San Jose will be receiving $12.7 million to purchase 200 tiny homes after signing an agreement with the state last week, according to a Friday press release.  

Last year, Gov. Gavin Newsom, alongside San Jose Mayor Matt Mahan, announced a plan to use existing funds to pay for small homes to provide shelter and reduce homelessness. Last week’s agreement marks the program’s first mutual consensus on funding.  

“With funding from the state, San Jose is working to finalize plans to provide small homes for people experiencing homelessness,” Newsom said in Friday’s press release. “Their commitment to this project demonstrates a willingness to do the heavy lifting needed to find solutions, reject the status quo and ultimately deliver on this valuable resource provided by the state to address homelessness.” 

San Jose was selected for the program because of the city’s record of building emergency interim housing. San Jose already has 499 small homes, and plans for 784 more beds in development.  

“San Jose residents, like those in the rest of California, are way ahead of their leaders in recognizing we need new thinking, and above all action, to end the era of street encampments,” Mahan said. “This is a crisis that will take focus and action from every level of government to solve — and I’m grateful to the Governor for leaning in to help cities address the immense human suffering on our streets faster and more cost-effectively.” 

“San Jose residents, like those in the rest of California, are way ahead of their leaders in recognizing we need new thinking, and above all action, to end the era of street encampments. … This is a crisis that will take focus and action from every level of government to solve … ”

Mayor Matt Mahan

San Jose began looking for a site for the 200 new tiny homes after Newsom announced the program last March. After selection, the location was approved by the Santa Clara Valley Transportation Authority Board of Directors in October.  

The approval followed a long advocacy campaign led by Mahan and Councilmember David Cohen, according to the press release.  

“Providing solutions — both short and long term — for homelessness must be a joint effort between various levels of government,” Cohen said. “This site will allow us to offer safe shelter for hundreds of people currently living in neighborhoods and along creeks in District 4 and the surrounding area.” 

The 200 homes, set to be named the Cerone Interim Housing Community, are expected to open in 2025. The community will be located in north San Jose.  

The city of Sacramento also finalized an agreement with the state for this program. The city of Los Angeles and San Diego County are still working with the state on an agreement for the project.