"We hope to stabilize that asset and get people actually living in these vacant units, bringing some more foot traffic and some more density to the southern part of our downtown. The voucher program targets middle-income tenants earning between 80% and 110% of the area median income, which is roughly $111,000 to $150,000 in annual earnings."
"Under the plan, the city will become a master tenant at the property, entering an agreement with ASJ Development, a subsidiary of Canadian-based real estate company WestBank. As master tenant, the city will work out rental terms for the 197 apartments covered by the program. Qualifying tenants will pay lower monthly rents, depending on their income levels, and the city will cover the difference."
"Unlike other affordable housing programs, this one won't produce permanently rent-reduced homes. The property at 10 East Reed St., known as The Fay, is a luxury apartment complex that first opened in 2024. Since then, it has struggled to fill its 336 homes and reportedly faced bankruptcy."
San Jose approved the Lower Income Voucher and Equity Program to address two challenges: stabilizing The Fay, a luxury high-rise in the SoFA District facing financial difficulties since opening in 2024, and providing below-market housing downtown. The city will invest $11.2 million to subsidize rents for 197 of the building's 336 apartments. The program targets middle-income tenants earning 80-110% of area median income, with priority given to city workers. San Jose will serve as master tenant, negotiating rental terms with developer ASJ Development and covering the difference between tenant payments and market rates. Unlike traditional affordable housing programs, these units will not remain permanently rent-reduced.
Read at San Jose Spotlight
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