San Jose housing project near Japantown slashes affordable units, faces penalties

Plans for a housing development near Japantown have changed, with the number of affordable apartments being significantly reduced.

The San Jose Planning Commission voted unanimously Wednesday, with Commissioners Melissa Bickford and Pierluigi Oliverio absent, to recommend the City Council approve a 7-story, 118-home multifamily apartment complex with six affordable homes instead of 18 as initially proposed. The reduction in homes at 380 North First St. will require developer Msasa Properties to pay $976,286 in penalties to the city, since it dropped the affordable housing below the city’s 15% requirement, according to planning department officials.