Downtown San Jose Tower to Offer Below-Market Rents for City Workers | KQED

San Jose launched the LIVE program to provide nearly 200 reduced-rent apartments in The Fay, a 20-story downtown high-rise in the SoFA District. The program offers 197 one- and two-bedroom units at below-market rents for eligible public employees and other middle-income earners. Eligibility is based on earning between 80 and 120 percent of the area median income, and the program is not intended for low-income residents. The initiative targets teachers, police officers, firefighters, and other public servants who face high Bay Area housing costs and difficulty living near their workplaces. The building has struggled with vacancies since opening, and the city aims to improve affordability quickly by investing in existing units.

"San José's first-of-its-kind program will help public employees afford to live in the city they serve, offering nearly 200 reduced-rent apartments in a downtown high-rise that has struggled with vacancies since it opened. The city's Lower Income Voucher and Equity program, known as LIVE, makes 197 one and two-bedroom units at The Fay, a 20-story building in the SoFA District, available at below-market rents for eligible public employees and other middle-income earners."

"Mayor Matt Mahan said Tuesday the program is meant to support teachers, firefighters, police officers and other public servants who struggle to afford living in one of the country's most expensive cities. "This was an opportunity to invest in units that are available today," Mahan said. "Buying affordability in existing buildings is an immediate way to get people into restricted affordable units faster and more cost-effectively - and because we're taking an equity position in the building, we actually get paid back.""

"The program comes as San José grapples with one of the most expensive rental markets in the country. The median rent for a one-bedroom apartment regularly exceeds $2,800, making it increasingly difficult for public sector workers to afford to live near where they work. Mahan said some city employees currently commute from as far as the Central Valley."

"Eligibility is based on earning between 80 and 120 percent of the area median income and is not meant to target low-income residents."

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