PATH buys San Jose site to develop housing for homeless seniors

SAN JOSE — People Assisting the Homeless has taken a key step
toward developing a new residential complex to house senior
citizens who were homeless by purchasing an old supermarket site in
San Jose north of the city’s downtown district.

Acting through an affiliate, People Assisting the Homeless —
PATH — has bought the former Dick’s Supermarket site at 1020 N.
Fourth St. in San Jose, according to Santa Clara County public
records.

“Our goal is to address the housing crisis and address
homelessness in a meaningful way,” said Megan Colvard, regional
director of PATH San Jose.

PATH San Jose has proposed the development of a 93-unit
residential project whose units would be set aside solely for
seniors who were formerly homeless.

San Jose city officials have yet to approve the project. At a
recent community meeting, some neighbors expressed concerns about
this sort of homelessness-focused development in their area.

The PATH affiliate, 4th Street San Jose, paid $6.8 million for
the nearly 1-acre site, which is located at the corner of East
Younger Avenue and North Fourth Street.

A portion of Google’s $50 million investment that was
disclosed in July was deployed to enable PATH to purchase the
property, according to Housing Trust of Silicon Valley.

Mountain View-based Google invested the money in Housing
Trust’s TECH Fund. In 2017, Housing Trust launched that fund,
which uses money from local companies and big organizations to
finance affordable housing.

In the case of the old supermarket site, PATH Ventures was able
to obtain a $7.8 million loan to bankroll the property
purchase.

Half of the apartments will be set aside for residents who earn
up to 30 percent of the area median income with the rest of the
units reserved for those earning 50 percent of the median income in
the region.

PATH has used multiple community meetings that have prompted the
nonprofit to tinker with the original concepts for the project.

“We have reduced the building heights, we reduced the amount
of parking, and we have increased the commercial space,” Colvard
said.

In the initial plan, the retail space would have totaled about
500 square feet. After consultations with the community, that
amount was increased to 3,000 square feet, which could allow for
multiple retailers

“Affordable housing developers usually don’t build out a lot
of commercial space,” Colvard said. “We are working with the
community to think up potential tenants.”

Despite some potential hurdles to development, PATH appears
confident enough in its proposal that it closed escrow and
completed the property purchase this week.

“There is a risk, but we feel very strongly about the
concept,” Colvard said. “There is a lot of political will to
address this problem in a meaningful way.”

Source: FS – All – Real Estate News 1
PATH buys San Jose site to develop housing for homeless seniors