San Jose is set to welcome The Charles, an all-affordable housing complex, as key construction financing has been secured for building the ambitious project, according to a recent Mercury News article. Slated to rise at 551 Keyes Street near Happy Hollow Park & Zoo, The Charles aims to provide 99 residential units, including studios, one-, two-, and three-bedroom apartments for low-income earners in the city.
The overall construction cost of the project is estimated to be just under $87 million, with funding from various sources, including tax-exempt state bond proceeds worth $44.6 million, while low-income housing tax credits provided an additional $12.2 million. Santa Clara County and the city of San Jose each contributed $9.3 million to support this much-needed housing development, which had received project approval in late May 2023, as an SF YIMBY article stated.
In alignment with the affordability plan, the development will include 97 units for households earning less than the area median household income, while the remaining two apartments will be manager units without income restrictions. The Santa Clara County 2023 area median income is $181,300, as reported by the state Housing and Community Development Department on June 6. Furthermore, The Charles will reserve 51% of its restricted units for those making 30% or less of the median income and 49% of units for people earning 50% or less of the area median income.
Greater affordability is desperately needed in San Jose, where providing adequate housing has been a significant challenge for many residents. However, city leaders have been proactive and supportive, as San Jose Spotlight highlighted. The city council approved the issuance of about $120 million in housing revenue bonds for the construction of two developments, totaling 231 affordable apartments to alleviate the housing crisis.
In addition to The Charles, the Tamien Station affordable complex is planned for construction on a 12.5-acre lot owned by VTA, next to the Tamien light rail and Caltrain station. The complex will feature 134 apartments for people earning annual incomes ranging from 30% to 60% of the area median income, with about half of these units reserved under Santa Clara County's Rapid Rehousing program for homeless people.
Another affordable housing-related initiative that caught the attention of the real estate industry was the Santa Clara County Board of Supervisors' approval of $17.4 million for several affordable housing projects in San Jose. As reported by The Real Deal, the funds, which are part of the $950 million Measure A affordable housing bond approved by voters in 2016, will be used to purchase land needed for projects at 777 West San Carlos Street, 551 Keyes Street, and 860 Alum Rock Avenue.
With housing revenue bonds, loans, and support from Measure A funds, San Jose has made strides in providing much-needed affordable housing options for local residents, as the city inches closer to fulfilling its commitment to tackling the region's housing difficulties. Upcoming developments like The Charles and Tamien Station highlight the city's efforts to offer residents belonging to various income brackets an opportunity to reside in high-quality, affordable homes equipped with essential amenities.
As San Jose moves forward with the construction of these projects and addresses the affordable housing crisis, it is clear that a collaborative approach, involving the city, county, and developers, is instrumental in ensuring the successful creation of affordable living spaces for the city's diverse population. A combination of innovative planning, public-private partnerships, and funds like Measure A will undoubtedly play a pivotal role in shaping the future landscape of housing in San Jose.
