San Jose agency plans low-income homes at transit station

Santa Clara County has few options for low-income homeownership, but one public transit agency aims to bring more housing to market.

VTA plans to build 45 townhomes on an existing 2.5-acre service parking lot at the Branham light rail station. Ten homes will be affordable to extremely low-income earners in Santa Clara County, which was $55,300 for a family of four in 2024. The project will include 31 three-bedroom and 14 four-bedroom townhomes all for sale.

VTA officials announced a lease agreement with Charities Housing Thursday, which will spearhead development and manage the site once complete. They hope to begin construction by 2027 and anticipate opening by 2029. In March, they’re going to host a community outreach meeting to gather feedback.

While VTA has plans for numerous transit-oriented housing developments, this is the first project in the agency’s portfolio to offer homeownership. Supporters say that helps low-income families build wealth and stay in San Jose instead of being priced out of the region.

“Families are working hard every single day, but the dream of owning a home is slipping further out of reach,” San Jose District 2 Councilmember Pamela Campos said of the project, which is in her district. “These homes are for families who have been locked out of the market, forced to rent indefinitely or move further away.”

The project has financial support from multiple groups, including the Metropolitan Transportation Commission, the Santa Clara County Office of Supportive Housing and Destination Home.

This is one of 28 sites VTA has identified for transit-oriented housing. Nine projects have either been completed or are under construction. Last year, VTA broke ground on a 100% affordable, 90-apartment development in Campbell near the Winchester station. It has also been constructing hundreds more affordable apartments near the Tamien station and Berryessa Transit Center.

Most of those projects are slated to open by 2028. VTA Board Chair and Campbell Mayor Sergio Lopez said the agency is moving with urgency on all its development projects. He stressed the importance of low-income earners becoming homeowners, bringing stability to their lives.

“This is the fifth (housing project) today that’s underway, but … there’s dozens more in the pipeline, so we’re moving ahead,” Lopez told San José Spotlight.

Selling affordable homes creates a different financial environment compared to renting homes, which Charities Housing Executive Director Mark Mikl said is a challenge for such projects. He said partnerships with other organizations, as well as with residents through taxpayer bonds such as the county’s Measure A and San Jose’s Measure E, will have a major impact on the project’s future. 
Despite the challenges, officials are enthusiastic about the opportunity to provide homes for low-income residents.

“This is what full creative action looks like,” San Jose Mayor Matt Mahan said. “Projects like this show we’re not just talking about solutions, we’re delivering them.”

Contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X.