El Monte’s Hilda Solis Rose Court remains under construction nearly six years after the city received state funding to convert the former M Motel into housing for people experiencing homelessness. The 93-room project was originally targeted to reopen in January 2025, but that deadline passed while rehabilitation work and operating arrangements were still unresolved.
The project’s status and cost history were reported by the New York Post. El Monte acquired the property in December 2020 through California’s Homekey program, which helps public agencies convert motels and other properties into housing. The city received a combined $17.7 million in Homekey funding for the former M Motel and neighboring Budget Inn, with $10.35 million designated for the M Motel’s acquisition and rehabilitation, according to the Post.
A project that required additional work
The rehabilitation required more interior and exterior work than the initial property assessment identified, pushing costs beyond the original budget, the Post reported. California’s Department of Housing and Community Development attributed part of the delay to asbestos remediation and the coordination of environmental plans and approvals. The agency said it is monitoring the project through regular updates and site visits.
Public funding was added as the work continued. El Monte secured $5.8 million in federal CDBG-Homekey funding for rehabilitation, while Los Angeles County contributed $7.5 million toward Rose Court after a budget shortfall, according to the Post. County Supervisor Hilda Solis separately presented the city with a $2 million grant in 2024 for operations and services. In December 2025, the City Council approved another county agreement totaling $554,104, with $530,000 directed to physical renovations, The Mid Valley News reported.
The renovation scope included roofing, accessibility improvements, framing repairs, drywall, flooring, insulation, fire sprinklers, and plumbing, electrical and mechanical upgrades, according to the Post. The project’s final completion date and total cost remain unresolved in the available records.
The neighboring conversion followed a different timeline
Rose Court’s delay is notable because El Monte acquired and converted the neighboring Budget Inn during the same initial Homekey cycle. The 40-unit property, identified in city records as Iris House, had been operating since November 2023 and was fully occupied, according to the city’s draft FY 2026-2027 Annual Action Plan. The plan says Union Station provides services there through funding from the Los Angeles Homeless Services Authority.
The comparison establishes different delivery timelines, but it does not show that the two properties had identical conditions, approvals, rehabilitation needs or operating models. The city plan separately identifies Rose Court as still being completed, making Iris House a useful local comparison rather than an explanation for Rose Court’s delay.
What the delay means for local housing capacity
Rose Court was described as housing 39 people in 2022, but the project was later scheduled to reopen as temporary housing in January 2025 and had not resumed that planned operation as of the reporting cited above. The intended model called for five years of temporary housing followed by permanent supportive housing in the sixth year. Discussions over operations and leases with service providers were still underway.
The city’s draft annual action plan estimated that 143 people experienced homelessness in El Monte in 2025, with 65.7% unsheltered. That figure documents local housing need, but it does not establish how many people Rose Court would serve or when those units will become available.
Oversight does not guarantee a quick completion
California HCD’s Homekey monitoring guidance provides a process for projects that miss milestones. Grantees seeking an extension must explain the circumstances, provide a revised estimated completion date and obtain department approval; they must also report milestone completion to the agency, according to HCD guidance.
The Rose Court case therefore raises a narrower accountability question than whether Homekey funding was awarded: which revised milestones were approved, what work remains, and when will the property be ready for residents? The available records document the delay, additional funding and oversight requirements, but do not provide a completed operating date.
The city’s experience also sits within a broader regional effort to repurpose motels. Los Angeles County says its 2020 Homekey round acquired 10 motels totaling 847 units in Baldwin Park, Compton, Hacienda Heights, Harbor City, Long Beach, Norwalk, Whittier and unincorporated Los Angeles, according to county information. Those projects are a separate regional example and do not establish that they faced the same construction or approval issues as Rose Court.
