SAN JOSE — An affordable apartment complex for senior citizens in east San Jose has been bought by a county housing agency, a deal that occurred soon after federal officials had foreclosed on the property’s delinquent loan.
Girasol Housing, a 59-unit apartment complex, has been bought by the Santa Clara County Housing Authority, 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 HUD had foreclosed on a defaulted mortgage for the site, the county real estate records show.
The Housing Authority paid $4.15 million for the Girasol complex, according to the property files.
MACSA Housing Corp. had owned the property for decades, but defaulted on a loan that had been provided by HUD, county documents show. HUD provided financing to the MACSA Housing group in 1997.
The deal hints at a sharply declining value for the property. As of the end of June 2023, the property’s assessed value was $8.7 million.
Plus, the debt on the loan at the time HUD foreclosed on the property totaled $14.4 million, including the original loan amount, penalties and interest on the delinquent mortgage.
It wasn’t immediately clear why the HUD financing exceeded the assessed value by such a wide margin.
What does seem to be certain is the Housing Authority’s involvement could pave the way to assure that the apartments will remain affordable for the seniors who are living in the complex.
The deed document specifies that the rental payments for the residents should not exceed 30% of 50% of the area median income for Santa Clara County.
If one used a scenario that a senior citizen’s family could frequently be a two-person household, that would point to a yearly rental payment of somewhere around $1,800 a month. The area median income for a two-person household is $145,050.
Residents will be able to use Section 8 vouchers to assist with the living expenses in the complex, the county documents show.