The City of San José has released its Proposed Operating Budget and associated fee schedule, which is currently under review through a series of study sessions. Although we are pleased that the Proposed Operating Budget contains proposals to remove barriers to housing development broadly, we are deeply disappointed that it fails to bring any real plan to address the housing needs of nearly half of the city’s residents.

The first public hearing on the budget is Tuesday May 13th. The meeting begins at 1:30pm, and the item is # 3.3 on the agenda.

Come speak in support of an ongoing source of funding for affordable housing, using these talking points!

• Our communities and our economy depend on affordable housing.
• More than 44% of San Jose residents- 140,000 households (just under half the population of San Jose)- have low incomes, less than 80% of the median income for Santa Clara County residents. We need more affordable housing for San Jose’s residents to thrive.
• Affordable housing for lower income residents is critical to meeting the priority our community has placed on housing affordability.
• The approved budget message diverts almost all Measure E funds, the City’s largest source of ongoing funding for affordable housing, to shelter operations and homelessness response. We need a permanent revenue source to advance a balanced plan that prioritizes affordable housing. 
• Affordable housing also ensures people who move into shelters can ultimately move into permanent homes they can afford.

What to expect: While it will likely be 2 or 2:30 before the Council reaches the budget item, the security line is often long, and advocates should plan to arrive early to leave time to get through. If the Council chambers are full, the City will provide an overflow room where members of the public can view the Council meeting. If you are in an overflow room, you can still submit a card to give public comment and can go to the Council chambers when your name is called to comment or when seats become available. 

The City of San José has released its Proposed Operating Budget and associated fee schedule, which is currently under review through a series of study sessions. An initial public hearing is scheduled for May 13th. Following the public comment period, the Mayor’s formal Budget Message will be released on June 6th. 

On May 2nd, San Jose’s City Manager’s office released the Proposed Operating Budget for fiscal year 2025-2026, incorporating City Council priorities determined by a 7 – 4 vote in a contentious meeting on March 18th. Although we are pleased that the Proposed Operating Budget contains proposals to remove barriers to housing development broadly, we are deeply disappointed that it fails to bring any real plan to address the housing needs of nearly half of the city’s residents (44% of San Jose’s households have low, very low, or extremely low incomes). Read SV@Home’s letter to the City Council.

San Jose needs a wide range of solutions, including the production and preservation of affordable housing and robust tenant protections, to effectively address the housing affordability crisis that San Jose residents list as a top concern. We are encouraged by Council’s continued focus on homelessness prevention, a tenant protection targeted to those most at risk of losing their homes, and we ask Council to increase funds dedicated for this purpose. 

There is a continued need for a plan and funding to address the housing needs of San Jose’s residents earning less than 80% of the area median income. San Jose’s Housing Department has released a Request for Proposals (RFP) for the development of homes affordable to households with moderate or lower incomes and Updated 2025 Underwriting Regulations for Gap Financing Program. Subsequently, the city plans to release a Notice of Funding Availability (NOFA) that is expected to be $50 million. A second NOFA with an undetermined amount of funding is expected to be released in the fall.

We appreciate Housing Department staff for working to invest these funds in the affordable homes that our community requires to thrive. And, we continue to look to our city’s leadership to commit to making funding sources available for the production and preservation of affordable housing consistently, year after year. That consistent commitment is necessary to build housing that is affordable at the rate and scale that we need.

It will be critical for the City to work collaboratively with partners at the County and other cities to identify and create new sources of funding for affordable housing production, the preservation of existing affordable housing, tenant protections, and homelessness prevention. We believe that the people of San Jose are invested in creating an inclusive community with safe, stable homes affordable for themselves and future generations. Now, we look to the City Council to demonstrate strong leadership to bring this necessary vision to fruition.

SV@Home will continue to engage with Council and City staff and to provide analysis and updates on the proposed policies to help our community stay informed and engaged.