HOUSING DEPARTMENT
ACTIONS RELATED TO THE LOAN COMMITMENT
AND LAND PURCHASE FOR THE GATEWAY TOWER
AFFORDABLE HOUSING DEVELOPMENT LOCATED
AT 470 SOUTH MARKET STREET
September 30, 2025 Item 8.2
City Council
Erik L. Soliván
Housing Director
Banu San
Deputy Director
• 100% Affordable Workforce Housing
• $38,440,000 in City contributions
• Developer: Core Affordable Housing LLC
• Santa Clara County Housing Authority: providing 65 Project-Based Vouchers • County of Santa Clara: providing $25,560,000 construction-permanent loan • Total public subsidy: $513K per unit
• Total private capital: $161K per unit
• City’s public subsidy: $175K per unit or 34% of total public subsidies • Cost of development: $896K per unit
Overview
9/30/25 2
9/30/25
Site
3 49/30/25
Development Renderings
5 Sources of Funding
9/30/25
Permanent Period Sources Funding
Type
% of Total
Development Cost
Construction
Amounts
Permanent Loan Private 16% $30,866,000
Deferred Developer Fee Private 2% $4,556,000
City of San José Public 19% $38,440,000
County of Santa Clara Public 13% $25,560,000
CalHFA MIP Public 2% $4,000,000
Tax Credits Public 48% $93,801,000
Total $197,223,000
6 Workforce Housing Extremely Low-Income
9/30/25
Workforce Housing Extremely Low-Income
UNIT SIZE Max Income Rent Limits Total
Studio $42,210 $1,055 25
1-BD $48,240 $1,130 30
2-BD $54,270 $1,356 59
3-BD $60,270 $1,567 6
Total 120
7 Workforce Housing Low to Moderate Income
9/30/25
Workforce Housing Low to Moderate Income
UNIT
SIZE
50% AMI 60% AMI 70% AMI
MGR
Unit TotalUnits Max
Income
Rent
Limits Units Max
Income
Rent
Limits Units Max
Income
Rent
Limits
Studio 4 $70,350 $1,758 0 $84,420 $2,110 4 $98,490 $2,462 8 1-BD 11 $80,400 $1,884 48 $96,480 $2,261 11 $112,560 $2,638 71 2-BD 10 $90,450 $2,261 0 $108,540 $2,713 8 $126,630 $3,165 19 3-BD 1 $100,450 $2,611 0 $120,540 $3,134 1 $140,630 $3,656 2 Total 26 48 24 2 100
8 Summary
9/30/25
• Strong Collaboration
• Total Cost of Development of $197 million
• Aligning Policy and Capital Markets
HOUSING DEPARTMENT
ACTIONS RELATED TO THE LOAN COMMITMENT
AND LAND PURCHASE FOR THE GATEWAY TOWER
AFFORDABLE HOUSING DEVELOPMENT LOCATED
AT 470 SOUTH MARKET STREET
September 30, 2025 Item 8.2
City Council
Erik L. Soliván
Housing Director
Banu San
Deputy Director