Final round of Homekey spending tops $36 million

California Construction News staff writer

The final Homekey awards for 2022 will provide $36 million to affordable housing projects across the state.

“The success of Homekey proves what is possible when you are willing to challenge the status quo and try a new, outside of the box approach,” said Governor Gavin Newsom. “In just a little over two years since its inception, Homekey has given thousands of Californians a place to call home.”

Homekey was launched during the early days of COVID-19 and has become one of the state’s most successful innovations to rapidly house people experiencing or at risk of homelessness, by helping local governments and tribal entities purchase or rehabilitate properties.

Projects include:

• The Housing Authority of the City of San Luis Obispo will receive $11.6 million to acquire and convert a 68-unit hotel into 40 permanent apartment homes and two manager units.
• The County of San Benito will receive $2.4 million to purchase 11 factory-built homes. These homes will include two two-bedroom and nine four-bedroom units serving chronically homeless households with supportive services.
• The County of Santa Cruz will receive $2.2 million to serve individuals experiencing homelessness within a former commercial structure. The seven-unit adaptive reuse project (most recently used as a medical office building) will have two studios and five one-bedroom units and is in the City of Santa Cruz close to services.

“From reusing a medical office building to providing factory-built homes, these final Round 2 Homekey awards show the spirit of innovation,” said Business, Consumer Services and Housing Agency Secretary Lourdes Castro Ramírez. “More than 200 Homekey projects have been funded since 2020, which will provide more than 12,500 interim and permanent affordable homes and improve the lives of individuals, families and neighborhoods across California.”

The Department of Housing and Community Development (HCD) will release a third round of Homekey funds in early 2023 after receiving stakeholder feedback for potential revisions.