SACRAMENTO, Calif. (KRON) — On Wednesday, the California Department of Housing and Community Development (HCD) announced the first set of awards for the expanded Homekey program.

The Homekey program is a state initiative to purchase and rehabilitate structures and then convert them into housing for people experiencing or at risk of experiencing homelessness.

The second round of the Homekey Program grants four awards of $105 million that will make way for 433 new homes for people experiencing homelessness.

“Budgets are a statement of values, and with the California Comeback Plan, we have made it crystal clear – we will not let up on our commitment to doing everything in our power to address homelessness,” said Governor Gavin Newsom.

“Homekey continues to change lives for the better in communities all across California by placing individuals on a path to long-term stable housing with services.” 

Since launching Homekey in June 2020, 6,000 units of housing were purchased in under six months — for a fraction of the cost of new construction.

In September, Governor Newsom expanded the program by allocating an additional $2.75 billion in an effort to keep people safe and off the streets — all in part of the governors $12 billion in homelessness investments contained in the 2021 California Comeback Plan.

“One of our primary objectives is always to act with urgency to address homelessness and housing
needs by connecting people with affordable housing faster,” said HCD Director Gustavo
Velasquez.

“Homekey is well known for flipping hotels and motels and turning them into housing units
for those experiencing homelessness,” added Velasquez.

“With this second round of Homekey we will be seeing other project types – repurposing things like multifamily buildings, creating modulars, and adding to mixed-income and mixed-population buildings. It’s this type of innovation that’s needed to end our housing crisis.”

List of awarded projects:

  • The City of Victorville — Awarded $28 million to create and operate 110 modular one-bedroom units with a minimum capacity of 170 beds, providing interim housing to people experiencing homelessness. The project is part of the Victorville Wellness Center, a campus featuring onsite supportive services and ample community space.
  • The Housing Authority of the County of Kern — Awarded $8.4 million to build 40 units of Permanent Supportive Housing. This is a new construction project being developed on vacant land in Bakersfield, CA.
  • The County of San Mateo — Awarded $55.3 million to construct a 240-unit Navigation Center on a 2.5 acre County owned site in Redwood City. The Center will provide transitional housing and intensive support services to those experiencing homelessness to help navigate from unsheltered life to stable housing.
  • The County of San Mateo — Awarded $13.5 million to acquire and rehabilitate an existing hotel. Of the 44 units, 7 will be ADA compliant. The project will provide service-rich interim housing options to those experiencing homelessness and in need of immediate housing.

Additional awards will be announced in the coming weeks.