Hundreds of affordable homes may sprout on empty San Jose lot after loan deal

SAN JOSE — Hundreds of affordable homes could sprout on an empty lot in San Jose after a real estate firm landed a crucial financing package to pay for the project’s construction.

An estimated 240 units are slated to be built on a property on Monterey Road between Senter Road and Skyway Drive a short distance from Walnut Mobile Home Park and San Jose Fire Station 18. The development site is at 4300 Monterey Road in San Jose.

The 240-unit project is expected to feature 237 affordable units for low-income residents, according to documents on file with the California Tax Credit Allocation Committee. The project includes three manager’s units that would be rented at market rates.

All of the residences are slated to be one-bedroom apartments, the state documents show.

“Each unit will have a refrigerator, exhaust fans, garbage disposal, range/oven and dishwasher,” stated a document on file with the California Debt Limit Allocation Committee.

Idaho-based Pacific West Communities, which specializes in the development of affordable housing; and Merced-based Central Valley Coalition for Affordable Housing, a non-profit, have teamed up to develop the project, acting through an affiliate.

The development alliance has landed up to $70.9 million in construction financing for the housing development, documents filed with the Santa Clara County Recoeder’s Office show.

The project’s total cost is slated to be about $119.2 million, government documents show.

Tax-exempt and taxable bonds, tax credits and other financing vehicles are being used to cover the remaining project costs, according to state government documents.

The real estate alliance anticipates the project will require about two years to complete. Construction is slated to begin this year.

“Common amenities will include an amenity room, a clubhouse, lobby, mail and parcel room, laundry rooms on each residential level, indoor bicycle storage, a basketball half-court, a fenced dog park, a picnic area and a barbecue section,” according to records on file with a state agency.