TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik L. Soliván
SUBJECT: See Below DATE: November 13, 2025
Approved
Date:
11/14/25
COUNCIL DISTRICT: Citywide
SUBJECT: Resolution Authorizing New Operators and Grant Agreements for the Motel Program
REASON FOR REPLACEMENT
This replacement memorandum clarifies that the recommended increase in operational funding is intended to support the transition to new service providers.
RECOMMENDATION
Adopt a resolution authorizing the Housing Director, or his designee, to increase Motel Program operational funding by $476,224, to support the transition to new providers, from the amount of $6,860,045 previously approved by City Council, to a total of $7,336,269, and negotiate and execute grant agreements with the following entities to operate the Motel Program as provided below:
(a) An amount not to exceed $3,270,463 to HomeFirst for:
(1) Bristol Hotel, Casa Linda Motel, and Fontaine Inn, retroactively from July 1, 2025, through December 31, 2025;
(2) Motel 6, retroactively from July 1, 2025, through December 31, 2025; and (3) Continued operation of Alura Inn, retroactively from July 1, 2025, through June 30, 2026;
(b) An amount not to exceed $1,312,400 to PATH, for Bristol Hotel, from December 1, 2025, to June 30, 2026;
(c) An amount not to exceed $818,933 to Razing the Bar, for Casa Linda Motel, from December 1, 2025, to June 30, 2026;
(d) An amount not to exceed $928,434 to PATH, for Fontaine Inn, from January 1, 2026, to June 30, 2026; and
(e) An amount not to exceed $1,006,039 to WeHOPE, for Motel 6, from January 1, 2026, to June 30, 2026.
COUNCIL AGENDA: 11/18/25
FILE: 25-1200
ITEM: 2.17
HONORABLE MAYOR AND CITY COUNCIL
November 13, 2025
Subject: Resolution Authorizing New Operators and Grant Agreements for the Motel Program
SUMMARY AND OUTCOME
Approval of this action would increase Motel Program funding by $476,224 to address the transition to alternative service providers. The recommended action in this memorandum would also authorize the Housing Director, or his designee, to negotiate and execute four operating contracts—with the operators noted above—for a total amount not to exceed $7,336,269.
The recommended action would ensure continuity of shelter and supportive services for program participants while transitioning operations at four motel sites (Bristol Hotel, Casa Linda Motel, Fontaine Inn, and Motel 6) from HomeFirst to newly selected service providers. This transition would expand the number of service providers and diversify the provider network, aligning service delivery to particular populations. The Housing Department will continue to work closely with community partners to manage existing motel sites and connect residents relocated from high-impact encampments to the City’s shelter portfolio and other long-term housing opportunities. Due to administrative processing timelines, the contracts must be retroactive to compensate for current ongoing preparations at the motel sites.
BACKGROUND
In June 2024, City Council adopted a comprehensive sheltering strategy that included two scalable solutions: a motel leasing strategy to quickly create shelter opportunities for unhoused individuals, and a supportive outdoor sleeping strategy that was later redirected into a Navigation Hub site model. The motel leasing strategy provides speed of delivery and flexibility to align outreach efforts with available shelter capacity, particularly in addressing high-visibility, high-impact encampments.
In June 2025, pursuant to the City’s Proclamation of a Local Emergency caused by conditions and threatened conditions of homelessness in the City of San José and San José Municipal Code Chapter 5.12, the Housing Department exercised its emergency authority to designate HomeFirst as the operator of the Motel Program. The Motel Program consists of 251 units with 331 beds and provides supportive services, meals, and hygiene and laundry facilities at five motel sites across San José.
HomeFirst scaled quickly to meet the City’s demand for immediate provision of services and now will transition to other sites (Cherry and Cerone), as additional providers are ready to assume additional responsibilities. After opening the motel sites with HomeFirst, the City selected three additional organizations through a competitive Request for Proposal process. This memorandum requests that City Council approve an increase of $476,224 to the originally approved $6,860,045 for the motel program, for a total of $7,336,269. This will aid the transition to new providers initially and through the end of the fiscal year and reallocate funds to the following three additional organizations: PATH, Razing the Bar, and WeHOPE. Each organization adds
HONORABLE MAYOR AND CITY COUNCIL
November 13, 2025
Subject: Resolution Authorizing New Operators and Grant Agreements for the Motel Program
demonstrated experience in serving unhoused residents and providing services such as case management, supportive services, and emergency and interim housing management.
ANALYSIS
Transitioning operations at the four motel sites to the newly selected providers ensures continuity of comprehensive services and program participant support, including case management, housing navigation, behavioral health coordination, food provision, and onsite security. HomeFirst will continue to operate the Alura Inn, while PATH, Razing the Bar, and WeHOPE assume responsibility for the remaining sites.
The Table below provides an overview of the transition of motel site operations from HomeFirst to the Request for Proposal awardees.
Table: Overview of Operator Transition for the Motel Program Motel
Site
Current
Operator Units/Beds Future
Operator Planned Operations Term
Alura Inn HomeFirst 42 units/
56 beds HomeFirst July 2025 – June 2026
Bristol
Hotel HomeFirst 47 units/
66 beds PATH December 2025 – June 2026
Casa
Linda
Motel
HomeFirst 34 units/
43 beds
Razing
the Bar December 2025 – June 2026
Fontaine
Inn HomeFirst 52 units/
72 beds PATH January 2026 – June 2026
Motel 6 HomeFirst 76 units/
94 beds WeHOPE January 2026 – June 2026
Total Units and Beds 251 units/331 beds
As of September 30, 2025, four active motel sites have supported the abatement of the Columbus Park encampment, housing over 200 people across 175 units. The Motel Program has been instrumental in preventing individuals from returning to unmanaged encampments or relocating downtown, assisting in removing more than 60 oversized vehicles, and providing safe shelter for families and individuals ahead of the winter season.
The fifth motel site, Motel 6, opened in October 2025, providing 76 additional units, further expanding capacity to reduce unsheltered homelessness citywide. The Motel Program will continue offering case management, housing problem-solving, and wraparound supportive services to individuals and families throughout Fiscal Year 2025- 2026.
HONORABLE MAYOR AND CITY COUNCIL
November 13, 2025
Subject: Resolution Authorizing New Operators and Grant Agreements for the Motel Program
All proposed grant agreements authorized through this approval would fund services and operations at the five motel sites, not the purchase or leasing of any property. The Housing Department will maintain authority to reduce or reassign budget items in the respective operational budgets related to property maintenance (i.e., unit repairs and the cleaning of units during unit turnover), food, and security services for these agreements. This authority allows the City to assume those responsibilities directly where operationally appropriate.
EVALUATION AND FOLLOW-UP
The Housing Department’s Grants Management team monitors and reviews grant outcomes and performance metrics on a quarterly basis. For these contracts, key metrics will include unit utilization rates, total program participants served, and other performance indicators. Each motel site within the Motel Program will be monitored and evaluated in accordance with the Grants Management team’s established protocols.
COST SUMMARY/IMPLICATIONS
The actions recommended in this memorandum authorize the execution of four grant agreements with HomeFirst, PATH, Razing the Bar, and WeHOPE for a total amount not to exceed $7,336,269 to operate the Motel Program sites through June 30, 2026.
Funding includes $6,860,045 in a previously approved allocation and an additional $476,224 from the Real Property Transfer Tax Fund (Fund 404). These resources will support the provision of interim housing and supportive services for individuals and families experiencing homelessness in San José.
BUDGET REFERENCE
The following table identifies the funds and appropriations proposed to fund the grant agreements recommended as part of this memorandum.
Fund
#
Appn.
#
Appropriation
Name
Total
Appropriation
Amount for
Contract
2025-2026
Proposed
Operating
Budget
Page*
Last Budget
Action (Date,
Ord. No.)
404 230L
Safe or Alternative
Sleeping Sites
(15% HSP)
$7,117,396 $476,224 933 10/21/2025
31252
* The 2025-2026 Adopted Operating Budget was approved on June 10, 2025, and adopted on June 17, 2025, by City Council.
HONORABLE MAYOR AND CITY COUNCIL
November 13, 2025
Subject: Resolution Authorizing New Operators and Grant Agreements for the Motel Program
COORDINATION
This memorandum has been coordinated with the City Attorney's Office and the City Manager’s Budget Office.
PUBLIC OUTREACH
This item will be posted on the City’s Council Agenda website for the November 18, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Addendum to the Emergency Interim Housing Programs Mitigated Negative Declaration (Resolution No. RES2023-380), File No. ER25-073, Motel Transitional Housing and Congregate Shelters.
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.
/s/
Erik L. Soliván
Director, Housing Department
For questions, please contact Cupid Alexander, Deputy Director, Housing Department, at [email protected] or (669) 314-3884.