San José Could Convert Troubled Homeless Shelter to Permanent Housing

The San José City Council voted Tuesday to explore converting the city’s largest interim housing community into permanent housing — just days after officials moved to terminate the city’s contract with the site’s operators, following a staff member’s arrest on drug charges.

Councilmember Pamela Campos, whose district hosts the shelter, led the charge to pursue the conversion of the Branham Lane Emergency Interim Housing Community from a transitional shelter into permanent low-income housing. The transition would prioritize residents over age 55 and people with disabilities.

The move follows the March 9 arrest of LifeMoves caseworker Yasmin Wright, 46, outside the site for allegedly selling methamphetamine to residents, as first reported by San José Spotlight. LifeMoves, one of the most prominent shelter operators and homelessness outreach nonprofits in the Bay Area, has come under fire for its failure to investigate Wright, who faces felony charges for possession with intent to sell and for transporting drugs, as well as a misdemeanor for drug paraphernalia.

The vote came during a broader budget discussion that drew hundreds of residents to City Hall. The three-story modular site in South San José, which currently houses more than 200 people, has become a flashpoint for neighbors concerned about safety and site management.

Issa Ajlouny, who chairs the community advisory committee for the site, said nearly 100 community members submitted emails in support of the transition. Neighborhood resident Lisa Doyle echoed those concerns during public comment.

“We sincerely appreciate an expedited change in operator and approval process so our quality of life, public safety and property values can be restored,” Doyle said.

Margie, a former resident who gave only their first name, told the council the site had been mismanaged and called on the city to pull funding from the current program because of “unprofessional” conditions.

The city’s Housing Department said that while a formal notice ending the contract has not yet been issued to LifeMoves, the intent has been communicated directly to the nonprofit’s leadership. Current residents will continue to receive on-site services and support throughout the transition.

LifeMoves said in a statement it first learned of the city’s position during a meeting with neighbors — not from city officials directly — and has since requested a meeting with the Housing Department.

“Our first priority remains the well-being and stability of the clients currently residing at the Branham Lane community and all of our 25 sites,” LifeMoves said. The nonprofit added that it is conducting an “organization-wide risk assessment” and a thorough review of internal processes following the arrest.

The modular site at Branham Lane and Monterey Road opened in early 2025 and serves up to 216 people across 204 units, all of which include full bathrooms and kitchenettes.

According to the LifeMoves website, the project was funded through a $51.8 million state Project Homekey grant, $38.8 million from the city, $4 million from Santa Clara County and $5 million from the Sobrato Foundation. The site was designed and built with the long-term possibility of conversion to permanent housing, according to the city’s Housing Department.​​​​​​​​​​​​​​​​

Campos directed the city manager to update the status of the transition by Aug. 31.

The directive was folded into Mayor Matt Mahan’s annual March budget message, which sets city priorities for the coming fiscal year. Mahan said the process of finding a new operator is already underway.

“Interim housing sites exist to help vulnerable residents get back on a better path,” Mahan said Tuesday in an emailed statement. “Hearing allegations that someone entrusted with their care took advantage of them is an egregious violation of trust. We’ve already begun the process to transfer operations of this site to a provider capable of meeting the standards our residents and neighbors deserve.”

Mahan added that he hopes to have a new operator in place before the end of the year.