Prop 1 brings new projects creating hundreds of housing units for Californians, including veterans

Homekey+ program has created 1,800+ supportive homes for Californians most in need

What you need to know: Through Governor Newsom's voter-approved Proposition 1, California is announcing five new projects that will create hundreds of new supportive homes up and down the state, including in Los Angeles County.

SACRAMENTO - Governor Gavin Newsom's ongoing strategy to reverse the mental health and homelessness crisis continues to yield strong results. Today, the Governor is announcing five new housing communities to create 267 affordable permanent supportive housing units as part of the state's Homekey+ program. The program is funded by the Governor's Proposition 1, which was approved by voters in 2023 - and is a key tool in getting communities and people the help and support they need.

As we celebrate the holiday season, I want to recognize the gift voters gave our most vulnerable communities through Proposition 1 and programs like Homekey+. This funding strengthens California's ability to address homelessness by expanding treatment, housing, and accountability for those struggling with mental health challenges and addiction. Working together, we're rebuilding a system of support - and we're already seeing real results.

Governor Gavin Newsom

With today's awards, Homekey+ has so far allocated $636.1 million to support 37 housing projects that will create 1,817 affordable homes throughout California for those most in need. Of these homes, 454 are reserved for veterans experiencing or at risk of homelessness with behavioral health challenges. This adds to the tens of thousands of other affordable housing units created through this administration.

Helping those who need it most

In 2019, during his first State of the State, Governor Newsom announced the state would begin focusing on the homelessness crisis - becoming the first Governor in history to make this issue a statewide priority. Through new programs and funding, California is outperforming the nation in turning around the decades-in-the-making homelessness crisis.

Governor Newsom's structural and foundational model will have positive impacts for generations to come by:

• Addressing mental health and its impact on homelessness

• Streamlining and prioritizing the building of new housing

• Funding new shelters, housing, and supports

• Holding local governments accountable, including to address the needs of Californians living in encampments

• Creating new pathways for those who need it most by updating conservatorship laws for the first time in 50 years

• Connecting the most at-risk to necessary services through a new CARE court system

Governor Newsom has set a strong expectation for all local governments to address encampments in their communities and help connect people with support.

Reforming California's mental health system

More than 1.2 million adults in California live with a serious mental illness, and 1 in 10 residents meet the criteria for a substance use disorder. Additionally, shortages of behavioral health treatment sites contribute to rising rates of homelessness and incarceration among people with mental health disorders.

Prop 1, is transforming California's mental health systems with a $6.4 billion Behavioral Health Bond for housing, services, and treatment for veterans and people experiencing homelessness. When fully awarded, funding from Proposition 1 bonds is estimated to create 6,800 residential treatment beds and 26,700 outpatient treatment slots for behavioral health. This includes projects through Homekey+.

Approximately $1.033 billion in Proposition 1 bond funds are currently 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 (HHAP) program funds.

"California's Homekey+ program is investing in people and neighborhoods across the state, providing affordable housing and supportive services for Californians, including veterans, who are experiencing homelessness and living with behavioral health challenges," said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. "The supportive housing projects being awarded today are a testament to the Governor's ongoing partnership with local jurisdictions and unwavering commitment to create housing for all Californians, including our Veterans and our most vulnerable."

"Homekey+ once again delivers great housing news for California veterans and their families," said CalVet Secretary Lindsey Sin. "We salute the California Department of Housing and Community Development and their partners across the state for their leadership in finding innovative ways to help meet our veterans' housing needs."

"Pairing permanently affordable housing with health services is critical for building a platform for recovery and stability," said HCD Director Gustavo Velazquez. "Homekey+ continues to be a model for implementing clinically informed solutions to homelessness that save lives and stabilize communities."

Housing vulnerable Californians and veterans

Modeled after Governor Newsom's highly successful Homekey program, Homekey+ was created with funding from voter-approved Proposition 1, which also provides funding to build residential care settings and expand access to behavioral health treatment. Across three rounds of the original Homekey program, HCD awarded more than $3.6 billion to fund 261 projects with 15,962 homes expected to house more than 175,000 Californians over the projects' lifetimes.

Continuing this work, the Homekey+ awards announced today total $95.8 million to create 267 permanent supportive homes, with 59 units for veterans, in addition to six manager units:

• The City of Merced will receive nearly $28.3 million in Homekey+ funding for Mercy Village, a new construction project with a total of 66 homes, 20 of which will serve veterans at risk of homelessness with a behavioral health challenge, along with one manager unit.

• The County of Nevada will receive nearly $5.3 million for the Nevada County Stagecoach Veterans Project, a community located near public transit. The award from the Homekey+ rural allocation will help the county acquire and rehabilitate a two-story hotel into 16 permanent supportive homes and one manager unit. Ten homes are reserved for veterans experiencing homelessness with a behavioral health challenge.

• The Housing Authority of the County of San Joaquin will receive $10.6 million for a 34-unit acquisition and rehabilitation project in the City of Stockton. Edison House is an adaptive reuse project that will convert a nonresidential vacant medical building into 33 permanent supportive homes and one manager unit. Fourteen of these homes will be reserved for veterans.

• The City of Riverside will receive more than $20.1 million for University Terrace Homes, a project to acquire and rehabilitate a Quality Inn Motel into a permanent supportive housing community with 114 studio apartments. Ninety-four homes will serve the Homekey+ target population of people experiencing homelessness with a behavioral health challenge, while two will house on-site managers.

• The Housing Authority of the County of Sacramento (SHRA) will receive $31.5 million in Homekey+ funding to acquire and rehabilitate a two-story hotel into 59 permanent supportive housing units and one manager unit.

The Homekey+ NOFA allocates funding by region based on a 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 experiencing or at risk of homelessness. Homekey+ applications will continue to be reviewed and approved on a rolling basis.

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 the entire country:

✅ 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 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 living in 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 that helps ensure encampments are addressed humanely and people are given 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.