Affordable homes project in San Jose heads toward construction start

Didn't realize they'd put one up, here's the full text:

SAN JOSE — A big development of affordable homes has landed the financing it needs to launch construction as soon as this month at a site next to a train station near downtown San Jose.

Tamien Station has obtained roughly $139 million in funding from an array of government agencies to build an affordable housing project at 1197 Lick Avenue in San Jose, according to public records and the project’s principal developers, Core Cos. and Republic Urban Properties.

In addition to real estate veterans Core Cos. and Republic Urban, the project’s key players include the Santa Clara Valley Transportation Authority and Central Valley Coalition for Affordable Housing.

The housing would rise next to Tamien Station, which accommodates light rail and Caltrain stops.

The Tamien Station residential project is slated to begin construction around July 23. The housing complex should be complete by July 2025.

Along with the housing, the project will include 30,000 square feet of ground-floor commercial space that will be dedicated to an onsite daycare center, according to project developers Core Cos. and Republic Urban. The developers brought Citibank on board as the primary construction lender for the housing.

The development will consist of 135 apartments that will be made affordable for people who earn 30% to 60% of the area’s median income.

As of June 2023, the state Housing and Community Development Department estimated that the area median income for a family of four in Santa Clara County was $181,300.

This means a four-person household that earns $54,390 to $108,780 in yearly income would be eligible for the Tamien Station housing.

“Our success in securing financing reflects the important opportunity Tamien Station provides to combine critically needed housing and daycare on a major transit hub,” said Richard Truempler, a Core Cos. senior vice president.

The project funding consists primarily of a $66 million bond allocation from the state debt allocation panel, $31 million in grants from the state housing agency, up to $25 million from Santa Clara County Measure A funds and $17 million from the city of San Jose. The county financing was recorded in recent days through a construction loan.

The Valley Transportation Authority is providing the site to the project developers through a ground lease of the land for the housing, documents on file with the Santa Clara County Recorder’s Office show.

“VTA’s partnerships with developers are providing a triple win for the Santa Clara Valley community with new affordable housing and development for a range of incomes that increase transit ridership,” said Ron Golem, the VTA’s director of real estate.