San Jose City Council Approves 575-Home Stevens Creek Boulevard Towers as Mayor Mahan Advances Transit Urban Village Density

City Council Authorizes Major Mixed-Use Redevelopment at 3896 Stevens Creek

SAN JOSE, California — Accelerating municipal initiatives to replace underutilized commercial strip centers with high-density transit housing, the San Jose City Council voted in late September 2026 to approve a transformative mixed-use project at 3896 Stevens Creek Boulevard. The approved redevelopment replaces a decades-old retail strip with two modern eight-story residential towers accommodating 575 new apartment units, supported by ground-floor neighborhood commercial retail and dedicated public green courtyards.

Under the development agreement, a substantial portion of the homes will be deed-restricted for very-low-income households earning below 50 percent of the Santa Clara County Area Median Income (AMI). Urban planning officials commended the developer's commitment to delivering high-quality residential density directly along the West San Jose high-frequency transit corridor, linking residents seamlessly to major Silicon Valley tech campuses and regional commercial amenities.

General Plan Density Framework Explores Targeted Transit Village Expansion

In broader urban planning deliberations, the City Council and municipal planning staff advanced the four-year review of San Jose's Envision 2040 General Plan. Following intense public discourse regarding residential zoning, Mayor Matt Mahan and council members affirmed a targeted density strategy focused on transit corridors and designated urban villages rather than blanket single-family upzoning.

The approach directs housing growth toward downtown hubs, Diridon Station transit connections, and commercial boulevards with existing infrastructure capacity, shielding residential neighborhoods while optimizing municipal service delivery and housing production targets.

Downtown Parking Board Reviews $15 Million Revenue Framework

Meanwhile, downtown commercial vitality took center stage as the Downtown Parking Board engaged city transit administrators regarding the management of the municipal parking enterprise fund, which generates $15 million annually. Board leadership called for transparent reinvestment of meter revenues into pedestrian lighting, streetscape cleanliness, and transit-supportive infrastructure to support small merchants and accelerate downtown San Jose's post-pandemic recovery.