City auditor finds gaps in homelessness coordination; council orders data, outreach and oversight fixes

The San Jose City Council unanimously adopted a city auditor udit on homelessness coordination, directing staff to strengthen outreach, improve data systems and hold providers to measurable outcomes.

The audit presented by City Auditor Joe Royce found the housing department had limited in-house outreach capacity, with roughly 30 outreach workers to serve several thousand unsheltered residents, and that San Jose 3-1-1 data was not being used to prioritize outreach. "Homelessness continues to be a top concern for San Jose residents," Royce said, summarizing the audit's findings and recommendations.

Why it matters: Council members and advocates said the city spends tens of millions of dollars on homelessness services and must ensure those contracts produce outcomes, not just outputs. Councilmember Peter Ortiz said the memo he coauthored with colleagues calls for outcome-based performance metrics — such as shelter placements and housing retention — tied to funding decisions.

What the audit found and recommended: The auditor recommended improved interdepartmental coordination and communications; better protocols to provide more timely outreach where encampments or concentrated complaints arise; standardized reporting for contracts; and clearer performance targets for service providers. Royce noted some jurisdictions have adopted a "housing-first" model and that San Jose's organizational structure mirrors other cities, but the audit found opportunities to align and deepen oversight.

Staff response and next steps: Housing Director Eric Sullivan told the council staff have already begun installing new outreach and EIH performance metrics into contracts and are building dashboards to show interim housing portfolio use and vacancies. Sullivan said the city has moved from primarily contracted outreach to a larger in-house presence to improve data inputs, and that the department is developing automated data capture and performance dashboards. "We're moving this forward," Sullivan said, noting the city opened multiple interim housing sites over the last 10 months and is now shifting to system optimization.

Public comment: Advocates and providers urged the council to center disability access, track long-term outcomes for people placed from encampments, and recognize "unparked" RV communities who consider their vehicle home. Speakers from SURGE, the Unhoused Advocacy Clinic and Nextdoor Solutions emphasized the need for accountability and disability-informed outreach.

Council direction and vote: Council accepted the auditor's report and approved memos asking the city manager and housing department to implement the recommendations, standardize reporting, and return with a proposed framework for measurable provider metrics by April 2026. The council also asked for intermediate status updates as staff build dashboards and implement contract changes. The motion passed unanimously.