Four years ago, when San Jose Mayor Matt Mahan joined the City Council — then as a representative of District 10, an empty grass lot near the railroad tracks at Branham Lane and Monterey Road was the chief culprit for complaints to his office.
Between unmanaged encampments, fires, trash and noise, he said it had “a lot of issues,” to put it mildly.
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But rather than enter into an endless cycle of abatements with no place for homeless residents to go, San Jose opted to turn the challenge into opportunity, partnering with LifeMoves to create the city’s largest interim housing site to date on the two-acre lot that is on track to open later this month.
“I just can’t believe this transformation,” Mahan said. “This was a site of frustration, of anger, of fear, of hopelessness … that’s what’s so powerful about this model. We have found faster, more cost-effective ways to give people dignity and to do it in a way that’s scalable.”
Homekey Branham Lane’s three-story development will add 204 units with the ability to serve 216 residents at any given time.
The addition of the interim housing comes as San Jose plans to nearly triple its shelter space over the coming year by adding 1,000 new units in the form of solutions like tiny homes, safe parking and safe sleeping sites.
“For too long, we have seen too many of our neighbors struggle without a safe place to go, and this project is about dignity, stability and a real path forward for those who need it most,” said District 2 City Councilmember Pamela Campos, who now represents the area.
With homelessness among residents’ top concern, San Jose has made historic investments in standing up interim housing solutions, but the Branham site would not have happened without significant funding from the California Department of Housing Community Development’s Homekey program – the more than a billion dollar initiative that aims to reduce and prevent homelessness.
HCD Director Gustavo Velasquez said that the program has created 16,000 interim units and 263 projects across the state in three and a half years. But he added that very few could compare to the size and design of San Jose’s newest community and credited Mahan and the city’s leadership for pushing it forward.
“It’s about motivating people to do the right thing, explaining why projects like this are going to make a tremendous difference in the life of the city of San Jose,” Velasquez said.
The state has contributed $51.8 million, while San Jose has made a $38.8 million investment to build out and operate the site. The interim housing site also received $4 million from Santa Clara County and $5 million from John A. Sobrato Philanthropies.
The annual cost to operate the interim housing site is approximately $6 million.
Along with providing case management and supportive services, each living space features private bathrooms, kitchenettes and modern furnishings.
LifeMoves CEO Aubrey Merriman said the provider’s program offerings have a proven track record of helping homeless residents find stability and transition into more permanent housing.
He said that last year, two-thirds of LifeMoves’ clients left for permanent housing while a third moved into temporary housing.
“We want to build on those outcomes that we’re helping to deliver for our community,” Merriman said.
The project, however, has not been without challenges since it began construction in March 2023. Severe weather, compliance with environmental regulations, deficient waterproofing, missing firewall separations and other construction issues prompted delays from the initial construction completion target date of June 1, 2024.
While San Jose has had a lot of extra support in help in getting the project off the ground, Mahan also credited the surrounding neighborhood — including those that threatened to recall him over it — for buying into the vision of what was possible at the site.
“I ran into a woman at the grocery store about six months ago who said, ‘You know that project looks like it’s almost done. I was wrong. I’m glad you did it,’” Mahan said.