California: ICYMI: Voter-approved Prop 1 funding awarded to communities to create new supportive housing to reduce homelessness
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Aug 25, 2025

ICYMI: Voter-approved Prop 1 funding awarded to communities to create new supportive housing to reduce homelessness

Funding to create 200 new Homekey+ permanent supportive homes in Oakland, Santa Clara, Ventura

What you need to know: Governor Newsom announced $75.5 million awarded through Homekey+ to create 200 permanent homes with supportive services.

SACRAMENTO — In case you missed it, the state recently announced $75.5 million in voter-approved Proposition 1 funding will create 200 permanent supportive new homes across Oakland, Santa Clara, and Ventura for Californians experiencing or at risk of homelessness and living with behavioral health challenges. Prop 1, which was championed by Governor Newsom and approved by voters in 2023, is transforming California's mental health systems with a $6.4 billion Behavioral Health Bond for housing, services, and treatment for veterans and people experiencing homelessness.

The Prop 1 funding announced today will be awarded through the Homekey+ program. To date, Homekey+ has awarded $178.4 million to support 10 projects creating 518 affordable homes with supportive services throughout California. Of these homes, 88 units are reserved for veterans experiencing or at risk of homelessness with behavioral health challenges. These efforts reflect an unprecedented level of focus and resources being allocated by any governor to address housing stability and associated challenges.

"California is outperforming the nation in reversing the homelessness crisis by executing a strategic, all-in approach that will produce positive results now and in the future. Thanks to the voters, we now have greater resources to continue to meet the moment, connecting more people at risk of or experiencing homelessness with the housing, treatment, and supportive services they need."

Governor Gavin Newsom

The following awards were announced by the state:
  • The County of Santa Clara, in partnership with Abode Housing Development, will receive $40.5 million in Homekey+ funding for the Algarve Community Apartments Project. This new construction gap financing project will create 90 permanent supportive housing units for individuals experiencing homelessness with behavioral health challenges. Of these, 24 homes will serve veterans experiencing homelessness.
  • The County of Ventura, Many Mansions, and DignityMoves will receive nearly $28 million in Homekey+ funds to bring the Homekey+ Lewis Road project to the City of Camarillo. This permanent housing project will provide 88 units to serve individuals experiencing or at risk of homelessness or chronic homelessness. To address a wide variety of needs, the project will include office space for supportive services, storage areas, and shared common indoor and outdoor areas.
  • The City of Oakland, Danco Communities, and Operation Dignity will receive nearly $7.1 million in Homekey+ funds to develop The Maya, an adaptive reuse project converting an existing hotel into 23 studio apartments serving individuals experiencing homelessness.

"California's Homekey+ continues to help people experiencing homelessness gain access to affordable and stable housing, while providing vital connections to critical supportive services that keep people housed," said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. "The projects awarded build on the Governor's commitment to create housing for all Californians, especially our most vulnerable."

"Through the Homekey+ program, we are able to connect our deserving veterans—and other Californians facing behavioral health challenges—to housing stability and the critical services needed to help them maintain that newfound stability," said California Department of Housing and Community Development Director Gustavo Velasquez. "We are grateful for the opportunity California voters provided to build on the successes of Homekey statewide and help house Californians most in need."

Reversing a decades-in-the-making crisis

Last week, the state announced reporting showing reduced homelessness in communities throughout California. Through Governor Newsom's support of local government efforts and state investments, like the funding announced today, California is reversing decades of inaction on homelessness.

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Between 2014 and 2019—before Governor Newsom took office—unsheltered homelessness in California rose by approximately 37,000 people. Since then, under this Administration, California has significantly slowed that growth, even as many other states have seen worsening trends.

In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to just 3% — a lower rate than in 40 other states. The state also held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%. States like Florida, Texas, New York, and Illinois saw larger increases both in percentage and absolute numbers. California also achieved the nation's largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness.

Governor Newsom is creating a structural and foundational model that will have positive impacts for generations to come:

✅ Addressing mental health and its impact on homelessness — Ending a long-standing 7,000 behavioral health bed shortfall in California by rapidly expanding community treatment centers and permanent supportive housing units. In 2024, voters approved Governor Newsom's Proposition 1 which is transforming California's mental health systems with a $6.4 billion Behavioral Health Bond for treatment settings and housing with services for veterans and people experiencing homelessness, and reforming the Behavioral Health Services Act to focus on people with the most serious illnesses, provide care to people with substance disorders, and support their housing needs. In May, Governor Newsom released $3.3 billion of this funding to create over 5,000 residential treatment beds and more than 21,800 outpatient treatment slots for behavioral health services.

✅ Creating new pathways for those who need the most help — Updating conservatorship laws for the first time in 50 years to include people who are unable to provide for their personal safety or necessary medical care, in addition to food, clothing, or shelter, due to either severe substance use disorder or serious mental health illness. Creating a new CARE court system that creates court-ordered plans for up to 24 months for people struggling with untreated mental illness, and often substance use challenges.

✅ Streamlining and prioritizing building of new housing — Governor Newsom made creating more housing a top state priority for the first time in history. He has signed into law groundbreaking reforms to break down systemic barriers that have stood in the way of building the housing Californians need, including broad CEQA reforms.

✅ Creating shelter and support — Providing funding and programs for local governments, coupled with strong accountability measures to ensure that each local government is doing its share to build housing, and create shelter and support, so that people rescued from encampments have a safe place to go.

✅ Removing dangerous encampments — Governor Newsom has set a strong expectation for all local governments to address encampments in their communities and help connect people with support In 2024, Governor Newsom filed an amicus brief with the Supreme Court defending communities' authority to clear encampments After the Supreme Court affirmed local authority, Governor Newsom issued an executive order directing state entities and urging local governments to clear encampments and connect people with support, using a state-tested model to address encampments humanely and provide people adequate notice and support.

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Approximately $1.033 billion in Proposition 1 bond funds are available through Homekey+ to cities, counties, housing authorities, and Tribal Entities for projects serving veterans. Another $1.11 billion is available for projects serving all target populations, through a combination of Proposition 1 bond funds and Homeless Housing, Assistance, and Prevention (HHAP) program funds.

Approximately $1.033 billion in Proposition 1 bond funds are available through Homekey+ to cities, counties, housing authorities, and Tribal Entities for projects serving veterans. Another $1.11 billion is available for projects serving all target populations, through a combination of Proposition 1 bond funds and Homeless Housing, Assistance, and Prevention (HHAP) program funds.

The Homekey+ Notice of Funding Availability (NOFA) allocates funding by region based on a proportionate share of veterans and others experiencing homelessness, and by share of extremely low-income households whose rent is more than half of their income. There are also allocations for rural projects and for projects serving youth experiencing or at risk of homelessness.

Homekey+ applications will continue to be reviewed and approved on a rolling basis.

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