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5/23/2025
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Council Agenda: 06/10/25
Item No.: 2.17(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE (1) APPROVING A GRANT AWARD TO HABITAT
FOR HUMANITY EAST BAY/SILICON VALLEY INC. IN AN
AMOUNT OF $250,000 IN MEASURE E FUNDS FOR
DOWNPAYMENT ASSISTANCE TO DECREASE THE
SALE PRICE OF FOUR VERY -LOW TO LOW -INCOME
FOR-SALE AFFORDABLE UNITS LOCATED AT THE
CORNER OF EAST REED STREET AND SOUTH FOURTH
STREET; AND (2) AUTHORIZING THE HOUSING
DIRECTOR, OR HIS DESIGNEE, TO NEGOTIATE AND
EXECUTE GRANT DOCUMENTS, ANY AMENDMENTS
THERETO, AND ALL OTHER DOCUMENTS RELATED TO
THE SALE OF THE FOUR AFFORDABLE UNITS AND ANY
UNDERLYING DOCUMENTS REQUIRED FOR THE
CLOSING OF THE CONSTRUCTION FINANCING
WHEREAS, in 2019, the historic Pallesen apartments were scheduled for demolition when the Preservation Action Council of San José and the City identified a relocation site for the development to preserve its architectural heritage and provide an opportunity to develop affordable, owner-occupied units for very low- to low-income families earning below 50% to 80% of the area median household income; and
WHEREAS, the Developer led the building relocation efforts and is currently renovating it into four owner-occupied, for-sale affordable units which renovation is anticipated to be completed in June 2025; and
WHEREAS, on March 23, 2021, City Council approved a $250,000 loan commitment from the City’s Affordable Housing Impact Fund to support the rehabilitation of the development and provide a second mortgage of $62,500 to each of the eventual homebuyers; and
WHEREAS, on April 13, 2021, the City transferred land ownership to the Developer and recorded a Surplus Land Act Affordability Restriction; and NVF:JGH:MMV
5/23/2025
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Council Agenda: 06/10/25
Item No.: 2.17(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the Developer led the building relocation efforts and is currently renovating it into four owner-occupied, for-sale affordable units with renovation anticipated to be completed in June 2025; and
WHEREAS, upon completion, the units will be sold to income-qualified homebuyers, with eligibility verified by the County of Santa Clara’s Office of Supportive Housing; and
WHEREAS, the County of Santa Clara, Office of Supportive Housing, is providing construction financing of the development, recording an affordability restriction, as well as providing homebuyer loans to individual homebuyers; and
WHEREAS, approval of the grant award would allow the City to enter into a grant agreement with Developer for the reimbursement of up to $250,000 (equivalent to $62,500 per unit) after receiving documentation showing that the final sales price of each home has been reduced accordingly, thereby offsetting the cost to the homebuyers and supporting long-term affordability, as set forth in the Memorandum from the Directors of Housing and Budget Departments dated May 19, 2025;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
1) A grant award to Habitat for Humanity East Bay/Silicon Valley Inc. in an amount of $250,000 in Measure E Funds is hereby approved for downpayment assistance to decrease the sale price of four very-low to low-income for-sale affordable units located at the corner of East Reed Street and South 4th Street; and
2) The Housing Director, or his designee, is hereby authorized to negotiate and execute grant documents, any amendments thereto, and all other documents NVF:JGH:MMV
5/23/2025
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Council Agenda: 06/10/25
Item No.: 2.17(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
related to the sale of the four affordable units and any underlying documents required for the closing of the construction financing, as set forth in the Memorandum from the Directors of Housing and Budget Departments dated May 19, 2025.
ADOPTED this _____ day of ___________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
City Clerk