San Jose is transferring ownership of a former motel rife with issues to the Santa Clara County Housing Authority, with plans to convert it from temporary homeless housing to permanent apartments. The City Council approved finalizing the sale Tuesday for $1, with the housing authority expected to own the building by the end of June. The city purchased the former motel at 1488 N. 1st St. with more than $12 million from Project Homekey at the peak of the pandemic to shelter homeless residents. The city originally handled operations while homeless service providers took care of case management and other resources. The motel had seen issues with mold, pests and dirty water, and older adult and disabled residents have previously complained of mistreatment by staff and lack of services. Several nonprofit service providers cycled through with minimal improvements, including Abode and LifeMoves. HomeFirst is the current service provider, offering food and case management services. The housing authority has been in operational control of the motel since fall 2023, and was supposed to take full ownership of the building at the end of 2023. “Today is a critical step forward for Santa Clara County Housing Authority to ultimately convert this site into permanent housing, adding to the supply of affordable units,” Councilmember Michael Mulcahy, whose District 6 includes the motel, told San Jose Spotlight. “This will be a much needed improvement for the N. First Street corridor and its neighborhoods.” The design for the future permanent housing site is still being drafted and a timeline for construction hasn’t been set, housing authority spokesperson Brandi Johnson told San Jose Spotlight. The city will continue to fund operations until next year. Overseeing the motel costs about $3 million a year, paid for with Measure E funds. San Jose also sank $4 million into the facility for repairs. Last year, residents complained of mistreatment by workers and ongoing dangerous living conditions, including mold and pests. Johnson said that a pest control company comes to the property every other week to spray the property and in individual rooms for residents who want it. “Any previous mold issues have been addressed,” Johnson told San Jose Spotlight. “We also remain committed to providing services to residents and are working directly with HomeFirst on a comprehensive approach to supporting residents’ needs and their lived experiences.” HomeFirst has made some improvements, including holding monthly community meetings with residents — though some residents say they’ve never received assistance from the nonprofit or been notified when there are openings for permanent housing. Editor’s note: This story originally appeared in San Jose Spotlight. ...read more read less