Statement from Santa Clara County Counsel James R. Williams on the Ruling in Lawsuit Relating to Homekey Project

Santa Clara County, CA — Santa Clara County Counsel James R. Williams released the following statement today on the Santa Clara County Superior Court’s decision denying a preliminary injunction that Plaintiff Voices of Milpitas LLC had sought to stop the implementation of a County supportive housing project:

“This week, the Santa Clara County Superior Court sided with the County in rejecting an attempt by a group of Milpitas residents to stop a much-needed supportive housing project. The County, along with co-defendants involved in the project, had previously successfully defended against Plaintiff Voices of Milpitas LLC’s attempt to block the closing of the real estate transaction necessary to pursue the project. Voices of Milpitas then tried to stop the County and its private partner from getting vulnerable County residents into safe, permanent housing. Under this week’s decision, the County can proceed with providing necessary housing during the current public health crisis and beyond. As the Judge noted in her ruling, this project is likely to save lives.”

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Background on the County’s Homekey-Funded Project and the Lawsuit
Through Project Homekey, the State of California made significant funding available for projects that could quickly provide housing to persons who have been homeless or who are at risk of becoming homeless and who were therefore more vulnerable to the current COVID-19 pandemic. The County and its private partner, Jamboree Housing Corporation, identified an Extended Stay America hotel in Milpitas as an ideal project for Project Homekey. The occupancy-ready existing hotel rooms, each with a kitchenette and private bathroom, could quickly be turned into studio apartments. Escrow closed on the sale on November 20, 2020, and the first residents are expected to move in later this month.

A group of Milpitas residents formed an entity, Voices of Milpitas LLC, to try to stop the project. Voices of Milpitas filed a lawsuit in the Santa Clara County Superior Court (Voices of Milpitas LLC v. County of Santa Clara, et al., Case No. 20CV372916) and initially tried to obtain a temporary restraining order to stop the close of escrow. The Court denied that request on November 16, 2020. Voices of Milpitas next filed a motion for a preliminary injunction, attempting to claw back the money that had been paid to the seller, and also seeking to stop the County and Jamboree from moving residents into the units. Again, the Court ruled in favor of the County.

While the lawsuit is not over, the County—through its Office of Supportive Housing—and Jamboree are now free to move residents into the apartments and provide related supportive services to them. This is particularly important right now given the current COVID-19 pandemic and the arrival of winter weather.

About the Santa Clara County Counsel’s Office
The Office of the County Counsel serves as legal counsel to the County, its Board of Supervisors and elected officials, every County department and agency, and the County’s boards and commissions. With a staff of over 200, the Office is also responsible for all civil litigation involving the County and its officers. The Office also litigates high-impact cases, drafts innovative local ordinances, and develops policies and programs to advance social and economic justice.

About the County of Santa Clara, California
The government of the County of Santa Clara serves a diverse, multi-cultural population of 1.9 million residents – more populous than 14 states. With a $8.1 billion annual budget, dozens of departments and agencies, and over 20,000 employees, the County provides essential services to its residents, including public health protection, environmental stewardship, medical services through the County of Santa Clara Health System, child and adult protection services, homelessness prevention and solutions, roads, park services, libraries, emergency response to disasters, protection of minority communities and those under threat, access to a fair criminal justice system, and many others.