A vacant building in East San Jose will be replaced with hundreds of affordable homes.
A 100% affordable housing complex was approved at 2940 Alum Rock Ave. across from James Lick High School March 12 at Planning Director hearing. The 50,900-square-foot development would construct 400 homes and demolish two vacant buildings to make way for a 6-story multi-family residential building. Homes at the apartment complex are expected to be affordable for residents who make 80% of the average median income — which in Santa Clara County is $181,300 for a family of four or $126,900 for individuals.
Darren Berberian, representative for developers The Pacific Companies, said they addressed concerns about traffic by increasing their budget for traffic-calming measures from $40,000 to $100,000.
Developers are also partnering with the city department of transportation for a car sharing program. The membership-based program would provide 100% electric car sharing services 24/7 on the property.
“We’re working with the city on the (parking) spaces for a car share program, which I think is absolutely phenomenal,” he said Wednesday. “We really tried to do everything we can to fill up the massive need for more affordable housing, but also be very mindful of the community and our neighbors.”
The property, owned by National Retail Properties, was once home to a drive-in burger restaurant called The Golden Point. The city planning department said the project is one of the largest affordable housing developments in recent years..
District 5 Councilmember Peter Ortiz, who represents the area, said his office worked with The Pacific Companies to reduce the effects on the neighborhood. In response, the developers pledged to create 401 parking spots to prevent congestion and overflow parking on streets.
While the city eliminated its minimum parking requirement for new housing developments, Berberian said they wanted to be mindful about parking concerns.

Living just a few blocks from the future affordable housing complex, Ortiz said the soon-to-be demolished vacant building was a major source of crime and blight, which was often discussed by the Alum Rock Village Action Committee.
“It’s important to me that whatever this development is, it’s done right in partnership with the community,” Ortiz said Wednesday. “Whether it’s concerns regarding environmental issues or concerns about traffic, all those are important to me.”
Alum Rock Village Action Committee representative Shannon Sapien said the group is actively engaging with The Pacific Companies
“They have shown an openness to making sure the structures blend seamlessly with one another, creating a cohesive and attractive streetscape. In addition, we have emphasized the importance of green spaces within the developments,” Sapien told San José Spotlight. “This ongoing dialogue is a crucial part of ensuring that the new developments serve both the practical and cultural needs of our community.”
The Pacific Companies were able to waive green and open space requirements at Wednesday’s meeting, allowing them to avoid eliminating homes from their plan, but also upsetting nearby residents.
“I want to express my vehement opposition to any reduction or elimination of the open space of this huge project, which is rather outsized for the area,” 36-year resident Trudy Ellerbeck said on Wednesday.
Darren Berberian, business developer of The Pacific Companies, said it’s too early in the process to talk about potential financing options for the ambitious development.
“We are very excited to bring this much needed workforce housing to the city of San Jose. We are looking forward to seeing this community come to fruition,” Berberian told San José Spotlight.
Mathew Reed, former policy director of housing advocacy group SV@Home, said this is an opportunity to bring more affordable homes into a neighborhood where existing residents are struggling to afford homes. Mixed-income developments create opportunities for a range of people, he said.
“We have thousands of people who are spending more than they can afford on rent, and we need to continue providing real opportunities for those who are considered middle class — but are nonetheless struggling with rent payments in our community,” Reed told San José Spotlight.
Contact Vicente Vera at [email protected] or follow @VicenteJVera on X, formerly known as Twitter.
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