TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik L. Soliván
Jim Shannon
SUBJECT: See Below DATE: November 24, 2025
Approved
Date:
12/4/25
COUNCIL DISTRICTS: 2, 3, 6, 7, 10
SUBJECT: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
RECOMMENDATION
(a) Adopt a resolution authorizing the Housing Director, or his designee, to negotiate and execute Emergency Interim Housing program grant agreements with the following nonprofit service providers:
(1) HomeFirst Services of Santa Clara County for the following Emergency Interim Housing sites:
(i) Felipe in an amount not to exceed $1,248,122 from January 1, 2026 through June 30, 2026;
(ii) Mabury in an amount not to exceed $1,227,854 from January 1, 2026 through June 30, 2026;
(iii) Monterey/Bernal in an amount not to exceed $1,719,027 from January 1, 2026 through June 30, 2026;
(iv) Rue Ferrari in an amount not to exceed $3,887,180 from January 1, 2026 through June 30, 2026; and
(v) Via del Oro in an amount not to exceed $2,749,804 from January 1, 2026 through June 30, 2026.
(2) LifeMoves for the Guadalupe Emergency Interim Housing site in an amount not to exceed $1,384,900 from January 1, 2026 through June 30, 2026; and (3) PATH for the Evans Lane Emergency Interim Housing site in an amount not to exceed $2,016,404 from January 1, 2026 through June 30, 2026.
(b) Adopt a resolution authorizing the City Manager, or her designee, to accept the contribution of $3,000,000 from HCA Healthcare / Good Samaritan to fund operations for the Cherry Emergency Interim Housing site and affordable housing projects, and to negotiate and execute related documents to receive grant funds without requiring further City Council action.
COUNCIL AGENDA: 12/16/25
FILE: 25-1316
ITEM: 2.18
HONORABLE MAYOR AND CITY COUNCIL
November 24, 2025
Subject: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
(c) Adopt a resolution authorizing the Housing Director, or his designee, to negotiate and execute an amendment to the current grant agreement with HomeFirst Services of Santa Clara County to replace Measure E Funding with the new HCA Healthcare / Good Samaritan funds, in an amount not to exceed $2,000,000, to provide supporting services, 24/7 site operations, and asset management at the Cherry Emergency Interim Housing site in Fiscal Year 2025-2026.
(d) Adopt the following Appropriation Ordinance amendments in the Real Property Transfer Tax Fund:
(1) Decrease the Measure E – 15% Homeless Support Programs Reserve by $3,926,546; and
(2) Increase the Interim Housing Construction and Operations (15% HSP) appropriation to the Housing Department by $3,926,546.
(e) Adopt the following Appropriation Ordinance amendments in the General Fund:
(1) Decrease the Interim Housing – Rue Ferrari Expansion Capital Improvements appropriation to the Public Works Department by $1,200,000; and (2) Increase the Interim Housing Construction and Operation City-Wide Expenses appropriation to the Housing Department by $1,200,000.
(f) Adopt the following Appropriation Ordinance and Funding Sources Resolution amendments in the Multi-Source Housing Fund:
(1) Establish an estimate for Revenue from Local Agencies in the amount of $3,000,000; and
(2) Establish the HCA Healthcare / Good Sam appropriation to the Housing Department in the amount of $3,000,000.
SUMMARY AND OUTCOME
The Housing Department recommends delegating authority to the Housing Director, or his designee, to negotiate and execute seven grant agreements totaling $14,233,291 of state and local funds to maintain the continuity of site operations at seven Emergency Interim Housing (EIH) program sites, beginning January 1, 2026 through June 30, 2026.
This action also seeks retroactive approval for grant agreements with a term start date of January 1, 2026, to allow execution of the grant agreements after that date and minimize any service disruptions.
HONORABLE MAYOR AND CITY COUNCIL
November 24, 2025
Subject: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
Table 1 below outlines a cost summary of the seven EIH sites discussed in this memorandum.
Table 1 – Cost Summary of EIH Sites
Service Provider Site Name / Address Units Funding Investment* Cost Per Unit HomeFirst
Services of
Santa Clara
County
Felipe
928 Felipe Ave. 39 $1,248,122 $32,003
Mabury
1410 Mabury Rd. 38 $1,227,854 $32,312
Monterey/Bernal
6066 Monterey Rd. 78 $1,719,027 $22,039
Rue Ferrari
5898 Rue Ferrari 190 $3,887,180 $20,459
Via del Oro
6370 San Ignacio 135 $2,749,804 $20,369
LifeMoves Guadalupe
702 Guadalupe Pkwy 96 $1,384,900 $14,426
PATH Evans Lane
2078 Evans Lane 48 $2,016,404 $42,008
*Note: All seven recommended EIH grant agreements are for the term beginning January 1, 2026 through June 30, 2026.
BACKGROUND
The City of San José (City) invests in a broad portfolio of programs to support individuals experiencing homelessness, including various interim housing sites, all aligned with the City’s goal of achieving functional zero for homelessness.
Table 2 provides a summary of the City’s interim housing sites, categorized by type, and denotes which sites are proposed for new grant agreements in this memorandum.
HONORABLE MAYOR AND CITY COUNCIL
November 24, 2025
Subject: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
Table 2 – Overview of Interim Housing Portfolio
Interim Housing Site Type Site Name
EIH
Felipe*
Mabury*
Monterey/Bernal*
Rue Ferrari*
Via del Oro*
Guadalupe*
Evans Lane*
Branham
Cerone
Cherry
Motel Program
Alura
Arena
Bristol
Casa Linda
First Street
Fontaine
Motel 6
Pacific Motor Inn
Pavilion
Plaza
Safe Parking Berryessa
Santa Teresa
Navigation Hub Taylor Street
*Note: Denotes sites with new grant agreements recommended in this memorandum.
Of all the sites listed above in Table 2, the Cherry and Cerone EIH sites are not yet complete; estimated completion dates are tentatively scheduled for December 2025.
Once these two EIH sites become operational, the City will have a total of 1,840 units with a capacity of 2,151 beds.
The Housing Department has conducted a comprehensive cost analysis of all interim housing projects and implemented cost reductions at multiple EIH sites to maximize operational efficiency. Staff have been working closely with City partners to centralize the purchasing of meal provisions, site security, and property and asset management services. This centralization aims to maximize economies of scale, reduce costs, ensure consistent service delivery, and allow partners to focus on delivering supportive services to EIH program participants.
Once the procurement selection of standardized operators is complete, the City will assume responsibility for providing meal services, site security, and property and asset
HONORABLE MAYOR AND CITY COUNCIL
November 24, 2025
Subject: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
management services at all EIH sites, eliminating the need for site operators to manage these services directly.
ANALYSIS
On May 15, 2025, the Housing Department released a Request for Proposal for supportive services providers. The Request for Proposal invited qualified operators to submit bids to operate the City’s current EIH sites. Each incumbent operator submitted a proposal and was selected to continue operating their respective sites. The selected operators are responsible for day-to-day operations to ensure a service-enriched environment that supports program participants working toward permanent housing.
The EIH facilities include clean and well-maintained restrooms and shower areas, on- site laundry buildings, and designated dog parks to accommodate program participants’ pets. There is also on-site parking, ensuring convenient access for residents who own vehicles. To support the nutritional needs of program participants, the sites are also equipped with meal preparation areas and communal dining rooms where individuals can gather and share meals in a welcoming setting. Service provider staff are available on-site as part of standard operations to offer case management and other supportive services, helping residents transition toward more permanent housing solutions.
Together, these amenities and services foster a sense of community and stability for individuals experiencing homelessness in San José.
City staff are continuing progress towards centralizing contracts related to meal provisions, site security, and property and asset management services. Until these centralized contracts are finalized, the grant agreements with all site operators will include flexible language that will enable the City to activate master contracted services, including meal provisions, site security, and property and asset management services, upon completion after identifying if cost savings are achieved.
HONORABLE MAYOR AND CITY COUNCIL
November 24, 2025
Subject: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
Table 3 outlines key performance measures for the seven EIH sites currently in operation.
Table 3 – Key Performance Measures of EIH Sites
Service Provider EIH Site Units
Exits to Permanent
Housing
Fiscal Year 2024-2025
Current Occupancy
Rate
Fiscal Year 2024-2025
HomeFirst
Services of Santa
Clara County
HomeFirst
Services of Santa
Clara County
Felipe 39 5 94%
Mabury 38 5 97%
Monterey/Bernal 78 7 95%
Rue Ferrari 190 14 94%
Via del Oro* 135 0 75%
LifeMoves Guadalupe 96 8 93%
PATH Evans Lane 48 49 91%
*Note: Via del Oro’s occupancy rate is low because the site opened in April 2025 and was still in the ramp-up phase at the time this memorandum was written.
EVALUATION AND FOLLOW-UP
The Housing Department will continue to monitor program implementation across all EIH sites, tracking operational performance, costs, and program participant outcomes through established key performance indicators. Regular data collection and evaluation will ensure accountability and help identify best practices and areas for improvement across the EIH program. Next fiscal year, the Housing Department plans to provide a comprehensive report to City Council summarizing the operations of all EIH sites, highlighting any cost efficiencies achieved and lessons learned from ongoing management and service coordination. These findings will inform future decisions regarding potential portfolio expansion, service optimization, and resource allocation, further advancing the City’s goal of reducing homelessness and supporting residents in their transition to stable, permanent housing.
COST SUMMARY/IMPLICATIONS
The actions recommended in this memorandum would authorize the execution and extension of agreements with multiple nonprofit service operators to provide supportive services, security, 24/7 site operations, and property and asset management services at multiple EIH sites.
HONORABLE MAYOR AND CITY COUNCIL
November 24, 2025
Subject: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
The recommended actions utilize budgeted resources totaling $14,233,291 across several funding sources to support operations at seven EIH sites including the following funding sources: Real Property Transfer Tax Fund (Fund 404) of $6,376,607, Homeless Housing, Assistance, and Prevention Fund (Fund 454) of $1,784,312, Multi-Source Housing Fund (Fund 484) of $4,455,380, and the General Fund (Fund 001) of $1,199,999. In addition, prior year encumbrances of $416,993 in the General Fund will be used for the Evans Lane EIH.
Resources are available in the Measure E – 15% Homeless Support Programs (HSP) Reserve, which is set aside specifically for homeless support activities, including EIH operations. The recommendations included in this memorandum will reallocate $3,926,546 from this reserve to the Interim Housing Construction and Operations (15% HSP) appropriation to ensure continued operational support for multiple EIH sites.
Additionally, remaining project savings from the expansion of the Rue Ferrari EIH site of $1,200,000 are available and recommended for reallocation from the Interim Housing – Rue Ferrari Capital Improvements appropriation in the General Fund to the Interim Housing Construction and Operations (15% HSP) City-Wide Expenses appropriation in the General Fund to support EIH site operations.
In addition to approving the recommended seven EIH operating grant agreements, staff also recommends actions related to funding the Cherry EIH operating site agreement, which stems from a $3,000,000 contribution made by HCA Healthcare (property owner of the Good Samaritan Hospital in San José) to the City.
This contribution originated from the City Council’s November 14, 2024, approval of a Planning, Building, and Code Enforcement Department memorandum for the Planned Development Rezoning (PDC22-132) of the Good Samaritan Hospital site located at 2333 and 2425 Samaritan Drive in San José. As part of a supplemental memorandum, Vice Mayor Foley and Mayor Mahan recommended, and the City Council subsequently approved, that HCA Healthcare contribute $3,000,000 to the City upon approval of the development rezoning to support the City’s housing and homelessness initiatives. HCA Healthcare has since remitted the full contribution to the City. Staff recommends that City Council accepts the $3,000,000 contribution and authorizes $2,000,000 for supporting operations at the Cherry EIH site and $1,000,000 for future affordable housing development activities.
Because the Cherry EIH site was recently funded on October 16, 2025, when City Council approved $2,765,915 in Measure E funds to support the Cherry EIH site operations under a contract retroactive to October 1, 2025, through June 30, 2026, a reallocation of funding sources is required to allocate the HCA Healthcare contribution toward the Cherry EIH site. With the receipt of the HCA Healthcare contribution deposited in the Multi-Source Housing Fund, the Administration recommends allocating $2,000,000 of the HCA Healthcare funds for the Cherry EIH site, resulting in available Measure E funds that would be reallocated to support operational needs at the Rue
HONORABLE MAYOR AND CITY COUNCIL
November 24, 2025
Subject: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
Ferrari EIH site operated by HomeFirst of Santa Clara County. Accordingly, staff recommends a funding reallocation between the Cherry and Rue Ferrari EIH sites to maximize the use of available resources.
BUDGET REFERENCE
The table below identifies the funds and appropriations to fund the agreements recommended as part of this memorandum.
Fund
#
Appn.
#
Appropriation
Name
Total
Appropriation
Rec. Budget
Action Amt. for Contract
2025-2026
Adopted
Operating
Budget
Page
Last
Budget
Action
(Date, Ord.
No)
404 8746
Measure E – 15%
Homeless
Support
Programs
Reserve
$4,237,472 ($3,926,546) $0 1028 10/21/2025
31252
404 230G
Interim Housing
Construction and
Operations (15%
HSP)
$25,129,450 $3,926,546 $6,376,607 1027 10/21/2025
31252
484 209X Emergency
Shelters $4,755,380 $0 $4,455,380 1016
10/21/2025
31252
001 436I
Interim Housing –
Rue Ferrari
Expansion
$2,786,000 ($1,200,000) $0 929 10/21/2025
31252
001 229S
Interim Housing
Construction and
Operation
$3,771,885 $1,200,000 $1,616,992* 898 10/21/2025
31252
454 209X Emergency
Shelters $7,146,171 $0 $1,784,312 993 10/21/2025
31252
448 R090 Revenue from
Local Agencies $0 $3,000,000 $0 1015 6/17/2025
25-356
448 NEW HCA Healthcare /
Good Sam $0 $3,000,000 $0 N/A N/A
*Note: The contract will be partially funded by a prior year encumbrance of $416,993 in this appropriation.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office.
HONORABLE MAYOR AND CITY COUNCIL
November 24, 2025
Subject: Actions Related to Grant Agreements for Multiple Emergency Interim Housing Program Sites
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the December 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.
/s/
Erik L. Soliván Jim Shannon
Housing Director Budget Director
I hereby certify that there will be available for appropriation in the Multi-Source Housing Fund in the Fiscal Year 2025-2026 moneys in excess of those heretofore appropriated wherefrom, said excess being at least $3,000,000.
Jim Shannon
Budget Director
The principal author of this memorandum is Ryan Sanders, Senior Development Officer, Housing Department. For questions, please contact Cupid Alexander, Deputy Director, Housing Department, at [email protected]
or (669) 314-3884.