Housing affordability

Housing affordability remains a critical focus in San Jose and surrounding Silicon Valley communities, with efforts spanning from clearing homeless encampments to innovative funding strategies and new housing developments. Local governments are actively addressing homelessness by transitioning shelter residents to permanent housing and dismantling large encampments. Meanwhile, policy measures include prioritizing affordable housing access for police officers and exploring state laws that could significantly increase housing density. Funding and construction challenges persist, including contractor disputes delaying projects, but substantial investments and loans are being made to unlock new affordable housing opportunities. - San Jose’s Arena Hotel shelter is being used as a transitional site to help homeless residents move toward permanent housing solutions. - The city has begun clearing “The Jungle,” a large homeless encampment, after extensive outreach and housing offers, with a commitment to keep the area closed. - San Jose City Council approved giving police officers priority access to affordable housing units in a downtown high-rise, a measure that passed amid council division. - A contract dispute has delayed the opening of the Homekey transitional housing project in Palo Alto, impacting timelines for new affordable units. - Congressman Ro Khanna secured millions in funding to support veteran housing redevelopment in San Jose. - San Jose committed an $8.4 million loan to unlock affordable housing development near the Capitol VTA station. - Campbell may see a dramatic population increase due to a new state housing law aimed at boosting housing near transit, potentially tripling its current size. - Palo Alto is planning a large-scale housing development around San Antonio Road, effectively creating a new neighborhood. What to watch next: - Upcoming San Jose agenda items related to housing include progress reports on the General Plan Housing Element and updates on the Housing Catalyst Team’s work plan. - The Santa Clara County Housing Authority’s Fiscal Year 2027 Moving to Work Annual Plan will be reviewed, which could impact local housing strategies. - The approval process for financing the Berryessa TOD affordable housing project is scheduled, potentially accelerating new affordable units. - Deferred discussions on city affordability restrictions tied to subsidy contract expirations or foreclosures will be revisited on April 28, 2026.

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