California Construction News staff writer
Construction will soon begin on a major affordable housing project in South San José, where a former arcade site at 1371 Kooser Rd. is being transformed into a 191-unit residential complex.
The San José City Council unanimously approved a $73.7 million multifamily housing revenue bond on June 10 to support the $160 million development by Affirmed Housing. The project, known as The Arcade, is scheduled to break ground this August and will provide 100% affordable housing.
“This is a critical investment that will help prevent displacement, provide stable housing for our most vulnerable residents, and make meaningful use of underutilized land,” said Vice Mayor Pam Foley, who represents the district.
The development will include a mix of studio, one-, two-, and three-bedroom apartments, including 50 units set aside for formerly unhoused individuals and very low-income residents earning less than 30% of the area median income (AMI). The remaining 139 units are targeted toward households earning between 40% and 70% of AMI.
Affirmed Housing vice-president Rob Wilkins credited the city’s support with helping keep the project on track. “Without the city’s funds, the project would be significantly delayed. These funds are pivotal to the project’s success,” Wilkins told San José Spotlight.
In addition to the city bond, the project is being financed through a $19.5 million loan from the city, $2 million in Measure A funds from Santa Clara County, $27.7 million in state tax credit equity, and $55.4 million in federal Low-Income Housing Tax Credits.
The seven-story building will offer 128 parking spaces and a range of resident-focused amenities, including solar-powered systems, energy-efficient appliances, a computer room, outdoor gathering areas, and free VTA transit passes for tenants.
Construction is expected to be completed by the end of 2027.
The Arcade is one of several large-scale affordable housing projects underway in San José and reflects a broader regional push to address housing affordability through public-private partnerships and mixed-financing models.
