December 12, 2025

Building Through Uncertainty: Affordable Housing Milestones in 2025

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2025 was a year of major policy shifts, economic uncertainty, and persistent financial pressure for affordable housing development across Santa Clara County. Yet through resilience, partnership, and perseverance, new homes opened their doors, projects broke ground, and critical funding was secured for the years ahead.

If 2024 tested the limits of affordability, 2025 reshaped the terrain entirely. At both the federal and state levels, housing policy underwent some of the most significant shifts in years—from the long-awaited federal reduction of the private activity bond threshold from 50% to 25%, to major changes in the Continuum of Care and Permanent Supportive Housing landscape, to a renewed wave of state-level housing reforms such as SB 79 and updated CEQA reforms.

Together, these changes created new opportunities—and new uncertainty—at the same time. Developers, jurisdictions, and service providers spent much of the year adapting to an evolving regulatory and financing environment while continuing to respond to deep and growing housing needs.

What has not changed are the structural challenges that continue to strain affordable housing production: labor shortages, elevated construction material costs, rising insurance premiums, and high interest rates continue to drive up costs. Measure A funding at the County is now fully exhausted, and Santa Clara County lacks a new, dedicated local or state revenue measure to replace it, leaving the system increasingly reliant on scarce and competitive resources.

And yet—even in a time of scarce funding and shifting policy—affordable housing continued to move forward. Through persistence, partnership, and deep community commitment, 2025 brought meaningful milestones across Santa Clara County: new communities opened their doors, shovels hit the ground on long-awaited developments, and critical financing was secured to keep the next generation of homes moving toward construction.

Grand Openings: New Homes Becoming Reality

Despite the headwinds, 2025 brought powerful moments of celebration as multiple affordable housing communities welcomed their first residents across Santa Clara County. These ribbon cuttings reflect years of planning, financing, advocacy, and collaboration finally coming to fruition.

Mountain View (2):

  • La Avenida Apartments – 100 homes developed by Eden Housing
  • The Sevens Teacher Housing – 144 homes led by Miramar Capital in partnership with the Mountain View Whisman School District

San José (6):

  • 1860 Alum Rock Apartments – 60 homes by Charities Housing
  • Bellarmino Place – 116 family homes by the Santa Clara County Housing Authority
  • Alvarado Park – 90 senior homes by the Santa Clara County Housing Authority
  • Parkmoor Community Apartments – 81 homes by Abode Housing Development, co-located with The Hub for foster youth services
  • Roosevelt Park Apartments – 9 supportive homes for transition-age foster youth by First Community Housing and the County of Santa Clara
  • Algarve Apartments – 91 homes, originally developed by First Community Housing and completed under County leadership, including 46 PSH units

Each of these openings represents far more than a new building—they represent stability for families, seniors, educators, veterans, and young adults transitioning out of foster care. Several of these projects were made possible through the County’s 2016 Measure A Affordable Housing Bond, continuing to demonstrate the lasting impact of dedicated local investment.

Groundbreakings: Laying the Foundation for Future Homes

In addition to celebrating completed developments, 2025 also marked important forward momentum as new projects broke ground across the county. These milestones signal continued commitment to affordable housing production, even as financial conditions remain volatile.

Los Altos (1):

  • 330 Distel Circle – 90 homes by EAH Housing, the city’s first 100% affordable housing community, supported by Measure A

San José (3):

  • The Fielden (525 N. Capitol Ave.) – 160 homes by Community Development Partners
  • Martha Gardens (802 S. 1st Street) – 166 homes by The Pacific Companies
  • The Arcade (1371 Kooser Road) – 191 homes by Affirmed Housing

Together, these four groundbreakings represent more than 600 future affordable homes now moving into active construction. In a difficult development environment, these projects are tangible proof that progress continues—and that long-term housing solutions require sustained commitment through every phase of development.

Securing Funding for Tomorrow’s Homes

Even with capital markets under strain, 2025 delivered critical funding wins that will drive the next wave of affordable housing production across Santa Clara County. Through a combination of CDLAC bond allocations, 4% Low-Income Housing Tax Credits, and highly competitive 9% credits, thousands of future homes advanced through the financing pipeline.

Key 2025 funding commitments included:

Mountain View (1):

  • La Bella – 108 homes (CDLAC + 4% credits)

Milpitas (1):

  • CA Circle Family – 75 homes (CDLAC + 4% credits)

Morgan Hill (1):

  • The Magnolias – 66 homes (CDLAC)

Palo Alto (1):

  • El Camino Real Multifamily – 130 homes (CDLAC)

San José (12):

  • Trimble Apartments – 136 homes (CDLAC + 4%)
  • Block A Family Apartments – 272 homes (CDLAC + 4%)
  • Eden Palms – 145 homes (CDLAC)
  • Vista Park II – 83 homes (CDLAC)
  • Santa Teresa Multifamily (NPHA) – 9% tax credits
  • Fairways at San Antonio Court – 86 homes (CDLAC)
  • Lupina – 99 homes (CDLAC)
  • Berryessa Family Apartments – 260 homes (CDLAC)
  • BMG Housing – 109 homes (CDLAC)
  • Paseo Senter II Rehab – 101 homes (CDLAC)
  • Berryessa TOD – 195 homes (CDLAC)
  • Gateway Tower – 220 homes (CDLAC)

These funding commitments represent one of the most critical—yet often least visible—stages of affordable housing development. Each award brings projects one step closer to construction and underscores the importance of coordinated local, state, and federal investment in a time of dwindling public resources.

Preservation: Preventing Displacement Through Acquisition

In addition to new development, 2025 also brought an important preservation milestone:

  • Virginia Avenue Apartments (San José) – 18 homes acquired by the South Bay Community Land Trust using Measure E from the City of San José, financing from the Bay Area Housing Finance Authority (BAHFA), and philanthropic funding to preserve long-term affordability and prevent displacement.

This acquisition marks a meaningful step toward deploying community land trust and anti-displacement strategies at scale—an increasingly critical tool as market pressures continue to threaten naturally occurring affordable housing.

Looking Ahead: Moving Forward in a Time of Change

As 2025 comes to a close, we reflect on a year defined by policy shifts, fiscal uncertainty, and persistent development challenges—but also by resilience, partnership, and continued progress. New homes opened their doors. Shovels hit the ground on long-awaited projects. And critical financing was secured for the next generation of affordable communities.

At a moment when resources are scarce and the policy landscape is rapidly evolving, one thing remains constant: the urgency of the housing crisis and the resolve of the affordable housing community to meet it. To our development partners, public agencies, community advocates, and supporters—thank you for continuing to push this work forward in one of the most challenging housing markets in the country.

The need for affordable housing in Santa Clara County remains urgent. But so does the opportunity to shape a more stable, equitable future—if we remain committed to sustained investment, smart policy, and collective action.

To keep this progress moving, support affordable housing projects and the policy and regulatory reforms that unlock their feasibility.