San José Approves First Housing Project Under Streamlined Permitting Rules, Cutting Approval Time in Half
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San José is demonstrating a significant shift in its approach to housing development, recently approving its first large-scale infill project under new policies designed to accelerate the permitting process. The Holland Partner Group’s 540-unit mixed-use development at 3896 Stevens Creek Blvd. received approval in just eight months – a more than 60% reduction compared to the city’s 20-month average for similar projects.
Addressing a Critical Housing Shortage
The approval marks a key milestone in San José’s efforts to address a severe housing shortage. As part of its approved housing element, the city is tasked with planning for 62,200 new units by 2031. However, progress has been slow, with only a few thousand permits issued and a complete standstill in the commencement of market-rate multi-family developments exceeding 20 units in 2024, largely due to escalating development costs.
“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,” said Mayor Matt Mahan in a recent statement. “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.”
Streamlining the Process for Infill Development
The city’s new approach focuses on streamlining approvals for infill housing developments – projects built on vacant or underutilized land within existing urban areas. The revised process, enacted last year, eliminates the requirement for public hearings and removes the need for review under the California Environmental Quality Act (CEQA) for projects that meet specific, objective standards.
To qualify for the expedited review, projects must adhere to several criteria: a density of at least 40 units per acre, location within designated growth areas like planned urban villages, and proximity to public transit. Certain zoning designations – including planned development areas, proximity to the airport, and locations near creeks or city landmarks – disqualify projects from the fast-tracked process.
Details of the Holland Partner Group Project
The Holland Partner Group’s development will replace six existing commercial buildings on a 4.72-acre lot. The project will consist of two eight-story buildings, encompassing approximately 60,000 square feet of common open space, podium parking, and 13,678 square feet of retail space.
The first building, situated on Saratoga Avenue, will house 264 units, including 11 studios, 177 one-bedroom apartments, and 76 two-bedroom apartments. The second building, located at the intersection of Stevens Creek Boulevard and Northlake Drive, will contain 276 units, comprised of 21 studios, 163 one-bedroom apartments, and 92 two-bedroom apartments. While the majority of the units will be market-rate, 27 apartments will be designated for households earning 50% of the area median income.
A Collaborative Approach to Housing Solutions
The expedited approval process has been lauded by developers. “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,” stated Alden Smith, Holland development project manager. “This partnership shows what can happen when the public and private sectors work together toward a shared vision.”
City Manager Jennifer Maguire emphasized the city’s commitment to ongoing improvements. “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,” she 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.”
San José’s move signals a broader effort to overcome regulatory hurdles and accelerate housing production, offering a potential model for other cities grappling with similar challenges.
