San Jose is exploring new financing tools to help finance affordable housing, with city-issued certificates sold to private investors and equity claims on projects built with municipal dollars. A memorandum passed unanimously by the rules committee directed staff to return to the City Council with alternative policy recommendations by August. The certificates of participation model allows the city to raise capital from private investors without voter approval and a funded Inclusionary Housing Ordinance model would allow San Jose to take an equity stake in projects built using municipal funds. San Jose's affordable housing target is set at 30% and 50% of area median income, and the city aims to build more affordable units within market-rate projects at lower per-unit costs. The move comes amid a $56 million budget deficit that could strain city services if left unaddressed.