California Construction News staff writer
New funding and tools are expected to help local communities develop supportive housing projects more quickly and efficiently.
The initiative, backed by more than $2 billion from Proposition 1, aims to help cities, counties, and tribes across California rapidly acquire and rehabilitate existing buildings or construct new supportive housing to serve veterans, individuals struggling with mental health and substance use disorders, and those experiencing homelessness.
A new set of tools are designed to streamline the permitting and approval processes for housing developments. By simplifying bureaucratic hurdles and removing common roadblocks, the state hopes to accelerate the creation of permanent supportive housing (PSH) units.
“These new tools and funding will allow us to act quickly to get more people off the streets and into safe, stable housing,” Gov. Gavin Newsom said in a statement. “Our commitment to addressing homelessness is clear, and now it’s time for local leaders to step up and turn this potential into real solutions. We must act swiftly to provide housing and wraparound services to those who need them most.”
Funding is available through the Homekey+ initiative, which builds on the success of the Homekey program. Homekey+ provides financial support for both the acquisition and rehabilitation of existing properties, as well as the construction of new supportive housing units. Projects that incorporate cost-containment strategies are eligible for the funding, and developers now have 24 months to complete construction.
Local governments can begin applying for Homekey+ funding in January 2025. Additionally, tribal entities will have access to a dedicated $121 million allocation under the Tribal Homekey+ NOFA, also announced today.
“California is making an unprecedented investment in homelessness prevention and behavioral health,” said Tomiquia Moss, secretary of the Business, Consumer Services and Housing Agency. “This funding will give local governments and tribal organizations the resources they need to build more supportive housing, faster, and provide the services that people need to regain stability.”
As of 2023, approximately 181,000 Californians were experiencing homelessness, with nearly 90,000 of those individuals living without shelter. The state’s housing affordability crisis, compounded by skyrocketing rents and limited available housing, is a significant driver of the issue.
Expanding the availability of affordable housing and providing comprehensive mental health and addiction services are key elements of California’s strategy to mitigate homelessness.
“Lack of affordable housing and access to supportive services are deeply interconnected problems,” said Gustavo Velasquez, director of the California Department of Housing and Community Development (HCD). “The Homekey+ program is designed to help us tackle both by providing local governments and tribes with the financial resources and streamlined processes they need to build housing quickly and efficiently.”
