“California is continuing to invest in people and neighborhoods across the state, providing affordable housing and supportive services for Californians who are experiencing homelessness and living with behavioral health challenges.” – Business, Consumer Services and Housing Agency Secretary Tomiquia Moss
By Vanguard Staff
SACRAMENTO, CA – California is moving forward with one of the state’s largest housing investments for veterans in years, Governor Gavin Newsom announced this week, unveiling plans to fund the construction of hundreds of new permanent supportive homes across 12 counties through voter-approved Proposition 1.
The funding will support the development of 707 permanent supportive homes with services for veterans and other Californians who are experiencing or at risk of homelessness, along with 13 manager units. The new housing will serve individuals facing behavioral health challenges and will be spread across Alameda, Amador, Fresno, Los Angeles, Marin, Riverside, San Diego, San Francisco, San Joaquin, Solano, Sonoma, and Tulare Counties.
“We’re proud of our veterans — and California stands shoulder to shoulder with those who’ve served,” said Governor Gavin Newsom. “We see their courage, their sacrifice, and we meet that with care, opportunity, and community. When they come home, we don’t just thank them — we honor them and work to make sure they have the housing, healthcare, and jobs to thrive.”
The announcement marks another major milestone in the implementation of Proposition 1, the $6.4 billion Behavioral Health Bond approved by voters in 2024. Championed by Newsom, the initiative is designed to transform California’s mental health and homelessness systems by providing funding for housing, services, and treatment for veterans and others struggling with behavioral health challenges.
More than $2.1 billion of the bond funding is dedicated to local Homekey+ projects — an expansion of the governor’s earlier Homekey initiative that helped cities and counties quickly convert hotels, motels, and other properties into permanent or interim housing. Roughly half of the Homekey+ funds are set aside for veterans.
Finding affordable housing has long been a challenge for many veterans, particularly those who suffer from post-traumatic stress disorder, traumatic brain injuries, or other mental health conditions. Advocates say that without supportive services, maintaining housing stability can be difficult, leading many veterans into cycles of homelessness.
In November 2024, the California Department of Housing and Community Development (HCD), working with the California Department of Veterans Affairs (CalVet), released a $2.145 billion Notice of Funding Availability for permanent supportive housing through the Homekey+ program. The program aims to build upon the successes of the original Homekey model while adding long-term stability and behavioral health care components.
With the awards announced this week, Homekey+ has now allocated more than $540 million across 32 projects that will create a total of 1,517 affordable homes with supportive services statewide. Of those, 395 are reserved for veterans experiencing or at risk of homelessness.
“California is continuing to invest in people and neighborhoods across the state, providing affordable housing and supportive services for Californians who are experiencing homelessness and living with behavioral health challenges,” said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. “Through Homekey+, California will continue to lead — as it has on so many fronts — in demonstrating what is possible through interagency partnership, state and local collaboration, and a shared commitment to basic human dignity for our veterans and others facing behavioral health challenges.”
“CalVet celebrates another round of new Homekey+ awards, as well as expanded support for previously announced projects,” said CalVet Secretary Lindsey Sin. “California once again demonstrates national leadership in providing housing solutions for veterans and their families. We recognize the dedication of the California Department of Housing & Community Development and all our partners as we move forward with much-needed housing for those who have served our nation.”
“Each of these awards represents a pathway to stability and opportunity for so many Californians who have struggled to maintain housing amid rising costs and personal challenges, including our nation’s veterans,” said HCD Director Gustavo Velasquez. “Modeled on the Governor’s highly successful Homekey program — and made possible by the forward-thinking voters of this state — Homekey+ is laying the foundation for generational impacts and continued reductions in unsheltered homelessness.”
The $251.8 million in awards announced this week will support projects across 12 counties, including 231 units specifically set aside for veterans. Officials said the housing will include wraparound services such as case management, mental health counseling, substance use treatment, and job training.
Homekey+ builds upon the foundation established by the earlier Homekey initiative, which provided local governments with funding to convert existing buildings into housing for people experiencing homelessness. Across three rounds of the original Homekey program, HCD awarded more than $3.6 billion to fund 261 projects expected to create nearly 16,000 homes, ultimately housing more than 175,000 Californians over the lifetime of the projects.
The state has also advanced its Veterans Housing and Homelessness Prevention (VHHP) program, which supports new affordable housing specifically for veterans and their families. To date, CalVet has awarded more than $580 million in permanent loan financing to 99 multifamily housing projects through eight competitive funding rounds. As of October 2025, 75 of those projects have been completed, creating 5,190 units now occupied or in the process of leasing. Once all projects are built, the state will have added 6,561 units of permanent, affordable, supportive housing for veterans.
Through legislative action, budget investments, and strategic partnerships, California has increased its commitment to supporting military members and veterans. CalVet continues to provide veterans and their families with access to both state and federal benefits, while the Homekey+ and VHHP programs work to ensure they have stable housing and access to critical services.
Since taking office in 2019, Newsom has implemented a range of housing and mental health reforms aimed at increasing accountability, accelerating development, and coordinating statewide efforts to reduce homelessness. The administration has reported progress in reversing decades of inaction, with many California communities now seeing declines in homelessness.
Last year, California recorded the nation’s largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness. The state also held the growth of unsheltered homelessness to less than half a percent, compared with a national increase of nearly 7 percent.
While homelessness rose nationally by more than 18 percent in 2024, California limited its overall increase to just 3 percent — a slower rate than in 40 other states. Officials said this reflects the early impact of the state’s investments through programs like Homekey+, which pair permanent housing with behavioral health care, substance use treatment, and long-term stability planning.
“California is continuing to lead with compassion and action,” Newsom said. “We are showing what it means to truly stand with our veterans — not just in words, but in building communities where they can heal, rebuild, and thrive.”
