SAN JOSE, Calif. (KGO) -- A historic San Jose building will be moved and turned into affordable housing, in a deal that saves it from being demolished.The Pallesen apartment building is located on East Reed Street near Interstate 280. Developer KT Urban plans to build a high-rise in its place.KT Urban will move the Pallesen building to city-owned land a few blocks away.Habitat for Humanity East Bay/Silicon Valley will renovate the building and turn it into affordable housing. On Tuesday, the Preservation Action Council of San Jose presented a $10,000 check to the nonprofit, to provide initial funding."It's preserving a piece of our history of San Jose, rather than just demolishing it," said San Jose City Councilmember Raul Peralez.The city will lease its land to Habitat for Humanity for $1 per year.