San Jose Mun. Code Chapter 17.23 § 17.23.1180
Re-Control (San Jose Apartment Rent Ordinance and Tenant Protection Ordinance)
Operative Text
A. If a building containing a Covered Unit is withdrawn from the residential rental market and is returned by an Owner to the residential rental market within five (5) years, then that unit must be offered and rented or leased at the lawful rent in effect at the time the Notice of Intent to Withdraw was delivered to the City, plus any annual adjustments authorized by Title 17 , Chapter 23 of this Code. This Section applies regardless of the occupancy status of each Covered Unit when the building was withdrawn from the residential rental market and regardless of whether a displaced Tenant exercises a Right to Return. B. If a building containing a Covered Unit is demolished and new unit(s) are built on the same property and offered for rent or lease within five (5) years of the effective date of withdrawal of the building containing the Covered Unit, the number of newly constructed rental units equal to greater of (i) the number of Covered Units or (ii) fifty percent (50%) of all newly constructed rental units located on the property where the Covered Unit was demolished shall be deemed Rent Stabilized Units subject to the Apartment Rent Ordinance, Title 17 , Chapter 23 of this Code. Any new units made subject to the Apartment Rent Ordinance which are in excess of the number of demolished Covered Units shall remain subject to the Annual General Increase limit of the monthly Rent charged for the previous twelve (12) months for the Rent Stabilized Unit multiplied by five percent (5%) in the event that Section 17.23.310.B is amended to change the Annual General Increase limit. C. Waiver for Projects with On-Site Affordable Units. If at least twenty (20) newly constructed rental units are being created, the re-control requirement under this Section will be waived in the event that the Owner: (i) develops fifteen percent (15%) of the newly constructed units as on-site affordable rental units consistent with the standards and affordability restriction requirements in the Inclusionary Housing Ordinance, Chapter 5.08 of Title 5 of the San José Municipal Code and its implementing guidelines; and (ii) develops an additional five percent (5%) of the newly constructed units as on-site affordable rental units restricted at 100% of area median income, but otherwise consistent with the standards in the Inclusionary Housing Ordinance and implementing guidelines.
San Jose Municipal Code § 17.23.1180 establishes 're-control' rules that apply when a building with covered rent-stabilized units is taken off the rental market and then returned within five years. If the building is re-rented without demolition, the units must be offered at the rent level that was in effect when the withdrawal notice was filed, adjusted only by authorized annual increases. If the building is demolished and new units are built and rented within five years, a specified number of those new units automatically become subject to the Apartment Rent Ordinance — though this re-control obligation can be waived for larger projects that include a defined percentage of on-site affordable units at specified income levels.
Plain English — not legal advice.
Operators who have withdrawn a building containing covered units under § 17.23.1180 and are considering returning it to the rental market within five years should be aware that re-control obligations attach regardless of whether any displaced tenants choose to return. For demolition-and-rebuild scenarios, the formula determining how many newly constructed units become rent-stabilized depends on the number of original covered units and the total new unit count. Owners planning projects of at least 20 new rental units may wish to evaluate whether meeting the on-site affordable housing thresholds — 15% at inclusionary standards plus an additional 5% at 100% of area median income — would qualify the project for the re-control waiver provided under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 17.23.1180, tenants and prospective renters have a basis to expect that units re-entering the market within five years of withdrawal will be offered at rents no higher than the lawful rent at the time of withdrawal, plus any permitted annual adjustments. If a returning unit is offered at a higher rent, this provision may be relevant as a defense in a legal proceeding or as the basis for a complaint with San Jose's rent program. Tenants seeking to understand how this rule applies to a particular building or unit can contact the City of San Jose's Rent Stabilization Program or reach out to a local tenant-rights organization for general guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 5, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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