County funding helps Los Altos affordable housing move forward
“We need to keep this work on track and moving forward.”
SAN JOSE – In a unanimous decision, the Santa Clara County Board of Supervisors stepped in to keep Los Altos’ first all-affordable housing venture, 330 Distel Circle, moving forward. The County approved a loan of $10 million from affordable housing funds that will allow the project to apply to the State of California for tax credits this August. If the State awards tax credits to the development, construction is anticipated to begin mid-2025.
“Folks in Los Altos need affordable housing and can’t afford to wait,” said Santa Clara County Supervisor Joe Simitian, whose district includes Los Altos. “We need to keep this work on track and moving forward. Without these funds, housing for those who need it is put at risk. I’m pleased that my colleagues agreed.”
The State of California requires each city in Santa Clara County to plan for affordable housing. Budget constraints cut State funding earlier this year from the State’s Multifamily Finance Super NOFA (Notice of Funding Availability), a key source of affordable housing resources through the State. Consequently, no affordable housing developments in the County, including the 330 Distel Circle development, were funded in this round.
To keep the development moving, the developer, EAH Housing, made design adjustments to reduce costs by approximately $10 million. The County stepped in to meet part of the remaining gap by allocating an additional loan of $10 million, which comes from a combination of housing funds, including the $950 million Measure A Affordable Housing Bond County voters approved in 2016. The $10 million is on top of the roughly $15 million in affordable housing funds the County has previously allocated to buy and develop the site, resulting in a total County investment of $25 million. EAH Housing will continue to apply for other funding sources to reduce the County’s contribution.
The Board of Supervisors approved acquisition of the site in 2020, and in 2021 EAH Housing was selected as the developer. The County, City, and EAH held community listening sessions about the development in 2021 and 2022 to understand the public’s vision, and to marshal and incorporate the local community’s input on various aspects of the development, including visually appealing design and “green” features. The development will include a courtyard, common amenity spaces, bicycle storage, resource efficient landscaping, and solar panels, among other features. The City Council granted the design and land use approvals in September 2022.
This development is one of a series of affordable housing developments currently being undertaken in Santa Clara County that aim to address the severe shortage of affordable housing in the region. Without sufficient housing at affordable prices, residents are rent-burdened, leaving little for other expenses and to fall back on should an unforeseen expense or sudden loss of income arise. 330 Distel Circle’s 90 units will be restricted to occupants earning 30-80% of the area median income (AMI) and aims to give individuals and families the opportunity to obtain housing at below market rates.
“We are absolutely delighted that the Board of Supervisors approved this loan,” said Los Altos Mayor Jonathan Weinberg. “The City of Los Altos is committed to supporting the development of new housing that is sustainable, vibrant, and inclusive. It is exciting to see that our community’s vision for all-affordable housing at 330 Distel Circle is closer to becoming a reality.”
“This is a project that has benefited from considerable community engagement and support,” noted Simitian. “It helps everyone when a community has housing at a variety of income levels and price points. Safe, stable, and affordable housing is a part of what makes Los Altos a better place to live, in tandem with all the other aspects that make this town great.”
Interested residents can learn more about the Distel Circle project here: https://www.eahhousing.org/330distelcircle/.