A homeless services provider has lost its contract to operate a large San Jose shelter, days after police arrested a worker who was allegedly selling drugs to residents.
San Jose on Wednesday terminated its contract with nonprofit LifeMoves to run the Branham Lane temporary housing site, according to city officials. It follows the arrest and an investigation by San José Spotlight detailing dysfunction at the three-story site, where former employees who spoke up about the alleged drug dealing were fired.
“This is the problem with the city getting the unhoused inside with no accountability on what’s happening inside,” homeless advocate Gail Osmer told San José Spotlight.
It’s unclear when LifeMoves will stop managing the site. The city is exploring the best path forward, including which homeless service provider will take over and what the transition plan will look like, according to Seamus Gann, a spokesperson for Mayor Matt Mahan.
“We anticipate clear direction on that path in the coming weeks and will implement appropriate next steps over the course of the year,” Gann told San José Spotlight.
LifeMoves is the one of the most prominent shelter operators in the county, managing 10 shelter programs countywide, totaling 1,052 beds, according to a San José Spotlight analysis conducted last year. Other sites run by LifeMoves include Julian Street Inn in San Jose, a Mountain View Homekey site and New Haven Inn, a LGBTQ+ shelter in San Jose. It also operates one of two safe parking sites in San Jose.
LifeMoves spokesperson Maria Prato said the organization will work with the city and incoming operator to provide a smooth transition.
“Our foremost priority remains the well-being and stability of the clients currently residing at the community,” Prato told San José Spotlight.
Police arrested LifeMoves caseworker Yasmin Wright, 46, on Monday outside the site. Wright had roughly 3.4 ounces of suspected methamphetamine individually wrapped for potential sales, according to the San Jose Police Department. She faces two felony counts for possessing drugs with an intent to sell and for transporting, selling or giving away drugs, and a misdemeanor for possessing drug paraphernalia.
Workers at the site repeatedly flagged Wright for behavior they thought was suspicious to management — including handing items off to residents. LifeMoves fired one employee for recording what they believed to be a drug transaction between Wright and a resident on a surveillance camera. Former workers who raised these concerns to human resources said they were told their claims were “unfounded” after LifeMoves apparently conducted an investigation.
A spokesperson for the San Jose Housing Department previously said it would explore hiring practices and operating procedures at shelter sites. The department did not respond to a request for comment regarding the contract termination.
The multistory modular shelter, which opened in February 2025, has had numerous infrastructure problems — shower benches detaching from walls, which led to injury, water smelling of sewage and walls with water damage, according to past reporting by this news organization. Multiple residents previously said they felt nauseous in their apartments and had trouble breathing.
“I think LifeMoves has failed the surrounding neighborhood in such a big way that trust has been broken,” Issa Ajlouny, who leads the community advisory committee meetings for the site, told San José Spotlight. “It’s time for them to pack their bags and let the new operator come in.”
Contact Joyce Chu at joyce@sanjsoespotlight.com or @joyce_speaks on X.
This story originally appeared in San José Spotlight.