San Jose housing complex project will switch to all-affordable units
SAN JOSE — A residential project near a San Jose train hub will switch to all-affordable housing and fewer units to improve the odds it will land state tax credits and construction financing.
The affordable housing complex is being proposed for 1197 Lick Avenue in San Jose, which is next to the Tamien train station, according to documents on file with city planners.
The apartment building is being built to provide housing for what some call the “missing middle,” which consists of middle-income residents whose income levels often cause them to be overlooked in the push to create more affordable housing.
The “missing middle” term can refer to housing for middle-income residents who are often overlooked in the push to create more residential developments.
San Jose city officials had previously approved a 219-unit residential complex of market-rate apartments at that location. The development site is near Tamien Station, a transit hub that accommodates Amtrak, Caltrain and light rail stops.
The latest proposal envisions a 132-unit “100% affordable building,” according to the new documents filed with city planners.
Republic Urban Properties and The Core Cos. have teamed up to develop this residential apartment building as well as other sites in the Tamien Station village.
“We are trying to right-size the number of units a little bit to make the project more competitive when we apply for state tax credits,” said Michael Van Every, president and managing partner with Republic Urban. “It’s a super-competitive process to get state tax credits.”
Republic Urban and Core Cos. intend to submit their application for the tax credits this coming September.
The two companies are 50-50 partners on the 132-unit affordable housing development, which is proposed for a 1.9-acre site, the project plans show.
“We are trying to be around 50% to 65% for annual median income to make it as affordable as possible,” Van Every said.
In mid-2024, the area median income for Santa Clara County was $184,300 for a household of four on an annual basis. This could indicate an income limit that would range from $92,150 to $119,795 a year for a household of four.
The 132 units would consist of 62 one-bedroom units, 34 two-bedroom apartments and 36 three-bedroom units, the planning documents show.
If the project lands the state tax credit in 2025, the real estate alliance intends to break ground in 2026 after construction funding is secured.
The “missing middle” affordable housing apartment building is part of an emerging transit-oriented village that could produce 550 or more housing units near the corner of Alma Avenue and Lick Avenue, once it’s fully built out.
The development firms are well aware California’s government must navigate a forbidding state budget landscape.
California’s dreary budget prospects could make state tax credit approvals more difficult to secure in 2026 compared with 2025.
“If we don’t get it this year, we would reapply in 2026,” Van Every said. An approval in 2026 would push the construction launch into sometime in 2027.