In an effort to address the chronic housing crisis in California, selected cities in the Bay Area are lined up to receive over $60 million in funding. According to KRON4, the funds comprise part of the $156.4 million Homekey Round 3 grant, which supports local government entities in purchasing and transforming properties such as hotels, motels, and vacant apartment buildings into long-term housing solutions for the homeless.

The cities of Oakland and San Leandro, to divide the funding, Hayward and Union City, Salinas, and San Francisco. Claimed by Governor Gavin Newsom's office that this funding symbolizes a larger initiative aiming at providing over 14,000 homes through the Homekey program as cited by the California Department of Housing and Community Development (HCD). Initially an extension of Project Roomkey during the COVID-19 pandemic, the Homekey program now serves a broader audience, including young individuals transitioning from foster care or hazardous situations.

Governor Newsom praised the efficiency and cost-effectiveness of the Homekey program in delivering affordable housing solutions for struggling Californians. HCD director Gustavo Velasquez posited that Homekey could contribute significantly to enabling vulnerable residents to escape homelessness and achieve housing stability.

The Homekey Round 3 grant administered by HCD permits the conversion of various property types, such as hotels, motels, single-family homes, and multifamily apartments, into housing for the homeless. An approximate $400 million from the ongoing funding round is still to be awarded according to HCD. While applications for the grants are currently under review, future funding is anticipated to be allocated before the available resources are depleted.