The California Legislature is in the middle of budget negotiations, with the state budget expected to be finalized June 15.<\/p>\n
\u201c(The governor\u2019s proposed budget) makes it really difficult, and (the HHAP funding) comes with all sorts of strings attached,\u201d Elizabeth Funk, CEO of nonprofit DignityMoves, told San Jos\u00e9 Spotlight. \u201cOn one hand (Newsom is) saying the local cities need to do their part, the cities need to step up, and then he\u2019s not giving the resources to do it.\u201d<\/p>\n
San Jose has predominantly put HHAP money toward funding operations at its shelter sites. The newest round of HHAP awards comes with stringent requirements, including having a homeless encampment policy that aligns with the state\u2019s, providing local matching funds and having a compliant housing element.<\/p>\n
The state\u2019s homeless encampment policy<\/a> calls for cities to urgently remove encampments from public areas, and encourages localities to adopt policies making it illegal to camp in public. San Jose has swiftly removed encampments and instituted no encampment zones<\/a>, including the most recent decommissioning of a large homeless encampment in East San Jose known as \u201cthe Jungle<\/a>.\u201d<\/p>\n In addition, Newsom\u2019s proposed budget lacks any new funds for affordable housing, including low-income housing tax credits \u2014 one of the major sources for affordable housing projects. While the state is creating a new housing agency<\/a> to streamline development funds for greater efficiency, it\u2019s still unknown how it will interact with local dollars.<\/p>\n The State Senate wants to set aside $1 billion for affordable housing programs such as the Low-Income Housing Tax Credit program, as well as $1 billion in homeownership programs in addition to the $1 billion for HHAP this upcoming fiscal year.<\/p>\n \u201cAcross California, providers are working every day to help people move from homelessness to housing, yet the state continues to face a significant shortage of affordable homes,\u201d Jennifer Hark Dietz, CEO of nonprofit People Assisting the Homeless (PATH), told San Jos\u00e9 Spotlight. \u201cWithout sufficient investment in affordable housing development and housing-focused solutions, communities risk addressing the visible impacts of homelessness without fully addressing its root causes.\u201d<\/p>\n PATH provides supportive services for homeless people and has an affiliate that develops affordable housing.<\/p>\n More people in the county will fall into homelessness as rents rise and outpace wages. The average rent in San Jose for a two-bedroom apartment is about $3,200<\/a>, according to Zillow. Half of San Jose families are rent burdened<\/a>, meaning they spend more than 30% of their income on housing.<\/p>\n In Santa Clara County, one of the wealthiest counties in the nation, more than 10,700 people are homeless \u2014 an increase from 9,903 people in 2023.<\/p>\n![\"In-line](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/interactive-321838904008.png\")
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