and 2017. There simply is not enough housing production to tackle the housing affordability crisis head-on. Furthermore, we are aware that the Housing Department is floating a proposal to exempt the 50% re-control provisions, but only for new residential projects that generate at least 7 times the number of original units on the existing site. Many small sites will be unable to meet this density requirement and this policy proposal essentially supports the status quo by denying redevelopment opportunities. By amending the Ellis Act re-control provisions to strictly a 1-for-1 replacement rule, we can remove obstacles to construction and start encouraging residential development that will address housing affordability in the region.

In closing, we strongly urge the Council to exempt new residential construction from the Ellis Act 50% re-control provisions.


More Posts

You Might Also Like

Public Policy & Advocacy
Accountability & Better Government Reforms – Rules Committee Agenda Item G.9
San José is the 10th largest city in the United States, yet it is stuck in the 1980’s with a management structure more suited for small cities. In times of crisis, we need government to be nimble, responsive, and accountable to the community for results and to bring local government into the 21st century. As we face the greatest series of crises in our lifetime – a global pandemic and the deepest economic recession since the great recession – we must have the people’s choice, an elected Accountable Mayor, be directly responsible for the city.
Jun 23, 2020
The Silicon Valley Organization
COVID 19 Resource Center
San Jose Al Fresco: Things to Know Before Setting Up Outside!
As of June 5th, San Jose Al Fresco is in full swing allowing businesses to utilize sidewalks to conduct business during shelter-in-place. The City of San Jose is now accepting applications, and it's FREE to apply! Once your application is submitted, you will be able to start utilizing the space in front of your business immediately, as long as you meet the terms and conditions described in the application. We put together some simple FAQ's about how you can participate in San Jose Al Fresco, and all the thing you need to know before applying!
Jun 16, 2020
The Silicon Valley Organization
Press Releases
Southwest Launches Sale, Extends Open Middle Seat, And Adds Health Declaration For Customers
Southwest announced their plans to keep middle seats open through at least September 30, reinforced its face mask policy and added another layer of confidence for travelers by requiring Customers to complete a Health Declaration prior to traveling. As Customers begin to travel again, Southwest also launched a sale offering low domestic fares starting at $49 one-way to select destinations today through June 18, 2020, 11:59 p.m., CDT.
Jun 16, 2020
Southwest Airlines
Press Releases
The Silicon Valley Organization Grieves Loss of Karolyn Kirchgesler
The Silicon Valley Organization (The SVO), along with our friends at Team San Jose and the community at large, are mourning the recent passing of Karolyn Kirchgesler.
Jun 15, 2020
The Silicon Valley Organization
COVID 19 Resource Center
FAQs: Reopening your business after shelter-in-place featuring Berliner Cohen
Q&A's from SVO member, Berliner Cohen's 6/3/2020 presentation
Jun 15, 2020
The Silicon Valley Organization
COVID 19 Resource Center
FAQs: You’ve Got Your PPP Funds… Now What? featuring PP&Co
Q&A's from SVO member, PP&Co's 6/10/2020 presentation
Jun 15, 2020
The Silicon Valley Organization
Explore ALl Posts
Follow Us

We’re on Instagram