East San Jose development could add hundreds of affordable homes

East San Jose could be home to one of the city’s largest affordable housing developments in recent history under a new proposal.

City leaders are hosting a Nov. 18 community meeting to discuss a proposed 100% affordable housing development at 2940 Alum Rock Ave., just across from James Lick High School. 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. About 319 homes will be 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 an individual. Residents who make 50% of the area median income will qualify for 39 homes, and those considered “extremely low” income also qualify for 39 homes.

The development is expected to have a public hearing early next year.

District 5 Councilmember Peter Ortiz, who represents the area, said his office is working with developer, The Pacific Companies, to mitigate impacts and pursue a potential community benefits package — including an art studio incubator to elevate and enhance culture around the Alum Rock corridor.

“In addition, my office is working on proposals to address growing parking concerns from large projects such as this one, to make sure affordable housing doesn’t come at the expense of livability for East San Jose working families,” Ortiz told San José Spotlight.

Members of the Alum Rock Village Action Committee have expressed concerns about parking and neighborhood wellness, pointing out a neighboring 63-apartment affordable housing project proposed by Charities Housing. Committee representative Shannon Sapien said the group is actively engaging with both developers.

“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, and both developers have expressed a commitment to incorporating more landscaping and open areas to enhance the livability and environmental quality of the site,” 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 property, owned by National Retail Properties, was once home to a drive-in burger restaurant called The Golden Point before the location came to the attention of The Pacific Companies earlier this year. The city planning department said the project is among those with the highest number of proposed affordable homes.

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, 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 the homes they’re living in. 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.
He also highlighted the city’s recently-passed tenant preferences program to fight displacement that gives preferences to existing residents by location. New or acquired affordable housing projects that are city funded or have city-negotiated development agreements must allocate 15% of homes for low-income residents who live in the same district and 20% for those who come from a district with high displacement rates, according to the policy.

Reed said he’s confident a good amount of affordable housing will be preserved to meet the immediate needs of the Alum Rock neighborhood residents.

“We need to build housing everywhere, and the long-term solutions to affordability are going to be a mix of building a lot more housing everywhere, and subsidized housing,” he told San José Spotlight.

Contact Vicente Vera at [email protected] or follow @VicenteJVera on X, formerly known as Twitter.