Gov. Gavin Newsom today announced the state will award the City of San José $19.9 million in Homekey Funds to acquire the 72-room Pacific Motor Inn, located in the SoFA district of Downtown San José.
The Pacific Motor Inn will provide interim housing for 72 formerly unhoused individuals for two years before being redeveloped into permanent supportive housing. The city also is working with PATH San José, and commercial developer Westbank to redevelop the site into two apartment buildings that would together offer around 245 residences for low-income and previously unhoused residents.
San José Mayor Sam Liccardo and 3rd District Councilmember Raul Peralez released the following statement:
“We are grateful for this recent Homekey investment for the purchase of the Pacific Motor Inn, which will enable us to scale the innovative approach that San José pioneered to house our most vulnerable neighbors by purchasing motels to house our homeless residents. This model has already provided a pathway to continue to move thousands of San Joséans off the street into safe, dignified housing.”
The funds will be used to convert the 90-unit Arena Hotel, 817 The Alameda, to interim and future permanent housing for homeless individuals and couples.
Judge Patricia Lucas, meanwhile, has asked the plaintiffs to return to court next month with a new appraisal on the property in question.