Habitat for Humanity has been renovating the historic Pallesen Apartments building, now located at the corner of Fourth and Reed streets, and will sell the condominiums to first-time buyers when the rehabilitation is complete in August. The 115-year-old building — comprised of four, 1,100 square-foot two-bedroom condos — will have a new foundation and roof, as well as new flooring, cabinets, bathrooms, appliances and more. The restoration costs about $2.6 million. Scape San Jose LLC, the previous owner, donated the building to Habitat for Humanity.

The homes are targeted for low-income families — households making up to 80% of the area median income or less than $159,550 for a family of four — and very low-income families making between 30% to 50% of the area median income, or less than $100,450 for a family of four.

The families will not be required to make a down payment. San Jose is providing $250,000 in down payment assistance, or $62,500 per condo, to lower the sales price of the homes through Measure E funds.

The condos are valued between $510,000 and $620,000, but families will pay a monthly mortgage rate of no more than 35% of their income. Monthly payments will be between $2,000 to $2,800, depending on income, and will be a fixed rate over 30 years. These payments include insurance and maintenance fees. If the family decides to move out before the home is paid off, the nonprofit will buy back the property and sell it to another low-income family.

The building has a deed restriction to remain affordable for the next 99 years, Ben Grubb, the nonprofit’s project manager, said.

“The idea is that housing can be a thing that you no longer have to worry about,” Grubb told San José Spotlight. “The difference between affordable home ownership versus affordable rental is that you’re not (just) changing the lives of two or three people. You’re changing the lives of 4, 10, 12, 24 people over the course of many years.”

Renovations were supposed to be complete by 2023, but delays in getting funding for construction pushed back the timeline, Grubb said. Santa Clara County provided $1 million in Measure A funds, a $950 million affordable housing bond approved by voters in 2016. The project also received loans from the Housing Trust Silicon Valley and Google.

The building, a Mission Revival-style fourplex built in 1910, was saved from demolition a few years ago when downtown residents and the Preservation Action Council of San Jose successfully raised $300,000 to move it to the corner of Fourth and Reed streets. The historic building was going to be knocked down to make way for a high-rise, mixed-use project in 2021.
Prior to the move, the building sat at 14 E. Reed Street for more than 100 years. It was home to Danish immigrants, who rented the rooms to local working class people. Although the house is on San Jose’s historic inventory list, it has to be part of the national registry to avoid being demolished.

“We’re trying to save neighborhoods,” Mike Sodergren, board president of the Preservation Action Council, told San José Spotlight. “We’re also trying to preserve architecture that reflects the cultural identity. When we do this, it preserves a unique sense of place.”

Contact Joyce Chu at joyce@sanjosespotlight.com or @joyce_speaks on X. 

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Sridhar Kollareddy, owner of Silicon Valley Granite, has more time to move thousands of heavy granite slabs out of his shop after talking with VTA Tuesday about an extension to vacate the business. Kollareddy was supposed to be locked out of his San Jose business at 125 N. 30th St. last week, with only days to move per a court order siding with VTA. The transit agency will use the property for the second phase of its BART expansion project under eminent domain, a legal practice giving government entities the authority to force owners to sell properties when needed for public projects.

Kollareddy is still working out the moving timeline with VTA. The extension came after San José Spotlight first reported the situation and more than 1,000 people signed an online petition supporting the small business owner. It will likely save Kollareddy millions of dollars in inventory he would have lost if the site had been locked as planned.

Kollareddy said he’s glad the discussion has been favorable to his business after worrying he’d lose much of the business he poured his life savings into after immigrating from India decades ago.  He’s in the process of leasing a new space for somewhere between $30,000 to $40,000 a month.

“At least they’re not going to kick me out tomorrow,” he told San José Spotlight. “At least they’re willing to talk and they’re in a positive mood.”

A VTA spokesperson said the transit agency couldn’t legally comment on the situation.

The agreement is the latest in a yearslong dispute between Kollareddy and the public transit agency over a BART expansion that will connect services to Silicon Valley.

Kollareddy said he’s supported the project since he first learned about it, but VTA has gone back and forth with him on needed moving time and compensation. A VTA spokesperson said the agency informed businesses they may have to move in 2020 and Kollareddy agreed to a March 2024 moving deadline. VTA extended that deadline to this April after Kollareddy struggled to find a new lease he could afford.

Kollareddy’s business isn’t the only one affected. VTA’s eminent domain legal action, which began in 2021, is already displacing numerous downtown San Jose businesses to make way for ventilation systems and an emergency exit from the BART tunnels.
Kollareddy is moving slabs every day and doesn’t plan to close the business right after the move. But now he can focus on his nearby retirement and potential return to India. He said it’s a relief he doesn’t have to worry about moving his business in an impossible amount of time.

“(I’m feeling) definitely much better than last week,” he said. “So I hope everything comes out nice.”

Contact Annalise Freimarck at annalise@sanjosespotlight.com or follow @annalise_ellen on X.

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The single mom and 93 other families will likely be forced to move by June 2026, so Foothill-De Anza Community College District can convert the apartments into 332 affordable student beds at 7918 McClellan Road — even though Biswas is a De Anza College student transferring in the fall.

“We moved here thinking we would complete my son’s high school, so it was a surprise and it was disappointing because then the worry set in, like what are we going to do?” she told San José Spotlight. “Where are we going to move?”

The Cupertino City Council voted 3-2 Tuesday to have staff study ways to prevent the $65.6 million sale and conversion of Prometheus Real Estate Group’s property, to encourage the community college district to build affordable housing on campus or use a hotel for temporary affordable stays instead. Councilmembers Sheila Mohan and J.R. Fruen voted no. The impending July sale has ignited a dispute between Cupertino and the college district in a city with no affordable student housing and limited reasonably-priced apartments.

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Cupertino renters might lose their homes to student housing. Find out more at SanJoseSpotlight.com. #cupertino #siliconvalley #localnews #bayarea #affordablehousing

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Mayor Liang Chao is concerned about the conversion displacing approximately 60 children who live in the complex and attend or will attend Cupertino schools. She said when voters approved Measure G — an $898 million bond measure passed in 2020 to be partially used for affordable student housing — many didn’t envision displacing Cupertino residents. She added the community college district has not met the city at the table.

“The district let the time pass and failed to plan for new housing in the past five years,” Chao said at the meeting. “We are losing naturally affordable housing with this kind of conversion. The district has failed to engage the stakeholders before they make decisions.”

The community college district’s board of trustees unanimously approved pursuing the purchase on Monday, seeing it as the best option to quickly help housing-insecure students. The district will pay for existing residents’ relocation costs in collaboration with Prometheus, which a spokesperson said will incentivize “McClellan Terrace residents to consider relocation options at one of our other Cupertino properties.”

Board President Peter Landsberger said affordable student housing has taken years because the community college district had to thoroughly consider all options, including new construction. He said the district doesn’t have much land to build on and converting a hotel would be difficult because there are no kitchens in the rooms. De Anza College’s campus sits on 112 acres.

Landsberger said the district was ready to discuss the sale with the city despite not being legally obligated to, but there was miscommunication.

“We’re dealing with the division of scarce resources here, and you know, we completely understand the frustration of the current residents, particularly those who’ve been in the facility for a very long time,” he told San José Spotlight. “That’s why we’re adamant about treating them fairly and respectfully and ensuring that they’ve got ample notice.”

The council discussed imposing a temporary ban on converting existing multifamily housing into student housing within a half-mile radius of De Anza College, but took no action.

Fruen said the sale is the best-case scenario for a difficult situation with the inevitable sale. He said if the college deal falls through residents could be left without moving help. Fruen added the city’s lack of housing exacerbates the issue.

“We’ve created this problem through four to five decades of obstruction of new housing construction in the city,” he told San José Spotlight. “They’re helping to solve our problem, not the other way around.”

The issue has divided residents and students who both need affordable housing in well-heeled Cupertino. The city’s rent is approximately 92% higher than the national average at $3,550 a month compared to $1,850, according to Zillow.
Jacob Kau, a first-year De Anza College student studying data science, said his first priority when he enrolled was finding affordable housing. He doesn’t have a car, and needs housing close to campus so he can walk or bike since the area has limited public transportation. He couldn’t find affordable housing in the city and is scraping by.

“Being a full-time student and taking a part-time job is very hard, so I’m trying to juggle with work, life and sustaining myself,” Kau told San José Spotlight.

Biswas said she understands the need for affordable student housing as someone seeking a business degree. But she wants the district to find a solution that doesn’t displace her and her children, leaving them scrambling for housing after the toll of divorce.

“This is the first time that they’ve felt at home and we’ve settled in (since the divorce),” she told San José Spotlight. “I just kinda feel bad to disrupt that whole thing again because it’s been emotionally a lot for all of us.”

Contact Annalise Freimarck at annalise@sanjosespotlight.com or follow @annalise_ellen on X.

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The Santa Clara County Superior Court issued a court order Monday stating Kollareddy must vacate the site at 125 N. 30th St. by Wednesday. The order also ruled inventory left after Wednesday will be deemed “abandoned,” meaning Kollareddy isn’t entitled to compensation for potentially millions of dollars of inventory he can’t move in time.

The order is part of VTA’s right to use eminent domain to take over Kollareddy’s site for the second phase of its BART expansion. Eminent domain gives government entities the authority to force owners to sell properties when needed for public projects. The project will connect BART services to Silicon Valley, an expansion decades in the making with ballooning budget costs.

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Sridhar Kollareddy’s business, Silicon Valley Granite, has sold the slabs across the Bay Area for 20 years from his San Jose facility. But now, he’s being forced to vacate the property in less than 72 hours to make way for a yearslong transit project. Learn more at SanJoseSpotlight.com

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Kollareddy’s business is caught in the crosshairs, located where the 28th Street and Little Portugal station is planned. He supports the project and was ready to leave after settling for moving costs and other expenses. He said VTA went back and forth for years on the settlement, and in early April offered to cover moving costs if he was out in three weeks. Kollareddy said he was hit with the court order, without the settlement money, after he requested at least 90 working days to move his inventory.

Kollareddy said he’s been looking for a new site since last year, but has been unable to find one he can afford.

“They want to just throw me out on the street,” Kollareddy told San José Spotlight. “This is all my life savings.”

A VTA spokesperson disputed Kollareddy’s claims, saying the public transit agency informed businesses they may have to move in 2020, and Silicon Valley Granite agreed to move out by March 2024. The spokesperson said VTA extended the moving deadline to this April 30 and Silicon Valley Granite agreed to that date. They added VTA does not discuss settlement negotiations.

“The business owner was given two separate deadlines, beginning almost two years in advance, and chose not to leave the property or file for relocation reimbursement,” the spokesperson told San José Spotlight.

The order states the Santa Clara County Sheriff’s Office will evict Kollareddy if he doesn’t comply. Sgt. Russell Davis, spokesperson for the sheriff’s office, said the office hasn’t received notice of a court-ordered eviction yet, but will have to comply with it if it does.

“We remain committed to handling all enforcement actions with professionalism and respect,” he told San José Spotlight.

VTA’s eminent domain legal action, which began in 2021, is displacing numerous downtown San Jose businesses to make way for ventilation systems and an emergency exit from the BART tunnels.

Kollareddy wants to fight the decision — but is unsure how much he can do as a small business owner against a large transit agency. Kollareddy and his lawyer, Glenn Block, plan to file an appeal against the court order this week.
For now, Kolareddy has gathered as much help as possible to move the heavy granite slabs. He said he brought his business to the U.S. from India to share his passion, not earn money, and he’s shocked VTA can do this.

“The little bit I can do, I’m trying to move. I don’t know what to do,” he said. “I never thought this was going to happen in this country.”

Story updated April 30 at 4:16 p.m. Original story published April 30 at 4 p.m.

Contact Annalise Freimarck at annalise@sanjosespotlight.com or follow @annalise_ellen on X.

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While Assemblymember Ash Kalra successfully advocated for his “Affordable Rent Act” proposal Thursday at the state Housing and Community Development Committee, further discussions with the Judiciary Committee led Kalra to withdraw the proposal Tuesday. Also known as Assembly Bill 1157, Kalra’s bill would permanently lower the existing rent control and cost-of-living rate in California from a 15% maximum increase per year, to a 7% maximum increase for tenants. Assemblymember Alex Lee, who also represents parts of San Jose, co-authored the bill, among other state lawmakers.

“I am grateful my colleagues on the Assembly Housing Committee acknowledged the pressing need to take action to support tenants statewide and stabilize the rental market,” Kalra said in a statement. “However, the robust debate coupled with subsequent discussions with Judiciary Committee members signaled more time is needed to work on the bill.”

Kalra said AB 1157 will become a two-year bill — meaning it can be continued to be discussed and considered into next year.

The California Apartment Association has been at the forefront of opposition to AB 1157, including groups such as the California Chamber of Commerce and California Mortgage Bankers Association, according to an April 1 letter shared with San José Spotlight by Mike Nemeth, spokesperson for the California Apartment Association.

“During (Thursday’s) committee debate, assembly members acknowledged the severe housing affordability crisis but remained divided on whether AB 1157 provided an appropriate solution,” he said. “The discussion centered on balancing immediate tenant stability against concerns that stricter rent caps could hinder housing production.”

Kalra said landlord interest groups like the California Apartment Association are trying to create the perception of widespread opposition to the bill in an effort to stir up division.

“If you look at the list of those opposed to my bill, they’re all apartment or realtors associations, but we have the support of renters and over 150 organizations statewide,” Kalra told San José Spotlight before he withdrew the bill. “(Thursday’s action) is a reflection that my legislative colleagues understand more needs to be done to protect California renters.”

Local affordable housing advocates, who asked not to be named for fear of retaliation, said their respective organizations have been hesitant to take a position on the Affordable Rent Act because they suspected the bill would be withdrawn early in the legislative process — as it was Tuesday.

Many landlords in San Jose who rent to low-income tenants don’t even raise rents high enough to be affected by the Affordable Rent Act, they said, since these renters are on a fixed incomes.

AB 1157 would update the Tenant Protection Act of 2019, extending tenant protections to single-family homes and making these safeguards permanent. Existing tenant protections provide some safety against extreme rent hikes and unfair evictions. The topic of rent control has been debated in the state, with California voters rejecting a ballot measure to expand rent control last year. San Jose Mayor Matt Mahan also threw his opposition at the proposal.

The Rev. Rae Chen Huang, senior organizer for the Housing Now! Coalition, said their group of statewide advocacy organizations support Kalra’s bill. She said opponents of the bill are recycling the same talking points from the Tenant Protection Act discussions during COVID-19. Chen Huang said mobilizing support early and fast is key.

“The state has only put 0.5% of its budget toward housing and homelessness … yet (Speaker of the Assembly) Robert Rivas said housing is the biggest human rights issue of our time,” she told San José Spotlight. “It’s amazing that a lot of our elected (officials) are not necessarily working to make that a reality in our state, especially when we are considered a progressive democratic state.”

As the San Francisco Standard recently reported the California Apartment Association hired gig workers to speak in opposition to rent control measures, Chen Huang said detractors of the bill are using heavy-handed tactics to get their messages across.

Kalra said even at Thursday’s Housing and Community Development Committee hearing, some people looked like they didn’t exactly know what they were doing there.

“I can’t speak to whether folk are being paid or not, that’s a different conversation for others to have — I just know that the people that showed up in support reflect the real pain that California renters are feeling,” Kalra told San José Spotlight.
Michelle Pariset, legislative affairs director for Public Advocates, said landlord-interest groups and big developers have almost unlimited resources to fund not only opposition campaigns to squash the bill, but the politicians behind them as well.

“Beyond the tech market, real estate is among the richest industries in California, and we have to impress upon state legislators how hard it is to pay the rent,” she told San José Spotlight. “What we saw, particularly over the course of the pandemic, inflation was bonkers and every year rent was going up 10% consistently. No one’s wages are going up that fast.”

Contact Vicente Vera at vicente@sanjosespotlight.com or follow @VicenteJVera on X.

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About nine veterans were relocated from 10 Kirk Ave. in February to a hotel in Milpitas while Santa Clara County works on interior renovations in two buildings. Some of the relocated veterans worry they may not be allowed to return once the work is completed in June, or that the conditions to return won’t suit their needs, since they’ve received conflicting information from Abode Services, the nonprofit managing the site. Veterans said Abode workers recently told them they could return to the facility, but would have to sign a one-year lease and pay for their own internet and meals — things they didn’t previously need to pay for.

Despite that, veterans said Abode workers have been pushing them to find their own housing.

“They are doing everything they can to make it as uncomfortable as possible to stay (at 10 Kirk Ave.),” one veteran, who requested anonymity for fear of retaliation, told San José Spotlight. “I feel like I’m stuck between a rock and a hard place because I can’t afford to be on my own.”

Santa Clara County purchased the 4.26-acre facility in November 2023 for $14.5 million and began repairing the dilapidated building, which had mold, electrical hazards and sewage issues, among other problems. The county has done some major repairs, including fixing fire sprinklers and repairing electrical systems, but some veterans still lived in moldy conditions until they moved to the hotel. A few veterans have been allowed to remain onsite and moved to a different building.

Abode took over providing services for the veterans at 10 Kirk Ave. last October after the Veterans Administration terminated the contract with the previous nonprofit when it didn’t meet the VA’s standards.

But in order for Abode to receive a contract with the VA, which typically funds veterans services, the facility needed to pass a building inspection first. The VA recently cleared three of the buildings in the facility, including the two being renovated, and will activate the contract with Abode after a final review, a VA spokesperson told San José Spotlight.

Until then, the county is continuing to fund services and hotel stays for the vets, and has committed more than $1.5 million since last year from its contingency reserve fund until the end of June.

Deputy County Executive Consuelo Hernández said once the VA signs off on the contract, it will enable the county to accept new veterans at 10 Kirk Ave. But Hernández and Abode haven’t provided clear answers as to whether the veterans staying at the hotel can return if they can’t find housing elsewhere.

“I cannot speak about individual clients, but the county is committed to ensuring every veteran has the support that they need,” Hernández told San José Spotlight.

Hernández said Abode is working with each veteran to explore housing options. Abode referred questions back to the county.

One veteran wanted to stay at 10 Kirk Ave. during the renovation, but said Abode didn’t give him an option. The complex is made up of eight, single-story buildings with about 10 rooms per structure, but only one building is habitable. Approximately 15 veterans lived there before some moved to the hotel.

Hernández said there are limitations as to how many people can stay there because of the VA’s policy of keeping men and women in separate spaces.

County workers have stepped in to help some veterans staying at the hotel find housing. Veteran Carl Koprek said someone from the county Office of Supportive Housing accompanied him to see different apartments. He was able to find an apartment in the Santa Cruz mountains, after much searching and anxiety. He will move there in May.

“(The county) did me good,” Koprek told San José Spotlight.
Renovations for the two buildings include replacing floors, interior lighting, toilets, doors and windows and repainting the walls. Once the work is finished, the property will be able to give about 40 veterans temporary housing. The county also has a long-term plan to build permanent housing for vets there.

“We owe our veterans the very best care that we can provide,” Otto Lee, president of the Santa Clara County Board of Supervisors, told San José Spotlight. “We’re now in phase two of facility maintenance and repairs, and I’m hopeful that we will be on track to open units next year for veterans in urgent need of housing.”

Contact Joyce Chu at joyce@sanjosespotlight.com or @joyce_speaks on X.

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Campbell launched an express backyard home permit process this month that shortens approval time to a week or less — the fastest in Santa Clara County where approvals can average between two to three months. The city is accepting two qualifying applications a week for backyard homes, known as accessory dwelling units (ADUs). The city has achieved the speedy process by prioritizing and processing ADU applications separately with dedicated planners.

Projects that don’t qualify for the expedited process include ADUs on properties with historic homes, sites with code violations and granny flats bigger than 800 square feet attached to existing houses in the Campbell Village and San Tomas neighborhoods.

Community Development Director Rob Eastwood said the process aims to make it easier to build ADUs in Campbell, creating more housing options in a city that doesn’t have much space for new development. He wants it to be a model for other jurisdictions.

“We’re trying to do everything we can to get more housing on the market,” Eastwood told San José Spotlight. “These are very popular and kind of an easy way for homeowners just to put secondary homes on their property. Why not just do everything we can can to push them through as fast as possible?”

Redwood City-based Samara is the first company to use the new process. Sam Pratt, vice president of construction, said the company submitted plans and received city approval in four days.

“An expedited timeline and simplified application process are game-changers for homeowners looking to build ADUs on their properties without delays,” he told San José Spotlight. “We’re committed to helping homeowners navigate the complexities of ADU construction, and this program is a key part of making that journey faster and easier in Campbell.”

The speedy approvals are aided by another recent tool, Community Planning Collaborative’s ADU plans gallery. The gallery gives homeowners interested in backyard homes access to pre-approved plans in 10 municipalities countywide. The gallery was implemented this winter to comply with Assembly Bill 1332, a state law requiring local jurisdictions to have a pre-approval process for ADU plans and an online tool connecting homeowners with designers by 2025.

The process helps Campbell’s housing goals. The city must build at least 2,977 homes, 1,186 of which must be deemed affordable to low-income residents, by 2031 to meet state requirements. Campbell approved 70 granny flats last year, according to city data.

Alan Zisser, planning commissioner and housing advocate, said ADUs might not tackle that number as much as an affordable apartment complex, but are still valuable under Campbell’s holistic approach to housing.

“ADUs are one piece of it — a small piece of it — but every little bit helps,” he told San José Spotlight.

Neighboring cities have also focused on making their permitting process easier. Last July, the San Jose City Council unanimously approved streamlining its energy approval process for ADUs. San Jose has issued thousands of permits since launching its pre-approval process in 2019, but Campbell’s new timeframe is faster.

Campbell Councilmember Elliot Scozzola supports the city’s efforts to get rid of housing barriers.

“Residents deciding to build an ADU are a key factor in helping to meet the housing needs of our community and so I’m really excited about Campbell cutting unnecessary bureaucracy to accelerate development,” he told San José Spotlight.

Contact Annalise Freimarck at annalise@sanjosespotlight.com or follow @annalise_ellen on X.

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The San Jose City Council voted unanimously April 8 to restore home equity shares for residents who bought homes under the city’s defunct First-Time Homebuyer Loan Program. The 1990s-era program saw low-income homeowners make deals with the city to trade down payment assistance funds for a cut of the future home sale profits. As a result of Tuesday’s vote, more than 400 first-time homebuyers who participated in the program will go from owning 70% of their home’s equity to 85%. This will translate into an unexpected profit boost for homeowners if they decide to sell.

According to more than one dozen loans due to the city this year, San Jose homeowners can regain an average of $48,600 in home equity.

Mayor Matt Mahan described the equity increase as an opportunity for longtime homeowners in the program to have a bigger nest egg for retirement funds. He said the homes must be preserved as affordable, also known as deed restricted, for at least 30 years — even if a homebuyer sells before the 30-year period ends. About 93% of loan borrowers won’t reach the 30-year period until after 2030.

“When somebody living in this home decides they want to leave for something else. They’re ready to sell, they have this asset and we are significantly capping their upside — their equity,” Mahan said at the meeting. “Are we better off just keeping these units deed restricted and capping how much they can sell them for? Or uncapping them and giving families a nice retirement nest egg?”

Erik Soliván, director of the city housing department, said they recommended increasing the equity share for homeowners to make up for the loss in potential profits from having to sell their home at a fixed affordable housing rate.

“At the end of the 30-year period, the affordability restriction (ends),” he said at the meeting. “If a homeowner chooses to sell during the 30-year period, they have to sell at the affordable rate.”

Mahan said the city stands to earn tens of millions of dollars in home equity shares if the affordability restrictions were eliminated, as homeowners would be able to sell at more profitable market-rate prices.

“We could use (that) to build what we really need, which is more supply of affordable housing,” he said.

Soliván said most low-income program participants aren’t likely to sell because they may be priced out of San Jose. If city leaders wanted to eliminate the affordability restriction for the homes, he said they would have to vote on that separately.

“Even if they were to max out their total values, given how small the units are, given how old the units are, you’re looking at maybe $700,000 or $800,000. Does that buy you back into San Jose? Maybe,” Soliván said. “If we were to design a homebuyer program today, would we design it this way where we’re taking equity share? Absolutely not.”

Vice Mayor Pam Foley said she remembered in the 1990s when equity loan share programs like the city’s were the latest way for residents who could afford a mortgage but not a down payment to achieve homeownership. She supported returning equity to the homeowners.

“It might be worth taking a look at removing that deed restriction now to enable those homeowners to potentially refinance at a lower rate than the loan that they got with the property,” Foley said at the meeting. “There are a lot of components worth looking at to see if there’s ways that we can assist these homeowners — because this is their No. 1  source of generational wealth.”

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District 10 Councilmember George Casey arranged for landlords and San Jose Planning, Building and Code Enforcement officials to tour a neighborhood on Feb. 28  between Blossom Hill Road and Almaden Expressway. Landlords want to work more proactively with the city before code enforcement slaps them with high fees due to blight. Code enforcement assigns a tier rating to buildings based on compliance and many of these properties are falling into the highest tier.

Property owners said the main issues causing these violations are graffiti, illegal dumping and homeless encampments encroaching on properties.

“It was important for me to get city officials, like those with code enforcement, out into the neighborhood to show them this place is an issue and it’s been overlooked,” Casey told San José Spotlight. “The city needs to do a better job of coming out and giving these folks an opportunity to (drop down) in the tier system if they demonstrate that they’ve modified or remediated any concerns or issues. But the problem is, it takes forever.”

He said it’s easy for landlords to land in tier 3 after violations, but it’s hard to drop down into a lower tier.

“There are some homes here that should be tier 1 based on the effort that landlords have put into it, and they’re still getting charged tier three fines and fees,” Casey said. “What if you bought a property that was in tier 3?”

Sadije Alaj, who has owned three properties near Via Monte Drive for 30 years, said she pays $1,000 in code fees for her property classified as a tier 3 ​​— the most unfavorable tier in the system. Properties in this tier are inspected by city code enforcement every three years and pay the highest fees. But she only pays about $500 in code fees for both of her tier 2 properties, along with more time in between inspections.

“(Code enforcement) doesn’t really help us in lowering our bills when we’re the ones who are keeping the property up,” Alaj told San José Spotlight. “Then you have other homeowners who are not doing anything, just making their property an eyesore in the neighborhood.”

Rachel Roberts, city deputy director of code enforcement, said property owners can request an early tier review, but only if changes to their building are significant enough to be considered a remodel. She said they work closely with property owners to bring them up to code and are committed to improving that process. Ultimately, it’s the property owner’s responsibility, she said.

“Education and outreach are very important parts of code enforcement,” Roberts told San José Spotlight. “We spend a lot of time in our community teaching property owners about potential code violations and how to fix them. We welcome any request to come speak to groups that may be affected.”

Casey also wants to help the renters in the neighborhood, because not every landlord is addressing code violations on their property or working toward a lower tier.

“My goal is to ultimately connect with the tenants that are afraid to say anything,” he said. “It was important for me to get the city officials with code enforcement and the head of planning there to understand that this place is an issue and it’s been overlooked.”

Properties in lower tiers also generate an average of $9,265 in higher annual rent payments from tenants, according to data provided to the landlords by real estate broker Roberta Moore.

Alaj said the lack of city communication can make property owners feel like they’re working in the dark.

“It would be great if, by chance, they pass by your property and give you a call to say, ‘Hey I just noticed all this dumping,’ and I can take care of it right away,” she said. “They would rather keep us in a worse tier because the city wants money.”
Roberts said inspectors are not playing a game of “gotcha” and property owners receive a checklist with notice of inspection, and are given time to make corrections before any violations are submitted for fines.

“We work with property owners making good faith effort and progress,” she said. “The primary focus in any inspection is substandard housing. Tenants have the right to safe housing and our inspections often help people out of dangerous conditions.”

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Officials with the San Jose Rent Stabilization Program have denied the Golden Wheel Mobile Home Park owner’s request to raise rents on low-income residents by $60 per month for at least 12 years. Under the city’s mobile rent policy, property owners can raise rents up to 7% without city approval. With tenants at the mobile home park paying as low as $595 per month, the proposed rent increase would’ve been about 10% for the lowest income tenants, according to San Jose housing officials.

Jeff Scott, spokesperson for the housing department, said mobile home park owners can request permission to activate a one-time rent increase above the allowable amount if they can prove profits haven’t kept up with inflation — a process known as a “fair return petition.”

“The petition is served on all affected residents and a hearing officer is assigned to adjudicate the matter. Hearing officers are independent contractors and trained neutral arbitrators,” Scott told San José Spotlight. “After reviewing the petition, supporting evidence and testimony, the hearing officer concluded in a written decision that the property owner failed to demonstrate they are not receiving a fair return.”

Nick Ubaldi, regional manager for Harmony Communities, which oversees the 221-space mobile home park, said they don’t agree with the denial because they need to recoup the money invested in recent renovations made to the park.

“Over $1 million was recently invested in the park. The ordinance forces rents well below market rate, making it difficult to operate a park of this size,” Ubaldi told San José Spotlight. “By denying this increase, the city has set the business back, discouraged further investment and ultimately put residents at risk as the park deteriorates over time.”

The mobile home park property managers told San José Spotlight they’re appealing the decision. The owner also requested reimbursement of attorney fees, which was denied.

“Housing department staff worked diligently to inform park residents, many of whom speak limited English, about the process and their right to participate and present claims,” Scott said. “Interpretation at meetings and translation of key documents was provided.”

City rent stabilization program officials said they’ve supported at least 22 Golden Wheel park residents by informing them of their rights and holding multiple meetings since the mobile home park owner requested the rent increase last August.

“The reason we had a high number of interactions for Golden Wheel is because we weren’t just responding to calls from residents who had questions, but it was also communication that was going on between our program staff and the park residents,” Vanessa Pacheco, an analyst at the rent stabilization program, said at a Feb. 13 Housing and Community Development Commission meeting.

Newly-appointed Commissioner Ali Sapirman said she was impressed after hearing housing department officials’ extensive efforts to keep mobile home park residents in the loop.

“They prioritized the interests of residents, and I trust that the city made a fair assessment,” Sapirman told San José Spotlight. “Based on the information provided by the city, I would say (the mobile home park) should not appeal.”

In addition to overseeing Golden Wheel Mobile Home Park, Harmony Communities runs Western Trailer Park in San Jose, which has been accused of ongoing illegal rent hikes on its residents. A Harmony Communities spokesperson said the rent increase at the RV lots are not illegal because recreational vehicles are not mobile homes.

Ubaldi told San José Spotlight the city’s failure to hold Harmony Communities accountable to its own policy proves the rent hike is not illegal. The city should subsidize their tenants’ rents instead of forcing private businesses to “shoulder the burden,” he said.

Emily Hislop, rent stabilization and eviction prevention manager for the city, said while San Jose has yet to learn of any unlawful eviction lawsuits being filed against residents, the housing department is looking out for any potential lawsuits where it can intervene.

“They are a very well known park owner, and these tactics, or this behavior, is pretty typical for them across the state,” Hislop said at the meeting.
Sapirman said the city should create a public database of landlords, including mobile home park owners, found to be illegally increasing rent prices — similar to San Jose’s mechanism for flagging construction contractors with unpaid wage theft settlements.

“One thing I suggested was having a registry for bad actors and repeat offenders,” she told San José Spotlight. “Then we need to figure out what the penalties are, whether it’s like a fee or another system. If we have repeat offenders they shouldn’t be able to work in San Jose.”

Contact Vicente Vera at vicente@sanjosespotlight.com or follow @VicenteJVera on X.

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