Billionaire developer from Silicon Valley, John A. Sobrato, has generously pledged a 2-acre plot of land in South San Jose in an effort to alleviate the city's homelessness crisis. According to the Mercury News article, the plot, to be leased at a nominal cost of $1 per year over a five-year term, is proposed to be used for the development of 75 tiny home shelters to house homeless individuals.
Aware of the enduring hurdles San Jose faces in locating suitable shelter sites, Sobrato suggested the property increase the city's homeless housing inventory. The parcel of land is located at Via del Oro and San Ignacio Avenue near Highway 85. Sobrato's son, John M. Sobrato, commended the proposal, viewing these tiny home shelters as one element of the family's broader scheme to tackle escalating homelessness in San Jose and across the Bay Area.
John M. Sobrato, enunciating on the magnanimous gesture, said, “My father’s offer, representing the Sobrato Family Foundation for a zero-cost lease of the property on Via del Oro for transitional housing, perfectly embodies their commitment to helping one of San Jose’s most defenseless demographic", via The Sobrato Organization news report.
The contribution from the Sobrato Family Foundation does not end here. They have already endowed $5 million toward the construction of a homeless housing facility at Branham Lane and Monterey Road in San Jose, which is currently underway. Additionally, John A. Sobrato gave another $5 million to one of the largest homeless shelters in the Bay Area, located in Redwood City, which just opened earlier this year.
Last Tuesday saw the San Jose City Council giving the green light to lease the Via del Oro property unanimously. In the council meeting, Mayor Matt Mahan shared his aspiration that other property owners might follow in the footsteps of Sobrato to consider leasing their vacant lands for homeless shelters. Mayor Mahan views the initiation of private properties as a vital solution to end homelessness, given the considerable quantity of idle privately held land across the region.
The proposed tiny home shelters, following a "quick-build" format, are expected to provide temporary housing to roughly 150 people without charging rent for several months. Complete with private bathrooms, these units will allow the inclusion of partners and pets for those moving in. The well-established non-profit from San Francisco, Dignity Moves, will be taking charge of the site operation. The team will be delivering indispensable services such as case management, mental health counseling, and job training, aiming to guide the occupants toward securing more permanent living arrangements.
At the end of this planned five-year lease, the city expects to witness the tiny homes being relocated, a process that is anticipated to come at a cost of around $6.5 million. This initiative falls perfectly in line with Mayor Mahan's objective to move 1,000 unsheltered individuals off the streets and into newly set up shelter spaces by early summer of next year. Although the city boasts considerable success in accommodating many people in these tiny home communities and other short-term housing sites with separate rooms, the persistent shortage of affordable housing in the area poses ongoing challenges when attempting to transition tenants into more permanent dwellings.
While critics highlight the hefty financial burden tied to these initiatives, Mahan insists on the cost-effectiveness of these projects. According to his reasoning, the annual cost of an unsheltered homeless individual, factoring in the cumulated burden on emergency rooms and first responders, averages around $65,000. Therefore, such projects should be closely evaluated before being outright rejected.
