California Construction News staff writer
The California Department of Housing and Community Development on Friday announced $281 million in year-end awards to support affordable housing, homelessness services, infrastructure improvements, and community development, bringing the state’s total 2025 investment in these areas to nearly $2.8 billion.
The funding will help build 731 new permanent rental homes, repair and construct accessory dwelling units, preserve existing affordable housing, and mitigate disaster risks in local communities.
Awards include:
- $53.4 million in Local Housing Trust Fund grants to 23 applicants across 18 counties, providing matching funds for the construction, conversion, and repair of accessory dwelling units.
- $26.7 million for three projects through the federally funded National Housing Trust Fund, supporting 214 new homes for extremely low-income households.
- More than $26 million from the Permanent Local Housing Allocation program for seven jurisdictions to develop 477 affordable multi-family rental homes.
- $107.5 million through the Portfolio Reinvestment Program to preserve 491 at-risk affordable housing units.
- $10.1 million in Tribal Homekey funding for a 40-unit housing community, including 28 units for people at risk of or experiencing homelessness.
- $57.7 million for 27 projects under the Community Development Block Grant Disaster Recovery Resilient Infrastructure Program to support local mitigation infrastructure.
HCD also highlighted recent awards through Proposition 1-funded Homekey+ that will create 37 permanent supportive housing communities, adding 1,817 new homes, including 454 reserved for veterans.
“From funding the creation of ADUs and permanent supportive housing to preserving affordable homes for future generations, today’s awards highlight the Newsom Administration’s innovative approach to addressing homelessness and tackling California’s affordable housing crisis,” said HCD Director Gustavo Velasquez.
Earlier in 2025, Gov. Gavin Newsom announced additional awards including:
- $118.9 million from HOME Investments Partnerships American Rescue Plan and Emergency Solutions Grants programs for 487 homes and homelessness services.
- $144.5 million from the HOME Investment Partnerships Program for multi-family and single-family construction and local housing assistance.
- $52.6 million from the Disaster Recovery Housing Accelerator Program for counties affected by winter storms.
- $56 million for Transitional Age Youth Program grants across 54 counties.$181.1 million from the Homeownership Super NOFA program.
- $835.3 million from the Affordable Housing and Sustainable Communities program for 2,393 new rental homes and related infrastructure.
- $52.6 million from Community Development Block Grants and Emergency Solutions Grants for housing and community revitalization.
