Mayor Matt Mahan Directs $50 Million for Fast-Build Modular Interim Housing Across San Jose

SAN JOSE, Calif. — Mayor Matt Mahan and the San Jose City Council voted 9-2 on Monday to approve a $50 million municipal capital appropriation from Measure E funds to construct four new quick-build modular interim supportive housing communities totaling 800 private sleeping suites with comprehensive on-site mental health, addiction, and job placement services.

The prefabricated modular communities—constructed at an average cost of $65,000 per bed compared to over $850,000 per unit for conventional permanent supportive housing—can be fully assembled and occupied on Caltrans and municipal land parcels within six months.

Delivering Immediate Dignified Shelter and Clearing Encampments San Jose has achieved measurable decreases in unsheltered homelessness through its fast-build emergency interim housing model, successfully transitioning over 70 percent of interim housing residents into permanent housing or employment within twelve months.

"We cannot wait five years and spend a million dollars per unit while thousands of our neighbors suffer on our sidewalks and in our creekways," Mayor Matt Mahan said at an interim housing site in South San Jose. "Our quick-build modular housing model provides dignified, private rooms with comprehensive wraparound services at a fraction of the cost and time of traditional construction. This $50 million investment will provide 800 individuals with a safe place to sleep, heal, and rebuild their lives while keeping our public spaces clean and safe for all residents."

Community Features and Wraparound Services Each modular community site includes:

• Private Climate-Controlled Suites: Equipped with private bathrooms, secure locking doors, desks, and air conditioning.
• On-Site Clinical Services: 24/7 caseworkers providing psychiatric care, substance use counseling, and daily meal service.
• Encampment Transition Protocols: Coordinating with the city's beautification teams to clear dangerous creekbed encampments upon shelter openings.

Neighborhood business associations, housing advocacy coalitions, and non-profit service providers praised the municipal council's pragmatic approach, noting that fast-build interim housing delivers immediate community results.