San José has some of the highest property values in the country, due to interest in living in proximity to Silicon Valley and the San Francisco Bay Area. However, the City of San José has emerged as a leader in helping families afford to live in the city in which they work. Over the last twelve years, the City of San José has invested over $380 million to construct affordable housing, which has leveraged approximately $1.4 billion from other private funding sources. By adopting numerous affordable housing projects for its residents, the City of San José has developed the most aggressive affordable housing program in California.

Since the creation of the housing department in 1988, the city has constructed over 15,000 units of affordable housing for a diverse population including families, seniors, and those with special needs. Indeed, in just the last five years the City of San José created 6,080 affordable homes. This figure not only surpassed the City's own five-year affordable housing goal, but also exceeded the combined number of affordable housing units created in all other cities within Santa Clara County during that same time period.

It is characteristic in San José for affordable housing projects to go beyond simple living requirements and afford a high quality of living standard. The mission statement of the San José Department of Housing is:

     To assist San José's lower- and moderate-income families by increasing, preserving,
     and improving housing that is affordable and livable, and to the extent possible,
     ensuring long-term affordability and contributing to neighborhood revitalization.

Canoas Terrace, a family affordable housing development, was purchased at 50% below market rate and built on a surplus freeway right-of-way site. With its Mediterranean-style architecture, private patios, extensive community space, barbecue areas, and tot lots, this development shows a dedication to providing healthy lifestyles along with affordable housing. Additionally, Canoas Terrace is adjacent to a light rail station and located conveniently near shopping and services. Another example of family affordable housing, Ohlone-Chynoweth Commons is located at the Ohlone-Chynoweth Light Rail Station. It is a mixed use, transit-oriented development project consisting of 330 units of affordable housing and 4,400 square feet of retail space, in addition to a resident community center, a computer learning center, and a day care center to enhance the quality of life for residents. The Villa Solera Family Apartments is still another example of affordable housing tailored to a diverse San José community. The 100 affordable apartments available at Villa Solera since April 2004 offer amenities including a computer center geared toward San José's academic population, such as teachers, students, and counselors.

Most recently, in October 2004, 336 additional new affordable homes opened in San José. The Summer Breeze Apartments provides 160 units for affordable family living and offers residents access to downtown entertainment, retail and commercial businesses. San José also provides well for its seniors. The Oaks of Almaden provide 126 affordable homes designated for seniors, providing convenient access to public transportation, an on-site business computer center, and close proximity to a new shopping mall. In collaboration with a local non-profit, the Mexican American Community Services Agency (MACSA), East San José now offers 50 new affordable senior apartments, complete with a community room and a recreation center, at Las Golondrinas. The City of San José utilized Redevelopment Agency resources and leveraged private, state, and federal funds in order to marshal the $80 million necessary to build these three affordable housing projects. Girasol, which received a HUD 202 Capital Advance for construction, is an affordable housing development for 60 seniors, and is conveniently located in the Mexican Heritage Cultural Gardens complex where there are ample gardens, theaters, and retail spaces.

The City also contracts with the Santa Clara County Housing Authority to administer San Jose's Housing Choice Voucher (Section 8) program. Since its inception, the Department of Housing's innovative planning and resulting programs have won many awards and gained national recognition for design, affordability, and ability to attract and leverage substantial public and private financing.