Newsom Administration Announces $2.75 Billion Expansion of Homekey

SACRAMENTO — Gov. Gavin Newsom’s Administration Sept. 9, announced the next phase of its homeless housing initiative, Homekey.

Gov. Newsom has released funds from his $2.75 billion investment to expand the program to purchase and rehabilitate buildings – including hotels, motels, vacant apartment buildings, tiny homes and other properties – and convert them into up to 14,000 more permanent, long-term housing units for people experiencing or at risk of houselessness. Homekey has made competitive grants available to local governments across the state. 

The California Department of Housing and Community Development or HCD Sept. 9, is releasing the latest Notice of Funding Availability for local governments to apply for Homekey funding.

Since its launch in 2020, Homekey has been the fastest, largest, most cost-effective addition of permanent housing in California history, successfully re-engineering the strategy to create more housing for people experiencing houselessness. Local interest has been strong from the start. HCD began accepting applications for Homekey on July 22, 2020, and within a year, Homekey provided safe shelter from COVID-19 to thousands of Californians, expediently creating 6,000 affordable housing units.

The Governor earlier this year signed a historic housing and homelessness funding package as part of his California Comeback Plan, investing $12 billion to tackle houselessness overall. Of this amount, $5.8 billion – including the $2.75 billion to expand Homekey – will be used for up to 42,000 new homeless housing units and treatment beds, with housing options for those with the most acute behavioral health needs. The additional Homekey funding builds on the first phase investment of $846 million, which resulted in 94 projects in counties and tribal areas across the state that closed escrow last year.