Governor Newsom Bolsters Homekey Funding by $150 Million as State Reaches Milestone of 10,000 New Homeless Housing Units  

Video: Governor Newsom highlights Homekey’s progress, previews additional $150 million investment

Since Homekey’s inception in 2020, the program has awarded funding for 10,000 homeless housing units

$150 million in new funding brings total Homekey funding to $3.75 billion

Governor Newsom also announces $166 million in Homekey awards for seven new projects, totaling $1.1 billion in awards this year

SACRAMENTO – Governor Gavin Newsom announced today the latest in a series of awards to local governments for Homekey, and with these projects, the program has surpassed 10,000 units funded since it began less than two years ago. Governor Newsom also previewed his proposal to add $150 million in funding for Homekey, bringing the total Homekey funding to $3.75 billion. Homekey is California’s nation-leading program confronting the homelessness crisis by rapidly creating housing by purchasing hotels, motels, and other buildings.

“We’re doubling down on our nation-leading efforts to tackle the homelessness crisis,” said Governor Newsom. “Homekey has been life-changing for thousands of individuals – and $150 million in additional funding will shelter thousands more, providing them with the critical resources and safe living conditions they deserve. This comes as Homekey hits a major milestone, surpassing 10,000 approved housing units, which are rapidly being converted into safe housing through our local partnerships.”

Pending legislative approval, the Governor’s additional funding for Homekey will provide a total of $1.5 billion in grants next year to local governments for thousands more Homekey units across the state.

The Governor’s nation-leading Roomkey and Homekey programs have already provided temporary shelter for 50,000 Californians and helped another 8,000 secure more permanent housing through the purchase of motels, hotels, and other buildings.

Governor Newsom also announced $166 million in awards for seven new Homekey projects throughout the state. When fully operational, today’s approved projects will provide 523 housing units for people experiencing, or at risk of experiencing, homelessness. Since the announcement of Governor Newsom’s $2.75 billion extension of Homekey last year, the state has approved 68 projects that will create more than 4,000 housing units for unhoused Californians, for a total allocation of $1.1 billion.

“In less than 2 years, we have supported the creation of 10,000 units to provide housing and supports for our unsheltered neighbors,” said California Business, Consumer Services and Housing Agency Secretary Lourdes Castro Ramírez. “California continues demonstrating that Homekey is a housing solution that works – bringing communities together to increase housing stability, improve health outcomes and lower public costs driven by crisis services. We look forward to an additional $150 million as proposed by the Governor to support even more units for people searching for hope, healing and a place to call home.”

“Today’s new investment showcases the momentum for Homekey,” said Department of Housing and Community Development Director Gustavo Velasquez. “We’re working with our partners with greater cohesion and speed so we can get people off the street and into supportive housing. The Governor’s $150 million in additional Homekey funding will help us provide shelter and services to thousands more Californians.”

Today’s awards include the following projects:

  • The County of Los Angeles will receive $37.3 million to acquire a turnkey converted motel, providing 101 units for permanent supportive housing. Amenities include an on-site mobile clinic/health facility with pharmacy, access to transit within a half-mile, and access to a library and multiple grocery stores within a mile. Supportive services include case management services with individualized services planning & connections to mental health providers, substance use programs, financial training, employment training, health services, and housing retention programs.

  • The County of Los Angeles will receive $33.8 million for the 818 Hotel project. The 818 Hotel is the conversion of a motel into 100 units of interim housing for families experiencing chronic homelessness or homelessness, located in the Woodland Hills neighborhood. Each unit will be furnished with mezzanine beds, a desk area, storage, a mini-fridge and microwave. Three meals will be provided each day prepared by Hope of the Valley Rescue Mission’s culinary team at their central commissary. The site is within a half mile of public transit, a grocery store, pharmacy, medical facility, a high school, and within a mile of a community college. Hope of the Valley Rescue Mission will provide supportive services including permanent housing navigation, case management, crisis intervention, and conflict resolution.

  • The County of Los Angeles will receive $19.5 million to acquire and rehabilitate a 53-unit hotel for permanent supportive housing, serving entirely chronically homeless households. Off-site amenities include access to transit, a medical clinic, pharmacy, and grocery store all within a half-mile. Supportive services include case management services with individualized services planning & connections to mental health providers, substance use programs, financial training, employment training, health services, and housing retention programs.

  • The City of San Jose will receive about $25.2 million to convert a 90-unit hotel to interim and ultimately permanent housing for homeless individuals and couples. The site is located within a half mile of transit, full-scale grocery store, pharmacy, and a health facility.

  • The Housing Authority of the County of San Joaquin will receive $24.9 million to acquire and convert an existing motel into 69 units of permanent supportive housing. The development includes a community space, central laundry, elevators, and multiple offices for the supportive service providers. The site will have a private park for the residents. Off-site amenities located within a half mile of the project include a transit stop, grocery, pharmacy, a preschool and two trade schools.

  • The City of Fresno will receive $13.4 million to acquire and convert an existing motel into 62 units of interim housing for those experiencing homelessness. The project plans to convert to permanent supportive housing at a later time. Off-site amenities include a transit center and full-scale grocery store located within a half mile of the project. Supportive services include, but are not limited to, comprehensive case management, service referral/linkages, employment readiness, educational support, and behavioral health services.

  • The City of Vallejo will receive $12.1 million for a 48-unit new construction permanent supportive housing project. Shared amenities will include a community room, courtyard, and access from both inside and out to a 1,600 Sq. Ft. rooftop deck. On-site supportive services will be client-centered, strengths-based and trauma-informed to help participants with goal setting, life skills, financial literacy, budgeting, needs assessments, and linkages to benefits and community resources.

In addition to the projects announced today, Homekey proposals that have already been conditionally approved, but are not yet funded, will remain in HCD’s queue for future grant consideration, upon appropriation by the Legislature of additional funding.

For more information, please visit the Homekey webpage. The Department of Housing and Community Development has also created the Homekey Awards Dashboard where Californians can track Homekey project awards by dollar totals, project type, progress and region. The dashboard is updated in real time as additional projects are approved.

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