Three San Jose affordable housing developments secure funds, land from the city

In its latest stab at relieving the city’s housing shortage, San Jose leaders have committed millions of dollars to build housing for its poorest residents.

The San Jose City Council on Tuesday voted to contribute $19.2 million in loans to build two new affordable apartment complexes and to enter a ground lease with a developer to move a third affordable housing project forward.

The three new developments — one in Alum Rock, another in downtown and a third along West San Carlos — will add 251 new affordable units to the city’s housing stock for homeless individuals, those at risk of homelessness and some of the lowest wage-earners in the city. All of the developments are expected to begin construction this summer and estimated to be completed by the fall or winter of 2021.

But, as Mayor Sam Liccardo pointed out, the developments are planned in the same three districts that have carried the city’s weight when it comes to affordable housing.

“I know we spend a lot of time talking about the historic segregation in this city and across the country,” Liccardo said. “And it’s going to be really important to see these kinds of projects happen throughout the city — not just these three districts — moving forward.”

Two of the projects — dubbed Alum Rock Family Housing and West San Carlos Permanent Supportive Housing — were the first San Jose projects accepted under new state laws that streamline the construction of affordable housing developments throughout the state.

“This is a landmark moment for our city,” Rachel VanderVeen, deputy director of housing, told the council during the meeting.

Under the Alum Rock Family Housing project plans, developer Affirmed Housing Group Inc. will build 85 affordable units — with 29 supportive housing units for formerly homeless individuals — on a .76-acre site at the corner of Alum Rock Avenue and Foss Street in the Alum Rock neighborhood of East San Jose. The county will provide a case manager on the site to offer residents a variety of services, including mental health support, financial literacy and emergency management.

The project will cost a total of $55.4 million. In addition to the city’s nearly $9.4 million investment, the county is contributing $15.7 million of funds from Measure A — a $950 million county-wide affordable housing bond measure.

Separately, the city committed $9.9 toward an 80-unit permanent supportive housing development at 750 West San Carlos Street. Under plans submitted by the developer Danco Communities, at least half of the units will be set aside for formerly homeless individuals who will receive supportive services from the county.

The project is expected to cost a total of $62.8 million. The developer will receive a nearly $9.9 million loan from the city, as well as an additional $9.3 million in Measure A funds from the county.

The city council on Tuesday also agreed to enter a 65-year ground lease with developer Satellite Affordable Housing Associates to allow for the construction of 86 affordable housing units at 500 Almaden Ave. in downtown San Jose. The council earlier …read more

Source:: The Mercury News – Business


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