California Announces Millions in Funding for Supportive Homes, Including Veterans’ Housing

The State of California announced the creation of 278 new permanent supportive homes in Bakersfield, Contra Costa County, Fresno, and Sacramento, including 103 homes reserved for veterans through $109.6 million in Prop 1-funded Homekey+ awards.

In Gov. Gavin Newsom’s announcement, the state said that the investments build on its ongoing work to reduce homelessness by expanding behavioral health services, while strengthening support for veterans across the state.

California voters approved Proposition 1 to address homelessness and behavioral health challenges.

Newsom said the Homekey+ investments are delivering on that promise by creating supportive housing, connecting people to care, and helping veterans and other Californians move toward stability.

The funding announcement is part of a comprehensive strategy to address California’s housing affordability and homelessness crisis by expanding permanent supportive housing, increasing access to behavioral health services, and helping people move off the streets and into stable housing with the support they need to succeed, Newsom said.

Supportive Housing Projects

“Investments through Homekey+ aren’t just numbers on a spreadsheet. Today’s awards will directly lead to the development of hundreds of affordable homes for California’s veterans and those experiencing behavioral health challenges,” said California Housing and Homelessness Agency Secretary Tomiquia Moss. “These investments would not be possible without the support of California voters and our key interagency partners. Together, we will continue to help build brighter futures and deliver tangible results for those with the greatest need.”

Homekey+ has allocated $968.4 million to date to bolster 54 permanent supportive housing projects. Those projects will create 2,749 affordable homes throughout California for individuals with behavioral health challenges who are experiencing or at risk of homelessness, the state noted.

Of those homes, 723 are reserved for veterans.

“Homekey+ continues to deliver real results for California veterans,” said CalVet Secretary Lindsey Sin. “With more than 700 veteran-designated homes now supported through this program, these investments represent more than new housing. They represent renewed opportunity, stability, and dignity for those who served our nation. Every additional Homekey+ project means more veterans will have a safe place to heal, rebuild their lives, and look toward the future with greater confidence.”

Awards By City

The state said the funding will create affordable homes, with reserved units for veterans, in the following projects:

City of Sacramento: In partnership with Urban Capital LLC, will receive almost $31.9 million from Homekey+ for the Rio Linda Senior Housing Project. The development will include 100 homes, including 49 homes dedicated to veterans who are experiencing homelessness with behavioral health challenges. The project serves seniors aged 55 and older. Sacramento and Urban Capital LLC will work in collaboration with BOSS Homes as the supplier of modular housing units.

Contra Costa County: In partnership with Satellite Affordable Housing Associates, Contra Costa County will receive $28.8 million in Homekey+ funding for Choice in Aging, an 82-unit senior housing community with 62 units reserved for individuals at risk of homelessness with a behavioral health challenge. Of those 62 units, 30 homes will be reserved for veterans. In addition to Homekey+ funding, Choice in Aging received more than $6 million in November 2021 from HCD’s Veterans Housing and Homelessness Prevention Program. The state said the award will be conditioned on the awardee providing proof of a low-income housing tax credit award no later than six months following the Homekey+ conditional award.

City of Fresno: In partnership with Parkway Prime LLC, Fresno will get just under $32.6 million in Homekey+ funding to convert 106 interim housing units into 84 permanent supportive homes at Parkway Terrace. The project will add critical resident amenities, including an upgraded on-site laundry facility, property management and case management offices, and reconfigured interior and exterior community spaces to support engagement and service delivery. The state said that accessibility upgrades will include a modernized elevator and full ADA compliance across select units and common areas. Each unit will be updated with new kitchenettes, along with modern flooring, lighting, and bathroom fixtures. When complete, the project will reserve nine units for veterans.

City of Bakersfield: In partnership with Community Action Partnership of Kern, Bakersfield will receive just under $14.1 million from Homekey+ for the Ramkabir Permanent Supportive Housing Project. This acquisition and rehabilitation project will convert a 38-room motel into 30 permanent supportive homes, with 15 units reserved for veterans at risk of or experiencing homelessness with behavioral health challenges, the state said. In addition to its Homekey+ award, the project has committed funds of more than $1.1 million from the Homeless Housing Assistance Prevention Program, and a commitment of rental subsidies from Kern County Behavioral Health and Recovery Services and Housing Authority of the County of Kern.

Augmented Funding in 3 Cities

Also, three previously awarded veteran-serving projects in the cities of Olivehurst, Sanger, and Stockton will receive an augmentation totaling $2.3 million, largely for operating expenses based on a March 2026 Homekey+ NOFA amendment designed to incentivize more veterans’ units, the state said.

“Thanks to voter support of Governor Newsom’s vision for addressing homelessness among Californians facing behavioral health challenges, we are creating thousands of homes with supportive services to give veterans and others a stable foundation for a more hopeful future,” said HCD Director Gustavo Velasquez. “We are thrilled to see every project awarded today include homes reserved for our state’s military veterans, who are disproportionately impacted by homelessness after their service.”