Swenson Eyes Tax Credits to Finance San Jose Apartments

Swenson wants to build a 205-unit affordable housing complex in Downtown San Jose, financed through federal tax credits.

The locally based developer has filed preliminary plans to build the seven-story building at 160 West Julian Street, near San Pedro Square, the San Jose Mercury News reported. It would replace a vacant lot.

Plans for the 0.9-acre project include 205 affordable apartments, in one- and two-bedroom units spread across five floors atop a two-story parking garage. The building would have one courtyard.

The cost and timeline for the project, pending approvals, were not disclosed.

To finance the development, Swenson plans to use the federal Low-Income Housing Tax Credit program, according to the Mercury News.

The program reduces a developer’s federal tax liability in exchange for the acquisition, rehabilitation or construction of affordable rental housing units that will remain income- and rent-restricted over a 55-year period, according to the state Treasurer’s Office.

Swenson, whose roots date back to the Carl N. Swenson Company founded in 1912, has built some of the most significant landmarks in San Jose, including the Hotel de Anza and the San Jose City Hall and Civic Center.

Last spring, the design-build firm got into a legal tiff with the Santa Clara Valley Transportation Authority over the price of a former bank building in Downtown San Jose the transit agency had seized through eminent domain.

After months of failed mediation, Swenson and the VTA headed to court over the value of the closed Chase bank branch, which the VTA wants to bulldoze for a future BART station.

— Dana Bartholomew