San Jose Plans Seismic Retrofit Financing Pilot

City aims to build out low-cost program for soft story buildings before next big earthquake

Jan. 28, 2026 at 3:07pm

Got story updates? Submit your updates here. ›

The city of San Jose is launching a $1.6 million pilot financing program to help property owners retrofit older, multi-story, wooden-frame buildings with at least three units constructed before 1990. This is part of a broader effort to prepare for the next major earthquake, with the city situated between several major fault lines. The pilot program will offer grants or low-interest loans to owners of smaller buildings, while the city continues to pursue $25 million in federal FEMA funding for a larger seismic retrofit initiative.

Why it matters

San Jose's older 'soft story' buildings face significant risk of catastrophic damage in a major earthquake, which officials estimate could cause billions in damage and displace thousands of residents. The city's seismic retrofit mandate aims to make these buildings safer, but the costs have raised concerns about potential rent increases for lower-income tenants. The new financing program is an effort to make the required retrofits more affordable for property owners.

The details

The $1.6 million pilot program will target buildings with fewer than 20 units, offering either grants or loans at around 3% interest over seven years. Loan amounts will be capped at $100,000, and the funding can also be used for energy efficiency upgrades. Landlords will be limited in how much of the loan costs they can pass through to tenants. The voluntary, first-come, first-served program is expected to have 15-20 participants starting in April.

  • The city passed seismic retrofit legislation nearly 18 months ago.
  • The pilot program will launch in April 2026.
  • The city plans to postpone the ordinance's effective date by another 12 months.

The players

Erik Solivan

San Jose Housing Director, who said the city is pulling $1 million from housing resources to invest in the pilot program.

Pam Foley

San Jose Vice Mayor, who lost her home in the 1989 Loma Prieta earthquake and said the seismic retrofit program is "extremely important" for making the city's housing stock safer.

Rob Bonta

California Attorney General, who said the FEMA BRIC program "provides critical funding that helps communities prepare for disasters before they strike."

Sam Liccardo

Congressman who secured millions of dollars for San Jose's seismic retrofit program in an upcoming transportation and urban development bill.

Rosalynn Hughey

San Jose Deputy City Manager, who said staff will return to the City Council to postpone the ordinance's effective date again, likely by another 12 months.

Got photos? Submit your photos here. ›

What they’re saying

“We're pulling a million dollars from housing resources to invest in this unit preservation and then, utilizing that test run, to set us up for execution of a larger FEMA grant or other resources that may come in.”

— Erik Solivan, San Jose Housing Director (eastbaytimes.com)

“I've always thought the soft story replacement – the seismic retrofit – is extremely important to making our housing stock safe for all of our renters and homeowners who live in them.”

— Pam Foley, San Jose Vice Mayor (eastbaytimes.com)

“FEMA's BRIC program provides critical funding that helps communities prepare for disasters before they strike. The BRIC program has bipartisan support. It saves taxpayers money. It improves our infrastructure, and it protects our communities. It's a win-win. That's why we went to court to protect this program when the Trump Administration attempted to unlawfully shut it down.”

— Rob Bonta, California Attorney General (eastbaytimes.com)

What’s next

The city plans to return to the City Council in the coming months to postpone the ordinance's effective date again, likely by another 12 months. San Jose is also hopeful it will receive the $25 million in FEMA funding it applied for more than two years ago by the end of 2026.

The takeaway

San Jose's seismic retrofit financing pilot program is a critical step in preparing the city's aging housing stock for the next major earthquake, while also addressing concerns about the costs being passed on to lower-income tenants. The city's ongoing pursuit of federal funding will be key to scaling up this effort and making more buildings earthquake-safe.