San José council approves partnership with county housing authority, OKs $6.4M Arena Hotel interim shelter funding
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Summary
The City Council approved a joint item with the San José Housing Authority to support the county’s Moving to Work plan and authorized a $6,400,000 city investment to support interim shelter operations at the Arena Hotel; council emphasized voucher reporting and transition metrics.
The San José City Council voted unanimously to approve a partnership with the Santa Clara County Housing Authority to implement elements of the authority’s Moving to Work (MTW) plan and to invest $6,400,000 in interim shelter operations at the Arena Hotel.
Eric Sullivan, director of housing for the City of San José, told the council the partnership builds on existing projects and funding streams and that the housing authority has invested in San José through project-based vouchers and other supports. “Over 2,300 units have been leased within the city, representing support provided to over 11,000 tenant-based voucher families with over $350,000,000 total invested,” Sullivan said, and he described the Arena Hotel funding as an expansion of interim shelter capacity that complements commitments such as the Pacific Motor Inn project.
The memorandum approved by the council asked staff to advance the city’s participation with the Santa Clara County Housing Authority on MTW activities that include project-based vouchers for interim units, direct rental assistance pilots, and other efforts intended to shorten exits from homelessness into permanent housing. Public commenters who used the meeting’s public-comment period voiced support for provisions in the MTW plan that target transition-age youth and stressed wraparound services, including transportation and case management.
Council members pressed staff for details about how voucher types would be used and whether interim placements would reduce vouchers available for permanent affordable housing. Sullivan said the authority maintains local discretion and separate funds, and that vouchers used for interim sites would not come directly from the project-based vouchers reserved for development. He confirmed that the authority will collect intake and unit-utilization data to report where interim tenants previously resided.
Councilmember Campos said she supported the plan and highlighted activity 2026-2, the direct rental assistance pilot, as important to helping voucher holders overcome barriers to using assistance. Campos moved the staff recommendation; the motion was seconded and passed unanimously. The council approved the joint items as a joint meeting with the San José Housing Authority and then reconvened as the City Council to ratify the separate, city-only item.
What’s next: staff will work with the housing authority to implement the MTW activities approved today and will collect and report demographic and utilization data as part of the partnership.
