May 21, 2025

Sticks & Bricks – May Edition: News for Developers

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This month’s Developer Corner spotlights VTA’s growing TOD portfolio and new RFPs, Gilroy’s proactive push to streamline housing development, and fresh funding opportunities across the region. Get the latest tools, insights, and events designed to help you build more affordable homes—faster and smarter.

VTA’s Commitment to Equitable, Transit-Oriented Development

VTA has quietly become one of the most productive public land stewards in the region, transforming underused sites near transit into affordable, connected communities. Through long-term ground leases and strong partnerships with both nonprofit and for-profit developers, VTA has built or approved nearly 4,300 homes across 13 projects—66% of which are deeply affordable to households earning 60% of the Area Median Income (AMI) or below. These results go above and beyond VTA’s own goals and demonstrate a serious commitment to addressing the housing crisis while expanding access to opportunity.

Current Opportunities: River Oaks + Great Mall RFPs

Right now, VTA is seeking development partners for two high-opportunity sites: River Oaks in North San Jose and Great Mall in Milpitas. Both sites are located in transit-rich, Highest Resource Areas and are part of the MTC-led Priority Sites Program, offering clear entitlement pathways and potential predevelopment support. VTA’s Transit-Oriented Communities Policy sets clear affordability expectations—25% of homes at or below 60% AMI, half of which must serve households at or below 50% AMI—while also emphasizing sustainability, equity, and community benefit.

Why Partner with VTA?

VTA isn’t just offering land—it’s offering a proven track record of collaboration. Developers who partner with the VTA gain access to public land with a streamlined, policy-driven approach, as well as opportunities to co-create community-centered projects in some of the region’s most transit-accessible locations. With a clear understanding of the complexity of affordable housing, VTA brings consistency, mission alignment, and a commitment to building thriving, inclusive communities.

Gilroy’s Developer Roundtable

On May 13, the City of Gilroy hosted a Developer Roundtable to share updates on planning, zoning, and housing initiatives. City staff—alongside partners like Strategic Economics—offered a deep dive into the Gilroy 2040 General Plan, Housing Element implementation, zoning changes, and updates to the Building and Fire Codes. The roundtable provided developers with an early look at the City’s direction and created a forum for meaningful input.

Gilroy is making real progress in reducing barriers to housing development. From rolling out pre-approved ADU plans to identifying and promoting opportunity sites, the City is actively working to create a more developer-friendly environment. Efforts are also underway to recruit a full-time Deputy Director of Community Development, further strengthening staff capacity to support housing growth. At the same time, an affordable housing nexus and feasibility study is in progress to help shape equitable fee policies. Zoning reforms are also being advanced to unlock mixed-use and infill development in key areas of the city.

Developers should keep a close eye on Gilroy as these changes unfold. The City is demonstrating a clear commitment to smart, equitable growth—and they are bringing stakeholders to the table early. By staying engaged, developers have a valuable opportunity to help shape policies that support feasible and impactful housing production.

Funding Opportunities

Explore these new funding sources for affordable housing development:

  • New: Permanent Local Housing Allocation Program (PLHA)
    • The state has released new funding through the Permanent Local Housing Allocation (PLHA) Program, to support locally driven affordable housing solutions. We encourage developers to reach out to their city partners and urge them to apply before the July 22, 2025 deadline to ensure these critical resources are put to use in their communities.
  • New: VTA TOD RFP
    • The VTA has released two new RFPs for transit-oriented development (TOD) on agency-owned land in San José and Milpitas, with proposals due by May 30, 2025. These sites—River Oaks and Great Mall—are both in Highest Resource Areas, offering strong potential for affordable housing near major transit hubs. Developers are encouraged to propose projects that prioritize affordability, sustainability, and access to opportunity.
  • San Jose RFP – 2025 Update
    • The City of San José has launched a rolling RFP for its Gap Financing Program, accompanied by updated underwriting guidelines. Projects submitted will be publicly scored, with top proposals prioritized for funding and the remainder added to a new waitlist.
  • Affordable Housing and Sustainable Communities Program NOFA
    • HCD, in partnership with the Strategic Growth Council (SGC), has announced the release of approximately $775 million in funding under the Affordable Housing and Sustainable Communities (AHSC) Program, aimed at reducing greenhouse gas emissions and supporting sustainable, infill development. Applications will be accepted via the AHSC portal from April 2 to May 28, 2025.
  • Homekey+ and Tribal Homekey+
    • The State of California has launched two parallel funding programs to expand Permanent Supportive Housing for individuals experiencing or at risk of homelessness with behavioral health challenges. The Homekey+ NOFA provides $2.145 billion for projects serving veterans and other individuals with behavioral health needs. In parallel, the Tribal Homekey+ NOFA allocates $121 million specifically for Tribes and Tribal Entities to create culturally appropriate housing solutions for households facing similar challenges. Together, these programs represent a significant investment in housing and behavioral health interventions across the state.

Resources

Access important resources and guidance for affordable housing development:

  • New: Terner Center: Property Tax Exemptions Brief
    • This brief highlights the critical role that property tax exemptions play in the long-term financial viability of affordable housing. It calls for modernizing California’s property tax exemption policies to better align with today’s affordable housing landscape, especially in mixed-income and supportive housing contexts. Developers can use this report to advocate for reforms that will help projects pencil out and remain affordable over time.
  • New: Terner Center: How to Fund Supportive Services Through Medi-Cal
    • Looking to boost your supportive housing services without breaking your budget? Terner Center’s latest report shows how CalAIM opens the door to Medi-Cal funding for housing navigation, deposits, and ongoing tenancy support. Whether you’re already in the PSH space or planning your next deal, this is your must-read guide to unlocking sustainable service dollars—and it kicks off with a deep dive into how MidPen is making it work.
  • ICE Response Resources
    • At SV@Home, we are committed to providing developers with the resources necessary to effectively train staff on how to respond to potential ICE raids. Here we have compiled a list of available resources to help navigate these challenges.

Upcoming Events

Mark your calendars for these key industry events:

  • New:Breaking Ground In The Bay
    • Join us on May 30 in Downtown San Jose for an interactive workshop and happy hour designed to support emerging affordable housing developers through expert insights, strategy games, and collaborative problem-solving. Hosted by Forward City Labs, this event offers a unique opportunity to build relationships, explore innovative financing and development strategies, and co-create tools that level the playing field in the affordable housing industry.
  • New:Unlocking Public Land for Affordable Housing
    • Join LISC Bay Area on May 28 at 3PM for a powerful conversation on how to turn publicly owned land into affordable homes. Hear from leaders across sectors as they explore innovative solutions like the PLUS Loan Guarantee Program to overcome key financing and development barriers.
  • Youth Housing Summit
    • The Fostering Promise Youth Housing Summit, coming May 29th, highlights innovative solutions and partnerships to support youth housing—discover new opportunities to make a lasting impact in your developments.