SAN JOSE — An affordable housing development in San Jose landed key construction financing that will help clear the way for the project to break ground, according to documents filed Wednesday with the Santa County recorder’s office.

City planning files show the residential project at 525 N. Capitol Ave. in east San Jose would result in 160 units, of which 158 would be restricted to lower-income residents.

Its overall cost is slightly more than $130 million, a San Jose city memo shows. This includes construction expenses, permanent financing, land-purchase costs, fees paid to the developer and other miscellaneous amounts.

The overall construction costs are slated to be around $79.3 million.

Sources of construction financing for the project include $67.1 million from First Citizens Bank, $25 million from the city of San Jose and $8 million from Santa Clara County.

Once construction is complete, permanent financing will include a $51.5 million federal tax credit and a $25.8 million Citibank tax-exempt loan. San Jose is also providing $20 million as part of the permanent financing package.

Community Development Partners and the Foundation for Affordable Housing have teamed up to develop the project.

In 2022, Community Development Partners paid $6.5 million to buy the 1-acre development site, which is near a local light rail line.

“The development consists of a five-story building with 158 rent-restricted affordable studios, one-, two- and three-bedroom units, and two unrestricted manager’s units on an approximately 0.97-acre site,” according to a city staff report that was issued in May.