A San Jose development, lauded as a leading example of prefabricated temporary housing, is facing mounting allegations of dysfunction, mismanagement, and potential criminal activity. The 168-apartment complex at 1 Branham Lane, operated by the non-profit LifeMoves, opened in February and has quickly become the subject of scrutiny following complaints from current and former employees.
According to an investigation by the San José Spotlight, six individuals with direct knowledge of the facility allege a pattern of managerial dysfunction, unprofessional conduct, and even alleged drug dealing involving a case manager and residents. The shelter provides supportive services intended to assist individuals and families transitioning out of homelessness.
The allegations include claims of retaliation against employees who raised concerns. One former employee stated they felt “threatened from the beginning” after bringing issues to management’s attention, and ultimately terminated for “unauthorized recording” after capturing surveillance footage of a suspected drug transaction. The footage, reviewed by the Spotlight, shows a case manager handing an item to a resident, though the nature of the exchange remains unclear. Another former employee reported being told by a resident that the same case manager had offered to sell them drugs in exchange for perfume.
The $60 million project is funded through a combination of state, county, and private sources. Approximately $52 million comes from the state’s Project Homekey program, with an additional $4 million from Santa Clara County, $5 million from the Sobrato Foundation, and nearly $39 million from the city of San Jose, distributed over seven years. The annual operating cost is estimated at $6 million.
Beyond the allegations of illicit activity, employees describe a deeply flawed administrative structure characterized by favoritism and a lack of accountability. Sources claim that individuals with close ties to LifeMoves leadership were appointed to key positions, creating a hostile work environment and hindering effective problem-solving. One former employee described a situation where concerns about resident safety were dismissed, and a resident with a history of aggressive behavior – later arrested in January on charges of kidnapping and sexual assault – was not relocated despite repeated warnings.
In January, Marlo Porter was arrested by the San Jose Police Department and subsequently registered as a sex offender following allegations of kidnapping and sexually assaulting a 15-year-old girl on her way to school. Prior to the arrest, employees had reportedly raised concerns about Porter’s behavior, including allegedly attempting to pick up young girls in his vehicle, but management allegedly failed to take adequate action.
Complaints also extend to the physical condition of the facility. Previous reports have detailed infrastructure problems, including shower fixtures detaching from walls, foul-smelling water, and water damage. Residents have reported feeling ill and experiencing respiratory issues, raising concerns about potential mold exposure.
LifeMoves spokesperson Maria Prato stated the organization cannot comment on “unverified allegations or internal personnel matters.” She also asserted that employees are not terminated for reporting misconduct and that recording is prohibited to protect the privacy and dignity of residents. Prato maintained that LifeMoves has a clear policy prohibiting personal relationships between staff and residents and that the hiring process is designed to ensure qualified individuals are selected.
The allegations come as San Jose Mayor Matt Mahan has championed modular housing as an innovative solution to the city’s homelessness crisis, citing its potential for faster and more cost-effective construction compared to traditional housing. The Branham Lane facility was intended to be a key component of Mahan’s plan to create 1,000 new shelter beds citywide.
However, Mahan has offered limited comment on the specific allegations, stating there is no evidence to support claims of drug dealing and emphasizing the importance of not discrediting the entire system that assists individuals in transitioning off the streets. He added that any criminal behavior is unacceptable and should be reported to authorities.
The situation at Branham Lane also highlights broader concerns about accountability and oversight within San Jose’s homeless services network. Sources claim that concerns raised by staff and residents are often dismissed or ignored, and that management prioritizes maintaining a positive public image over addressing underlying issues. The city’s Housing Department did not respond to questions regarding plans to ensure accountability and safety at shelters, or whether it intends to implement a resident screening process in light of the recent arrest.
The unfolding situation at the Branham Lane shelter raises serious questions about the effectiveness and integrity of San Jose’s efforts to address homelessness, and underscores the need for greater transparency and accountability in the management of temporary housing facilities.
