San José Mayor, Non-Profit and Development Partners Welcome Homeless Residents to First-of-its-Kind Housing Solution
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FOR IMMEDIATE RELEASE
October 31, 2024
Media Contact:
Tasha Dean, Chief Communications Officer, Office of Mayor Matt Mahan; [email protected]
SAN JOSÉ, CA — Yesterday, Mayor Matt Mahan and the San José City Administration along with representatives from People Assisting the Homeless (PATH), Westbank Corporation, and the Santa Clara County Housing Authority, welcomed residents to the Pacific Motor Inn — a first-of-its-kind supportive housing project in the heart of Downtown San José. The project is located at the Pacific Motor Inn, a former hotel acquired by PMI Partners LLC, a joint venture between PATH Ventures and Westbank Corp. The original 72 rooms will act as interim housing for individuals currently experiencing homelessness. Eventually, the site will be redeveloped into housing towers including nearly 500 units, offering a mix of permanent supportive, affordable, and market-rate housing in the downtown area.
"Thanks to an innovative public-private partnership, 72 people will no longer call our streets home,” said San José Mayor Matt Mahan. “The Pacific Motor Inn is part of our expanding range of solutions—from safe sleeping sites to affordable and market rate housing—that help lift people out of homelessness and put them on the path to self-sufficiency. Over the coming years, this site will be redeveloped into a 500 unit, mixed-income housing community in the heart of downtown.”
In 2021, the City of San José applied for Project Homekey dollars to repurpose the Pacific Motor Inn into emergency interim housing. Westbank Corp., a leading luxury residential and mixed-use real estate development company, and PATH Ventures, a recognized leader in creating high-quality, affordable, and stable homes for California’s most vulnerable residents, came together to form PMI Partners LLC. Over the past two years, Westbank Corp. and PATH have worked collaboratively with the City of San José and the California Department of Housing and Community Development (HCD) to finalize the terms of this innovative vision and acquire the site.
“We are really proud to hit this first major milestone in tackling the housing crisis,” said Andrew Jacobson from Westbank. “This project is a great example of what happens when government, non-profit and for-profit stakeholders come together to chart a new path that takes big problems head on in a way that benefits the local community. Although this is an important milestone, the hard work is just beginning and we look forward to sharing updates as we progress.”
Over the next five years, the site will be redeveloped to include a mid-rise affordable housing development including 140 units of affordable housing, 72 of which would be permanent supportive housing, owned and operated by PATH Ventures. A high-rise building on the same lot will have 360 market-rate housing units, owned and operated by Westbank. The same architect will design both buildings. The development will leverage $19 million from State Homekey dollars and $25 million from the City of San José in addition to resources from both PATH Ventures and Westbank to create more housing than what Homekey funds were initially conceived to accomplish.
“PATH’s interim housing model integrates stable shelter with person-centered, housing-focused case management and comprehensive supportive services. While we know that interim housing is an important step on a person’s journey home, homes truly end homelessness. That is why this site will eventually be home to two new residential developments. This visionary project will demonstrate that mixed income communities are a benefit to the entire community, and that affordable and supportive housing can be integrated into market rate developments. Increasing the stock of all housing options helps us better address our housing and homelessness crises,” said Jennifer Dietz, CEO of PATH.
The Pacific Motor Inn adds 72 units to San José’s inventory of beds for those experiencing homelessness, complementing the city’s existing 499 Emergency Interim Housing beds, 190 motel and hotel conversion units, and 45 safe parking spaces. 784 units are in the pipeline, and expected to come online over the next 18 months.
"Ending unsheltered homelessness is one of our City Council's focus areas. Today, we are making even more progress,” said City Manager Jennifer Maguire. “Our San José departments are working hard to create a variety of housing alternatives and to build bridges to our unhoused community.”
“Pacific Motor Inn is an important addition to our stock of interim housing and the build out of our shelter system,” said Erik L. Solivan, Director of the City of San Jose Housing Department. “It is part of our plan to end unsheltered homelessness as we work to add more than 1,000 managed spaces for our unhoused neighbors. Along with partners such as PATH, the Housing Authority, and the County of Santa Clara, we are creating dignified housing and shelter opportunities to help unhoused residents come indoors, stabilize their lives and transfer to permanent housing.”
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About the City of San José
With nearly one million residents, San José is the largest city in the Bay Area and one of the nation's most diverse and creative. San José’s transformation into a global innovation center in the heart of Silicon Valley has resulted in the world's greatest concentration of technology talent and development.