City Housing Department plans $100M in funding for affordable housing initiatives

The San Jose City Council held a Budget Study Session on May 7, 2025, focusing on the allocation of resources for affordable housing and the overall city budget. The meeting highlighted the city's commitment to affordable housing, with plans to utilize approximately $60 million from prior Measure E funding and other housing allocations. This funding is expected to support various housing initiatives, including innovative financing strategies that could unlock an additional $100 million for affordable housing projects in the coming years.

City officials emphasized the importance of being strategic in budget reductions to minimize impacts on vulnerable communities. The proposed budget includes a $1 million reduction in non-personnel costs, aiming to avoid significant service disruptions. Additionally, the council discussed the necessity of careful reductions within strategic support departments, targeting a total of $4 million in cuts while preserving essential community services.

A significant portion of the general fund—55%—is allocated to police and fire services. The council is exploring cost reductions in these areas without compromising public safety, which poses challenges for balancing the overall budget. The discussions underscored the city's intent to maintain core services, particularly those that support vulnerable populations, while evaluating programs with lower participation rates for potential scaling back.

Importantly, the proposed budget does not include cuts to library hours, parks maintenance, or community programming, ensuring that essential services remain intact. The council plans to continue discussions on budget reductions in the following week, with a focus on preserving the quality of services provided to the community.