KCBS_740 SAN JOSE (KCBS) — Some 200 families may soon have to move out of a rent-controlled apartment complex in San Jose after the city council cleared the way for denser, market-rate apartments.

The council denied an appeal from residents of the Reserve Apartments on South Winchester Boulevard, clearing the way for their demolition.

READ MORE: Omicron Variant Outbreak Reported In Alameda County Among People Already Vaccinated; Cases 'Mildly Symptomatic'

“I feel really bad,” Tony Real said. He’s lived in the building for a decade.  Real’s unit is a two bedroom that he rented for about $1,900 per month.

“Most of these people have kids that go to school really close by. They’re gonna have to find a different school,” Real said.

READ MORE: Small San Jose Merchants Worry About Being Next Targets For Smash-And-Grab Robbers

The developer, Greystar Real Estate, wants to replace the 216 units with a denser housing project with up to 640 units, plus retail and outdoor dining.

The company is offering tenants a relocation package equivalent to three months’ rent.

City Councilmember Johnny Khamis said the city should get more credit for increasing the amount of badly needed housing.

MORE NEWS: 2 Students Arrested in Separate Santa Rosa School Threats, 1 With Loaded Gun

“If you added Cupertino, Los Gatos, Saratoga, Campbell all put together, they wouldn’t equal what we’re passing today in a year’s time, for housing,” Khamis said.