Jurisdiction San Jose ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 01/31/2023 - 01/31/2031
The description should adequately document
how each unit complies with subsection (c) of
Government Code Section 65583.1+.
For detailed reporting requirements, see the
chcklist here:
Extremely Low-
Income+
Very Low-
Income+ Low-Income+ TOTAL UNITS+
Extremely Low-
Income+
Very Low-
Income+ Low-Income+
TOTAL
UNITS+
https://www.hcd.ca.gov/community-
development/docs/adequate-sites-checklist.pdf
Rehabilitation Activity 48 35 2316 2399
Preservation of Units At-Risk
78 156 14 248
Acquisition of Units
Mobilehome Park Preservation
Total Units by Income 126 191 2330 2647
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.
Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at [email protected] and we will unlock the form which enable you to populate these fields.
Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020
ATTACHMENT B: San José Housing Element Annual Progress Report for CY 2025 (Tables A-J)
Jurisdiction San Jose ANNUAL ELEMENT PROGRESS REPORT
Note: "+" indicates an
optional field
Reporting
Period 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 01/31/2023 - 01/31/2031
Notes
2 3 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(2 to 4,5+)
Tenure
R=Renter
Very Low-
Income
Deed
Restricted
Very Low-
Income
Non Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Total Moderate Income
Units Converted from
Above Moderate
Date
Converted Notes
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding information to this table, please ensure housing developments meet the requirements described in Government Code 65400.2(b). 5 Project Identifier Unit Types
1 4
Affordability by Household Incomes After Conversion Units credited toward Moderate Income RHNA
ATTACHMENT B: San José Housing Element Annual Progress Report for CY 2025 (Tables A-J)
Jurisdiction San Jose
Reporting
Period 2025
(Jan. 1 - Dec.
31)
Period 6th Cycle 01/31/2023 - 01/31/2031 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Realistic
Capacity
Identified in the
Housing
Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting
ATTACHMENT B: San José Housing Element Annual Progress Report for CY 2025 (Tables A-J)
Jurisdiction San Jose Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
NOTE: This table must contain an inventory
of ALL surplus/excess lands the reporting
jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
ATTACHMENT B: San José Housing Element Annual Progress Report for CY 2025 (Tables A-J)
Jurisdiction San Jose ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 01/31/2023 - 01/31/2031
Project Type Date
Units (Beds/Student
Capacity) Granted
Density Bonus
Notes
2 3 5 6
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Unit Category
(SH - Student Housing) Date Very Low- Income
Deed Restricted
Very Low- Income
Non Deed
Restricted
Low- Income
Deed Restricted
Low- Income
Non Deed
Restricted
Moderate- Income
Deed Restricted
Moderate- Income
Non Deed
Restricted
Above
Moderate-
Income
Total Additional Beds
Created Due to Density
Bonus
Notes
Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS ONLY. This
table only needs to be completed if there were student housing projects WITH a density bonus approved pursuant to
Government Code65915(b)(1)(F)
Annual Progress Report January 2020
ATTACHMENT B: San José Housing Element Annual Progress Report for CY 2025 (Tables A-J)
ATTACHMENT C – Methodology for Non-Deed Restricted Moderate-Income Units CY 2025 1 of 3
Methodology for Counting Non Deed Restricted Moderate-Income Units – 2025 Housing Element Annual Report
The purpose of this analysis is to determine if market rate apartments can reasonably be categorized as moderate income for RHNA reporting purposes. Our hypothesis is that some class A rental units that pulled building permits in 2025 will be affordable to moderate-income households in approximately two years (2026-27), when they are completed and occupied. The analysis consists of the following steps:
Method A: Trending
1. Determine what rent ranges will be affordable to 110% AMI households when buildings are completed:
a. Calculate rent ranges that would be affordable to moderate-income households using current (2025) HCD published rent limits for 110% of Area Median Income as the affordability standard for rent plus a reasonable utility allowance, per the California Health and Safety Code.
b. Convert rent range from household size to rents by # bedrooms, using HCD Occupancy Guidelines of one per bedroom plus one. Assign rent maximum by unit type (studio, 1BR, 2 BR etc.)
c. Based on a 2019 survey of a small number of new apartment buildings in a variety of zip codes, we determined set of utilities typically paid by tenants. Using the Santa Clara County Housing Authority current utility allowance schedule for multifamily buildings, determine the cost of the typical set of utilities for each unit size by bedroom, and deduct it from the allowable maximum rent plus utility payments for each unit size determined in step 1b, per HCD guidance, to get the maximum rent payment for each unit size.
d. Adjust these rent ranges and utility costs to approximate what they would be in 2 years when these units are built and occupied by
i. For rent ranges, applying the average % change that HCD Income limits have experienced over the last 2 annual cycles (2023 to 2025). ii. For utility costs, applying the average % change that utility costs in the County’s utility schedule, have experienced over the last 2 years (2023 to 2025)
2. Identify 2025 Permitted Housing Projects > = 10 units:
a. Obtain CY2025 Residential Building Permits Issued for projects with 10 or more units.
Exclude potential ownership projects and affordable projects. b. Identify Zip Codes of the remaining projects.
3. Identify Zip Codes where average effective rents (by unit size) are at/below the moderate- income rent range:
a. Use Costar to identify Q4 2025 Class A average effective rents (by bedroom size) for market-rate projects in SJ, for the zip codes identified in #2 above. b. Adjust average effective market rate rents to approximate what they will be in 2 years when these units are occupied by applying the % change in average effective rent observed in each zip code over the last 2 years.
ATTACHMENT C – Methodology for Non-Deed Restricted Moderate-Income Units CY 2025 2 of 3
c. Identify target zip codes where adjusted average effective rents, by bedroom count, are at or below the rent ranges calculated in step 1.
4. Collect unit mix data and identify the units affordable to moderate income households:
a. Identify the # of units by bedroom size, in each of the qualifying projects in the qualifying zip codes, per 3 above.
b. Count only those units, by bedroom size, that are equal to or less than the HCD rent ranges calculated and extrapolated in step 1.
Method B: Current Rents & Incomes
Method B is similar to Method A, but without the use of any rent or income trending. Developments that would meet moderate-income rent definitions today are counted.
1. Determine rent ranges affordable to 110% AMI households:
a. Calculate rent ranges that would be affordable to moderate-income households using current (2025) City of San Jose published rent limits for 110% of Area Median Income as the affordability standard for rent plus a reasonable utility allowance, per the California Health and Safety Code.
b. Convert rent range from household size to rents by # bedrooms, using HCD Occupancy Guidelines of one per bedroom plus one. Assign rent maximum by unit type (studio, 1BR, 2 BR etc.)
c. Based on a 2019 survey of a small number of new apartment buildings in a variety of zip codes, we determined set of utilities typically paid by tenants. Using the Santa Clara County Housing Authority current utility allowance schedule for multifamily buildings, determine the cost of the typical set of utilities for each unit size by bedroom, and deduct it from the allowable maximum rent payments for each unit size determined in step 1b, per HCD guidance.
2. Identify 2025 Permitted Housing Projects > = 10 units:
a. Obtain CY2025 Residential Building Permits Issued for projects with 10 or more units.
Exclude potential ownership projects and affordable projects. b. Identify Zip Codes of the remaining projects.
3. Identify Zip Codes where average effective rents (by unit size) are at/below the moderate- income rent range:
a. Use Costar to identify Q4 5Class A average effective rents (by bedroom size) for market- rate projects in SJ, for the zip codes identified in #2 above.
4. Collect unit mix data and identify the units affordable to moderate-income households:
a. Identify the # of units by bedroom size, in each of the qualifying projects, per 3 above. b. Count only those units, by bedroom size, that are equal to or less than the HCD rent ranges calculated and extrapolated in step 1.
ATTACHMENT C – Methodology for Non-Deed Restricted Moderate-Income Units CY 2025 3 of 3
Final Step: To be more conservative, select the lower number of units from Method A or Method B.
East Palo
Alto
Alto
ord
Mountain
Los Altos View
r,
I
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State Park
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Sunnyvale
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Attachment D: Map of Building Permits Issued in 2025
Legend
CJ City Council District CY 2025 Building
Milpitas All Growth Areas Permits
2040 • 2 to 4
Type • S+
D Downtown • ADU
D Employment Area • SFA
D Employment Area • SFD
(Former Village) CY 2025 Affordable D Specific Plan Area Permits D Urban Village
• CY 2025 Affordable
Permits
Los Gatos
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
ANNUAL REPORT OF THE HOUSING SUCCESSOR TO THE SAN JOSE
REDEVELOPMENT AGENCY REGARDING THE LOW- AND MODERATE-INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2024-2025
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f)
FOR THE CITY OF SAN JOSE
This Housing Successor Annual Report (Report) regarding the Low- and Moderate- Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f) and reflects data from July 1, 2024, through June 30, 2025.
This Report sets forth certain details of the housing activities of the City of San José, Housing Successor to the former Redevelopment Agency of the City of San José, during fiscal year 2024-2025. The purpose of this Report is to provide the governing body of the Housing Successor with an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law).
The following Report is based upon information prepared by Housing Successor staff and information contained within the independent financial audit of the LMIHAF 1 for fiscal year 2024-2025 as prepared by the City of San José’s (City) Finance Department and the audit conducted by Macias Gini and O’Connell LLP. Further, this Report conforms with and is organized into Sections I through XIII, inclusive, pursuant to Section 34176.1(f) of the Dissolution Law, as follows:
I. Loan Repayments: This section provides the amount the City received pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4.
II. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during fiscal year 2024-2025. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited.
III. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of fiscal year 2024-2025. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited. 1 City of San José Comprehensive Annual Financial Audit, web link:
https://www.sanjoseca.gov/home/showpublisheddocument/126680/638991395327500000 Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
IV. Description of Expenditures from LMIHAF: This section provides a description of the expenditures made from the LMIHAF during fiscal year 2024-2025. The expenditures are to be categorized.
V. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts.
VI. Description of Transfers: This section describes transfers, if any, to another housing successor agency made in previous fiscal year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees, or special needs housing.
VII. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project.
VIII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former Redevelopment Agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, it provides a status update on the project.
IX. Description of Outstanding Obligations under Section 33413: This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former Redevelopment Agency as of February 1, 2012 along with the Housing Successor’s progress in meeting those prior obligations, if any, of the former Redevelopment Agency and how the Housing Successor’s plans to meet unmet obligations, if any.
X. Income Test: This section provides the information required by Section 34176.1(a)(3) for a cumulative five-year time period, as to whether the statutory thresholds have been met. Pursuant to California Health and Safety Code Section 34176.1(a)(3), compliance needs to be demonstrated every five years. Compliance was last demonstrated in 2024 and must be demonstrated again in 2029.
XI. Senior Housing Test: This section provides the percentage of units of deed- restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former Redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency, and its host jurisdiction within the same time period. For this Report, the 10-year review period is July 1, 2015, to June 30, 2025.
XII. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, the length of time that the Housing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus.
XIII. Homeownership Units
An inventory of homeownership units assisted by the former Redevelopment Agency or the Housing Successor that are subject to covenants or restrictions or to an adopted program that protects the former Redevelopment Agency’s investment of moneys from the LMIHAF pursuant to subdivision (f) of Section 33334.3. This inventory shall include all the following information:
(A) The number of those units.
(B) The number of units lost to the portfolio in the last fiscal year and the reason for those losses.
(C) Any funds returned to the Housing Successor as part of an adopted program that protects the former Redevelopment Agency’s investment of moneys from the LMIHAF. (D) Whether the Housing Successor has contracted with any outside entity for the management of the units and, if so, the identity of the entity.
This Report is to be provided to the Housing Successor’s governing body by April 1, 2026.2
I. LOAN REPAYMENTS
The City received a repayment of $0 of Supplemental Educational Revenue Augmentation Fund (SERAF) funds pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4.
2 Previous versions of this Report and the former Redevelopment Agency’s pre-dissolution Implementation Plans are available to the public on the City’s website, web link:
https://www.sanjoseca.gov/your-government/departments-offices/housing/resource-library/housing- element
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
II. AMOUNT DEPOSITED INTO LMIHAF
A total of $22,478,762 was deposited into the LMIHAF during fiscal year 2024-2025, which includes program income from loan repayments and interest earnings. Of the total funds deposited into the LMIHAF, $0 (zero) was held for items listed on the ROPS.
III. ENDING BALANCE OF LMIHAF
At the close of fiscal year 2024-2025, the ending balance in the LMIHAF was $95,884,306, of which $0 was held for items listed on the ROPS.
IV. DESCRIPTION OF EXPENDITURES FROM LMIHAF
The following is a description of expenditures from the LMIHAF by category:
Expenditures
Amount Spent
in Fiscal Year
2024-2025
Monitoring and Administration Expenditures $11,413,399.70 Homeless Prevention and Rapid Rehousing Services
Expenditures $122,441.53
Housing Development Expenditure Sub-Categories:
• Expenditures on Extremely Low-Income Units (0-
30% AMI*)
• Expenditures on Very Low-Income Units (31-50%
AMI)
• Expenditures on Low-Income Units (51-60% AMI)
• Expenditures on Low-Income Units (61-80% AMI)
• Expenditures on Unrestricted Units (Manager’s unit)
• Expenditures on Acquisition and Predevelopment
Total Housing Development Expenditures
$7,085,919.11
$2,466,304.30
$2,829,531.57
$52,622.35
$100,720.90
$0
$12,535,098.24
Total LMIHAF Expenditures 24,070,939.47
*AMI: Area Median Income
California Health and Safety Code Section 34176.1 allows for 5% of the total $721,057,682 gross value of Housing Successor assets, or $36,052,884, to be used on monitoring and administration expenditures. As the Housing Successor’s monitoring and administrative expenditures of $11,413,400 million are within the allowable cap, the requirement is met.
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
The Housing Department, as the Housing Successor, expects near-term disbursements for four new developments (525 N. Capitol, Kooser Apartments, Hawthorn Senior Apartments, 5885 Santa Teresa Boulevard) with total commitments of $69.4 million. In addition, the Housing Department expects to secure a funding commitment for one more development prior to the end of fiscal year 2024-2025, for Berryessa Apartments, which will total $10 million and result in future disbursements.
V. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF
Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former Redevelopment Agency as listed on the housing asset transfer schedule approved by the City’s Finance Department as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF.
The following provides the statutory book value of the Housing Successor’s assets.
Housing Successor Assets Value as of End of
Fiscal Year 2024-2025
Statutory Value of Real Property Owned by
Housing Successor
75,210,187
Value of Loans and Grants Receivable 518,970,881
Cash Balance 126,876,614
Total Value of Housing Successor Assets 721,057,682
VI. DESCRIPTION OF TRANSFERS
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during fiscal year 2024-2025.
VII. PROJECT DESCRIPTIONS
The Housing Successor does not receive or hold property tax revenue pursuant to the ROPS.
VIII. STATUS OF COMPLIANCE WITH SECTION 33334.16
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
For interests in real property acquired by the former Redevelopment Agency prior to February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the City’s Finance Department approved the property as a housing asset in the LMIHAF. Accordingly, for real property acquired by the former Redevelopment Agency and now held by the Housing Successor in the LMIHAF, the Housing Successor must initiate activities consistent with the development of the property for the purpose for which it was acquired within five years of that approval date.
For San José, the date of the City’s Finance Department approval was March 14, 2013; accordingly, the five-year deadline to initiate development activity for properties subject to this provision was March 13, 2018.
Below is the list of properties acquired by the former Redevelopment Agency prior to February 1, 2012all of which meet the applicable statutory requirements.
Properties Acquired Prior to February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Activity
Status of Housing Successor
Activity
North Fourth
Street 5/21/2010 3/13/2018
Construction on this 100-unit
development started in July 2010 and
was completed in June 2012. It is in
its permanent financing phase, and
its units are occupied by
income-eligible residents. The City
owns the site fee simple and has a
ground lease to the development.
Japantown
Seniors 5/3/2010 3/13/2018
Construction on this 75-unit seniors
development was completed in late
2015, and it converted to its
permanent financing phase in August
2016. All units are occupied by
income-eligible residents. The City
holds the site fee simple and has a
ground lease to the development.
Vermont House 6/30/2009 3/13/2018
In June 2016, City staff closed a
Conditional Grant for rehabilitation
and a lease of this City-owned
property to Abode Services, an
owner and developer of supportive
housing. Construction was
completed in November 2018
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Properties Acquired Prior to February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Activity
Status of Housing Successor
Activity
providing 16 permanent supportive
housing units. The City sold the fee
interest to the County of Santa Clara
on January 31, 2025.
Brookwood
Terrace 3/1/2009 3/13/2018
Construction on this 84-unit family
development started in March 2010
and was completed in January 2012.
The development is in its permanent
financing phase and its units are
occupied by income-eligible
residents. The City Financing
Authority holds the site fee simple
and has a ground lease to the
development.
Orvieto Family 3/1/2009 3/13/2018
Construction on this 92-unit family
development started in September
2010 and completed in August 2012.
The development is in its permanent
financing phase and its units are
occupied by income-eligible
residents. The City Financing
Authority owns the site fee simple
and has a ground lease to the
development.
The Haven 6/30/2008 3/13/2018
On November 27, 2018, the San
José City Council approved a
15-year lease agreement with the
County of Santa Clara to transition
the use of the Haven from sheltering
fire and other disaster survivors to
temporarily house income-eligible
homeless adults. The existing
three-unit apartment building has
continued to house three low-income
households.
Ford and
Monterey 10/25/2006 3/13/2018
Two affordable housing
developments completed
construction on this site—one 20-unit
development and one 75-unit
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Properties Acquired Prior to February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Activity
Status of Housing Successor
Activity
development. The City owns the site
fee simple and has a ground lease to
both projects. The projects are in
their permanent financing phase and
units are occupied by income-eligible
residents.
Eastside Evans
Lane
(aka Willow Glen
Woods)
6/30/2005 03/13/2018
See Evans Lane Valley
Transportation Authority description.
Evans Lane
Valley
Transportation
Authority (aka
Willow Glen
Woods)
12/31/2002 3/13/2018 Although developers were identified in anticipation of a mixed-use
affordable apartment and for-sale
development following the site’s
purchase, the original development
plan fell through during the Great
Recession and was no longer
feasible.
In 2016, after a new competitive
process for development of
permanent affordable housing,
including units for the homeless, the
City selected nonprofit Allied Housing
to develop the Evans Lane site for
permanent affordable housing. Allied
Housing planned to develop a site
using modular constructed units for
up to 61 households, including
previously homeless households.
The San José City Council approved
a General Plan amendment in June
2016 that permitted the proposed
affordable housing land use.
In August 2016, the San José City
Council approved findings, a ground
lease to Allied Housing, and a
conditional predevelopment grant
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Properties Acquired Prior to February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Activity
Status of Housing Successor
Activity
commitment for the affordable
housing project. In early 2017, the
City and Allied executed A Right of
Entry Agreement, and the
Predevelopment Grant Agreement
was needed to complete preparation
for its final land use entitlements,
which the City awarded on
January 8, 2019. However, as the
project design progressed, the
developer encountered several
design and cost challenges in
developing the proposed modular
design. In mid-2019, the City and
Allied Housing mutually agreed to
discontinue the proposed
development and proceed with a new
affordable development plan.
With the dual crises of increased
homelessness in the region and the
COVID-19 pandemic in early 2020,
the City took urgent action to develop
new emergency shelter and
temporary housing opportunities to
allow the City’s unhoused residents
to safely shelter in place, protecting
those residents and the larger
community.
In early April 2020, the San José
City Council directed the City’s
administration to expeditiously
construct three temporary
Emergency Interim Housing
communities modeled from earlier
Bridge Housing Communities, also
known as “tiny homes.” One of the
City’s new Emergency Interim
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012; however, this Report also presents a status update on projects related to such real property acquired after that date, in an effort to be transparent to the public. The deadline to initiate development is five years from the acquisition date.
Properties Acquired Prior to February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Activity
Status of Housing Successor
Activity
Housing communities is located on
the City’s Evans Lane site.
Approximately 2.5 acres of the 5.5-
acre site has been developed to
accommodate 49 modular sleeping
units along with two common
buildings to support resident services
and daily needs. The Evans Lane
site is being operated by PATH,
serving 48 low-income families
exiting homelessness. Construction
was completed in summer 2021, and
the site continues to operate.
Playa Almaden
(aka Sycamore
Terrace)
02/16/1996 3/13/2018
The Housing Department obtained
the San José City Council’s approval
to sell the property to the City’s
Parks, Recreation, and
Neighborhood Services Department.
In May 2018, the San José City
Council passed a resolution
authorizing the sale, and the property
was sold pursuant to the authority
under the Health and Safety Code
Section 33334.16 for its appraised
value. Sale proceeds were deposited
into the LMIHAF.
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Properties Acquired After February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Status of Housing Successor Activity
258 McEvoy
Street 12/21/2023 12/21/2028
The City acquired the 1.137-acre site
located at 258 McEvoy Street in
December 2023. The San José City
Council approved the purchase of the
site, which had already obtained land
use entitlements from First Community
Housing on April 25, 2023. The
replacement developer has yet to be
identified and will be selected through a
future Request for Proposals to be
released prior to December 2026.
Discussions are underway regarding a
plan to re-entitle the site’s planning
permits.
447 N 1st Street
(The Kelsey
Ayer Station)
6/24/2022 6/24/2027
The City purchased the 0.47-acre site in
June 2022 and ground leased it to The
Kelsey Ayer Station LP, for the
development of affordable housing. The
project received its building permit on
July 13, 2022, for the construction of
113 income-restricted apartments.
Construction was completed in 2024,
the development was placed in service
on April 11, 2024, and received its
notice of completion on June 10, 2024.
1749 Mount
Pleasant Road 01/26/2021 01/26/2026
The City purchased the 0.48-acre site in
January 2021. This site was included in
a Request for Proposals issued by the
Housing Department in December 2021
to identify a developer partner for this
site. The Housing Department identified
Habitat for Humanity as the developer
for this site. A draft Exclusive
Negotiating Agreement was sent to
Habitat for Humanity in March 2024.
Habitat for Humanity was unable to
ensure project feasibility and assemble
development financing in a timely
manner. The site will be sold by the
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Properties Acquired After February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Status of Housing Successor Activity
City’s Office of Economic Development,
Real Estate Division, and the amount of
LMIHAF used to purchase the site will
need to be reimbursed.
3707 East
Williams Road 01/26/2021 01/26/2026
The City purchased the 0.47-acre site in
January 2021. This site was included in
a Request for Proposals issued by the
Housing Department in December 2021
to identify a developer partner for this
site. The Housing Department identified
EAH as the developer for this site. The
final term sheet for an Exclusive
Negotiating Agreement was accepted
by EAH in May 2024. EAH was unable
to ensure project feasibility and
assemble development financing in a
timely manner; therefore, another
Request for Proposals was issued in
October 2025. The goal of the October
2025 Request for Proposals was to
identify a new developer partner and a
feasible proposal for this site.
430 Park
Avenue 01/26/2021 01/26/2026
Housing purchased the 0.12-acre site
from the City’s Office of Economic
Development in November 2020. The
Housing Department continues to
explore opportunities for this site for
future affordable housing development.
71 Vista
Montana 06/29/2020 6/29/2025
The City purchased the 4.2-acre site in
June 2020 and entered into an
Exclusive Negotiating Agreement with
Charities Housing to serve as the
affordable housing developer for the
site. The City lent $2.4 million of
LMIHAF in February 2023 to support
predevelopment of the site. Initial site
plans were submitted for the site in fall
2021. The City’s Planning, Building, and
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Properties Acquired After February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Status of Housing Successor Activity
Code Enforcement Department issued
its approval for the Senate Bill 35
Ministerial Permit on March 21, 2024,
and the developer planned to apply for
funds from the California Debt Limit
Allocation Committee in 2025 after
compiling other financing but was
unsuccessful in receiving a California
Department of Housing and Community
Development Round 8 Affordable
Housing and Sustainable Communities
award.
This site was included in a Request for
Proposals issued by the Housing
Department in December 2025 to
identify a developer partner and a new
feasible proposal for this site. The
$22,875,000 in LMIHAF used to acquire
the site has been reallocated from this
project site to reserves in anticipation of
funding other affordable housing
developments.
Villas on the
Park 03/27/2017 3/27/2022
The City lent $7.7 million and entered
into a ground lease on March 1, 2018,
to support the construction of this
development for 84 affordable
apartments. Construction was
completed in November 2019, and the
property is fully occupied. The City
holds the fee interest in the site.
226 Balbach
Street (Arya) 08/26/2016
08/26/2021
On January 30, 2019, the project
received its planning permits. On
September 19, 2020, it was awarded
funding from the Tax Credit Allocation
Committee and received funding
commitments from all parties. The
project received its building permit on
October 31, 2020, for the construction
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
IX. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413
Replacement Housing. No replacement housing obligations (Section 33413(a)) were transferred to the Housing Successor in fiscal year 2024-2025.
Inclusionary/Production Housing. No inclusionary/production housing obligations (Section 33413(b)) were transferred to the Housing Successor in fiscal year 2024-2025.
X. INCOME TESTS
Extremely Low-Income (30%) Test
Section 34176.1(a)(3)(A) requires that the Housing Successor expend at least 30% of the LMIHAF for the development of rental housing affordable to and occupied by households earning 30% or less (extremely low-income) of the area median income over a five-year period.
Section 34176.1(a)(3)(B) states that if the Housing Successor fails to comply with the extremely low-income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended (in each following fiscal year) on households earning 30% or less of the area median income, until the Housing Successor demonstrates compliance with the extremely low- income requirement.
Pursuant to the California Health and Safety Code Section 34176.1(a)(3)(B), compliance needs to be demonstrated every five years. Compliance was last demonstrated in 2024 and needs to be demonstrated again in 2029.
In 2025, the City met the extremely low-income test according to Section 34176.1(a)(3)(A) by expending 41.1% of LMIHAF for extremely low-income housing Properties Acquired After February 1, 2012
Address/Name
of Property
Date of
Acquisition
Deadline to
Initiate
Development
Status of Housing Successor Activity
of 87 income-restricted apartments.
Construction was completed in 2024
and conversion to permanent financing
was completed in June 2024. This fully
occupied development is now called the
“Arya.”
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
during the past five years from fiscal years 2020 - 2025. This proportion significantly surpassed the 30% minimum expenditure threshold, so the test was met. 60-80% Area Median Income Test
Section 34176.1(a)(3)(A) also requires that the Housing Successor spend no more than 20% of the LMIHAF for the development of rental housing affordable to and occupied by households earning between 60% and 80% of the area median income (61-80% area median income).
Section 34176.1(a)(3)(C) states that if the Housing Successor exceeds the expenditure limit for households earning between 60% and 80% of the area median income in any five-year report, the Housing Successor shall not expend any of the remaining funds for this income cohort until the Housing Successor demonstrates compliance with this limit.
Pursuant to the California Health and Safety Code Section 34176.1(a)(3)(C), compliance needs to be demonstrated every five years. Compliance was last demonstrated in 2024 and needs to be demonstrated again in 2029.
In 2025, the City met the 60-80% area median income test according to Section 34176.1(a)(3)(A) by expending 3.8% of LMIHAF for households earning between 60% and 80% of the area median income during the past five years from fiscal years 2020 - 2025. This percentage was far below the 20% limit, so the test was met.
XI. SENIOR HOUSING TEST
The Housing Successor is to calculate the percentage of deed-restricted rental housing units restricted to seniors and assisted 3 by the Housing Successor, the former Redevelopment Agency, and/or the City within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted by the Housing Successor, the former Redevelopment Agency, and/or the City within the same time period. If this percentage exceeds 50%, the Housing Successor cannot expend future funds in the LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units equal to 50% of the total amount of deed-restricted rental units.
The following provides the Housing Successor’s Senior Housing Test for the 10-year period of July 1, 2015– June 30, 2025.
3 The term ‘assisted’ is used to indicate financial assistance. Units are reported as assisted in the fiscal year in which the loan closing is recorded.
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Senior Housing Test July 1, 2015 – June 30, 2025
# of Assisted Senior Rental Units 593
# of Total Assisted Rental Units 2,070
Senior Housing Percentage in the Past 10 Years 29%
Maximum Allowable Percentage 50%
Test Outcome Met
The percentage of assisted affordable rental units for seniors accounted for 29% of all assisted affordable rental units over the past 10 years. This is well below the 50% threshold, so the test was met.
XII. EXCESS SURPLUS TEST
Excess Surplus is defined in Section 34176.1(d) as an unencumbered amount in the LMIHAF account that exceeds the greater of $1,000,000 or the aggregate amount deposited into the account during the Housing Successor’s preceding four fiscal years, whichever is greater. The following provides the Excess Surplus test for the preceding four fiscal years (in millions):
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
Fiscal
Year 21-
22 Fiscal
Year 22-
23 Fiscal
Year 23-
24 Fiscal
Year 24-
25 Total
deposited in
preceding 4
years
(Fiscal Year
21/22 –
24/25)
Beginning
Balance $164.7 $172.3 $153.8 129.9
Add: Deposits 57.3 18.7 30.8 22.5 129.3
1 (Less)
Expenditures (49.7) (37.2) (54.7) -24.1
(Less)
Encumbrances (48.2) -32.4
Unencumbered
Balance $172.3 $153.8 $80.3 95.9
The LMIHAF does not have an Excess Surplus. The aggregate amount deposited into the account during the four fiscal years is $129,344,084. The current fiscal-year cash balance is $128.3 million with $32.4 million in encumbrances. The unencumbered amount of $95.9 million does not exceed the aggregate amount deposited in the preceding four fiscal years of $129,344,084; therefore, the test is met.
XIII. HOMEOWNERSHIP UNITS
The Housing Successor is to provide an inventory of homeownership units assisted by the former Redevelopment Agency or the Housing Successor that are subject to covenants or restrictions or to an adopted program that protects the former Redevelopment Agency’s investment of moneys from the LMIHAF pursuant to subdivision (f) of Section 33334.3.
A. Number of Assisted Homeownership Units as of 6/30/25 Number of Homeownership
Units
294
Attachment E: Housing Successor to Redevelopment Agency Annual Report FY 2024-2025
B. Number of Assisted Homeownership Units Lost in Fiscal Year 2024-2025 Reason for Loss Units Lost
Loans paid off 16
Loans written off due to foreclosure
or short sale 0
C. $854,543.68 in single-family loan funds were returned to the Housing Successor in this fiscal year as part of an adopted program that protects the former Redevelopment Agency’s investment of moneys from the LMIHAF.
D. The Housing Successor has contracted with an outside entity for the management of the single-family homeownership loans. The entity's name is AmeriNat Loan Servicing.