SAN JOSE — An affordable apartment complex for senior citizens in east San Jose has been acquired by a county housing agency, following the foreclosure of the property’s delinquent loan by federal officials.
The Santa Clara County Housing Authority has purchased the Girasol Housing, a 59-unit apartment complex, according to public documents filed on July 13.
The U.S. Housing and Urban Development Department sold the property to the county housing agency after foreclosing on a defaulted mortgage for the site, as shown in the county real estate records.
According to property files, the Housing Authority paid $4.15 million for the Girasol complex.
The MACSA Housing Corp., which owned the property for many years, defaulted on the loan provided by HUD in 1997, as per county documents.
The deal indicates a significant decrease in the property’s value. As of June 2023, the assessed value of the property was $8.7 million.
Furthermore, the debt on the loan at the time of the HUD foreclosure amounted to $14.4 million, including the original loan amount, penalties, and interest on the delinquent mortgage.
The reason for the HUD financing exceeding the assessed value by such a large margin is not immediately clear.
However, the involvement of the Housing Authority suggests that the apartments will remain affordable for the senior residents of the complex.
The deed document specifies that residents’ rental payments should not exceed 30% of 50% of the area median income for Santa Clara County.
Assuming a scenario where a senior citizen’s family is frequently a two-person household, this would indicate an annual rental payment of approximately $1,800 per month. The area median income for a two-person household is $145,050.
According to county documents, residents will be able to use Section 8 vouchers to help with living expenses in the complex.