REPORT TO CITY COUNCIL
SUBJECT
Title
Action on the Proposed Standstill Agreement for the Santana Terrace Apartments with Alpha Z San Jose Apt 1, LLC, Located at 190 N. Winchester Boulevard to Extend the Time for Refinance Lenders to Comply with Affordability Covenants Consistent with Fannie Mae/Freddie Mac Loan Requirements
Report
BACKGROUND
The Santana Terrace Apartments complex is located at 190 N. Winchester Boulevard and was completed in June 2020. The 92-unit, multi-story apartment project was originally permitted as an age-restricted development limited to senior households age 55 and older.
In September 2021, the City Council adopted a Resolution approving a rezone of the project site removing the age restriction requirement language and instead allowing resident occupation for all ages. The original entitlement allowed construction of the senior housing development consisting of two and three-level rental housing units and resident amenities over a parking podium, along with carports and a reduced number of surface parking spaces totaling 105 parking spaces.
As of September 2021, about one year after construction, only 20 units were rented and occupied. According to the Developer, marketing efforts to attract and achieve residency by seniors 55 years of age and older were severely hampered by the pandemic, resulting in low and slow occupancy of the development, whereas the rental apartments available for residency of all ages were less impacted.
At the September 9, 2021, City Council meeting, the City Council approved the Developer's request to remove the age-restriction, conditioned upon the following: (1) that the Developer deed restrict 15% of the resident-occupied units, which is 14 total units, at income levels that did not exceed one hundred percent (100%) of the Area Median Income for Santa Clara County (AMI), and that the Developer install a security gate at the Property. The affordability restriction is consistent with the City's ...
Click here for full text