SAN JOSE — An affordable housing development could sprout on a vacant lot near downtown San Jose, a project that’s poised to produce hundreds of residential units, city plans show.
The development site is located at 860 West San Carlos Street next to Sunol Street, on a 2.2-acre parcel, according to documents on file with the San Jose Planning Department.
The prior vision for the property called for two options. One version proposed 263 apartments and the other envisioned 251 units. The site is owned by an alliance of real estate firms Swenson and Republic Urban Properties, which have teamed up to steer the proposal through the city review process.
In 2021, San Jose officials approved both versions of the housing development, which included ground-retail.
Now, however, in the face of brutal economic headwinds that have made large construction projects more costly, an affordable housing development is on the drawing board for the West San Carlos site.
the new version calls for up to 272 affordable units, which would all be affordable, according to the proposal from Swenson and Republic Urban.
Affordable housing is often easier to finance because a developer can seek out funding sources that are backed by state bonds, or tax credits, or both.
The proposal is in the very early stages of the San Jose review process. It’s unknown how long the city’s scrutiny might last, but the time frame could easily last months.
It also wasn’t immediately clear what financing methods Swenson and Republic Urban might pursue.
Separately, Swenson has proposed the development of 205 residences at 160 West Julian Street. This project would also be “100% affordable,” planning documents show.
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The Swenson firm aims to use the Low-Income Housing Tax Credit program to help finance the construction of the proposed housing on West Julian Street.
The 860 West San Carlos project would also be 100% affordable, the San Jose planning documents show.
The purpose of the preliminary review for the West San Carlos site would be to modify the existing entitlement for the site.
Swenson told San Jose planners that the company intends to develop the affordable housing project within the existing footprint as enabled by the previous city approval.
The new project on West San Carlos would also use a similar architectural style as the already approved development, the city planning documents show.
