Santa Clara County to receive $50M in state funds to address homelessness crisis

Officials in Santa Clara County on Wednesday welcomed news that Gov. Gavin Newsom has earmarked $50 million in state funding to help reduce, and potentially end, the region’s homelessness crisis.

Encampments that once stretched along parts of the Guadalupe River Trail have been cleared and replaced with vegetation free of trash and debris. Officials say the new funding could help build on that progress.

Advocates say need remains high

What they're saying:

Despite improvements, advocates say the need for housing remains urgent.

"I’m out a lot with the unhoused and we have so many unhoused people," said Gail Osmer, a South Bay advocate, while meeting with a woman living in a tent near Leigh Avenue and Southwest Expressway in San Jose.

She said more must be done to move people indoors.

"We have thousands of unhoused people right now, and I hope the county is going to do the right thing and get more housing," Osmer said.

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State announces broader funding effort

What we know:

Newsom on Wednesday announced $145 million in funding through the state’s Homelessness Housing, Assistance and Prevention (HHAP) program.

"This is just a rolling round of eight applicants to HHAP 6 funding, but there are many to come," said Tomiquia Moss, secretary of the California Business, Consumer Services and Housing Agency.

The funding will be distributed across eight counties in Northern and Southern California, including Santa Clara County, which has more than 10,000 unhoused residents, according to county data.

How the funding will be used

Local perspective:

Santa Clara County is expected to receive about $50 million, with roughly half allocated to the city of San Jose, said Supervisor Susan Ellenberg.

The money will support interim housing, homelessness prevention, case management and related services.

"To help sustain interim housing, invest more in homelessness prevention, case workers, and other services that are ancillary to addressing homelessness," Ellenberg said.

County officials said they plan to prioritize immediate needs and projects that do not rely on ongoing state funding. Ellenberg said she expects the funds to be distributed soon.

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Newsom has previously directed HHAP funds to 23 metropolitan areas, including Los Angeles and San Francisco.

Some experts say the latest funding push comes as Newsom looks to bolster statewide support amid broader political ambitions.

‘This is not political’

"The Democratic Party, which he leads in the state, is doing something to address the problem of unhoused people and homelessness," said Melissa Michelson, a political scientist at Menlo College. "He’s not on the ballot, but he still wants to end up leaving a legacy in California."

Moss disputed the characterization of this as a political play.

"This is not political," she said. "These resources have, over the course of the last six rounds, helped over 100,000 people become housed."

Calls for faster solutions

Advocates say more housing and faster action are still needed.

"I’d like to see another group of tiny homes built, you know, with 200 rooms or 300 rooms," Osmer said.

They say time remains critical for those still waiting for help as the region works to address homelessness at scale.

The Source: Office of California Gov. Gavin Newsom, political scientist Dr. Melissa Michelson, advocate Gail Osmer, and Supervisor Susan Ellenberg

Bay Area homelessnessGavin Newsom