SAN JOSE (CBS SF) – Tuesday’s election results showed a majority of San Jose’s voters supporting Measure E, a property sale transaction tax that will fund homelessness services and affordable housing development.

With all precincts reporting, 53.75 percent of voters approved of the tax, which will apply to the sale of properties valued at more than $2 million. The tax is expected to net the city between $30 million and $70 million each year, serving as a dedicated funding source for affordable housing development.

“I am proud to serve a compassionate community, committed to ensuring that we don’t leave our neighbors behind,” San Jose Mayor Sam Liccardo said in a news release.

San Jose’s 2019 Point-In-Time count of homeless residents found the city has an estimated unsheltered population of more than 6,000. That number has ballooned since the state eliminated redevelopment funding, an annual $50 million funding source that the city had previously used for affordable housing development.

One-tenth of Measure E funding will be used for homelessness prevention and rental assistance and another 10 percent will be used for rent-restricted forgivable loans and assistance with down payments and first-time homeownership opportunities.

The other 80 percent of the measure’s funding will support the development of affordable housing for low-income and extremely low-income residents.

“Ending the homelessness and affordable housing crises will take all of us coming together and rowing in the same direction,” Liccardo said.  “Voters have voiced loud and clear they are joining us in this ambitious goal.”

The tax is expected to go into effect July 1.

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