San Jose city leaders have taken a firm stand against absentee landlords who allow properties to fall into neglect and create hazards for surrounding communities. In a unanimous decision, the City Council approved a dramatic increase in daily fines for code violations tied to blighted properties, raising the penalties from $2,500 per day to as much as $20,000 per day. The cap on cumulative fines was also lifted from $100,000 to $500,000, sending what officials described as a clear message to out-of-town property owners that neglect will no longer be tolerated.
The move is designed to tackle the problem of blighted properties that often attract crime, homelessness, vandalism, and fire hazards. By raising fines to some of the highest levels in the state, San Jose leaders hope to ensure that penalties are not just treated as a manageable cost of doing business by wealthy landlords. Instead, the goal is to create meaningful financial consequences that drive property owners to comply with the law and address the deterioration of buildings and land under their ownership. Councilmember Peter Ortiz, who introduced the proposal alongside Pamela Campos and Anthony Tordillos, explained that residents should not be forced to shoulder the burdens of negligent property ownership when their neighborhoods are impacted.
San Jose officials compared their new fine levels to those in other California cities, pointing out that daily penalties typically range from $1,000 to $2,500 elsewhere. The small city of Blue Lake had been among the highest with a maximum of $5,000 daily fines, but San Jose has now set the bar much higher, effectively leading the state in aggressive measures against property neglect. Officials noted that the increases came after years of frustration over long-standing examples of blighted buildings that remained untouched. Among them is the Lawrence Hotel in downtown San Jose, which has been sitting in disrepair since a fire in 2021, and the former First Church of Christ Scientist building near St. James Park that has been vacant and decaying for decades. The pattern of absentee owners leaving such properties to deteriorate was a major driver for the City Council’s action.
City enforcement officials clarified that while the new law allows for fines of up to $20,000 per day, not all cases will reach that maximum. Enforcement follows a structured process beginning with a compliance order, which outlines the violation, instructions for correction, a timeline, possible penalties, and the right to appeal. Owners are given 14 days to request a hearing to modify the order. If no appeal is made, the compliance order becomes final, and the Appeals Hearing Board will later determine if the violation has been corrected. If not, fines are assessed and continue to accumulate until compliance is achieved, capped at the $500,000 maximum.
If property owners fail to pay the penalties, the city has the authority to place a lien on the property. Owners also retain the right to appeal the Appeals Board’s decision in court, which means the enforcement process balances firmness with legal safeguards. San Jose officials emphasized that in most cases, compliance is reached voluntarily without penalties escalating to their maximum limits. In fact, the city reported that in the last fiscal year, about 94% of the 3,292 cases were resolved through voluntary compliance. Only the remaining 6% required citations, compliance orders, or hearings before the Appeals Board to achieve compliance.
City leaders including Mayor Matt Mahan voiced support for the proposal, stressing that while the fines are steep, there remains flexibility for staff to adjust enforcement on a case-by-case basis. Mahan expressed support for applying maximum fines to the worst offenders but emphasized the importance of ensuring that fines can withstand court challenges if appealed. Vice Mayor Pam Foley echoed frustration at having to strike a balance, recalling examples in her district where violations such as the illegal removal of mature redwood trees resulted in fines that were later reduced by appeals officers. She argued that penalties should be strict enough to deter violations and prevent leniency that undermines enforcement.
The policy reflects a broader effort by San Jose to revitalize its downtown and neighborhoods by reducing the impact of absentee ownership and chronic neglect. For years, residents have expressed concerns that blighted properties create unsafe environments and hold back economic development. By raising fines to unprecedented levels, the city is signaling its determination to protect communities and enforce accountability among property owners. With this new measure, San Jose has placed itself at the forefront of California cities when it comes to combating blight, ensuring safer neighborhoods, and creating stronger incentives for compliance.
