By Vanguard Staff
SACRAMENTO — California officials announced a new round of state-funded housing awards tied to voter-approved Proposition 1, a mental health and housing bond measure approved in 2023, marking the creation of 267 new affordable permanent supportive housing units across five projects statewide, including units reserved for veterans and people with behavioral health challenges.
Gavin Newsom said the projects are part of the state’s Homekey+ program, which is funded through Proposition 1 and is intended to expand housing, treatment and services for people experiencing homelessness and those living with serious mental illness or substance use disorders.
“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+,” Newsom said in a statement. “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.”
State officials said the latest awards bring total Homekey+ allocations to $636.1 million for 37 projects statewide, creating 1,817 affordable homes. Of those units, 454 are reserved for veterans who are experiencing or at risk of homelessness and who have behavioral health challenges.
The Homekey+ program is modeled on the earlier Homekey initiative launched during the COVID-19 pandemic. Across three rounds of the original Homekey program, the California Department of Housing and Community Development awarded more than $3.6 billion to fund 261 projects, with 15,962 homes expected to house more than 175,000 people over the projects’ lifetimes, according to the state.
Officials said Proposition 1 is also designed to overhaul California’s behavioral health system through a $6.4 billion bond that will support housing, treatment and services for veterans and people experiencing homelessness. The state estimates that once fully awarded, Proposition 1 bond funding will create about 6,800 residential treatment beds and 26,700 outpatient treatment slots statewide.
Approximately $1.033 billion in Proposition 1 bond funds are currently available through Homekey+ for projects serving veterans. An additional $1.11 billion is available for projects serving all eligible populations, using a combination of Proposition 1 bond funds and Homeless Housing, Assistance, and Prevention program funding, according to the state.
“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 Tomiquia Moss, secretary of the California Business, Consumer Services and Housing Agency. “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.”
Lindsey Sin, secretary of the California Department of Veterans Affairs, said the program continues to deliver results for veterans and their families. “Homekey+ once again delivers great housing news for California veterans and their families,” Sin said. “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.”
Gustavo Velasquez, director of the California Department of Housing and Community Development, said pairing housing with services is central to the program’s approach. “Pairing permanently affordable housing with health services is critical for building a platform for recovery and stability,” Velasquez said. “Homekey+ continues to be a model for implementing clinically informed solutions to homelessness that save lives and stabilize communities.”
The five projects announced in the latest round total $95.8 million in Homekey+ funding and include 267 permanent supportive housing units, along with on-site manager units. In Merced, the city will receive nearly $28.3 million for Mercy Village, a new construction project with 66 homes, including 20 units for veterans and one manager unit. Nevada County will receive nearly $5.3 million to acquire and rehabilitate a hotel into 16 supportive homes and one manager unit, with 10 units reserved for veterans.
In Stockton, the Housing Authority of San Joaquin County will receive $10.6 million to convert a vacant medical building into 33 permanent supportive homes and one manager unit, including 14 units for veterans. Riverside will receive more than $20.1 million to convert a former motel into 114 studio apartments, most serving people experiencing homelessness with behavioral health challenges. The Sacramento Housing and Redevelopment Agency will receive $31.5 million to rehabilitate a hotel into 59 permanent supportive housing units and one manager unit.
State officials said Homekey+ funding is allocated by region based on the share of veterans and others experiencing homelessness, the number of extremely low-income households paying more than half their income on rent, and set-asides for rural areas and youth projects. Applications are reviewed and approved on a rolling basis.
California leaders argue the investments are part of a broader effort begun early in the Newsom administration to prioritize homelessness and behavioral health at the state level. According to state data, unsheltered homelessness in California increased by about 37,000 people between 2014 and 2019, prior to Newsom taking office. Since then, the state has slowed that growth compared to national trends, even as homelessness has increased elsewhere.
In 2024, homelessness increased nationally by more than 18%, while California’s overall increase was limited to about 3%, according to state figures. Officials also reported that California recorded the largest reduction in veteran homelessness in the nation and made progress in reducing youth homelessness.
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