The builders of a massive transit-oriented development near San Jose’s Tamien Station have eyed beginning construction on the next phase of their project by mid-2026 — a plan that could provide an additional 132 units of much-needed affordable housing once completed.
The CORE Cos. and Republic Urban Properties, which have partnered to build a 477-unit community on 6.96 acres near the Tamien VTA Light Rail and Caltrain stations, could have their permits for the second stage of their project approved next month before submitting an application for state tax credits in September.
The developers had initially eyed a larger market-rate building as part of the second phase, but decided to build another affordable housing structure instead, which will serve households between 30% and 70% of the area’s median income (AMI).
“This change is in response to the current market conditions and challenges that are facing the commercial real estate industry,” Melissa Durkin, senior vice president of development at Republic Urban Properties, said at a community meeting Monday. “We did decide to pivot to an affordable housing project, really because we thought it had the best chance of being financed and constructed in the foreseeable future.”
While the Santa Clara County Valley Transportation Authority is primarily known for its transit and congestion management services, its properties throughout the county could become the site of several thousand housing units over the next few decades.
The agency currently has several development projects in the pipeline that could provide more than 1,600 affordable units combined. Its larger vision includes 11 million square feet of development, including 7,000 housing units, near dozens of its stations in hopes of generating revenue and building up its ridership while helping to find solutions to the affordable housing crisis.
The Tamien Station transit-oriented development, located at 1197 Lick Ave., was its first housing project to break ground in more than 20 years in October 2023 when the developers started phase one of the project.
The first phase, which Durkin said could be open in the next few months, will offer 135 affordable units as well as a 3,000-square-foot daycare center.
When city officials first approved the project in 2020, developers had intended for the second and third phases to consist of purely market-rate housing. The second building, in particular, had been envisioned to have up to 219 units.
The newly scaled-down project, which will see the building’s height reduced from 70 feet to 52 feet, will still feature a mix of one-, two-, and three-bedroom units. The latest complex will also feature amenities such as a fitness room, community lounge, outdoor courtyard with a kids’ play area, as well as barbecues, outdoor seating, and dining areas.
Durkin said the project would take two years to build once construction begins. She added that the start date for phase three of the project was unknown.
Down the street, Republic Urban Properties, The Core Cos. and Swenson are also proposing a new housing development that would add 74 townhomes at 1375 Lick Ave.
Although Durkin said that the rents for the second building will be offered between 30-70% AMI, she said the average would likely be around 50%. This year, the area median income for a family of four in Santa Clara County is $195,200, marking a $44,000 rise since 2021.
While the potential addition of affordable housing drew praise, several residents have raised concerns about the project’s impacts, specifically how it will affect nearby streets, given that the second phase will only have 35 parking spots despite offering 132 units.
“I have seen the parking being an issue with most of the houses having singular driveways,” said longtime resident Erika Laguna.” It’s rare to see their houses that have two cars next to them, but it’s already an issue for parking.”
Despite the project’s aim to encourage the use of public transit, developers do not plan to offer discounted transit passes. However, to address parking concerns, they stated that they are exploring other agreements to increase the number of available spaces, including at the VTA’s facility.
“Since we’re going to have the same property manager in phase one, there could be the opportunity for some overflow parking in that building,” Durkin said. “We’re also pursuing some shared parking opportunities with VTA on the other side of the station in the event we do need some additional parking during off-transit hours.”