A North San Jose site originally planned for what city officials described as a new day care center is shifting gears to an affordable housing complex.
McKenzie Dibble, project manager for housing developer Danco, said during a Monday meeting with residents that they acquired the property at 1207 North Capitol Ave. last month and plan to hold more public hearings by summer 2025. The project is set to be a 5-story, multifamily housing complex with 128 affordable homes for residents making 30% to 70% of the area median income — which means a family of two earning as little as $44,220 per year could afford an apartment at the complex.
Dibble said 10% of the homes will be preserved for permanent supportive housing thanks to a requirement from a Corporation for Supportive Housing loan.
There will be 30 one-bedroom apartments, 55 two-bedroom apartments and 43 three-bedroom apartments, according to developers.
“The general plan land use designation for the neighborhood is ‘neighborhood community commercial,’ which allows for unlimited height, number of stories and density — but we didn’t want to go overboard with the density on this project,” she said. “We just kind of challenge the neighborhood status quo without overpowering.”
City officials approved the 1.5-acre site in San Jose’s Berryessa district last year for a 14,000-square-foot child day care facility with 14 classrooms. Though city reports call the facility a day care center, Dan Morrar of InSite EFS, an education real estate consulting firm representing the developer, confirmed the project is an expansion of Merryhill Elementary School.
After Danco took over the site, developers decided the area would be better suited for housing, with its proximity to shopping centers and public transportation such as light rail.
“You can see that it’s right next to the Berryessa light rail station. It’s just a block away from the onramp to the 680 freeway, and so it’s really great transit for residents,” Dibble said. “There’s quite a few shopping options nearby, including Safeway, CVS and a fitness center.”
San Jose resident Cam Coulter said he’s excited for the incoming development — and as a resident of an urban village near a light rail station, he encouraged the developers to further engage with public transportation officials. Catalyze SV Manager of Development Projects Jake Wilde echoed Coulter’s point.
“I’d also love to see Danco work with VTA to provide residents with the transit passes via the VTA SmartPass program,” Coulter said Monday.
Though most residents at the meeting were supportive of the affordable housing proposal, many raised safety concerns over what they call violence on light rail and a lack of reserved parking for future residents.
“I hate to say this to the District 4 representatives that are excited about the project, but light rail ridership is a fantasy,” nearby resident Elva Wilson said. “Let’s say two people have cars, because nobody’s going to ride light rail. We’re talking about 52 parking spots for 250-plus cars. What will you do to mitigate the problem?”
Dibble said they will add a section to the lease agreement recommending residents ditch their vehicles before moving in. The city has already passed policy which cuts parking requirements for developers to prioritize housing.
Architect Director Goetz Frank said the safety of the light rail station is also in the best interest of the project.
“We would also, of course, encourage the city to do everything they can to ensure safety at the station with people moving in,” he said.
Contact Vicente Vera at [email protected] or follow @VicenteJVera on X, formerly known as Twitter.
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