San Jose City Council Votes to Convert Interim Shelter to Housing

San Jose is moving to convert one of its most controversial interim housing sites into permanent supportive housing, much to the chagrin of some locals.

The San Jose City Council voted earlier this month to transition the modular complex at 1 Branham Lane from a temporary homeless shelter into a 168-unit permanent housing property for low-income residents with low-acuity needs, San Jose Spotlight reported.

The three-story site, which opened early last year, has been dogged by safety complaints, management issues and structural flaws. Council Member Pamela Campos, who represents the area, pushed for the change, arguing the revamp would both expand long-term housing supply and lower operating costs. The city has yet to identify funding for the transition, and a timeline remains fluid, though the city manager is expected to provide an update by Aug. 31.

“One Branham Lane was designed to be converted into permanent housing,” Campos told San Jose Spotlight. “My recommendation for this conversion is in line with the site’s intended purpose.”

The move comes amid upheaval at the site. Earlier this month, a caseworker employed by nonprofit operator LifeMoves was arrested for allegedly selling drugs to residents. The city quickly terminated its contract with the organization, setting off a search for a new operator.

“The recent and upcoming change in operator provides a clear opportunity to … add the long-term housing our system is currently missing,” Campos said.

Officials say current residents will not be displaced during the transition, though details on how the shift to permanent housing will unfold remain unclear. The uncertainty has left some of the roughly 200 residents uneasy, particularly given the region’s shortage of shelter beds, as the threat of living on the street or in vehicles looms.

Neighbors, meanwhile, have pushed for change since the project’s debut, citing increased police activity, loitering and safety concerns. Some welcomed the council’s decision, while others argued the site should continue serving as temporary housing to help people stabilize before moving on.

San Jose has more than 6,500 homeless people, according to a population count last year cited by San Jose Spotlight. Mayor Matt Mahan, a current gubernatorial candidate, has focused on building temporary housing like the Branham Lane site to give homeless people shelter by reallocating affordable permanent housing funds from Measure E, a property transfer tax approved by voters in 2020.

The Branham Lane property is the first multi-story, modular temporary housing site in San Jose, allowing for the combination of rooms to accommodate larger families. While residents are provided with their own bathroom, kitchen and shower, the buildings have been plagued by structural issues such as shower benches collapsing, water that smelled like sewage, windows that don’t open and concerns of mold.

It cost roughly $60 million to build, with a majority of funding coming from the state’s Project Homekey program, and takes approximately $6 million annually to operate.

— Chris Malone Méndez