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California's Homekey+ Program Awards $102.9M for Supportive Housing and Behavioral Health Facilities

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Published on July 01, 2025
California's Homekey+ Program Awards $102.9M for Supportive Housing and Behavioral Health FacilitiesSource: Unsplash/Breno Assis

California is making strides in its mission to combat homelessness, thanks to Proposition 1's voter-approved funding initiative. Governor Gavin Newsom has announced the first series of awards to build permanent supportive affordable housing for veterans and Californians with behavioral health issues. The Homekey+ program is the state's latest effort to provide stability for those in need.

Following the approval of Proposition 1 in March 2024, the state has dedicated a total of $6.38 billion to the construction of behavioral health care facilities and supportive housing. The first batch of seven awards from this program adds up to nearly $102.9 million, aimed at creating 315 new homes across five counties in California. According to a statement obtained by HCD, "These Homekey+ awards are the next step of a long-term investment powered by the voter-approved Proposition 1, which will transform our behavioral health services and housing opportunities."

The Homekey+ initiative mirrors the earlier Homekey program spearheaded by Newsom, which has been widely regarded as a success. This expansion intends to foster collaboration between state and local governments to provide housing combined with necessary services. Business, Consumer Services and Housing Secretary Tomiquia Moss told HCD, "Proposition 1 and Homekey+ are driving deep partnerships between the state and local governments, delivering tailored affordable housing and supportive services for veterans and Californians living with behavioral health challenges."

The projects range from new constructions to adaptive reuses of existing buildings, with some delayed due to financial challenges, such as rising costs and unsuccessful tax credit applications. The Housing Authority of the County of Santa Barbara is set to receive $43,884,920 for two projects that had previously stalled but, with the aid of Homekey+ funding, will save millions in construction interest, loan fees, and materials costs. Santa Barbara County Department of Behavioral Wellness is on board to provide comprehensive supportive services for both projects.

As of June 24, there are more Homekey+ applications under review. HCD has reported 67 requests totaling $1.147 billion. The program, with $1.033 billion available to support projects serving veterans and an additional $1.11 billion for a more general population, is designed to address homelessness among those with behavioral health challenges by providing sustainable housing solutions. For more details about the awarded projects and ongoing efforts, visit the HCD website here.