San Jose is transferring ownership of a former motel to the Santa Clara County Housing Authority, planning to convert it from temporary homeless housing to permanent apartments. Purchased for over $12 million during the pandemic, the motel had multiple issues, including mold and staff mistreatment. After several nonprofit providers, the housing authority has been operating it since fall 2023. The City Council hopes to improve the North First Street corridor with more affordable units, although timelines for construction remain undecided. Funding for its operations continues into next year.
"Today is a critical step forward for Santa Clara County Housing Authority to ultimately convert this site into permanent housing, adding to the supply of affordable units," Councilmember Michael Mulcahy said.
The design for the future permanent housing site is still being drafted and a timeline for construction hasn't been set, said housing authority spokesperson Brandi Johnson.
The city purchased the former motel for over $12 million from Project Homekey to shelter homeless residents, initially managing operations.
Overseeing the motel costs about $3 million a year, covered by Measure E funds, with an additional $4 million invested into repairs.
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