A site in San Jose’s theater district will be transformed into a development full of regular condos, but also units for the homeless -- and the city is calling the innovative and unique idea the first of its kind in California.
“Historically, when government tried to address poverty, they built large projects that were all folks clustered together of the same income level, the same low-income level and outcomes did not necessarily improve,” Mayor Matt Mahan said. “It was great the people were housed, but there were a lot of other challenges.”
This is different, however. When finished, the project will boast 500 units -- 360 will be market-rate condos and 68 will be affordable homes. Also, 72 will be designated as permanent supportive housing – for people once living on the street – owned and operated by Path Ventures.
Though everything will be on one property, the buildings will be separate.
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“Getting people into a mixed-income community with access to jobs, transit, having neighbors with different jobs we just see gets better outcomes,” Mahan said. “The data is very clear that children who grow up in mixed income communities, even if they’re from a lower income background, have more opportunity. They do better.”
Another reason the city says this plan is innovative is that the private sector is stepping up to help.
Westbank Corp. was applauded for signing on to develop the former Pacific Motor Inn site -- something most developers shy away from.
“The easier thing is to kind of stay in your own lane and do the things that you’re used to doing but that never produces innovative solutions,” said Andrew Jacobson, Westbank’s vice president of U.S. development.
The city will use some of the state’s Project Homekey funds to get it done. That program offers grants to rapidly expand the amount of housing.
“As Gov. Newsom has said, it’s so incredible that any and all red tape and really work towards making sure we’re expediting folks getting off the streets,” said Hafsa Kaka, senior advisor on homelessness to the governor.
All sides say it’s too early to say exactly when shovels will be in the ground, but the city expects the project will take five years to complete.
For now, the old hotel will be converted into 72 units and used as interim housing for the homeless -- that will happen by the end of the year.
