San Jose Unified weighs building teacher housing on Hillsdale site or buying 337 downtown condos
Both options would use Measure R bond money. The district says it has not decided to buy anything.
San Jose Unified School District is weighing two ways to house its teachers and staff with money from Measure R: build homes on district land at 760 Hillsdale Ave., or buy 337 condos in Silvery Towers downtown, according to the district and San José Spotlight. "No property purchase decision has been made," the district's housing page says.
Measure R is a school bond that district voters approved Nov. 5, 2024, to repair schools and provide affordable housing for district workers. Spotlight describes it as a nearly $1.2 billion bond. The district lists an initial housing budget of $282.8 million and says bond money cannot pay salaries or stipends.
The two options
In February 2025, a district advisory committee ranked the Hillsdale site, 760 Hillsdale Ave. and 705-745 Capitol Expressway, as its top choice among four district properties. Spotlight reported in July that the district had planned 288 homes there. In late September the district filed a preliminary application with the city under Senate Bill 330, a state law meant to speed up housing approvals. The district says it could take 26 to 41 months before construction starts.
Silvery Towers is a 643-unit downtown high-rise at 188 W. St. James St. Its owners, Machine Investment Group and Centurion Real Estate Partners, bought it in foreclosure for $182 million, Spotlight reported. On June 11, the school board authorized agreements to explore buying an already-built development, including a contract with the real estate firm CBRE, district records show.
"We want to be thoughtful and strategic about how we invest those funds," Chief Business Officer Seth Reddy told Spotlight. He said buying a finished building could lower costs and leave more bond money for school upgrades. Both options were discussed at an Oct. 20 district committee meeting, Spotlight reported.
Why it matters to employees
In a January 2025 district survey of more than 1,200 employees, 43% said they had considered leaving their jobs within five years because of housing costs, the district says.
Michael Melillo, a former co-chair of the Measure R campaign who is now running for the school board's Trustee Area 4 seat, told Spotlight, "The Hillsdale option is a better choice than the condo purchase." He worried that the tower's units would not suit employees with families. Yolanda Guerra, a teacher, called the condo idea "a slap in the face" and said teachers had long asked for "union constructed housing and housing for families."
Source: SJUSD Workforce Housing Initiative; SJUSD employee housing; SJUSD board item, CBRE agreement; San José Spotlight, Oct. 29 and July 23.