San Jose activists oppose Mayor Mahan’s plan to divert housing funds to shelters

SAN JOSE MAYOR MATT MAHAN opened up the floor to critics of his initiatives to address homelessness this week for the first time since the 2025-26 proposed budget included a reduction of funds prioritized for affordable housing.

The property transfer tax known as Measure E was passed by San Jose voters in 2020 to fund permanent affordable housing, with only 15% of funds reserved for temporary shelter for homeless people according to city policy — but Mahan in his March budget message proposed an increase to 90%. That’s set off alarms among housing advocates, who want more affordable, permanent housing. They rallied in front of City Hall and voiced their dissent during the City Council meeting.