Council discusses $60M funding strategy for affordable housing under Measure E

During the San Jose City Council Budget Study Session held on May 7, 2025, discussions centered on the city's funding strategies for affordable housing, highlighting the challenges posed by fluctuating revenue from Measure E. The council was reminded that the current strategy involves utilizing excess revenues to fund new affordable housing projects through a Notice of Funding Availability (NOFA). This year, the city plans to allocate approximately $60 million for affordable housing initiatives.

However, officials noted that Measure E revenues have decreased compared to previous years and are expected to remain low and stable for the next few years. This situation presents a challenge for the city as it seeks to address the pressing need for affordable housing. The council emphasized that while there may be potential for increased funding in the future, the immediate outlook is constrained.

The discussion also touched on the broader context of rental assistance needs in Santa Clara County, which are estimated to be in the billions annually. City officials acknowledged the limitations of local government in addressing these needs comprehensively, suggesting that significant support from higher levels of government would be necessary to make a substantial impact.

As the meeting transitioned to community and economic development, it was clear that the health of the local economy directly influences the city's revenue and, consequently, its ability to fund essential services, including housing and prevention programs. The council's deliberations underscored the interconnectedness of economic stability and community welfare, setting the stage for further discussions on how to navigate these challenges in the coming months.