After deeming a fully affordable housing project at the Arena Hotel financially unfeasible, San Jose is asking the state to allow a new mixed-income development at the site and to explore moving its required extremely low-income units to an alternate location.
This detail was part of a resolution the San Jose City Council unanimously approved Tuesday, authorizing negotiations with nonprofit Episcopal Community Services of San Francisco to take over the site — where more than 200 housing units are planned — from the previous developer. The resolution also designated Propertyworx LLC as a backup option in case the deal falls through.
This transition aligns with San Jose’s recent push to test new funding models and shift toward mixed-income developments to improve operating self-sufficiency. City officials have argued that without financial incentives, zoning changes alone will not get housing built…