Governor Announces First Awardees of Voter-Approved Program to Fund Permanent Supportive Affordable Housing

Sacramento, CA

Governor Gavin Newsom today announced the first seven awards from a voter-approved program to tackle the crisis of homelessness among veterans and other Californians who are living with behavioral health challenges by creating permanent affordable housing with wrap-around supportive services.

“Today we continue to deliver unprecedented support to helping communities create more housing and address homelessness,” said Governor Newsom. “These Homekey+ awards are the next step of a long-term investment powered by the voter-approved Proposition 1, which will transform our behavioral health services and housing opportunities.” 

In March 2024, California voters approved Proposition 1, which included a $6.38 billion Behavioral Health Infrastructure Bond Act to fund care facilities for people living with behavioral health challenges, and permanent supportive housing for veterans and other Californians in need of stable, affordable housing and the services needed to help them maintain housing stability. In November 2024, the California Department of Housing and Community Development (HCD), in collaboration with the California Department of Veterans Affairs (CalVet), released a $2.145 billion Notice of Funding Availability for permanent supportive housing through the new Homekey+ program, modeled after Governor Newsom’s highly successful Homekey program.

“Proposition 1 and Homekey+ are driving deep partnerships between the state and local governments, delivering tailored affordable housing and supportive services for veterans and Californians living with behavioral health challenges,” said Business, Consumer Services and Housing Secretary Tomiquia Moss. “I am delighted to announce the first round of critical investments through Homekey+, which will transform the lives of residents in communities across California and ensure that they have a place they can truly call home.”

The first seven awards through Homekey+ total nearly $102.9 million to create 315 new homes. This total includes 309 affordable, permanent supportive homes and six managers’ units in five California counties: Los Angeles, Nevada, Placer, Santa Barbara, and Stanislaus. Sixty-four of the supportive homes are reserved for veterans. Each of these seven affordable housing projects reflect a high degree of collaboration between state agencies, local governments, and county behavioral health departments to meet the urgency of the housing and homelessness crisis and support our nation’s veterans and other Californians.

“HCD is honored by the trust placed in the Department by the Governor and California voters to expand on the successes of Homekey at a grand scale and bring affordable, permanent supportive housing to veterans and others statewide living with behavioral health challenges,” said HCD Director Gustavo Velasquez. “In partnership with CalVet, local governments, county mental health departments, and experienced service providers, we will work tirelessly to see that Homekey+ becomes a key tool in making homelessness rare and non-recurring.”

“These investments show California’s national leadership in creating innovative housing solutions for veterans and their families,” said CalVet Secretary Lindsey Sin. “CalVet is committed to continue working with local governments and community partners across the state to ensure the success of their projects and the quality of services provided to the veterans who will live there. We are proud of our partnership with the California Department of Housing & Community Development and are excited for this new chapter in improving the quality of life for some of California’s most vulnerable veterans.”

Approximately $1.033 billion in Proposition 1 bond funds are available through Homekey+ to cities, counties, housing authorities, and Tribal Entities for projects serving veterans. Another $1.11 billion is available for projects serving all target populations, through a combination of Proposition 1 bond funds and Homeless Housing, Assistance, and Prevention program funds. The Homekey+ NOFA allocates funding by region based on proportionate share of veterans and others experiencing homelessness, and by share of extremely low-income households whose rent is more than half of their income. There are also allocations for rural projects and for projects serving youth at risk of or experiencing homelessness.

The following are the first seven Homekey+ awards: 

• The Housing Authority of the County of Santa Barbara, in partnership with Surf Development Company, will receive $43,884,920 in Homekey+ funding for two projects totaling 104 homes in Goleta: Heritage Ridge Special Needs Family and Heritage Ridge Senior Projects. These new construction projects will create 102 permanent supportive housing units and two managers’ units. Thirty Heritage homes will serve veterans experiencing homelessness. These projects have also received funding through HCD’s Housing for a Healthy California program and, in the case of Heritage Special Needs Family, through HCD’s National Housing Trust Fund program. Both projects had been stalled by multiple unsuccessful tax credit applications since 2023, which had driven up costs and threatened their completion. The City of Goleta provided a loan for land acquisition to keep the projects moving forward, and the County has committed rental subsidies. With the Homekey+ awards, the projects will save an estimated $5 million through a combination of accrued construction interest, reduced loan fees, and materials costs. Eliminating the need to pursue tax credit applications creates the potential to save an additional $300,000 per project. The Santa Barbara County Department of Behavioral Wellness has committed to providing comprehensive supportive services to help residents of both projects maintain housing stability. 
   
• The Housing Authority of the City of Santa Barbara will receive $5,898,178 for 3055 De La Vina, an adaptive reuse project converting a former motel into 33 homes. The project includes 32 permanent supportive homes for individuals experiencing or at risk of homelessness, one manager’s unit, and community space for residents. The development will be centrally located within walking distance to parks, grocery stores, a pharmacy, and picnic areas, which all support the integration of residents into a flourishing community.
   
• The County of Nevada and Advocates for Mentally Ill Housing, Inc., will receive up to $5,351,453 for the Nevada County Permanent Supportive Housing Expansion Project. This is a conditional award projected to help the County acquire four single-family homes to create 24 permanent supportive housing units for people experiencing homelessness with behavioral health challenges.
   
• The City of Los Angeles—in partnership with 828 Anaheim PSH 5 LP, Holos, Inc., The People Concern, and FlyawayHomes—will receive $14,935,650 for the 50-unit Safe Harbor I project. This  will include 49 permanent supportive housing units for people experiencing homelessness with behavioral health challenges, as well as one manager’s unit. Previously awarded $13.8 million through HCD’s Multifamily Housing Program, the developer has been actively seeking additional funding to bridge the gap caused by rising costs, delaying the project two years. Local government has been an active partner in ensuring this project moves forward, with the City awarding funding, the housing authority providing vouchers, and the county mental health department committing to provide specialty mental health services to residents.
   
• The County of Placer, in partnership with Advocates for Mentally Ill Housing, Inc., will receive $14,891,283 for the 55-unit Carriage Court Studios in Auburn, an acquisition and rehabilitation project to convert a former commercially zoned building into 54 homes for extremely low-income households including people who are chronically homeless, veterans, and people with disabilities, in addition to one manager’s unit. Ten homes will be reserved for veterans. Co-applicant AMI housing will provide furnishings for all units. Residents will enjoy a garden, a designated pet area, barbecues, a pool, and on-site laundry. There is also office space for service providers.
   
• The City of Modesto, in partnership with El Capitan Homekey LP and UPholdings California LLC, will receive $17,906,992 for 49-unit El Capitan project. The project has leveraged federal, state, local, and private funding including from HCD’s Community Development Block Grant and Homeless Housing, Assistance and Prevention programs. This acquisition and rehabilitation project will convert a former motel into 48 units of permanent supportive housing, as well as one manager’s unit. Twenty-four of those units will serve veterans experiencing homelessness. The remaining 24 units are for individuals, or households with an individual who is homeless or at risk of homelessness and experiencing a behavioral health challenge.

Homekey+ applications will continue to be reviewed and approved on a rolling basis. As of June 24, HCD had received 67 Homekey+ applications requesting $1.147 billion. 

HCD has also awarded the final two projects from Round 3 of the Homekey program, the predecessor and model for Homekey+. Following are the final two Homekey awards:

• The County of Santa Clara, in partnership with LifeMoves, will receive $25,740,000 in Homekey Round 3 funding for the Santa Clara Family Community project, new construction of 90 interim housing units to serve people experiencing homelessness.
   
• The County of San Bernardino, in partnership with the Family Assistance Program, will receive $5,826,222 in Homekey Round 3 funding for the Transitional Age Youth Village project, new construction of 22 interim housing units to serve young adults experiencing or at risk of homelessness such as those exiting foster care or the probation system without familial supports.  

Across three rounds of Homekey, HCD has awarded $3.78 billion to fund 261 projects with 15,962 homes expected to house more than 175,000 Californians over the projects’ lifetimes.