Staff Reporter
What began as a hopeful, celebrated chapter in San Jose’s ongoing battle against homelessness has quickly turned into a troubling example of what happens when innovation and urgency collide with inadequate oversight. When the city unveiled its first-ever multi-story modular housing complex at 1 Branham Lane in February, officials touted it as a blueprint for the future: fast, cost-efficient construction offering dignity and independence to those previously unhoused.
But as weeks turned into months, the promise began to unravel.
Reports of foul odors, mold-like growth, collapsing bathroom fixtures, and inadequate ventilation have surfaced — not from a single isolated unit, but from multiple residents across the complex. One resident, April (who requested partial anonymity), has taken the matter further, filing a lawsuit against the city of San Jose, citing unsafe and unhealthy living conditions.
From Beacon of Hope to Breeding Ground of Complaints
Originally envisioned as a progressive solution to chronic homelessness, Branham Lane promised more than just shelter — it offered private bathrooms, kitchenettes, air conditioning, and the dignity of one’s own space. It was the first of its kind in the city: a bold experiment in rapid modular construction, supported by more than $100 million in public and private funds.
But within a few weeks of moving in, residents began noticing things weren’t quite right.
April, who now stands at the center of the legal firestorm, said she felt ill almost immediately. “It was like breathing in needles,” she told reporters. She noted a strong, earthy odor inside her unit — something she suspected might be mold. Purchasing a test kit from a hardware store, April found what appeared to be dark spores collecting inside a petri dish. Photographs reviewed by the press show black and green blotches consistent with mold colonies.
She’s not alone. Another tenant complained of mildew smells emanating from their bathroom. A third said they experienced dizziness and unexplained shaking — symptoms they had never faced prior to moving in.
Official Tests, Conflicting Results
LifeMoves, the nonprofit organization managing the Branham Lane site, responded by commissioning an environmental firm to assess April’s unit. The firm reported no harmful or elevated mold levels and concluded no further action was required. In a gesture of caution, the nonprofit provided April with a HEPA filter and offered to move her to another unit.
But April claimed the new apartment smelled like rotten eggs — and again felt ill. She returned to her original unit, choosing instead to leave her door open for ventilation and manually remove insulation from a floor vent to breathe more comfortably.
LifeMoves maintains that ongoing testing continues to show no serious contaminants and that residents with concerns can request relocation either within the building or through Santa Clara County’s broader housing network. However, multiple residents say these options are not always practical or effective — particularly when similar issues appear to persist throughout the property.
Unsafe Fixtures, Structural Concerns
The physical infrastructure of Branham Lane has also come under scrutiny. In one alarming case, a resident said her shower bench collapsed the first time she sat on it, resulting in a head and shoulder injury that still causes her pain.
According to LifeMoves, medical assistance was provided, and since then, stand-alone shower chairs have been distributed to mobility-impaired residents. However, the lawsuit documents several other concerning photos — cracked walls supporting benches, protruding screws, and unstable fixtures. The nonprofit has now initiated a full audit of the complex’s shower benches with its building partners.
Meanwhile, several residents have refused to drink the tap water, citing a pungent sulfur or sewage-like odor. LifeMoves attributes this to standing water in the heaters, noting that they’ve flushed affected systems and verified with the water provider that the supply is safe for consumption. Still, residents say the smell persists — and so does their reluctance.
Responsibility Disputed Among Partners
The city, builder (DevCon), and modular contractor (Volumetric Building Companies) all appear to be pointing in different directions when it comes to responsibility. DevCon says it has not been made aware of any habitability issues. Volumetric claims its units were delivered in good condition, complete with proper ventilation and waterproofing, and suggests that post-delivery renovations may have introduced issues.
It’s not the first time the Branham Lane development has been associated with moisture-related problems. In October 2023, the modular units sat unfinished in the open during rainstorms. By March 2024, the complex was covered in tarps, with mold remediation signage in plain view. City inspectors later flagged missing firewalls and faulty waterproofing — issues that go beyond cosmetic flaws and enter the realm of life safety.
DevCon says those problems were fixed before move-in.
Breathing Issues and Closed Windows
Residents also claim that their apartments lack proper airflow, compounding health concerns. None of the windows open, and several ventilation systems either don’t work or appear to be missing entirely.
A May 20 inspection by a city housing official found ventilation deficiencies in two out of three apartments reviewed. One had a nonfunctioning system that was fixed by a resident. April’s unit reportedly lacked any system at all. Despite recommendations for an independent contractor to evaluate further, April says no one has followed up.
DevCon says it did not design or install the HVAC systems, noting the responsibility lies with engineers contracted by the modular manufacturer. According to them, the units met all state standards and passed independent reviews.
Still, residents continue to struggle. One, a construction worker named David, said the difference in air quality inside versus outside is unmistakable. He now wakes up coughing every morning — something he hasn’t dealt with in years. His air conditioning unit, which provided some relief, has since stopped working.
Accountability Gap Widens
Despite the multitude of complaints, San Jose’s Planning, Building and Code Enforcement Department issued the required certificate of occupancy in early February — allowing residents to move in. When asked how the project passed final inspections, city staff declined to elaborate, referring reporters to the housing department, which acknowledged the certification but avoided comment on reported defects.
Mayor Matt Mahan’s office also declined to comment, directing inquiries to city staff. Mahan has faced criticism in the past for pushing policies that threaten jail time for individuals refusing housing — a stance now drawing fresh scrutiny in light of Branham Lane’s deteriorating conditions.
April, despite everything, says she’s grateful to have a roof over her head. But she worries about the trade-off.
“He’s forcing people to choose between jail or living in unsafe and uninhabitable buildings that are not regulated by code enforcement,” she said.
Branham Lane was meant to be a symbol of progress — a fast, efficient response to the housing crisis gripping San Jose and much of California. But the troubling accounts emerging from residents paint a starkly different picture, one where innovation has seemingly outpaced quality control, transparency, and accountability.
As the city continues to invest in modular housing as a solution to homelessness, the experience of those living at 1 Branham Lane raises urgent questions: Who is responsible when public-private partnerships fall short? What safeguards are in place to ensure that vulnerable residents aren’t exposed to new risks in the name of quick fixes?
Until these questions are addressed with clarity and action — not just paperwork and passing the buck — the promises of modular housing will remain under a shadow of doubt, leaving the people it’s meant to help caught in the middle.
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