HOUSING DEPARTMENT
ACTIONS RELATED TO THE LOAN
COMMITMENT FOR THE V ALLEY
TRANSPORTATION AUTHORITY CAPITOL
STATION AFFORDABLE HOUSING
DEVELOPMENT
April 7, 2026 Item 8.2
City Council
Erik L. Soliván
Housing Director
Banu San
Deputy Director
NOFA Priorities
• The City’s key priorities for gap financing are to:
Increase the City’s housing stock supply across all income levels Fund "shovel-ready" developments
Provide gap financing as the final funding source in a development project VTA Capitol Station has been selected as a 2025 Rolling Request for Proposals awardee.
4/6/2026 2
VTA Capitol Housing Development Program
• Located at Capitol Expressway and Narvaez Avenue in Council District 2 • A 10.1-acre site currently serving as a Park-and-Ride lot for VTA Light Rail and Bus rides • MidPen Housing Corporation was selected by VTA as developer in March 2022 to develop 2.68 acres of the site as affordable housing
• The project will expand the City of San José's housing stock by adding 203 new affordable units serving households at 30–60% AMI
4/6/2026 Slide 3
VTA Capitol Station Funding Overview
Developer: MidPen Housing Corp. · Landowner: Valley Transportation Authority · Construction Start: November 2026
PUBLIC FUNDING SOURCES
City of San José $8,400,000
Const.-perm. loan
County of Santa Clara $11,571,000
Const.-perm. loan
Bay Area Housing Finance Authority $3,000,000
Const.-perm. loan
HCD – AHSC $35,000,000
Loan
RENTAL ASSISTANCE
Santa Clara County Housing Authority 71 PBVs *
* Project-Based Vouchers: 20 lower-income
households and 51 permanent supportive housing
households requiring specialized services
TAX CREDITS & BONDS (Anticipated)
Low-Income Housing Tax Credits (LIHTC): $78,382,201
Tax-Exempt Bonds: $53,539,297Total $57,971,000
Slide 4
VTA Capitol Station Per-Unit Economics
Total cost of development Total public subsidy * Total private capital City's public subsidy $835,400 $671,700 $163,700 $41,000
per unit per unit per unit per unit
The City's subsidy of $41k per unit reflects the depth of the multi-agency funding partnership, including HCD, BAHFA, the Housing Authority, and the County each contributing significant resources, allowing the City's gap financing of $8.4M to go further per household served.
* Includes Federal Tax Credit Equity Slide 5
Sources of Funding
Funding Source Funding Type Amount % of Total
Development Cost
Permanent Loan – JP Morgan Chase Private $33,238,000 19.6% California Department of Housing and
Community Development’s Affordable Housing
and Sustainable Communities Program Loan
Public $35,000,000 20.6%
City of San José Public $8,400,000 5.0%
County of Santa Clara Public $11,571,000 6.8%
Bay Area Housing Finance Authority Public $3,000,000 1.8% Federal Tax Credit Equity (4%) Public $78,382,201 46.2% Total $169,591,201 100%
Slide 6
Unit and Affordability Mix
Unit
Size
30% AMI 40% AMI 50% AMI 60% AMI
MGR TOTAL
Units Max
Income
Rent
Limits Units Max
Income
Rent
Limits Units Max
Income
Rent
Limits Units Max
Income
Rent
Limits
Studio 0 $42,200 $1,024 7 $54,640 $1,366 12 $70,350 $1,708 12 $81,960 $2,049 0 31 1-BD 38 $45,200 $1,098 10 $58,560 $1,464 10 $75,375 $1,830 10 $87,840 $2,196 0 68 2-BD 13 $54,250 $1,317 11 $70,280 $1,756 13 $90,450 $2,196 14 $105,420 $2,635 0 51 3-BD 6 $62,675 $1,523 12 $81,200 $2,030 23 $104,475 $2,538 10 $121,800 $3,045 2 53 TOTAL 57 40 58 46 2 203
Slide 7
Summary
• Strong Collaborations with:
• California Department of Housing and Community Development • Bay Area Housing Finance Authority
• County of Santa Clara
• Santa Clara County Housing Authority
• Continuing to fund deeply affordable units and prioritizing projects that are ready to start construction
Slide 8
HOUSING DEPARTMENT
ACTIONS RELATED TO THE LOAN
COMMITMENT FOR THE V ALLEY
TRANSPORTATION AUTHORITY CAPITOL
STATION AFFORDABLE HOUSING
DEVELOPMENT
April 7, 2026 Item 8.2
City Council
Erik L. Soliván
Housing Director
Banu San
Deputy Director