California Awards Federal Funds to Help Counties Hard-Hit by Winter Storms Jumpstart Affordable Housing Construction

Sacramento, CA

The California Department of Housing and Community Development (HCD) today announced two federal awards intended to jumpstart construction of 91 affordable rental homes in two of the counties most severely impacted by the winter storms that ravaged California in late December 2022 through April 2023.

Nearly $52.6 million has been awarded to two projects in Atascadero and Ojai through the federally funded Disaster Recovery Housing Accelerator Program (DR-ACCEL). Much like the state-funded California Housing Accelerator program, DR-ACCEL provides gap financing to help begin construction on shovel-ready projects that are stalled despite having received previous HCD awards, in this case due to an inability to secure anticipated tax credits, and supports disaster recovery efforts.

"The Multifamily Housing Accelerator Program is ensuring that the State of California can coordinate resources to residents who need it the most, when they need it the most," said Tomiquia Moss, Secretary of the Business, Consumer Services and Housing Agency. "I'm looking forward to this continuing response with our federal partners. Thanks to this disaster relief funding, nearly 100 homes will be built for residents affected by the Winter Storms in San Luis Obispo and Ventura counties."

"These projects demonstrate how state and federal funding programs can work in concert to help devastated communities recover and rebuild in the wake of natural disasters," said HCD Director Gustavo Velasquez. "While delays can increase costs until a project is no longer feasible, we were able to keep these developments on track, bringing affordable new homes to two communities who so urgently need them."

Recognizing unmet recovery needs from the floods that led to disaster declaration DR-4683 in areas already suffering from a critical shortage of affordable housing, HCD allocated $52,576,258 in federal 2020 Community Development Block Grant Disaster Recovery (CDBG-DR) funding to the DR-ACCEL program. Nine projects in counties deemed Most Impacted and Distressed from this disaster by the U.S. Department of Housing and Urban Development that had received HCD funding prior to December 31, 2023, were eligible to apply. Two applications were received requesting a total of $67.7 million, an oversubscription of 128 percent. These funds will accelerate two projects containing 91 units in the counties of San Luis Obispo and Ventura, putting them on track to begin construction within 180 days.

People's Self-Help Housing Corporation was the highest-scoring applicant and received the full $34,049,563 requested to launch construction of the 42-unit Del Rio Ridge in San Luis Obispo County's City of Atascadero. Del Rio Ridge addresses a critical gap in affordable housing in Atascadero by offering stable, service-enriched homes for large families and veterans who are experiencing or at risk of homelessness. The project will thoughtfully transform a steep, underutilized hillside into a safe, walkable neighborhood that integrates seamlessly with the surrounding residential area. The project lies within the City's Del Rio Road Commercial Area Specific Plan, a growing corridor that includes a newly constructed grocery store and an upcoming RV park and motel, positioning Del Rio Ridge to contribute meaningfully to a broader neighborhood revitalization effort. The project previously received $1,758,900 million from HCD's Veterans Housing and Homelessness Prevention Program.

Cabrillo Economic Development Corporation (Cabrillo) was awarded $18,526,695-the balance of the DR-ACCEL solicitation-to construct the 49-unit Camino de Salud in the City of Ojai in Ventura County. Camino de Salud is crucial to the community because it directly addresses the urgent housing needs of individuals experiencing or at risk of homelessness and those who are considered high-cost health users. Uniquely located in the Ojai Valley-a region constrained by limited infrastructure and zoning capacity- Camino de Salud is situated in a high-resource area. The project integrates deeply affordable and permanent supportive housing with on-site services; provides access to nearby amenities; and promotes long-term health, stability, and dignity for its residents. Camino de Salud was previously awarded $15,080,607 through 2018 CDBG-DR; $3,546,190 from the National Housing Trust Fund; and $7,680,000 from the Housing for a Healthy California program. Cabrillo identified the additional resources needed to bring this project to fruition.

Visit the HCD website for more information on the CDBG DR-ACCEL program and the awards announced today.