$20 million to remake motel into homeless housing
San Jose scored nearly $20 million in state funds to transform a motel downtown into homeless housing as Gov. Gavin Newsom awarded his last Homekey grants of 2022.
The $19.9 million will allow the city to buy the 72-room Pacific Motor Inn on South Second Street. For now, the motel will serve as temporary housing for homeless residents.
But ultimately, city officials plan to redevelop the site — replacing the motel with two apartment buildings for low-income and homeless tenants, as well as market-rate housing.
“We are grateful for this recent Homekey investment for the purchase of the Pacific Motor Inn, which will enable us to scale the innovative approach that San Jose pioneered to house our most vulnerable neighbors by purchasing motels to house our homeless residents,” San Jose Mayor Sam
Liccardo and Councilmember Raul Peralez said in a joint news release. “This model has already provided a pathway to continue to move thousands of San Joseans off the street into safe, dignified housing.”
The money is part of $36 million Newsom doled out last month through Homekey — an initiative launched during the COVID-19 pandemic to help cities, counties and nonprofits buy hotels, dorms, offices and other buildings and turn them into housing for homeless residents.
Santa Cruz County received $2.2 million in this round of funding, which it will use to turn a former medical office building into housing. The site, across the street from a Santa Cruz health clinic that serves unhoused clients, will house people who are disabled and have been homeless for a long period of time.
San Luis Obispo and San Benito County also won funding in this round.
“The success of Homekey
proves what is possible when you are willing to challenge the status quo and try a new, outside of the box approach,” Newsom said in a news release. “In just a little over two years since its inception, Homekey has given thousands of Californians a place to call home.”
In San Jose, the City Council will vote Tuesday on whether to allocate $25 million toward the motel's redevelopment. When it's complete, the project will have apartments reserved for people making up to 30% of the area median income ($50,550 for a family of four in Santa Clara County), and apartments reserved for people making up to 60% of the area median income ($101,100 for a family of four). The project also will include market-rate units.
It will be managed by PMI Partners LLC — a collaboration between affordable housing developer PATH Ventures and private developer Westbank.