Sobrato Aims for Affordable Housing in Heart of San Jose

A surface parking lot in downtown San Jose could give way to nearly 200 apartments in the latest bid to bring more residents into the city’s housing-starved core.

The Sobrato Organization and Pacific West Communities have filed preliminary plans for a 173-unit housing development on a 1.3-acre parcel at 143 South Third Street, the Mercury News reported. The housing would rise next to the Hammer Theatre Center near the Paseo de San Antonio pedestrian street.

The project would be almost entirely affordable with 171 income-restricted units and two market-rate apartments reserved for on-site managers. The proposal leans on Senate Bill 330, the state’s housing law aimed at speeding approvals, particularly for below-market-price projects. Sobrato has owned the 1.3-acre parking lot since roughly 2010 and has long planned to convert the site into high-density housing.

The units will target a range of low-income tenants. Plans call for 17 apartments for extremely low-income households, 17 for very low-income renters and 137 for low-income residents.

Those tiers correspond to annual incomes topping out at roughly $42,200 for individuals at the lowest bracket and up to $111,700 for those in the highest eligible band. In Santa Clara County, extremely low-income is categorized as $42,200 for one person and $60,250 for a household of four; very low-income would be $70,350 for one person and $100,450 for a four-person household, while low-income would be $111,700 for one person and $159,500 for a household of four, according to the California Department of Housing and Community Development.

Sites across San Jose are being designated for housing as the city races to tackle rising housing demand and state-mandated construction goals. The city’s housing element requires planning for 62,200 new units by 2031. San Jose Mayor Matt Mahan has made housing a central part of his gubernatorial campaign, outlining a multi-pronged plan to meet housing goals across the state. Of the crowded field of candidates, Mahan is currently polling in the single digits, though he has received support from real estate executives across the state.

— Chris Malone Méndez