February 2026 E-Letter

Tuesday, February 17

Dear Neighbors,


I hope everyone enjoyed a relaxing Presidents Day weekend—or maybe, like me, you tackled one of those long-overdue projects around the house. The previous week brought plenty of excitement with the Super Bowl festivities nearby, and it was wonderful to see our community come together to celebrate. Whether you watched the big game, attended events, gathered with friends and neighbors, or simply enjoyed the local buzz, the energy and pride around San José were truly special. I’m grateful to everyone who helped make it such a memorable week for our region. 


Now we're on to the rest of SJ26 events, including the NCAA Men's Sweet 16 West Regionals (March), FIFA World Cup Soccer (June), US National Table Tennis Championships (July), and finally, the CrossFit Games (July).


In this edition, I’m sharing updates on several key initiatives and upcoming events shaping our District 6 community.


Public Safety

  • San José Police Department (SJPD) Focus on Illicit Massage Parlors—Recent police action on Lincoln Avenue to combat illegal operations

Policy Discussions

  • Housing Day Recap—A review of policy proposals from the City’s Housing Department presented to City Council on January 27, 2026.
  • Budget Season Preview—An overview of the upcoming budget process, including tips on how to get involved.

Community Events & Engagement

  • Movin’ with Mulcahy—Join our first community walk along the Guadalupe Trail, starting at Arena Green East (Sharks Way at Little Italy Way) on Friday, February 27 at 1 PM. This new series encourages everyone to explore and enjoy our wonderful trails.


Be sure to read thoroughly for additional events in the District and resources that you or someone you know may find helpful.


Best,

Michael Mulcahy

San José City Councilmember, District 6

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Public Safety Updates

San José Police Conduct Operation

to Address Illicit Massage Parlors

During the first week of February, SJPD's Special Victims Unit—Human Trafficking Task Force (HTTF) carried out focused, proactive enforcement operations on illicit massage businesses at multiple locations throughout San José, including two businesses on Lincoln Avenue near Curtner Avenue. 


As a result of these efforts, the identified businesses will be undergoing investigations and regulatory compliance actions by the Code Enforcement Department. We will remain in close coordination with SJPD and Code Enforcement to ensure these activities do not persist. 

  

SJPD remains steadfast in its commitment to combating and eradicating human trafficking in our community. Anyone with information regarding suspected human trafficking or illicit massage businesses is encouraged to contact the Human Trafficking Task Force at (408) 537-1999 or email stopslavery@sanjoseca.gov. 

Policy Discussions

Housing Day

You may have heard about “Housing Day” at San José City Council, held on January 27, 2026, which presented a host of options to the City Council in an effort to boost housing production. Housing Day featured a series of major policy proposals from the City’s Housing Department focused on increasing housing supply, improving affordability, and updating long-standing housing rules. Below is a brief, plain-language recap of the key items considered, along with how I voted and why. For more detail, each item links to the related memorandums. You can also review the Draft Minutes or watch the full meeting on the City of San José YouTube channel.  

Downtown Incentives for Commercial-to-Residential Conversions

City Council approved an expansion of San José’s Downtown Residential Incentive Program to encourage the conversion of vacant or underused office buildings into housing. The goal is to help address the housing shortage, bring more residents downtown, and make better use of existing buildings. The approved changes:

  • Allow office-to-housing conversion projects downtown to qualify for city incentives. 
  • Reduce or waive certain city fees and taxes to make these projects more financially feasible. 
  • Eliminate inclusionary housing in-lieu fees for eligible conversion projects. 
  • Encourage good-paying construction jobs by offering additional incentives for projects that meet strong labor standards. 
  • Expand incentives for new downtown housing overall and require the program to be reviewed again in 2027 to assess results. 

This action is intended to speed up housing production downtown, support economic recovery, and turn empty office space into homes. 

Multifamily Housing Incentive Program Extension

City Council approved an extension of the Multifamily Housing Incentive Program to keep housing projects moving forward as interest and demand remain high. The program helps reduce development costs so more units can be built sooner. The approved changes:

  • Extend the program through February 2027, keeping existing incentives in place. 
  • Add seven new housing projects to the program. 
  • Expand tax reductions so more housing units can qualify for incentives. 
  • Prioritize projects that are ready to build, helping to ensure incentives go to developments that can move quickly. 
  • Reduce certain housing fees to $0 for projects that include a minimum number of affordable units. 

Overall, this action is meant to accelerate construction, increase housing supply, and keep projects from stalling due to high upfront costs.  

Inclusionary Housing Ordinance

City Council approved updates to San José’s Inclusionary Housing Ordinance to better reflect current housing and financing realities while continuing to require affordable homes in new residential developments. The changes aim to keep projects financially viable and ensure the City continues to produce housing affordable to working families. The approved changes:

  • Update affordability rules and compliance options to provide clearer, more predictable standards. 
  • Adjust the required affordability period for rental units to better align with state practices and housing financing. 
  • Clarify how the ordinance applies to 100% affordable housing developments. 
  • Set a clear threshold so the ordinance applies to projects with 20 or more units, regardless of density. 
  • Expand on-site affordable housing options for higher-density rental projects, including options that prioritize homes affordable to lower-income households. 
  • Require affordable homes in new for-sale developments for moderate-income buyers. 
  • Direct staff to report back on new and creative funding options to support housing for very low- and extremely low-income residents. 

I played a direct role in shaping the final outcome, authoring a memorandum that the Inclusionary Housing Ordinance should apply to developments of 20 units or more, regardless of density, which was accepted as a friendly amendment and incorporated into the final action. With townhomes as one of today's more financeable product types to build, market, and sell, this extra boost should make financing projects of 19 units or less a bit more competitive.

Mobilehome Rent Ordinance

This item proposed a comprehensive update to San José’s Mobilehome Rent Ordinance to modernize the law, improve dispute resolution, and align local regulations with changes in state law. The intent was to strengthen protections for mobilehome residents, clarify landlord and tenant rights, and streamline program administration, while also addressing park owners’ ability to recover certain costs in order to reinvest and keep up with capital expenditures to keep parks in good condition. After extensive public testimony and debate, the City Council deferred action on this item until Fall 2026 to allow for further resident engagement and discussion.

What was approved: 

  • The City adopted only the updates required by state law, ensuring San José remains legally compliant. 

What was deferred: 

  • All other proposed changes, including new rent dispute processes and a proposed one-time rent increase when a mobilehome is sold, were postponed for further review and will return to City Council in Fall 2026

What happens next: 

  • The City will bring park owners and residents together to work toward shared solutions. 
  • Staff will study how proposed rent changes could affect mobilehome values. 
  • The City will increase outreach and education so residents and park owners better understand their rights and responsibilities. 
  • Staff will also explore alternative ways to support park maintenance without placing undue burden on residents.

I supported the Council’s decision to take a more deliberate approach—voting to approve the state-required updates while ensuring the broader policy changes receive additional public input and careful analysis before moving forward.

Budget Check-in

Budget Timeline

The Annual Budget Process is beginning to ramp up. With the Priority Setting Process at Council underway, this is a good time to let you all know where we are at and where we are going. Please find this helpful guide and check out the resources on the City Website.


On Thursday, February 5, 2026, the City Council held its first Budget Study Session for the upcoming fiscal year. The meeting focused on identifying priorities, values, and direction for the budget process. 

The City is currently facing a projected $55–65 million budget shortfall for the 2026–2027 fiscal year. Balancing the budget will require critical thinking, collaboration, and careful planning, including exploring new revenue sources, finding cost efficiencies, and optimizing existing services. 



We discussed the difficult trade-offs that may need to be made and evaluated the capacity of city services—no decision will be easy. This is a multi-year structural imbalance so normal levers such as pulling from reserves or one-time cost cuts are no longer accessible. We'll need to dig deeper into policy decisions and long-term program shifts to not only balance the budget but ensure stability in the future downturn years. There's significant work ahead.

My Priorities for 2026-2027 Fiscal Year

My budget priorities are aligned with the needs and concerns shared by your input and feedback:

  1. Investing in solutions to homelessness and reducing its impacts on our neighborhoods and businesses.
  2. Prioritizing traffic safety and cracking down on dangerous speeding, illegal parking, and loitering that undermine neighborhood quality of life.
  3. Investing in the cleanliness and maintenance of parks and public spaces so they are safe, attractive, and well‑used community assets.
  4. Investing in public safety and reducing the everyday crimes that impact families and small businesses.
  5. Sustaining reliable library hours and services citywide.
  6. Investing in our creative community and growing San José’s experience economy.

Share Your PrioritiesAs we move through budget season, we want to hear from you. Your input on what the Council’s priorities should be is essential to shaping a budget that reflects our community’s values and needs.

Upcoming Events & Community Meetings

PBCE Community Meeting: Proposed Site Development Permit & Vesting Tentative Map at 1295 Curtner Ave 

Monday, February 23 | 6PM - 8PM
Mexican Heritage Plaza

Zoom Link

Community Meeting: Dana Ave/Naglee Ave Traffic Signal Improvements

Wednesday, March 11 | 6PM - 7PM
Rose Garden Community Room

1580 Naglee Ave

Movin’ with Mulcahy 

Friday, February 27, 2026

1PM Start

Arena Green East

Friends of the Bascom Library Book Sale 

Saturday. February 21, 2026

10AM - 2PM

Bascom Library

Women’s Heritage Day at

History Park 

Saturday, March 7, 2026 | 12PM - 4PM

History Park, 635 Phelan Ave 

FREE

Women in Law Enforcement Seminar 

Saturday, March 14, 2026 | 11AM

SJPD Substation

RSVP Today 

Community Resources

San José Small Business Start-Up Grant Program 

The City of San José is offering funding to support early-stage small businesses through the Small Business Start-Up Grant Program. Eligible businesses can apply for grants of up to $10,000 to help cover start-up costs such as licensing, equipment purchases, staff recruitment, or loan down payments. The program is open to for-profit businesses registered in San José with fewer than 35 employees. Applications are due by Friday, March 6, 2026. Learn more and apply or get in-person assistance at San José City Hall. 

Share Your Voice in the Climate Smart Survey 

San José residents, we want to hear from you! As we continue moving toward our climate goals, the Climate Smart San José team is launching the 2026 Climate Smart San José Survey to help us understand what residents know about Climate Smart, what actions you’re already taking, and what challenges might be getting in the way.  


Your anonymous feedback will guide future programs, outreach, and resources to better support every San José resident. Complete the Climate Smart Survey by March 31, 2026. The survey is offered in English, Spanish, and Vietnamese. Participants who complete the survey will be entered into a drawing for a chance to win Climate Smart bundles, which include a San José merch and eco-friendly items. 


Join us in shaping a greener, healthier San José! 

Reporting Issues


San José 311 is the city's one-stop service hub for reporting issues like graffiti, potholes, and illegal dumping. You can also request services such as streetlight repairs and abandoned vehicle removal.


To report an issue, we encourage you to download the 311 app or report online. The 311 App is available at the Apple App Store and Google Play Store.

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