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An affordable housing development in Los Altos is one step closer to being built, after Santa Clara County agreed to pitch in $10 million to help get the project over the finish line in the face of a major funding gap.
The project is a five-story, 90-unit affordable housing development at 330 Distel Circle, off El Camino Real in Los Altos, near the Mountain View border. In 2020, the county acquired the site from Midpeninsula Regional Open Space District with the intent to develop it into affordable housing. Two years later, the city of Los Altos approved the development.
Since its inception, the project has been touted as Los Altos’ first all-affordable housing for households earning between 30% and 80% of the area median income. The proposed development includes a nearly even mix of studio, one-bedroom, two-bedroom and three-bedroom units with 90 parking spaces.
But financing the project has been a challenge, as affordable housing funds have dried up amid state budget cuts. EAH Housing, the nonprofit developer, came up short in two recent funding cycles, leaving the project in limbo until the county stepped in.
In May, the Santa Clara County Board of Supervisors unanimously approved a $10 million loan to help close the gap. This brings the county’s total commitment for the project to $25 million, with the bulk of funding coming from the Measure A affordable housing bond that voters approved in 2016, according to a county press release on June 12.
EAH Housing also has redesigned the project to reduce construction costs by about $10 million. Narrowing the funding gap makes it more competitive to apply for state tax credits, with the next cycle coming up in August. If the project secures the tax credits, construction could begin in mid-2025, according to the press release.
“Folks in Los Altos need affordable housing and can’t afford to wait,” said Santa Clara County Supervisor Joe Simitian, an advocate for the development. “We need to keep this work on track and moving forward. Without these funds, housing for those who need it is put at risk,” he said in the statement.
The total cost for the project is approximately $93 million, amounting to roughly $1 million for each unit, according to a report from the county’s office of supportive housing.
To help move the project forward, Los Altos has waived its local development impact fees and permit fees, which amounts to more than $4 million, said Los Altos Development Services Director Nick Zornes.
It’s always a complex process for 100% affordable housing projects to get financed, Zornes said, while noting that the development was well on its way to securing the funding to get built.
The project also has the support of the community, he said. There was some concern about the impact of traffic and parking in the immediate area but, overall, people have viewed the development positively.
The community recognizes the need for a diverse range of housing options to support different income levels, he added.