Trees in a parking lot fenced off for future development, with dry grass in the foreground
Charities Housing is set to develop apartments behind the South Bay Dance Center in South San Jose. Photo by Vicente Vera.

San Jose leaders have approved $7.3 million in Measure E funds for a very low-income affordable housing development in South San Jose.

The $45.4-million multi-family development is the latest affordable housing project to be approved under Measure E since city officials announced $50 million in funding for four projects last October. The 48-apartment project will reserve 23 homes for very low-income families and 25 for extremely-low income families. Developer Charities Housing will construct the project on 1.6 acres at 5885 Santa Teresa Blvd. behind the South Bay Dance Center.

Along with city money and more than $4 million in funding from Santa Clara County, there will be financing that includes $720,000 from the Federal Home Loan Bank of New York and another bank loan of about $6.6 million, plus a projected private equity investment of $26.7 million.

The Santa Clara County Housing Authority is providing more than $19 million for 21 vouchers to subsidize rent for large, very low-income families — for a family of five in the county the income bracket would be $99,550 annually, and for a family of eight it would be $121,650, according to the State Housing Department.

Santa Teresa Multifamily Housing
The site of Charity Housing’s multi-family housing development on 5885 Santa Teresa Blvd. Image courtesy of San Jose.

Ray Bramson, chief operating officer for Destination: Home and San José Spotlight columnist, said the project will provide rapid rehousing for families exiting homelessness.

“Charities Housing is really mission driven and committed to building to that deepest level of housing affordability,” he told San José Spotlight. “We partner with them on a lot of projects, and when they bring new developments forward — we know they’re going to be geared toward helping.”

A key amenity at the Santa Teresa site will include a food access plan for all residents on the property, city officials said.

Charities Housing anticipates partnering with Second Harvest of Silicon Valley or Martha’s Kitchen to deliver food to the site, which will feature a 520-square-foot multi-purpose community room equipped with a full kitchen, including a food pantry, commercial refrigerator and freezer.

District 10 Councilmember Arjun Batra, who represents the area, said earlier this month that Charities Housing held community meetings with residents in the area — even though it wasn’t required. The developer met with Santa Teresa Foothills Neighborhood Association members last year to address questions and concerns.

“They got the feedback you’d expect with an affordable home being built. They made some modifications, but not all neighbors were happy,” Batra said at Tuesday’s San Jose City Council meeting. “In spite of that, we have to approve this thing because Charities Housing has done a great job in terms of their proposed project and the accommodations they have been able to make.”

Santa Teresa Foothills Neighborhood Association President Rick Mandel said the group didn’t take a position on the project, but has concerns about traffic and the construction of three-story homes next to the existing single-family neighborhood.

However, Mandel said the association is grateful to Charities Housing for giving them the opportunity to provide feedback and input on the project.

Charities Housing Executive Director Mark Mikl said the developer went beyond what building codes require to make sure nearby neighbors felt more comfortable.

“We were thoughtful about where we placed windows to respect the neighbor’s privacy, things like that,” he told San José Spotlight. “Part of our approach is discussing with the communities their concerns.”

Hawthorn Senior Apartments, also among the four Measure E-backed projects prioritized by city officials last year, was approved for $15.2 million in funding to develop 101 homes in May.

The city prioritized the four projects among 17 total proposed multi-family housing developments — the remaining 13 are waitlisted indefinitely.

“We’re just dealing with so limited dollars right now. We have to find new revenue or it’s going to be, you know, one project at a time,” Bramson said. “We’re going to have to keep scraping together dollars from everywhere around the community just to make housing happen.”

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

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