Big San Jose affordable housing project lands key construction loan
A big housing development that would produce affordable housing in San Jose has landed a crucial construction loan.
SAN JOSE — A big housing development that would produce well over 150 affordable homes in San Jose has landed a crucial construction loan that will enable the project to be built.
Villa Del Sol, an affordable housing development that could sprout at 1936 Alum Rock Avenue in the Mayfair North neighborhood of San Jose, would be located about halfway between U.S. Highway 101 and Interstate 680.
The residential development would add 194 housing units, nearly all of them affordable, to east San Jose, documents on file with city planners show.
A real estate alliance that includes busy affordable housing developer Pacific West Communities is building the project.
Idaho-based Pacific West Communities and its allies have landed $69.6 million in construction financing from Wells Fargo Bank.
The total project cost is $113.7 million, according to documents filed in December 2023 with the California Tax Credit Allocation Committee.
A combination of tax credits, taxable bonds, tax-exempt bonds and other financing vehicles will be used to bankroll the project’s full cost as well as assure its permanent funding once the construction is complete.
The 194 units consist of 192 units for low-income families as well as two manager’s units.
The affordable apartments would be rented to families with annual incomes that range from 30% to 70% of the area median income.
For a household of four, the area median income was $181,300 in 2023, the state Housing and Community Development Department says.
This scenario means the income limits to rent a unit in the 1936 Alum Rock housing development would range from $54,390 to $126,910 for a four-person household, according to the state agency’s estimates.
The average target income would be 59% of Santa Clara County’s median income, which would equate to around $109,697 a year for a household of four people.
The two manager’s units would be offered at market rates.
The project would be six stories, planning documents show.
“Each unit will have standard features such as refrigerators, exhaust fans, disposals, and ranges with ovens,” according to documents posted by the California Debt Limit Allocation Committee. “All units will feature dishwashers.”
The development is expected to require two years to be completed. Construction might begin sometime this summer or fall.
“Common amenities include three open courtyards, clubroom, multipurpose room, exercise room, podium level outdoor children’s playground, community laundry rooms, 198 bicycle parking spaces, controlled access and security features,” the California debt committee stated.