Governor’s Homekey to Create Hundreds of Affordable Apartments in LA County

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Governor Gavin Newsom announced the latest round of funding for Homekey, California’s innovative, nation-leading $600 million program to purchase and rehabilitate housing – including hotels, motels, vacant apartment buildings and other properties – and convert them into permanent, long-term housing for people experiencing or at risk of homelessness.

To date, Los Angeles County is set to receive $60 million to purchase eight motels with a combined total of 631 rooms. Each room will be converted into affordable apartments with supportive services and rent subsidies funded through the County’s Measure H and state and federal sources.

“Behind every allocation we make for Homekey is the story of a Californian who will no longer have to sleep in a tent, in a car or on the street,” said Governor Newsom. “The partnerships with local leaders and their innovative approaches to homeless solutions are inspiring. From helping victims of domestic violence, to LGBTQ youth, to seniors, we’ve seen bold proposals that help a cross section of Californians struggling to find permanent housing.”

“I applaud Governor Newsom for his unwavering leadership and investing much needed resources to combat this crisis within a crisis – homelessness amid a pandemic,” said Supervisor Mark Ridley-Thomas, who championed Measure H and whose district will have three Homekey sites.
“Project Roomkey enabled LA County to bring 4,000 vulnerable people indoors in just months – an unprecedented accomplishment that protected their health and that of the larger community while simultaneously providing a lifeline to struggling businesses,” Supervisor Ridley-Thomas added. “We are ready for the next phase, Homekey. We have eight motels lined up to be converted into affordable apartments with services, a key component of our COVID-19 recovery rehousing plan.”

The Governor also announced a partnership with Enterprise Community Partners, a nonprofit dedicated to developing affordable housing, to distribute $45 million in funding – $20 million from Blue Shield of California and $25 million from Kaiser Permanente – to support operating subsidies for Homekey projects. This funding will provide critical support to local jurisdictions to ensure that those housed through this initiative receive critical services like case management, job training, substance abuse counseling and more.

Building on the success of Project Roomkey, Governor Newsom in July announced the availability of $600 million in funding for Homekey, the next phase in the state’s response protecting Californians experiencing or at risk of experiencing homelessness, following approval by the Legislature as part of the 2020-21 annual state budget. Of that, $550 million will be provided to cities and counties by California’s direct allocation of the federal Coronavirus Aid Relief Funds, with an additional $50 million provided by the state to supplement the acquisition and provide initial operating funds. The Homekey funds are being expended in compliance with federal regulations in response to COVID-19.

HCD began accepting applications for Homekey on July 22, 2020. Additional awards are expected weekly until all $600 million has been awarded. The response from local governments and housing providers was significant – demonstrating the strength of these state-local partnerships. By the application deadline of September 29, a total of 147 applications had been received from 73 entities statewide, with over $1 billion requested.