The San Jose Unified School District has unveiled plans for a major housing development aimed at providing affordable homes for its employees. The proposed project, a 288-unit apartment complex, is designed to address the severe housing affordability crisis in the South Bay that affects teachers and other district staff.
The development is slated for a vacant property at 760 Hillsdale Avenue and is backed by a substantial budget of $282.5 million, sourced from a voter-approved bond measure. The initiative seeks to help the district attract and retain talented staff who are often priced out of the local housing market.
Key Takeaways
- The San Jose Unified School District is proposing a 288-unit apartment building for its employees.
- The project is located at 760 Hillsdale Avenue on an undeveloped lot.
- It has a budget of $282.5 million, funded by a general obligation bond.
- The goal is to provide affordable housing options to help recruit and retain district staff.
A Direct Response to the Housing Crisis
Officials from the San Jose Unified School District describe the housing initiative as a necessary step to support their workforce. The high cost of living in the region has made it increasingly difficult for employees, from teachers to support staff, to reside in the communities they serve.
"Workplace housing is a pressing issue for us," stated Seth Reddy, the district’s chief business officer. He explained that the district's salaries, while competitive, often fall short of what is needed to live comfortably in the area.
"We cannot pay our staff sufficient wages to live in comfort and dignity in this area," Reddy added. "When you look at the median income needed to afford housing in San Jose, that expense is beyond what even our highest-paid employees can afford."
The plan has been in development for years, with the district's board of education recognizing the need for action as early as 2017. The goal is to provide housing for all district employees, ensuring they have a viable option to live locally.
Project Details and Funding
The proposed apartment complex will be built on a vacant lot owned by the district, adjacent to its Silicon Valley Education Campus. The location is strategically placed near a light rail transit line, offering convenient transportation options for residents.
Project by the Numbers
- Units: 288 apartments
- Location: 760 Hillsdale Ave., San Jose
- Budget: $282.5 million
- Funding Source: $1.15 billion general obligation bond approved in November 2024
The significant funding for the project comes from a $1.15 billion bond measure that voters approved in November 2024. According to Erik Schoennauer, a land-use consultant advising the district, $282.5 million of that total has been allocated specifically for this housing development.
District officials have emphasized their commitment to quality. "We wanted this project to be akin to market-rate housing in terms of the quality of what we want to build," Reddy said, signaling that the apartments will not be low-quality constructions but desirable homes for their staff.
Addressing San Jose's Broader Housing Shortage
The school district's project also highlights a larger issue facing the city of San Jose: a significant shortfall in housing production. The city is not meeting state-mandated goals for new home construction, creating pressure on officials to approve new developments.
"Under the city’s housing element as required by the state, San Jose should be producing an average of 7,775 units per year over the eight-year period that started two years ago," Schoennauer explained. "The city is coming nowhere close to the target amount."
The "Missing Middle" Housing Gap
This type of workforce housing is designed to serve the "missing middle"—individuals and families who earn too much to qualify for traditional affordable housing subsidies but not enough to afford market-rate rents or home prices. Other local institutions, such as San Jose State University, are also exploring similar housing projects to support their employees.
Schoennauer argues that the city must prioritize the approval of housing projects, especially on underutilized land. "The city needs to start looking at underutilized properties throughout San Jose that make sense for housing," he said. "The 760 Hillsdale site is completely vacant and has been vacant for a number of years."
Looking Ahead
The district is confident that there will be strong demand for the new apartments from its employees. While the specifics of rent and eligibility are still being determined through the city's entitlement process, the primary goal is clear: to provide a stable, affordable living situation for the people who educate the city's children.
"We are comfortable that we would have sufficient demand and sufficient availability for our workforce," Reddy stated. Some units may have income restrictions to ensure they serve those most in need.
Ultimately, the district sees this investment as crucial to its educational mission. "The people we put in front of our students are very important," Reddy concluded. "We want to get the best and the brightest to work here."
