Santa Clara County funds independent living home upgrades

Last year, Santa Clara County created a grant to improve conditions at independent living homes. But advocates said there needs to be more oversight on who gets awarded these grants.

Independent living homes house some of the most vulnerable populations in the county, including people with mental health issues. Some residents have suffered in these unlicensed homes rife with bed bugs, plumbing issues, broken appliances, drug use and verbal harassment, according to previous investigations by this news outlet.

The county is attempting to chip away at this problem by offering funds for operators to create a more habitable living environment. The $2 million grant will go toward improving roofing and plumbing, replacing appliances, remodeling bathrooms and kitchens and more.

“Independent living homes play a critical role in housing residents with behavioral health and other life challenges, yet many operate without licensing or oversight,” District 4 Supervisor Susan Ellenberg told San José Spotlight. “That gap has allowed substandard conditions to persist, and it’s simply unacceptable. The county’s one-time, $2 million investment in Behavioral Health Bridge Housing is an important step toward ensuring that every resident in these homes lives in a safe, stable and dignified environment.”

The county plans to provide grants between $10,000 to $450,000 per property, with applications being accepted on a rolling basis until June 30, 2027, or until funds are depleted. As part of the grant award process, the county will conduct inspections on the properties before and after the award is given. Staff will also evaluate how funds are used and benefits to residents, among other things.

Lorraine Zeller, coalition lead with the Community Living Coalition, said more safeguards are necessary to ensure the right operators receive the funds due to many of them having questionable histories. She said that could happen by conducting research into the properties or background checks on those who apply before a decision is made.

“It’s important because we need to protect the residents,” Zeller told San José Spotlight. “We need to make sure that if they’re receiving the money, they have to have their place up to a certain standard, maybe even a higher standard than others who don’t get the money.”

In one instance, an operator illegally converted the property on 659 N. 13th St. in San Jose into an independent living home and rented out rooms. They packed people into a living room converted into a bedroom, installed a makeshift canopy in the backyard for a renter and crowded people in the basement. They pocketed money from the renters and stopped paying the landlord rent.

A spokesperson for Santa Clara County Behavioral Health Services said they do not plan on conducting background checks.

“The county will determine which operators receive funding through the competitive solicitation process,” the spokesperson told San José Spotlight.

However, Ellenberg said including background research as part of the grant application process is an appropriate and necessary safeguard.

Communication and oversight

Matt Jacobsen, an operator of independent living homes with UPL Enterprises LLC, said having a $25,000 grant would go a long way to help with improvements. That money could go into fixing leaking roofs, upgrading bathrooms and installing air conditioning.

“Anytime you have money to put new flooring in or new countertops or anything … it just improves the overall quality of the house,” Jacobsen told San José Spotlight. “Improving the quality of the home itself definitely improves the quality of living for the tenants.”

Jacobsen said there needs to be a more concerted effort from the county to let operators know this money is available, including more contacts through word of mouth. So far, six operators have applied for funds, according to the county.

While repairing properties can provide some relief for residents, advocates said the issues cannot merely be solved by fixing habitability alone. The problems run much deeper, requiring a level of accountability from local governments which doesn’t exist as independent living homes go unregulated and unchecked.

Unlike licensed residential care homes which are monitored by the state Department of Social Services to ensure cleanliness and a standard of care, independent living homes are not required to be licensed and not monitored by the state.

With licensed residential care homes shuttering, the county is also facing a dearth of beds, leading residents to be placed in substandard housing and unlicensed independent living homes.

A county audit in 2020 revealed more than 30 licensed residential care facilities in the county closed from 2014 to 2018 because they’re too expensive to operate, resulting in 262 lost beds. The decline of licensed homes means people with mental illness have meager options after being discharged from hospitals or residential care. The outcome often results in homelessness, jail or re-hospitalization, the audit found.

Recently, Zeller learned San Jose plans to shut down five independent living homes due to code violations, potentially leaving 40 to 50 residents homeless. She wants there to be an emergency response group to address these situations and help residents find another home.

“If residents are placed by their providers in an independent living (home), they deserve at the very least to receive a speedy response when their health and safety have been jeopardized by their placement,” she said.

Ellenberg said the county is examining independent living homes and will address habitability issues where public dollars are involved — including behavioral health clients under the county’s care who are being placed in these homes.

“Our goal is to incentivize responsible operators, improve living conditions and ensure that every dollar we spend advances the well-being of our behavioral health clients,” she said. “That is our North Star.”

Contact Joyce Chu at [email protected] or @joyce_speaks on X.