By Vicente Vera. San Jose Spotlight.
Listen to this note:
San Jose leaders have dealt a blow to affordable housing advocates after diverting affordable housing funds to temporarily house homeless residents living along the city's waterways.
The San Jose City Council voted unanimously Tuesday to redirect affordable housing funds from Measure E. They also unanimously approved Mayor Matt Mahan's June budget message, which includes proposals to fund projects to improve community spaces and response to mental health crises.
The council held a hearing on the issue Monday night, during which dozens of residents spoke out against the change in funding for affordable housing.
“We have done a very good job of balancing many community needs, including some important new commitments under our stormwater permit, but also maintaining a commitment to affordable housing,” Mahan said.
Mahan led the proposal to transfer about $25 million after saying San Jose faces pollution fines if the city does not reduce trash along waterways by June 20, 2025.
A similar proposal by Mahan last year met with fierce opposition, and the council settled on a spending plan that favored the development of affordable housing, rather than temporary housing for the homeless. Measure E is a property transfer tax approved by voters in 2020 that applies to property transfers of $2 million or more.
City officials plan to temporarily house homeless residents to keep waterways clean and successfully renew the stormwater permit set to expire in 2027. This leaves about $11 million for affordable housing funds under Measure E, compared to about 35 million under the original allocation plan.
“The current strategy of prioritizing (emergency temporary housing) over affordable housing is not ending the homelessness crisis, it is hiding it,” Ortiz said at the meeting. “It's a bridge to nowhere.”
But in response to residents' concerns about the use of Measure E funds this year, Vice Mayor Rosemary Kamei and Council members Domingo Candelas, Sergio Jiménez and Ortiz asked the city manager to look for ways to restore the funds. They also requested that the city reset its Measure E allocation plan next year to 75 percent for affordable housing.
“We recognize that difficult decisions must be made in a tight budget landscape. However, we are deeply concerned about the devastating cuts to affordable housing,” the councilors wrote.
They said they understand having to divert funds to meet Bay Area Regional Water Quality Control Board requirements, but the focus on addressing the homelessness crisis should be on creating permanent housing that is affordable.
The additional funds the city manager identifies in the future would go to the 13 affordable housing projects on the waiting list to receive city funds to spur development.
Council members Bien Doan and Arjun Batra added a memo to the June budget message, directing the city auditor to audit homeless spending in San Jose.
Silicon Valley Latino Coalition Executive Director Gabriela Chávez-López said at the meeting that she appreciated Mahan's June budget message that included $11 million for affordable housing projects, but urged city officials to secure more funding and restore the original allocation of 75 percent affordable housing for Measure E.
He said he also supported Kamei's budget document that directed the city manager to report on Santa Clara County's efforts to inform fast food workers of their rights.
“Investing in affordable housing and empowering workers are key to creating safe and stable communities,” said Chávez-López.
Kamei, Candelas, Jiménez and Ortiz ordered the city manager to reduce more than $780,000 in BeautifySJ funding and defer some general fund expenditures to fund a Trusted Response Urgent Support Team (TRUST) for two years to respond to calls from people experiencing a mental health crisis.
TRUST would alleviate situations and provide residents with appropriate support and resources, including unhoused residents, according to councilors.
City officials ultimately voted to reduce BeautifySJ's budget by approximately $230,000 and fund TRUST for only a single year.
Read the original note giving click here.
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