Why San Jose's Homelessness Strategy is Failing, and How to Fix It

By David G. Johnson, Chairman, SVGOP

After tens of millions of dollars, and countless speeches by city officials, the results are in: San Jose's homelessness crisis is getting worse. The most recent point-in-time count tells us that after all the handwaving and spending, homelessness is actually more prevalent than when the city started its most recent remediation efforts two years ago, as the homeless population increased to 9,600 (according to reports - in actuality, it most like is underestimating the true numbers…).

Anyone who works in business knows these results are completely unacceptable. These are the kind of results you get when your strategy is wrong. When your tactics are wasteful. And when your leadership is presiding over a culture of unaccountability.

To suggest, as Mayor Mahan and City Manager Maguire do, that these results are somehow a sign of progress is an Orwellian claptrap of the highest order. And to deflect responsibility onto other levels of government for not spending enough, as Mayor Mahan does, is blame-casting of a shameful order.

Here's where the City’s strategy is wrong and suggestions on how to fix it:

Problem #1: The Solutions are Not Scaling to the Scope of the Problem

We are building interim housing and long-term housing, sure, but it's obviously not enough.  We need solutions that will address thousands of homeless people, not hundreds.

Solution #1: Start building high-capacity homeless shelters ASAP. Cities such as Reno, NV, and San Antonio, TX lead the nation in addressing homelessness quickly and compassionately by greenlighting these quick-build, sprung structure campuses that get thousands off the streets with full care and services - in a matter of months.  And at a fraction of the cost. The SJ City Council has already approved these shelters in principle, due to the perseverance of Councilman Bien Doan. But the city has slow-walked their implementation, to disastrous consequences. 

Problem #2: Unaccountable Spending / Grifting by Non-Profits 

Our problem is not that we're not spending enough - we are - we're just spending it badly.  The city got ripped off not long ago by a state audit for having no idea where our homelessness spend was going - $200m went unaccounted for. And everyone in city government knows that our Housing Department has been historically staffed by Housing First advocates who wouldn't listen to opposing viewpoints {to be fair, our new Housing Director is an improvement, but he is still saddled with a legacy staff of left-wing advocates parading as objective civil servants. 

Solution #2: Enlist a blue-ribbon committee of local business community leaders to manage the non profits and city staff responsible for homelessness implementation, with a special eye to non profit corruption and grift.  The most recent point-in-time results tell us that both city and third party staff need more rigorous oversight and management.  Someone well-respected like Gary Filizetti of Devcon or John Sobrato come to mind.

When the directors of the non-profits involved in homelessness projects are routinely earning $350K a year, have lavish offices, spending tons on advertising, it’s not hard to see how little time it takes to burn through millions (reminiscent of the Harris for President campaign).  Also of note is that they all typically make donations to support the mayor, or the city council members, etc.

Problem #3: Strategic Perspectives

From the mayor, council, city staff, and non profit community, have always started from the wrong place: they ask "what can government do to help fix this?” instead of asking, "what is government doing that is causing this?" As much of our homelessness crisis stems from our ludicrous maze of government ordinances and regulations that restrict the market-creation of affordable housing, we should be fixing the failure of government intervention first, not intervening more. 

Solution #3:  WWAD?

What Would Apple Do?  Pick a notable local business leader – one who perhaps has one of the most successful companies in all of history.  Have them observe the functionality of the how the City operates, from the Planning & Building Departments, to Operations, Finance, Public Works, ALL of it and restructure accordingly.  The cultures inside the dysfunctional City are too far gone to correct.  Think “DOGE” the City.  Find the money.  Repair the culture and restore public confidence.  Then hire more police with part of the money saved and use the rest to provide real, permanent solutions to the homelessness issue.

Only if radical action is taken – and we mean radical – could the public expect any different results.

David G. Johnson
Chairman
SV GOP