Affordable homes project in San Jose heads toward construction

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

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

“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 housing would rise next to Tamien Station, which accommodates light rail and Caltrain stops. The complex is slated to begin construction around July 23 and be completed in two years.

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.

Along with 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 the project developers. 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 median income for a family of four in Santa Clara County was $181,300, according to estimates by the state Housing and Community Development Department. This means a four-person household that earns $54,390 to $108,780 in yearly income would be eligible for the Tamien Station housing.