In celebration of HCD’s 60th anniversary and for the next several weeks, we salute the employees who work hard every day to drive HCD’s mission and serve all Californians. Meet HCD team member Nichole Zaragoza-Smith whose love of puzzles helps her with her work at HCD.

Oscar, a father and Marine Corps Veteran, lives with his family at HCD-funded Crescent Grove Apartments in Castro Valley. He says that having stability and seeing the joy in his son’s face because of their home is the best feeling in the world. Crescent Grove was funded by HCD’s National Housing Trust Fund and No Place Like Home programs.

In celebration of HCD’s 60th anniversary and for the next several weeks, we salute the employees who work hard every day to drive HCD’s mission and serve all Californians. Meet HCD team member Patty Fado who is committed to helping people who are experiencing homelessness find affordable housing.

Governor Gavin Newsom today announced more than $52 million in grant funding to revitalize communities and address homelessness – benefiting 53 counties statewide through 90 new projects, through federal Community Development Block Grants and 2024 Emergency Solutions Grants.

“We’re delivering for our communities — full stop. Whether it’s housing, infrastructure, or homelessness services, we’re stepping up and standing shoulder to shoulder with local leaders to make sure they have what they need. These grants are about strengthening neighborhoods and ensuring communities across California can thrive, while preserving the pride people have in the places they call home,” said Governor Gavin Newsom.

The funding through the 2024 Community Development Block Grant (CDBG) awards will fund 38 projects in 20 counties and provide more than 160,000 Californians with improved sewer and street infrastructure, public facilities, and recreational opportunities.

Governor Newsom announced that an additional $14.3 million in federal funds went to 52 projects across California serving 25 counties through 2024 Emergency Solutions Grants (ESG), giving local governments and service providers yet another tool to support regional solutions to homelessness. Both federal programs are administered in California by the California Department of Housing and Community Development (HCD).

“For more than fifty years, Community Development Block Grants have been a key tool for creating housing and economic opportunity in American communities,” said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. “From food banks to fire protection equipment, HCD is making these awards to help meet the critical needs of Californians and expand access to opportunity.”  

CDBG awards included 18 grants totaling $4.6 million for public service activities such as advocacy for children in the court systems, operation of shelters for survivors of domestic violence, housing and shelter navigation for people experiencing homelessness, support for veterans experiencing behavioral health challenges, and nutrition and food access for seniors, as well as support for food banks, transportation, and utility assistance for low- to moderate-income Californians.  

“The CDBG grants awarded this year will foster improved quality of life for low-income Californians in rural communities in every corner of the state,” said HCD Director Gustavo Velasquez. “From the North Coast, to the colonias, our stewardship of federal funding will transform infrastructure and uplift some of our most vulnerable residents, building a stronger, more equitable California future.”  

Examples from the CDBG awards include:

• An economic development grant for a business assistance loan program in Crescent City ($1.5 million)
• A homebuyer-assistance grant for a program in the City of Ukiah ($1.5 million)
• Six public facility improvement projects including parks and community centers ($18 million) in Capitola, Corning, Eureka, Firebaugh, and Oroville, as well as Imperial County.
• Three infrastructure projects including sewer and street improvements ($9.9 million) in Dinuba, King, and Marysville.
• Nine planning and technical assistance grants ($2.5 million)in Clearlake, Dinuba, Oroville, Shasta Lake, Weed, and Willows, as well as Imperial and Solano counties.

Imperial County submitted two applications—both fully funded—for facility improvement and planning projects in support of its colonias, described by the U.S. Department of Housing and Urban Development as “rural communities within the U.S.-Mexico border region that lack adequate water, sewer, or decent housing.” One grant will fund the installation of generators and improvement of HVAC systems at several community buildings so they may operate during extreme weather conditions and power outages. The second will update the county’s Colonias Master Plan to identify needed infrastructure and public facilities improvements within the county’s nine colonias communities.

HCD also made 52 ESG awards totaling $14.3 million to California counties and service providers to fund local solutions to homelessness. With ESG funding, recipients can:  

• Engage individuals and families experiencing homelessness;
• Improve emergency shelters for individuals and families experiencing homelessness by supporting operations and essential services for shelter residents;
• Rapidly rehouse individuals and families experiencing homelessness; and
• Prevent families and individuals from becoming homeless.

Visit HCD online for more about the CDBG and ESG awards announced today.  

An approach that works 

From the very first moments of the Newsom administration, the national crisis of housing and homelessness – which were decades in the making – has been addressed with ingenuity, seriousness, and expertise. No other state has devoted as much time and attention to these twin problems – and California is a leader in producing positive results. Governor Newsom is creating a structural and foundational model for America:  

✅ Addressing mental health and its impact on homelessness — Ending a long-standing 7,000 behavioral health bed shortfall in California by rapidly expanding community treatment centers and permanent supportive housing units. In 2024, voters approved Governor Newsom’s Proposition 1 which is transforming California’s mental health systems with a $6.4 billion Behavioral Health Bond for treatment settings and housing with services for veterans and people experiencing homelessness, and reforming the Behavioral Health Services Act to focus on people with the most serious illnesses, provide care to people with substance disorders, and support their housing needs.

✅ Creating new pathways for those who need the most help — Updating conservatorship laws for the first time in 50 years to include people who are unable to provide for their personal safety or necessary medical care, in addition to food, clothing, or shelter, due to either severe substance use disorder or serious mental health illness. Creating a new CARE court system that creates court-ordered plans for up to 24 months for people struggling with untreated mental illness, and often substance use challenges.

✅ Streamlining and prioritizing building of new housing — Governor Newsom made creating more housing a top state priority for the first time in history. He has signed into law groundbreaking reforms to break down systemic barriers that have stood in the way of building the housing Californians need, including broad CEQA reforms.

✅ Creating shelter and support — Providing funding and programs for local governments, coupled with strong accountability measures to ensure that each local government is doing its share to build housing, and create shelter and support, so that people rescued from encampments have a safe place to go.

✅ Removing dangerous encampments — Governor Newsom has set a strong expectation for all local governments to address encampments in their communities and help connect people with support. In 2024, Governor Newsom filed an amicus brief with the Supreme Court defending communities' authority to clear encampments. After the Supreme Court affirmed local authority, Governor Newsom issued an executive order directing state entities and urging local governments to clear encampments and connect people with support, using a state-tested model to address encampments humanely and provide people with adequate notice and support.

Reversing a decades-in-the-making crisis 

The Newsom administration is making significant progress in reversing decades of inaction on homelessness. Between 2014 and 2019—before Governor Newsom took office—unsheltered homelessness in California rose by approximately 37,000 people. Since then, under this Administration, California has significantly slowed that growth, even as many other states have seen worsening trends. 

In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to just 3% — a lower rate than in 40 other states. The state also held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%. States like Florida, Texas, New York, and Illinois saw larger increases both in percentage and absolute numbers. California also achieved the nation’s largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness.

Governor Gavin Newsom today announced more than $865 million in new investments — funded entirely by big polluters — to build affordable housing, expand transit, and protect communities from climate change. The awards include funding for 39 new affordable housing in 21 communities across the state, thousands of new homes, and major sustainable transportation upgrades, with $185.6 million going to Los Angeles County as it rebuilds infrastructure after this year’s devastating wildfires.

"California’s cap-and-invest program is doing exactly what it was designed to do: cut pollution and reinvest back into our communities. We’re seeing the results — thousands of families getting access to new homes and neighborhoods statewide, benefiting from payments made by polluters. We’re seeing the dividends through real results. We’re not stopping, because real climate leadership means pairing ambition with equity and urgency to help those who need it the most," said Governor Gavin Newsom.

Making big polluters pay for sustainable growth 

The California Climate Investment funding is part of the state’s Cap-and-Invest program, which requires polluters to buy allowances for the greenhouse gases they emit. The funding puts billions of dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — especially in disadvantaged communities. The funding directly supports the Governor’s work to build a California for All, meeting the housing needs throughout the state while also protecting California’s climate. 

By investing in the communities hit hardest by climate impacts — from wildfire recovery in Southern California to agricultural preservation in the Central Valley — California is using California Climate Investment funds to protect health, stability, and opportunity across the state.

More than $5 billion in sustainable investment

The California Strategic Growth Council (SGC) today surpassed a historic $5 billion investment milestone after awarding nearly $1 billion — the council’s largest award announcement — to affordable housing, community resilience, and agricultural conservation projects. These investments:

• Fund affordable housing and transportation projects close to jobs, schools, and other daily destinations.
• Build climate resilience through protecting our productive farmlands and encouraging compact transit-oriented communities.
• Support community-led climate solutions that achieve major environmental, health, and economic benefits in California’s most disadvantaged communities.

“This milestone reflects our commitment to keeping communities safe and healthy for the long haul,” said SGC Executive Director Erin Curtis. “These investments will help families breathe cleaner air, stay protected during extreme heat, find stable places to live and work, and preserve the lands that feed us. Crossing the $5 billion mark is about people-centered resilience and showing real partnership with the neighborhoods hit first and worse by climate impacts. We are so proud to be a part of that!”

The funding approved today by the Strategic Growth Council, included more than $866 million in grant funding for 39 projects within three programs: 

• Affordable Housing and Sustainable Communities Program – $835,318,208 for 21 affordable housing and green transportation projects in 17 jurisdictions through Round 9 grants
• Transformative Climate Communities Program — $29,484,224 from the anticipated fiscal year 2026-2027 Proposition 4 (Climate Bond) to fully fund four Round 5 grants
• Sustainable Agricultural Lands Conservation Program —- $2,051,490 for 14 capacity-building projects in 25 counties through Round 10 grants

“These community-driven solutions prove that California leads on climate and leaves no one behind,” said California Secretary for Environmental Protection Yana Garcia, who is a member of the council. “This billion-dollar investment delivers cleaner air, healthier people, and good jobs across California—furthering our deep commitment to building healthy and sustainable communities for everyone.”

Thousands of new homes and needed infrastructure

This round of Affordable Housing and Sustainable Communities will build healthier communities and protect the environment by supporting the creation of 2,393 new rent-restricted homes, with almost two-thirds of those units dedicated to extremely or very low-Income households. Not only will these projects build much-needed affordable housing, but they create needed sustainable infrastructure:

• Over 30 new zero-emission public transit vehicles
• Approximately 150 new bus shelters
• 45 miles of bikeways
• 20 miles of safe, accessible walkways.

The impact of these projects will be equivalent to 209,410 gas-powered car trips removed from the road annually. Projects are located throughout the state in the Central Coast, Coastal Southern California, Inland Southern California, the North State and Sierras, the Sacramento area, the San Diego area, the San Francisco Bay Area, and the San Joaquin Valley. 

“California continues to build affordable homes that strengthen our climate resilience,” said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. “With more than $4.8 billion invested to date, we are creating healthier, more connected neighborhoods where all Californians can thrive. Our state and our Governor are all in when it comes to supporting safe and livable communities.”

Protecting agricultural lands 

AHSC’s subprogram, Sustainable Agricultural Lands Conservation (SALC), works to balance building with conservation. The two programs work together to ensure that California is building affordable new homes quickly, in the right places, while protecting open spaces and working agricultural lands at risk of development. The SALC Capacity Grants support early-stage planning, partnerships, and technical efforts that protect farmland, reduce sprawl and keep climate-beneficial agriculture in production. 

Through the program, 60 acquisition projects have been developed for SALC acquisition applications and 41,837 acres protected. To date, SGC has awarded $613 million in SALC grants to 245 easement projects, 15 fee acquisition projects, 42 planning projects and 39 capacity projects. 

“California’s farms and ranches help to feed America and are the lifeblood of rural communities across our state,” said California Natural Resources Agency Secretary Wade Crowfoot. “State funding through this program protects these working lands from urban sprawl and helps to steer new development into existing communities where jobs and infrastructure already exist. Conserving these agricultural lands also protects food production, limits traffic and pollution in our rural areas, and protects open space across our state.”

New clean transportation projects 

The funding today also adds to existing TCC Implementation Grants, bringing the total funding to $453.5 million. This program empowers communities most impacted by legacy pollution to design and implement projects to advance clean transportation, affordable housing, renewable energy, energy efficiency, urban greening and more. 

The three programs build on Gov. Gavin Newsom’s commitment to put communities first and build adaptation and resilience, expanding access to affordable housing, conserving working lands and reducing carbon emissions through community-led solutions. 

For more information on Strategic Growth Council, click here.

Strategies that work 

Governor Newsom is the first Governor to make addressing the housing and homelessness crisis – a decades-in-the-making issue – a top priority. Since taking office in 2019, Governor Newsom has created unprecedented policy and structural changes in state government to help California better address its housing and homelessness crises, including additional and unprecedented support for local governments, stronger accountability and enforcement, transformational changes to mental health services and state government, and groundbreaking reforms to create more housing, faster than ever before.