San Jose Affordable Housing Project Secures $82 Million Debt

JPMorgan Chase and Santa Clara County provided crucial financing for an affordable housing development proposed in San Jose. 

Berkeley-based affordable housing firm Resources for Community Development landed $53.3 million in construction financing from JPMorgan Chase and $28.9 million in construction loans from the county for a 99-unit project at 797 South Almaden Avenue, the Mercury News reported.

The $82.2 million in financing works out to $830,300 per unit.

Total project cost, including financing, land acquisition and other expenses is $98.6 million, according to documents from the California Tax Credit Allocation Committee cited by the outlet. That’s $996,000 per unit.

The development is expected to have 26 studio units, 28 one-bedrooms, 25 two-bedrooms and 20 three-bedrooms, all offered to tenants making between 30 and 60 percent of the area median income. 

The area median income for Santa Clara County is $136,650 for one person or $195,200 for a household of four, meaning annual incomes required for access would be between $41,000 and $117,000. 

Nineteen of the units would be set aside for households at 30 percent of local area median income. 

Anticipated monthly rent for these units would be about $545 a month for the 19 units set aside for very low-income tenants. The other 80 units would range in from $1,036 to $2,488 per month. The rents include utilities.

The complex will have 2,300 square feet of ground-floor commercial space. There will also be 3,300 square feet of open space facing South Almaden Avenue. 

Affordable housing developments have traded at massive price points this year.

A Greystar affiliate in September sold Park Kiely, a 948-unit property at 355 Kiely Boulevard, to real estate firm Standard Communities, nonprofit Housing on Merit and investment company Vistria Real Estate for $370 million, marking the priciest multifamily transaction in the Bay Area this year. 

Earlier this summer, Post Glen Group and Affordable Housing Access bought the 288-unit Orchard Glen apartments at 3975 Seven Trees Boulevard for $61.1 million. 

— Chris Malone Méndez

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