‘A clear path forward’: San Jose mayor wants to indefinitely shift affordable housing funds

AMID A BUDGET SHORTFALL, San Jose Mayor Matt Mahan wants to move money allocated to affordable housing toward temporary housing solutions — indefinitely.

San Jose is facing a potential $60 million deficit for the upcoming 2025-26 fiscal year, due in large part to a drop in sales tax revenue. At a City Council meeting earlier this month, Budget Director Jim Shannon proposed two options: permanently shift $39 million in affordable housing dollars to help fund operations at the city’s temporary housing sites, or use up to 90% of Measure E funding for the same needs during budget deficit years with a majority vote. Mahan supports permanently shifting the affordable housing dollars.