Project Match, which manages 37 affordable housing units throughout the county, hopes to provide five additional units to seniors age 60 or older with very low income. These seniors qualify for affordable housing if they earn no more than $33,600 per year—half the median county income—according to Bob Campbell, executive director of Project Match. Preference will be given to seniors living or working in Los Gatos.

"There's always a benefit to the community when seniors can have senior housing," Campbell said. "The seniors tend to need higher levels of care later in life, they're stable neighbors and they spread a lot of goodwill amongst their neighbors."

The units will be rented out for an average of $390 per month, with utilities, phone and cable included. Project Match will also provide case management services, including monitoring residents' health, providing needs assessment and referring them to other useful services.

For the most part, the tenants are independent and will share chores around the house. Though these residents could live alone, having roommates helps break up the feeling of isolation for the seniors, Campbell said.

According to Campbell, 67,000 seniors in Santa Clara County earn less than $1,250 per month. Meanwhile, about 2,200 housing units are rented at $600 per month or less. An estimated 3,900 seniors are on the county's Housing Authority waiting list for affordable housing and must wait between one and five years, he said.

Through an agreement between Project Match and the town of Los Gatos, the town will fund nearly $390,000 in loans toward the project, with a 3 percent interest rate. Loan repayment will be deferred 99 years.

"Since the inception of the town's interest in affordable housing, seniors have been given a high priority," said Community Development Director Bud Lortz.

Up to an additional $100,000 will come from the Housing Trust of Santa Clara County. The town put in $250,000 to this trust fund about two years ago, with money earmarked for affordable housing projects in Los Gatos.

Money from the town, along with other funding sources, will provide a total of $900,000 for the project.

Under the terms of agreement, the town must approve the site for the housing project. The house that Project Match has selected is located in the Blossom Hill Road area, with a bus stop, convenience store and drugstore within walking distance, Campbell said.

"That house does seem appropriate for this type of facility," Lortz said. "It looks like we've got a good prospect."

The house already comes with five bedrooms, but additional work will need to be done, Campbell said. For instance, the bathrooms will be upgraded to accommodate people with walkers, more cabinets will be added to the kitchen, an air-conditioning system will be installed and the house will get a fresh coat of paint.

Project Match began its senior group residence program in the mid-'80s. Since that time, it has turned existing single-family homes into affordable housing complexes for low-income seniors. Its most recent project was in Campbell last year.