New Apartment Complex Breaks Ground at 905 Capitol Avenue

After years of being stuck in the planning stages, a sleek seven-story apartment complex is finally breaking ground, all thanks to the city’s clever multifamily housing incentive program. Led by Hanover Company, this 345-unit development is bringing much-needed homes—including affordable ones.

This project was gathering dust since getting the green light in 2022, held back by financing woes. Then San Jose stepped in with its incentive program, launched late last year, offering developers a lifeline through fee and tax breaks. For Hanover, it was the push they needed. Now, construction is rolling, with a finish line about two years out. The complex will offer a mix of studio, one-bedroom, and two-bedroom units, with 5% set aside as affordable housing for folks earning the area median income. There’s even 3,000 square feet of office space to spice things up along North Capitol Avenue.

What’s the magic behind this incentive program? It cuts costs in smart ways. Developers who include at least 5% affordable units onsite—like Hanover did—skip the usual “in-lieu” fee tied to the city’s affordable housing rules. Park fees get trimmed for projects with private amenities, and construction taxes take a hit too, with big reductions for the first 1,500 units approved by 2025. It’s a practical move that’s getting shovels in the ground and homes in the pipeline.

The perks don’t stop at housing numbers. This development sits less than half a mile from the Penitencia Creek Light Rail Station, putting public transit within easy reach. And for anyone who loves a good bike ride, the project includes two new bike lanes along North Capitol Avenue, linking up with the Penitencia Creek Trail.

Source: SVBJ

780 Reasons to Celebrate: San Jose's Bold Move for Affordable Housing

San Jose is making waves with an ambitious project in the Alviso district, right next to the lively Topgolf venue. A development team is set to construct 780 affordable homes on a 3.2-acre site at 7 Topgolf Drive. This massive undertaking promises to ease the Bay Area's housing crunch, offering a fresh start for families seeking affordable options in a city known for its high costs. What’s more, the project leans on innovative construction techniques to deliver these homes faster and more efficiently than ever.

The secret weapon behind this development is the builder’s remedy, a state law that helps developers sidestep local zoning hurdles when they dedicate at least 20% of their units to affordable housing. Here, all 780 homes will be affordable, paving the way for a swift approval process. Los Angeles-based LH Housing is spearheading the effort, collaborating with city planners to ensure this game-changing project moves forward without delay.

Partnering with LH Housing is Cloud Apartments, a Bay Area company bringing modular construction to the table. These factory-built apartments snap together on-site, slashing both time and expense. It’s a clever approach that could redefine how affordable housing takes shape in San Jose, proving that innovation and necessity can go hand in hand.

City planners are fully engaged, working side by side with the developers to bring this vision to life. North San Jose, a thriving job hub, stands to benefit immensely from this influx of housing. Experts emphasize the value of placing affordable homes near employment centers, cutting commute times and boosting quality of life for residents.

The site itself tells a story of transformation. Once earmarked for an entertainment district with restaurants and hotels, those plans faded away. Now, this land is poised for a new purpose—housing that meets a critical need. Alongside a nearby data center complex, it signals a shift toward practical, community-focused development in Alviso.

With 780 homes on the horizon, San Jose is tackling the housing crisis head-on, blending affordability with smart design. If this project succeeds, it could light the way for similar efforts across the region.

Source: The Mercury News