HCD Announces Voter-Approved Prop 1 Homekey+ Funding will go to Three Communities to Tackle Homelessness

Sacramento, CA

Governor Gavin Newsom today announced three Homekey+ program awards totaling $75.5 million to help fund the development of 200 permanent supportive homes with services for veterans and other Californians who are experiencing or at risk of homelessness and living with behavioral health challenges, along with three manager units. The funding is a result of Governor Newsom's voter-approved 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.

With today's awards, Homekey+, funded through Proposition 1, has awarded $178.4 million to support 10 projects that will create 518 affordable homes with supportive services throughout California. Of these homes, 88 units are reserved for veterans experiencing or at risk of homelessness with behavioral health challenges. This reflects an unprecedented level of focus and resources being allocated by any governor to address housing stability and associated challenges.

In November 2024, the California Department of Housing and Community Development (HCD), in partnership with the California Department of Veterans Affairs (CalVet), released a $2.145 billion Notice of Funding Availability (NOFA) for permanent supportive housing through the new Homekey+ program, 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.

"California's Homekey+ continues to help people experiencing homelessness gain access to affordable and stable housing, while providing vital connections to critical supportive services that keep people housed", said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. "The projects awarded build on the Governor's commitment to create housing for all Californians, especially our most vulnerable."

"Through the Homekey+ program, we are able to connect our deserving veterans-and other Californians facing behavioral health challenges-to housing stability and the critical services needed to help them maintain that newfound stability," said HCD Director Gustavo Velasquez. "We are grateful for the opportunity California voters provided to build on the successes of Homekey statewide and help house Californians most in need."

"This announcement once again shows California's unwavering commitment to creating innovative housing solutions for veterans and their families," said CalVet Secretary Lindsey Sin. "CalVet stands ready to work alongside our community partners to ensure the success of their projects and the quality of services they provide to support our veterans. We thank the California Department of Housing & Community Development for their bold leadership in this work and look forward to continued collaboration in the future."

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 (HHAP) program funds. 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.

The following awards were announced today:

• The County of Santa Clara, in partnership with Abode Housing Development, will receive $40.5 million in Homekey+ funding for the Algarve Community Apartments Project. This new construction gap financing project will create 90 permanent supportive housing units for individuals experiencing homelessness with behavioral health challenges. Of these, 24 homes will serve veterans experiencing homelessness. The Housing Authority of Santa Clara County has committed 60 project-based vouchers, with the County providing service coordination and intensive case management for Homekey+ residents.
• The County of Ventura, Many Mansions, and DignityMoves will receive nearly $28 million in Homekey+ funds to bring the Homekey+ Lewis Road project to the City of Camarillo. This is a permanent housing, new construction, located within the same parcel as Homekey-funded Casa Pacifica and the Rancho Sierra Senior Apartments funded through HCD's No Place Like Home program, , creating an enhanced community for existing and future residents. The wellness campus design utilizes 53 acres and includes a planned mental health rehabilitation center, affordable senior housing, and easy access to transportation. This new project will provide 88 units to serve individuals experiencing or at risk of homelessness or chronic homelessness. To address a wide variety of needs, the project will include office space for supportive services, storage areas, and shared common indoor and outdoor areas.
• The City of Oakland, Danco Communities, and Operation Dignity will receive nearly $7.1 million in Homekey+ funds to develop The Maya, an adaptive reuse project converting an existing hotel into 23 studio apartments serving individuals experiencing homelessness. All units will consist of kitchenettes, cooktops, refrigerators, private bathrooms, and bed furnishings. Additionally, free internet service will be available in all units, and free laundry services are provided for all residents. The lead service provider, Operation Dignity, will connect residents to community resources for substance abuse services, peer support activities, physical and mental health services, and education and employment services. The project is centered among a multitude of amenities including bus transportation, a train station, farmer's markets, retail establishments, and medical services.

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

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. Governor Newsom is creating a structural and foundational model that will have positive impacts for generations to come:

✅ 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. In May, Governor Newsom released $3.3 billion of this funding to create over 5,000 residential treatment beds and more than 21,800 outpatient treatment slots for behavioral health services.

✅ 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 adequate notice and support.