Community reactions to the initiative
The city of San Jose is working hard to help unhoused people and limit where they encamp.
“I spoke to a lot of the folks in the tents who said ‘I don’t know where to go. You can abate me, but where am I going to go?’ Just down the railroad tracks, right?” Mayor Mahan said. “And, that’s what’s so powerful about this model.”
The city fast-tracked this latest site by using prefab, modular buildings that allowed the development to open in just under two years.
When asked during the groundbreaking in 2023, area resident Robyn Estrada said the development would likely benefit their community.
"It's great they are using the exact land that the homeless were on anyways, in an official way. In a way that neighbors won't think it's an eyesore," Estrada told CBS News at the time.
Jaime Navarro spoke at the groundbreaking in 2023. He’d spent nine years living on the streets before moving into a similar temporary housing community.
"I'm able to hold down a job. I work at Chevron. That's all I needed was a little bit of help,” Navarro said.
“To have a warm meal and to take a shower. That was a lot for me man, you know?"
As CBS News reports, San Jose is also developing tiny homes as part an interim housing initiative to provide housing for its more than 6,000 residents who are homeless.
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Learn MoreHow housing initiatives impact your property taxes
There are two ways housing initiatives like these could impact property taxes — by raising property values, which can increase taxes, and by funding for the projects. So, could your community's good deeds hit your pocketbook? Probably not, say experts.
The Urban Institute, which performed a study in Alexandria, Virginia, found that affordable units are associated with "a small but statistically significant increase in property values of 0.09% within 1/16 of a mile of a development, on average — a distance comparable to a typical urban block."
A less than 1% increase in property values is unlikely to increase property taxes significantly.
Karen Nemsick, director of the Housing Justice Initiative for United Way Bay Area, calls the idea that affordable housing lowers a community's value or raises taxes a "myth." In a recent post on the United Way Bay Area website, she shared the following:
- This housing shortage in major metropolitan areas costs the American economy about $2 trillion a year in lower wages and productivity. … Researchers estimate the growth in GDP between 1964 and 2009 would have been 13.5% higher if families had better access to affordable housing. This would have led to a $1.7 trillion increase in total income, or $8,775 in additional wages per worker.
But who is paying for these initiatives? Funding for these types of projects often comes from a mix of local tax revenue, state grants or bond measures, which can lead to shifts in tax rates.
According to the mayor, San Jose's interim housing project at Branham Lane and Monterey Road is funded through a combination of state, local and philanthropic contributions that cover construction as well as a reported $6 million annual operating cost.
The California Department of Housing and Community Development's Project Homekey program awarded a $51.8 million grant to support the project. The City of San Jose invested $38.8 million, while Santa Clara County contributed $4 million. Additionally, John A. and Sue Sobrato Philanthropies donated $5 million toward the development.
While initiatives generally aim to reduce long-term costs by decreasing emergency services and health care expenses associated with homelessness, the immediate financial impact on residents varies depending on how the city funds the projects. Engaging at the local level can help residents minimize the effect on their local taxes.
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