JPMorgan Chase and Santa Clara County have provided significant financial backing for a new affordable housing development in San Jose. The project, led by Resources for Community Development, an affordable housing developer based in Berkeley, received $53.3 million in construction financing from JPMorgan Chase and $28.9 million in loans from the county. This funding will support the construction of a 99-unit residential building at 797 South Almaden Avenue.
According to documents from the California Tax Credit Allocation Committee cited by the Mercury News, the total cost of the project—including financing, land acquisition, and other expenses—will be $98.6 million, or approximately $996,000 per unit. The combined financing package works out to about $830,300 per unit.
The planned complex will feature 26 studio apartments, 28 one-bedroom units, 25 two-bedrooms, and 20 three-bedroom apartments. All units are intended for tenants earning between 30 and 60 percent of Santa Clara County’s area median income (AMI). For reference, the AMI is currently set at $136,650 for a single person and $195,200 for a household of four in Santa Clara County. As a result, eligible tenants would have annual incomes ranging from roughly $41,000 to $117,000.
Nineteen units are designated for households earning only 30 percent of the local AMI. Monthly rent for these very low-income tenants is expected to be around $545 with utilities included. The remaining 80 units will have rents between $1,036 and $2,488 per month.
The development also includes plans for ground-floor commercial space totaling 2,300 square feet as well as an additional 3,300 square feet of open space facing South Almaden Avenue.
In recent months there has been considerable activity in the Bay Area’s affordable housing market. In September a Greystar affiliate sold Park Kiely—a property with nearly 950 units—for $370 million to Standard Communities along with nonprofit Housing on Merit and Vistria Real Estate. Earlier this year Post Glen Group and Affordable Housing Access purchased Orchard Glen apartments—comprising almost 290 units—for just over $61 million.
“JPMorgan Chase and Santa Clara County provided crucial financing for an affordable housing development proposed in San Jose.”
