A number of affordable housing projects in San Jose are stuck in limbo as they wait for city funding to start construction. That waitlist is keeping more than 1,500 new homes off the market.
Out of the 17 proposed projects submitted to the San Jose Housing Department last year, only four received funding to begin development. The rest of the projects could continue to remain on hold, if they fail to receive money from funding sources, like Measure E.
The Santa Clara County ballot measure is a property transfer tax approved by voters in 2020. In this year’s budget proposal, the San Jose City Council is considering reallocating housing funds from Measure E to support and shelter homeless residents in the short term. The shift would mean $25 million would go toward those temporary programs.
The 13 affordable housing proposals on hold requested a total of more than $200 million in city funding.
The four affordable housing projects that received funding last year still require approval by the San Jose City Council.
Housing projects on the waitlist are only requesting city funding to pay for a portion of the project. But those funds provide essential leverage when developers seek additional funding from state and federal sources.
Mayor Matt Mahan addressed the media Tuesday. The City Council was expected to vote Tuesday night on reallocating affordable housing funds to shelter the homeless.