SAN JOSE — A San Jose development with hundreds of affordable homes is getting a lift from a real estate deal tied to the project. It also has secured the financing needed to build.
The nonprofit Corporation for Better Housing and real estate firm JSL Real Estate have teamed up to pay $8.15 million for two parcels they need for the effort, according to documents filed on Aug. 5 with the Santa Clara County Recorder’s Office.
The pair intend to develop a 305-unit affordable housing project known as Julian Street Studios at 1271 and 1279 East Julian St., public documents posted in May by the California Housing Finance Agency show. It’s slated to be built a few blocks from the proposed Little Portugal BART station.
All of the units will be studios, according to state housing agency documents.
The seven-story development would consist of 301 apartments set aside for households whose annual incomes range from no more than 30% to 70% of the Santa Clara County area median income. The remaining four apartments would be residences for the property’s managers.
The Santa Clara County area median income for a household of four was $195,200 as of April, according to information posted by the state Housing and Community Development Department. This benchmark suggests that the maximum income level for a four-person household would be $134,750.
The project also has landed $138.6 million in construction financing, California Housing Finance Agency records show. Los Angeles-based Banc of California is the primary construction lender, according to public records.
The developer hopes to start construction sometime this month, the state agency estimated. It is expected to take two years to complete with leasing slated to begin in September 2027.
“The project will need to capture 22.1% of the total demand for family units in the primary market area of central San Jose,” the California Housing Finance Agency stated in a report regarding the project. “The affordable units are anticipated to lease up at a rate of 45 units per month and reach full occupancy within six months of opening.”
The project is proposed for an area that appears to be experiencing significant demand for affordable housing.
“There are currently 35 affordable family projects in the primary market area of central San Jose that are 99% occupied with long wait lists,” the report stated.
As of May, seven affordable housing projects were under construction in central San Jose. An estimated four affordable housing projects with a total of 533 units were under consideration by the city. The four were not under construction as of May 2025.