Loophole Leaves San Jose’s Housing Plans in Disarray San Jose, CA – San Jose’s failure to create a state-approved housing plan has resulted in a major setback for the city’s housing projects. One of the first projects affected is the development on the San Jose Flea Market site, which is now set to be scaled back by several thousand homes. Originally, the project was approved for nearly 3,500 residential units as part of a high-density, transit-oriented development near the BART station. However, the developer has now decided to reduce the project size to just 940 units. This change comes as a consequence of the city’s failure to comply with state requirements, which could allow the state to force San Jose to approve housing projects that do not align with the city’s general plan, known as the builder’s remedy. San Jose City Councilmember David Cohen, who represents District 4 where the project is located, has voiced his concerns about the revision. He believes that the changes undermine the original plan for the south portion of the project to be the high-density anchor. Cohen argues that the billions of taxpayer dollars invested in the BART station were meant to serve a “common public good,” which is now being compromised. Erik Schoennauer, a consultant representing the Bumb family who owns the flea market land, emphasized the agreement reached with the San Jose Flea Market vendors. Under the new proposal, the family has committed to providing $5 million in financial support to help the vendors transition to a smaller site. Schoennauer also pointed out that the decision to change the development was driven by economic factors. The lack of demand for office space in the area, compounded by the impact of the COVID-19 pandemic, made the previous project financially unfeasible. The new plan maintains the same themes and acreage for an urban mixed-use environment near the BART station. San Jose’s housing crisis has been exacerbated by the city’s failure to meet housing deadlines and provide a detailed plan for adding 62,000 homes by 2031. The builder’s remedy, which allows projects to move forward without council discretion, has been a cause for concern for council members like Cohen. While the council does not have the power to reject projects filed within the appropriate timelines, they can make the development process more challenging through inspections and other requirements. Bob Staedler, a principal at Silicon Valley Synergy, a land use and development consulting firm, expressed his skepticism about the builder’s remedy. He believes that although it may lead to projects being sold, it does not guarantee that they will actually be built. Staedler also mentioned that this situation is just one of many challenges that San Jose is facing in its pursuit of housing solutions. As San Jose grapples with the consequences of the housing loophole, it is essential for the city to work towards a strategic and comprehensive housing plan that meets the needs of its residents. Failure to do so will only perpetuate the housing crisis and deprive the city of much-needed housing units, jobs, and urban amenities.