TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik L. Soliván
Jim Shannon
SUBJECT: See Below DATE: September 10, 2025
Approved
Date:
9/11/25
COUNCIL DISTRICT: Citywide
SUBJECT: Actions Related to the Agreement with the County of Santa Clara’s Office of Supportive Housing for the Homelessness Prevention System Program
REASON FOR REPLACEMENT
This replacement memorandum clarifies the assessment of the County of Santa Clara’s program performance by correcting the data previously submitted on the total households served based on additional data received from the County of Santa Clara.
RECOMMENDATION
(a) Adopt a resolution authorizing the Housing Director, or his designee, to negotiate and execute a grant agreement amendment with the County of Santa Clara’s Office of Supportive Housing, in an amount not to exceed $5,500,000, retroactive from July 1, 2025, to June 30, 2026, for the countywide Homelessness Prevention System Program.
(b) Adopt the following 2025-2026 Appropriation Ordinance amendments in the Real Property Transfer Tax Fund:
(1) Decrease the Measure E – 10% Homeless Prevention and Rental Assistance Reserve by $275,000; and
(2) Increase the Homeless Prevention and Rental Assistance (10% HPRA) appropriation to the Housing Department by $275,000.
COUNCIL AGENDA: 9/16/25
FILE: 25-978
ITEM: 8.1
HONORABLE MAYOR AND CITY COUNCIL
September 10, 2025
Subject: Actions Related to the Agreement with the County of Santa Clara’s Office of Supportive Housing for the Homelessness Prevention System Program
SUMMARY AND OUTCOME
Staff recommends amending a grant agreement with the County of Santa Clara’s Office of Supportive Housing, in an amount not to exceed $5,500,000, to fund the Homelessness Prevention System (HPS) Program. The amended agreement term would be retroactive from July 1, 2025, and continue through June 30, 2026. This action would support the City’s efforts to prevent homelessness by investing in HPS to provide services to San José households at immediate risk of homelessness.
The recommended actions in this memorandum advance the City’s strategic priorities in partnership with the County of Santa Clara by focusing on housing stability and in furtherance of the Focus Area metric for reducing unsheltered homelessness. 1 The
recommended actions reinforce the City’s ongoing commitment of investing in homelessness prevention strategies that align to prior City Council actions.
BACKGROUND
The partnership between the City’s Housing Department and the County of Santa Clara’s Office of Supportive Housing aims to prevent homelessness through early intervention by providing financial assistance, case management, and supportive services to low-income households at risk of homelessness. Administered through a network of community providers, the County of Santa Clara and the designated subcontractors serve San José households and continue to advance long-term housing stability and preventing San José residents from falling into homelessness.
In Fiscal Year 2024-2025, the City executed an agreement with the County of Santa Clara’s Office of Supportive Housing for the HPS Program in the amount of $7.5 million, which consisted of $4.5 million of Measure E revenues estimated to be received in 2024-2025, $2.0 million of Measure E revenues collected in prior years, and $1.0 million of available resources from the Housing Trust Fund.
In Fiscal Year 2024-2025, HPS served a total of 2,031 clients, of which 1,421 were San José households, representing 70% of all households supported through the countywide HPS. Of the San José households, 1,118 households were directly supported by City-provided funding with an average household subsidy of $6,703, and the remaining 303 households supported by County funds. More than 95% of San José residents served by the HPS Program remain housed at least one year after receiving assistance.
1 County of Santa Clara, 2020-2025 Community Plan to End Homelessness. Web Link:
https://files.santaclaracounty.gov/exjcpb1571/2024-11/communityplan_2020- 2025.pdf?VersionId=3LCV7VHf9hdsOh05UsQncuA6JEUMXmbj
HONORABLE MAYOR AND CITY COUNCIL
September 10, 2025
Subject: Actions Related to the Agreement with the County of Santa Clara’s Office of Supportive Housing for the Homelessness Prevention System Program
ANALYSIS
Staff recommends continued partnership with the County to support ongoing investment in the HPS Program with a commitment to 697 unduplicated San José households being served directly from the investment of $4,675,000 in direct client assistance (see table below) and approximately 105 additional San José households supported by County funds. Unduplicated households are defined as the number of households that receive services at least once a year but may not be counted more than once in that year.
Number of San Jose
Households Served
Average Household
Assistance per Year
Total City Funding - Direct
Client Assistance
697 $6,700 $4,675,000
Based on the prior program performance, and anticipated prevention of at least 800 families from entering homelessness and specifically unsheltered homelessness, staff recommends continued investment, which aligns to the Focus Area goals for Reducing Unsheltered Homelessness.
EVALUATION AND FOLLOW-UP
If approved, the Housing Department’s Homelessness Response and Grants Management team will oversee program implementation and track key performance metrics, including the number of households served, the effectiveness of services, and overall program outcomes.
Additionally, related program outcomes will be included in the City’s Consolidated Homelessness Annual Report, scheduled to be heard annually by the Neighborhood Services and Education Committee.
COST SUMMARY/IMPLICATIONS
The actions recommended in this memorandum authorize the negotiation and execution of a grant agreement amendment to provide $5,500,000 to the County of Santa Clara’s Office of Supportive Housing to support the HPS Program. Funding will be provided from the Real Property Transfer Tax Fund as follows: $5,225,000 from the existing Homeless Prevention and Rental Assistance (10% HPRA) appropriation; and $275,000 from the Measure E – 10% Homeless Prevention and Rental Assistance Reserve reallocated to the Homeless Prevention and Rental Assistance (10% HPRA) appropriation. The total use of funds for 2025-2026 is summarized in the table below.
HONORABLE MAYOR AND CITY COUNCIL
September 10, 2025
Subject: Actions Related to the Agreement with the County of Santa Clara’s Office of Supportive Housing for the Homelessness Prevention System Program
Total Use of Funds 2025-2026 Agreement
Amount
Salaries and Fringe Benefits $770,000
Direct Client Assistance $4,675,000
Indirect Costs $55,000
Total $5,500,000
The use of funds breakdown is consistent with prior funding commitments from the City to the County Prevention System with 14% of costs contributed to program administration, including services and case management for program clients, 1% to indirect costs such as client transportation or related emergency childcare services, and 85% to direct client assistance.
BUDGET REFERENCE
The table below identifies the fund and appropriations proposed to fund the grant agreements recommended as part of this memorandum.
Fund
#
Appn.
#
Appropriation
Name
Total
Appropriation
Rec. Budget
Action
Amt. for
Contract
2025-2026
Proposed
Operating
Budget
Page*
Last Budget
Action (Date,
Ord. No)
404 8747
Measure E –
10% Homeless
Prevention and
Rental
Assistance
Reserve
$1,631,842 ($275,000) $0 934 6/17/25,
31230
404 232N
Homeless
Prevention and
Rental
Assistance (10%
HPRA)
$5,225,000 $275,000 $5,500,000 N/A 06/17/25,
31230
*The 2025-2026 Adopted Operating Budget was approved on June 10, 2025, and adopted on June 17, 2025, by the City Council.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office.
HONORABLE MAYOR AND CITY COUNCIL
September 10, 2025
Subject: Actions Related to the Agreement with the County of Santa Clara’s Office of Supportive Housing for the Homelessness Prevention System Program
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the September 16, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
Erik L. Soliván Jim Shannon
Housing Director Budget Director
For questions, please contact Cupid Alexander, Deputy Director, Housing Department at [email protected]
.