Governor Gavin Newsom is sending a fresh wave of cash into California’s homelessness fight, with eight new Homekey+ awards set to create 443 permanent supportive homes across the state. Of those, 91 units are reserved for veterans, along with seven manager units, all backed by roughly $131.8 million in Proposition 1 funding. The projects are designed to pair housing with on-site behavioral health supports, stretching from Stockton to Los Angeles, and focused on people who are homeless or at high risk because of behavioral health challenges. Local partners now have to move from planning to the grind of acquisition, rehabilitation, and construction.
According to the California Department of Housing and Community Development, the Homekey+ round announced March 2 directs $131.8 million across eight projects to produce 443 homes, including 91 units specifically for veterans. The list features some hefty line items, including nearly $38.5 million for the St. Vincent Supportive Community in Los Angeles County and $21.2 million for Santa Fe Springs Village, along with major support for Stockton’s Hunter House. State agencies boosted the news on social media, with a retweet from Caltrans HQ amplifying the housing department’s announcement.
Where the awards land
“HCD is proud to work in partnership with the Governor and CalVet,” HCD Director Gustavo Velazquez said in an announcement from the California Department of Housing and Community Development. Stockton’s Hunter House, described in City of Stockton documents as a proposed 120-unit development, will prioritize 77 Homekey+ units, including 32 reserved for veterans. In Los Angeles County, the package backs the St. Vincent Supportive Community and PATH Villas South Park, while Santa Fe Springs Village is slated to dedicate 42 homes to veterans with histories of chronic homelessness.
Why the funding matters
Proposition 1, the $6.4 billion Behavioral Health Bond that voters approved in 2024, underpins Homekey+ by pairing capital with services, according to the Governor's office. Supporters say that by converting motels, vacant buildings, and new construction into permanent supportive housing, the state can move people indoors faster than typical affordable housing timelines. Early results from the Homekey+ program offered a first look at how the funding is being deployed across counties.
Local governments and nonprofit partners must now lock in standard agreements and secure long-term operating subsidies to keep rents affordable and pay for on-site services. The Homekey+ program will continue to accept applications on a rolling basis as the state pushes to move more people off the streets and into housing. Advocates say the scale of these awards matters, but long-term success will ultimately depend on stable service funding and tight oversight once residents move in.
