Developer eyes ‘builder’s remedy’ for huge San Jose housing project

SAN JOSE — A developer is eyeing a “builder’s remedy” to fast-track well over 700 affordable homes in north San Jose’s Alviso district — and city planners say they are working with the developer to advance the project.

The proposed development of 780 affordable residences would sprout next to the popular Topgolf entertainment and sports venue near North First Street, according to plans on file with San Jose city officials.

he project’s developer, Cloud Apartments, hopes to determine whether the north San Jose project might land city approval through a fast-track builder’s remedy or a streamlined proposal.

When cities or counties in California are out of compliance with state rules because they haven’t met their housing approval obligations, the builder’s remedy approach gives developers a way to overcome local barriers that can throttle affordable housing proposals.

The 780-unit affordable housing proposal would be built on a 3.2-acre site at 7 Topgolf Way in Alviso, the planning documents show.

“It’s important for the city to encourage more affordable housing near major job clusters like north San Jose,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.

Years ago, the development site was part of the land that would have been needed for an “entertainment district” of restaurants, shops, hotels, and lively gathering places near the interchange of State Route 237 and North First Street.

For an array of reasons, the entertainment district proposal fizzled, and the plans fell by the wayside.

Now, this housing development and a nearby data center complex are poised to sprout on sites that would have provided the land for the entertainment district.

Cloud Apartments, which uses modular construction techniques to save money and speed up production of affordable housing, is the developer of the proposed 780-unit complex.

The housing developer is attempting to use provisions of two different state laws in hopes of a successful navigation of San Jose’s complex approval process.

City planners are engaging with Curtis Wong, chief executive officer and founder of Cloud Apartments, on this project.

“We are working closely with the developer on this,” Marika Krause, a public information manager with the San Jose Planning Department, said in an interview with this news organization.

This proposal has emerged at a time when affordable housing is in demand in the Bay Area and San Jose.

“We are happy they are building affordable housing there,” Krause said.

In recent months, city planners issued a letter to the developer that sketched out some obstacles to the project that could have hobbled the development efforts.

California’s builder’s remedy rules, however, are evolving, and the changes have left the city-issued letter outdated.

“We are working sincerely with the applicant to allow their proposed density,” Krause said. “Builder’s remedy is a complicated law that’s been clarified a few times” in recent months.

San Jose’s shifting assessment of the builder’s remedy rules is helpful, in Staedler’s view.

“It appears the city is becoming more receptive to these kinds of projects than they were in the past,” Staedler said. “Getting more housing in north San Jose is always helpful.”