Affirmed Housing Completes San Jose Affordable Supportive Community

Affirmed Housing has completed Vitalia, a 79-unit affordable and supportive housing development in San Jose, Calif.

The property will serve low-income and formerly homeless families and individuals, with approximately half of the units designated for supportive housing and the remaining units reserved for households earning up to 60 percent of the area median income.

The five-story building incorporates studio, one-, two- and three-bedroom floorplans. Common-area amenities include an interior courtyard, a community and computer room, an outdoor deck, a community garden, laundry facilities, controlled access and 40 underground parking spaces. The property also features 620 square feet of retail space.

The all-electric and GreenPoint rated Platinum building incorporates several sustainable elements, such as Energy Star appliances, rooftop solar panels and an ecological history art installation that connects the street to the lobby and courtyard.

Vitalia is at 3100 S. Bascom Ave., within the Cambrian neighborhood. Nearby is Route 17, which allows easy access across the San Jose metropolitan area.

Development and financing sources

The financing sources for the fully affordable project include:

• $15.8 million in Santa Clara County Measure A funds
• a $36 million construction and permanent loan from U.S. Bank
• $40 million in tax credit equity provided by Boston Financial Investment Management through the sale of the project’s state and federal tax credits
• a $7.7 million acquisition loan provided by Housing Trust Silicon Valley
• project-based vouchers from the Santa Clara County Housing Authority and Department of Veterans Affairs.

The property is subject to a 55-year unsubordinated net ground lease held by County of Santa Clara, according to Yardi Matrix data. Santa Clara County bought two properties in San Jose in 2022 that were leased back to project developers for $1 per year, as reported by The Real Deal. The responsibility for completing the projects, including investments and construction costs, belonged to the developers.

Vitalia Apartments is one of these properties. The partnership between Compass for Affordable Housing and Affirmed Housing developed the project and was granted about $46 million in construction financing from MUFG Union Bank, the same source shows.