affordable housing
More Affordable Housing to Be Built on VTA-Owned Property

Apartment homes affordable to families and individuals who earn 60% of the Area Median Income and below, will go up near the Capitol Light Rail Station in San Jose, with the signing of a new lease option agreement with MidPen Housing. 

affordable housing
Artist's rendering of planned Capitol Station housing development

The Santa Clara Valley Transportation Authority (VTA) announced the plans at a news conference Friday, December 1, 2023, of a partnership with MidPen Housing to lease property next to the Capitol Light Rail Station for the development of 203 affordable apartments.

“We applaud VTA for prioritizing affordable housing on the land, and the County and City for their commitment to addressing the needs of the community's most vulnerable residents.” said Matthew O. Franklin, President and CEO of MidPen Housing, which builds and manages affordable homes in Santa Clara and 11 other Northern California counties.

VTA General Manager/CEO Carolyn Gonot shared that VTA has 7 properties in the development pipeline of the agency’s Transit-Oriented Development (TOD) program, where developers can lease under-utilized VTA properties near transit stations to provide much needed housing while increasing system ridership and farebox revenues.

“These projects are important to give residents better, more environmentally friendly access to jobs, schools, and other important destinations,” Gonot said. VTA’s TOD program policy requires developers to include affordable housing for at least 25% of the project units. 

Carolyn Gonot
VTA General Manager/CEO Carolyn Gonot speaks at a news conference about Capitol Station development

The development will go up on a portion of the 10-acre property located at Capitol Expressway and Narvaez Ave, which is currently a Park & Ride lot next to the light rail station. The station is also served by bus routes 37 and 70.

Mayor Matt Mahan was instrumental in helping bring this project to life, when as a City Councilmember, he worked to engage the surrounding community to embrace the development.

"We can accommodate our city’s growth and reduce traffic congestion by building housing in locations with access to many transit options that take residents where they want to go,” said San Jose Mayor and VTA Board Member Matt Mahan.

VTA is also working in partnership with the Santa Clara County Office of Supportive Housing, which manages funds from the 2016 Measure A Affordable Housing Bond.  Supervisor Cindy Chavez, who is also VTA Vice Chair, led the effort to pass the bond measure in 2016.

“Today’s signing signifies Santa Clara County’s priority to create housing that connects people to environmentally friendly transportation options and moves us one step closer to making San Jose a more affordable place to live,” said Chavez.   

Chavez, who is also a member of the Metropolitan Transportation Commission, announced the Commission’s approval of “Priority Site Designation” for several of VTA’s transit-oriented development locations, including Capitol.  The designation will allow developers like MidPen to qualify for technical assistance and funding for things like infrastructure, housing and planning efforts.

The news conference was streamed on Facebook Live and a recording is available.

About MidPen Housing

MidPen Housing is one of the largest, most trusted non-profit developers, owners, and managers of high-quality affordable housing in Northern California. Learn more at Media contact: Lyn Hikida,, 415-336-0279.


Subscribe to our Newsletter