The San Jose City Council approved $5 million from Measure E funds to support the South Bay Community Land Trust (SBCLT) in acquiring and rehabilitating the Virginia Avenue Apartments. This marks the city’s first allocation of these funds for preservation, establishing a model for future community investments in deed-restricted affordable housing. View staff report.

The property includes 18 currently unrestricted rental homes that serve low-income households with nearly 89% of tenants earning 40% or less of the area median income. SBCLT plans to maintain affordability by capping rents at 30% of tenants’ incomes for severely rent-burdened households, freezing rents for one year, and adhering to city affordability restrictions for 55 years.

SBCLT will purchase the property for $4.5 million, funded by the Bay Area Housing Finance Authority (BAHFA) contingent on city approval. An additional $5 million city grant will be used for immediate rehabilitation to address deferred maintenance and improve living conditions. SBCLT also secured $1.5 million in additional funding for displacement mitigation and construction contingencies.

Originating from the City’s anti-displacement strategic plan, San Jose’s preservation strategy evolved from initial attempts to pass a Community Opportunity to Purchase Act (COPA) policy. As part of the exploration of this policy, staff and community partners like SV@Home explored what resources and requirements were needed to create alternative affordable housing models, like community land trusts (CLTs) and cooperatives. The City of San Jose released a Notice of Funding Availability (NOFA) for $5 million for acquisition and/or rehab of existing housing and worked with groups to adapt the underwriting guidelines to allow new groups to access that funding.

This effort reflects a collaborative approach between SBCLT, the city, and other partners to preserve naturally occurring affordable housing, prevent displacement, and set a precedent for similar initiatives across other cities.