In response to community backlash, San Jose has decided to abandon its plan to sell a tiny home site to Santa Clara County for a jail diversion program.

The proposal faced significant opposition, with thousands signing a petition against the sale of the interim housing site at 6066 Monterey Road. Additionally, hundreds of South San Jose residents voiced their concerns at recent community meetings, criticizing city and county officials for a lack of transparency and failure to address safety issues.

Following community feedback, San Jose Mayor Matt Mahan decided against supporting the sale. City officials announced they would not move forward with the sale and might explore other options with the county, according to a letter from Housing Director Erik Solivan.

Santa Clara County had shown interest in purchasing the Monterey Road site and properties at 1072-1082 Vermont St. after receiving $8 million in grant funding from the California Health Facilities Financing Authority. The grant required the facilities to be operational by the end of November.

The Monterey Road property, managed by HomeFirst Services, currently accommodates up to 78 unhoused residents. County officials assured that the proposed program would not significantly alter the existing clientele, emphasizing that homelessness, mental health issues, and justice involvement are interconnected. They also noted that safety measures, including court approvals and legal safeguards, were part of the diversion program.

San Jose was initially interested in the sale because the county could provide better services and the city would save nearly $2.5 million in annual operating expenses. However, Mayor Mahan and District 10 City Councilmember Arjun Batra, who opposed the proposal, claimed they were not fully informed about the county’s intended use for the site.

The proposal became a contentious issue, with Batra and his election opponent George Casey using it for political leverage. Casey praised the community’s efforts in halting the project.

Community leaders expressed relief and satisfaction that their concerns were addressed. Issa Ajlouny, president of S.A.F.E.R. San Jose, noted the community’s happiness with the decision. Program manager Hilary Barroga highlighted that the Monterey-Bernal site already serves individuals with behavioral health concerns and previous jail time.