New Affordable Housing in Milpitas: What First-Time Buyers Should Know About the California Circle Project

If you've been searching for a realistic way into the Milpitas market, you've probably seen the headlines about a new affordable housing project breaking ground near I-880. Here's what's actually being built, who it's for, and how it fits into a plan to eventually own.

What's Being Built

Construction has started on a 75-unit affordable apartment complex at 1397 California Circle in Milpitas, a project developer Waterford Property Co. is building alongside partner C&C Development to serve families earning between 30 percent and 70 percent of the area's median income. The building is slated for completion in early 2028. hoodlinehoodlineThe $47.6 million price tag comes from the state. The 4 percent Low-Income Housing Tax Credit (LIHTC) community has an estimated development cost of $47.6 million, according to the California Tax Credit Allocation Committee. multifamilyaffordablehousingIt'll be a five-story building with four residential levels above a podium parking garage, two podium courtyards and a mix of one- to three-bedroom floor plans. Residents also get free on-site services. Through a partnership with the nonprofit Pacific Housing Inc., residents will have access to after-school youth tutoring, teen leadership and social skill development, and adult financial literacy and wellness classes. hoodline rebusinessonline

The Important Part: These Are Rentals

This is where a lot of people get confused. The five-story rental building at 1397 California Circle will offer apartments to families earning between 30% and 70% of the area median income. You won't be able to buy one of these units. ocbjThe project sits inside a larger new community. It's part of a master-planned residential community that also includes new market-rate for-sale housing by PulteGroup. Those for-sale homes, marketed as The District, are condos listed around $1.0M to $1.4M, so they're not income-restricted. capdex homesSo why should a first-time buyer care? Because a lower, stable rent is one of the best ways to save for a down payment in this area. If you qualify, a few years here could be the bridge that gets you to ownership.

Who Qualifies

Eligibility is based on Area Median Income (AMI). Santa Clara County's Area Median Income for a four-person household stands at $205,500 in 2026, per state guidelines from the California Department of Housing and Community Development. hoodlineRough math for a family of four: 30% of AMI is about $61,650, and 70% is about $143,850. Treat those as ballpark only. Tax credit properties use their own official income limit tables that vary by household size, and the final limits and rents for this building haven't been published yet.

When You Can Apply

No application date, property manager, or rent schedule has been announced. With completion targeted for early 2028, expect leasing to open sometime before then. Don't wait for a headline to start preparing.

How to Track It

Watch the regional portal. The City of Milpitas points renters to the Bay Area Affordable Housing Portal, which the Bay Area Housing Finance Authority launched with affordable listings across the nine-county Bay Area. Create an account now so you get alerts. milpitasKnow the city doesn't keep a waitlist. The City does not administer any affordable rental property or vacancy list. Once a property manager is named, you'll contact them directly. milpitasFollow the developer. Waterford Property Co. will likely post leasing info on its own site as the building gets closer to done.

If Your Real Goal Is to Own

Milpitas does have ownership programs, and they're worth getting into now.Milpitas BMR Homeownership Program. It's administered by Housekeys. To receive notifications of Milpitas ownership opportunities, create an account and request an Application ID for the City's Ownership Program. Units are awarded by lottery, and the BMR housing stock only has 1, 2, or 3-bedroom homes available. milpitas milpitasYou'll also need a homebuyer class. You'll need to submit a copy of Project Sentinel's Certificate of Completion of the First-Time Home Buyer course within two weeks of submitting a purchase agreement on a home. Take it early so it's not a scramble later. milpitasSanta Clara County BMR Partnership Program. Qualifying homebuyers must have an annual household income of 80 percent of Area Median Income or lower. The County loans are secured by a Deed of Trust on the property and require no monthly payments and have 0% interest. One thing to know: a first-time homebuyer is someone who has not owned a home during the last three years, so you may qualify even if you owned before. Check the county's list of partner cities, since you apply through a partner agency. Below Market Rate Partnership Program +2State and county loan programs. CalHFA down payment help and the county's Mortgage Credit Certificate are worth asking a lender about. Availability and funding change, so confirm what's open when you're ready.

Paperwork to Get Ready Now

Income-restricted housing, rental or ownership, comes down to documentation. Start a folder with:

Two years of tax returns and W-2s or 1099s
Recent pay stubs (usually the last two to three months)
Two to three months of bank statements for every account
Photo ID for adult household members
Proof of any other income: child support, benefits, side work
A list of assets like retirement accounts or investments

Keep it updated every month. When a lottery or lease-up opens, the people who move fastest with complete files have a real advantage.

How to Position Yourself Early

Know your household income against the AMI tables before you apply. Being a little over the limit disqualifies you, and being too far under can matter too for units with minimum income requirements.Check your credit now, not the week you apply. Small fixes take time to show up.Talk to a lender even if buying feels far off. A pre-approval conversation shows you exactly what you'd need to own in Milpitas, which helps you decide whether renting here first makes sense.

The Bottom Line

The California Circle project is good news for Milpitas, but it's a rental opportunity, not a path to buying on its own. For first-time buyers, the smart move is to do both: get on the rental portal for this building, and sign up for the city's BMR homeownership list at the same time.I'm following new affordable housing in Milpitas and the South Bay closely and will update this as leasing details come out. If you want help figuring out which programs you might qualify for, reach out anytime.

Linh Tran REALTOR® Area served: San Jose, Santa Clara County, CA, Milpitas, Santa Clara County, CA, Fremont, Alameda County, CA, Newark, Alameda County, CA, Santa Clara, CA, Cupertino, Santa Clara County, CA Expertise: FHA Financing, First-Generation, Fix-and-Flip Investor, First-Time Buyer, Tech Relocation