By Gabby McIntyre
In 2019 Measure E first appeared on the San José and Silicon Valley ballot for the first time, intended to put in place a Real Property Transfer Tax to provide funding for general city services. After the passing of Measure E in 2020 10% of the budget is used for homeless prevention, 15% for shelter, and 75% for affordable housing. San José Mayor Matt Mahan has shifted the Measure E funding towards developing shelters and interim housing rather than the construction of affordable apartments since his election in 2022. However, this shift may turn into a permanent move to further Mahan’s plan to reduce street homelessness. Mahan stated that for Measure E funding to be sustained, the shift needs to stay permanent.
Across six San José communities, there are 499 interim housing units. The city’s officials want to create a second managed parking lot for people living in their cars and more interim housing. Mahan plans to have the funds gained from Measure E to pay for interim shelter costs leaving what is left for the construction of affordable housing. Using 65% of Measure E’s funds on temporary shelter and housing was backed unanimously by the San José council. However, the council also passed a clarifying amendment to ensure the spending of Measure E would still focus on affordable housing. After the appointment of Carl Salas to the San José City Council, Mahan’s plan has a feasible path to being implemented. Affordable housing advocates have called San José’s Mayor’s strategy shortsighted and will most likely push back on the plan. The advocates cite that the unhoused will have no place to move after their stay in tiny homes and shelters if there is no funding to build more affordable housing.
The city’s budget shortfall is estimated to be around $60 million, likely due to the city not receiving as much revenue from sales tax the previously expected. Mahan hopes that by changing the Measure E funding focus, the city could take $40 million off of that since interim housing operating costs and construction are absorbed into the general fund. Soon the San José City Council will begin to discuss and review the 60 million dollar shortfall. In March, Mahan will release more details on the spending plan when his budget proposal is revealed.
References:
Chu, J. (2025, February 25). San Jose mayor wants to permanently shift affordable housing funds. San José Spotlight. https://sanjosespotlight.com/san-jose-mayor-wants-to-permanently-shift-measure-e-affordable-housing-funds/
City of San José. (n.d.). Measure E—Real Property Transfer Tax. https://www.sanjoseca.gov/your-government/departments-offices/housing/resource-library/housing-investment-plans-and-policy/measure-e-real-property-transfer-tax
Marzorati, G. (2025, February 10). San José mayor proposes permanent shift in homeless funding from housing to shelter.KQED. https://www.kqed.org/news/12026437/san-jose-mayor-proposes-permanent-shift-homeless-funding-from-housing-shelter/