TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik L. Soliván
Jim Shannon
SUBJECT: See Below DATE: February 2, 2026
Approved
Date:
2/3/26
COUNCIL DISTRICT: 3
SUBJECT: Actions Related to the Trillium Senior Apartments Housing Development Located at 675 East Santa Clara Street
RECOMMENDATION
(a) Adopt a resolution approving a Construction-Permanent Loan commitment of up to $9,050,000 in Low and Moderate Income Housing Asset Funds to Santa Clara County Housing Authority or an affiliated development entity for the Trillium Senior Apartments affordable housing development.
(b) Adopt the following 2025-2026 Appropriation Ordinance amendments in the Low and Moderate Income Housing Asset Fund:
(1) Decrease the Housing Project Reserve appropriation by $9,050,000; and (2) Increase the Housing Loans and Grants appropriation to the Housing Department by $9,050,000.
SUMMARY AND OUTCOME
City Council approval of the staff recommendation would enable Santa Clara County Housing Authority (SCCHA) or an affiliated development entity to develop the Trillium Senior Apartments (Development), an affordable housing development located at 675 East Santa Clara Street, which would provide 64 affordable rent-restricted apartments and one unrestricted manager’s unit.
COUNCIL AGENDA: 2/24/26
FILE: 26-165
ITEM: 8.4
HONORABLE MAYOR AND CITY COUNCIL
February 2, 2026
Subject: Actions Related to the Trillium Senior Apartments Housing Development Located at 675 East Santa Clara Street
BACKGROUND
The Development is located in the East Santa Clara Street Urban Village along the eastern stretch of Downtown San José’s main avenue, within walking distance to public transportation. Table 1 provides a detailed summary of the City of San José’s (City) proposed funding commitment to the Development and its overall cost.
Table 1 – Summary of City Funding and Cost for Trillium Senior Apartment
Development
Name
City Funding
Request
City Funding
Per Unit
Total
Units
Project
Based
Vouchers
Total
Development
Cost
Cost/Unit
Trillium
Senior
Apartments
$9,050,000 $139,231 65 36 $58,119,005 $894,139
ANALYSIS
Development Description
SCCHA proposes to develop and own Trillium Senior Apartments. The Development will consist of 65 homes for seniors (64 affordable rent-restricted homes and one unrestricted manager’s home) on a 0.57-acre site. As part of the consideration for the City’s funding, SCCHA has been allocated a 9% Tax Credit Allocation Committee and an award from Measure A from Santa Clara County.
If staff’s recommendation is approved, the City will record a minimum 55-year affordability covenant on the property as a condition of funding. This covenant will remain senior and will not be subordinated to any deeds of trust or other instruments with a power of sale.
The Development will reserve 36 units at the 30% Area Median Income (AMI) level, consisting of 35 1-bedroom units and one 2-bedroom unit, to be supported through Project-Based Vouchers. These Project-Based Voucher units will serve a combination of permanent supportive housing households and senior households requiring specialized supportive services to maintain independent living. The SCCHA will enter into a Housing Assistance Payment Contract for these units with an initial term of 20 years, with an option to extend the contract for up to an additional 20 years. Table 2 provides a summary of the Development’s maximum income and rent limit unit mix, and Table 3 provides detailed information on the Development’s Project-Based Voucher- supported unit mix.
HONORABLE MAYOR AND CITY COUNCIL
February 2, 2026
Subject: Actions Related to the Trillium Senior Apartments Housing Development Located at 675 East Santa Clara Street
Table 2 – Trillium Senior Apartments Development’s Maximum Income and Rent Limit Unit Mix
UNIT
SIZE
30% AMI 40% AMI 45% AMI 50% AMI
MGR TOTAL
Units Max
Income
Rent
Limits Units Max
Income
Rent
Limits Units Max
Income
Rent
Limits Units Max
Income
Rent
Limits
1-BD 35 $43,920 $1,098 9 $58,560 $1,464 9 $65,880 $1,647 9 $73,200 $1,830 0 62 2-BD 1 $52,710 $1,317 0 $70,280 $1,757 0 $79,065 $1,976 1 $87,850 $2,196 1 3 Total 36 9 9 10 1 65
Table 3 – Trillium Senior Apartments Development’s Project Based Voucher Supported Unit Mix
Unit sizes and
affordability
General
Affordable
30%
PSH
30% AMI
Special Needs
30% AMI
Total
0-BD 0 0 0 0
1 BD 2 19 12 33
2-BD 2 1 0 3
Total 4 20 12 36
Financing
The total development cost is $58.1 million. If the Development is approved, the City will commit up to $9,050,000, or $139,231 per unit, for a Construction-Permanent loan composed of Low- and Moderate-Income Housing Asset funds.
The City’s commitment will leverage additional funding sources, including County of Santa Clara funds, SCCHA funds, federal and state tax credit equity, and private construction and permanent financing, as shown in Table 4 below.
Table 4 – Trillium Senior Apartments Development’s Funding Sources
Construction Period Sources Funding
Type
Percentage
of Funding
Construction
Amounts
Construction Loan Private 47.2% $26,514,596
City of San José Public 0.3% $150,000
County of Santa Clara Public 16.1% $9,050,000
Santa Clara County Housing Authority Public 32.0% $17,950,000 Tax Credit Equity Public 4.4% $2,477,720
Total $56,142,316
HONORABLE MAYOR AND CITY COUNCIL
February 2, 2026
Subject: Actions Related to the Trillium Senior Apartments Housing Development Located at 675 East Santa Clara Street
Permanent Sources Funding
Type
Percentage
of Funding
Permanent
Amounts
Permanent Loan Private 7.3% $4,247,000
City of San José Public 15.6% $9,050,000
County of Santa Clara Public 15.6% $9,050,000
Santa Clara County Housing Authority Public 15.6% $9,050,000 Tax Credit Equity Public 45.5% $26,422,005
Deferred Developer Fee Private 0.5% $300,000
Total $58,119,005
Next Steps
The City would facilitate a construction financing closing by March 2026. Construction on the development is estimated to begin in March 2026 and conclude approximately 18 months later.
If the staff recommendation is approved, the Housing Director, or his designee, will negotiate additional terms and execute documents for this development’s loan in accordance with the City Council’s approval, using the authority delegated under Section 5.06.335 of the San José Municipal Code
1. EVALUATION AND FOLLOW-UP
The Housing Department posts a dashboard on the status of its affordable properties undergoing rehabilitation or construction on its website. 2 If the recommended actions in
this memorandum are approved and the Development successfully closes construction financing, the Development will be included in the dashboard.
COST SUMMARY/IMPLICATIONS
The recommendations in this memorandum would provide a construction-permanent loan commitment of $9,050,000 to the SCCHA or an affiliated development entity for the Development. The City loan will be funded through the Low and Moderate Income Housing Asset Fund. The appropriation actions included in this memorandum will reallocate $9,050,000 from the Housing Project Reserve to the Housing Loans and Grants appropriation to fund the City loan.
1 Section 5.06.335 of the San José Municipal Code is the authority to negotiate and execute council - approved loans, grants, and programs.
2 Housing Department affordable properties webpage, Web Link: https://www.sanjoseca.gov/your- government/departments-offices/housing/homelessness-program-dashboard
HONORABLE MAYOR AND CITY COUNCIL
February 2, 2026
Subject: Actions Related to the Trillium Senior Apartments Housing Development Located at 675 East Santa Clara Street
BUDGET REFERENCE
The table below identifies the fund and appropriations to fund the loan amount recommended as part of this memorandum.
Fund
#
Appn.
#
Appropriation
Name
Total
Appropriation
Recommended
Budget Action
Amount
for
Loan
2025-2026
Adopted
Operating
Budget
Page
Last Budget
Action
(Date, Ord.
No.)
346 8437 Housing Project
Reserve $63,800,000 ($9,050,000) $0 1001 31252
10/21/2025
346 0070 Housing Loans
and Grants $72,856,265 $9,050,000 $9,050,000 1000 31271 11/4/2025
COORDINATION
This memorandum has been coordinated with the City Attorney's Office.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the February 24, 2026 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Exempt per Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15369, Ministerial Project pursuant to Government Code Section 65913.4, File No.
ER20-109.
HONORABLE MAYOR AND CITY COUNCIL
February 2, 2026
Subject: Actions Related to the Trillium Senior Apartments Housing Development Located at 675 East Santa Clara Street
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
ERIK L. SOLIVÁN JIM SHANNON Director, Housing Department Budget Director
For questions, please contact Banu San, Deputy Director, Housing Department, at [email protected]
.