CRP Affordable Housing and Community Development and Pacific Southwest Community Development were approved for a $9 million municipal loan toward building 64 affordable apartments in southwest San Jose.
The for-profit and nonprofit developers, both based in San Diego, will get financing from the city to begin construction this year on the six-story complex at 2388 South Bascom Avenue, the Silicon Valley Business Journal reported. It will replace a Kirk’s Steakburgers restaurant.
The financing package will stem from $9 million of tax-exempt housing bonds approved by the City Council to raise money for the loan.
Plans for the $61.6 million project, known as Dry Creek Crossing, include 63 affordable apartments, with one unit set aside for a manager.
Of the 63 affordable homes, 18 will be set aside for households earning no more than 30 percent area median income. Another 21 homes will go to households earning no more than half the median, while 13 will go to households earning no more than 60 percent of the median.
The 89,500-square-foot building will include 44 one-bedroom apartments, plus a mix of two- and three-bedroom units. The charcoal-and-white complex will include balconies and floor-to-ceiling ground-floor windows, according to a rendering.
The city bought the 0.63-acre restaurant site from owner J Mollo & Sons in January for $5.2 million.
Under the terms of the bond deal, the city will lease the property to CRP and Pacific Southwest for 58 years. The deal will require the apartments to remain affordable for 55 years.
The project comes as the city struggles to win state approval for its required Housing Element plan to add 62,000 homes — more than half of them affordable — by 2031.
This month, Pacific Southwest teamed up with Standard Communities, which picked up six affordable housing complexes with 407 units across Los Angeles County for $106.4 million. The Section 8 housing includes five affordable senior complexes and one affordable housing complex.
— Dana Bartholomew
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