An affordable housing developer plans to construct a massive project on Alum Rock Avenue, potentially adding hundreds of units in East San Jose over the next few years as the city struggles with a lack of cost-friendly options.
The Pacific Companies has eyed a six-story, 400-unit, 100% affordable complex on the 3.4-acre site at 2940 Alum Rock Ave. to replace the former Orchard Supply Hardware building currently fenced off.
“It’s been an attraction of blight and crime in the area, so I am interested in identifying a way to develop the site and, hopefully, beautify it because the neighbors in the area, unfortunately, have been intimidated due to some activity,” District 5 Councilmember Peter Ortiz said. “I think that the best solution is to fill up this vacant site.”
The project has targeted a mix of 19 studios and 199 one-bedroom, 72 two-bedroom and 10 three-bedroom apartments.
Qualifying household incomes will range between 30% and 80% of the area median income (AMI), which means $55,000 to $147,400 for a family of four.
That translates to rents ranging from $968 for a studio apartment at 30% AMI to $3,834 for a three-bedroom apartment at 80% AMI.
“I’m really pleased to see the site that’s been sitting vacant and fenced off for so long has the potential to turn into a vibrant, mixed-income community with much-needed workforce housing for families and individuals in our community,” said Alison Cingolani, a policy manager at SV@Home who also lives around the corner from the site.
Darren Berberian, a business developer with The Pacific Companies, said that the project is currently trying to secure financing and hopes to have permits pulled at the end of 2025 or early 2026.
He said the project will take approximately two years to construct, meaning the developer expects to have all units fully leased by 2027 or 2028.
Berberian also added that the complex will offer instructor-led educational, health and wellness, and skill-building classes on topics such as financial literacy, computer training, homebuyer education, resume-building, parenting, and nutrition.
The Pacific Companies also currently has two other housing projects on Alum Rock Avenue under construction.
Berberian said the developer anticipates completing the 194-unit project at 1936 Alum Rock Ave. and the 164-unit project at 2880 Alum Rock Ave. by the second quarter of 2026.
While the addition of housing — including the improvement to the current blighted site — was generally viewed positively, residents have raised concerns about the potential impacts of adding hundreds of units to the area, especially since each apartment will have one parking spot.
Berberian said with over 37,000 people on waiting lists for affordable housing communities, his firm conducts rigorous tenant checks to ensure that all rules are followed.
“When they go through the process to have residency here, they have to understand what the rules and regulations are, meaning if there’s only one parking space, you only have one car, and if you don’t comply, you can’t move in,” Berberian said. “People who are accepted and able to reside here take it very seriously. People wait years and years and years to get into these, so you have to keep that under consideration, and we run a very tight ship.”
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Although Pacific Companies will likely have to pay hefty impact fees due to the size of the project, the creation of new housing could also indirectly help the struggling nearby school district.
The Alum Rock Unified School District has recommended closing seven schools and consolidating two others to close budget deficits caused by declining enrollment as families can no longer afford to live nearby.
“More affordable housing does also help support our schools,” Cingolani said.