California Governor Gavin Newsom announced a new housing program through Proposition 1 and signed 32 pieces of legislation aimed at addressing homelessness on Sept. 19.
“California is taking action to fix the decades-long homelessness, housing and mental health crises,” Newsom said.
The governor went on to say the new laws will help people get off the streets and will benefit all Californians.
Prop 1 was passed in May and authorized $6.38 billion in bonds to build mental health treatment facilities for those with mental health and substance use challenges.
The funds were also used to provide housing for the homeless and for those at risk of homelessness such as veterans, as well as individuals with mental illnesses or substance use challenges.
Using funding from this proposition, Newsom announced a new state program called Homekey+. The rules on this program are still being drafted and are anticipated to be finalized in a document that will be released in November, the California Department of Housing and Community Development said.
Homekey+ aims to extend the original Homekey model by emphasizing the rehabilitation of buildings that can be converted or created into affordable housing options.
“The Homekey+ program is for Permanent Supportive Housing units and will require a 55-year affordability term,” the Homekey+ program overview said.
These funds aim to create more than 4,000 new permanent housing units, half of which are reserved for veterans with behavioral health needs. The funds also will assist in the creation of supportive services, through the construction and repair of existing buildings.
Homekey+ estimates to have a total of $2.250 billion to pull from once the notice of funding availability is finalized.
The funding is expected to be broken down as follows:
- $1.033 billion– Veteran serving projects from Prop 1
- $1.096 billion– All projects from Prop 1 and homeless housing assistance prevention Homekey supplemental general fund
- $121 million – Tribal applicants from Prop 1 and Homeless housing assistance prevention Homekey supplemental general fund
The funding is available to cities, counties and public housing authorities. Jurisdictions building housing have an additional $250 million being made available from the State’s housing and the Homeless Housing Assistance and Prevention program.
The request for applications will be available in November and the application portal is expected to open mid-late January. Awards will be distributed in May and continue until all funds have been used. All construction will have 12 months from receiving the award to be completed .
Beyond Homekey+, 32 bills from the State Assembly and State Senate were also passed. These bills focus on new zoning policies, plans for housing development, Tribal Housing Reconstitution and Resiliency Act and additions to the Housing Accountability Act.
Many of these bills were to approve existing funds supporting projects to improve housing around the state.
As stated on Newsom’s website, the new laws aim to increase accountability for local governments, strengthen enforcement and penalties and streamline housing production.
This issue continues to be an item of attention for Californians. The California State Senate found that in 2023, one in every three homeless individuals and half of unsheltered individuals in the nation are located in California.
The new legislation aims to create foundational changes that can help communities not only now, but also in the future.
Jessica Miller and Beatrice Williams can be reached at [email protected].
