REPORT TO COUNCIL
SUBJECT
Title
Study Session on the California Department of Housing and Community Development's
(HCD) Project HomeKey
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
On July 16, 2020, the California Department of Housing and Community Development (HCD) announced the release of the Project HomeKey Notice of Funding Availability (NOFA) for $600 million to purchase and rehabilitate housing, including hotels, motels, vacant apartment buildings, and other buildings, and convert them into interim or permanent, long-term housing. The purpose of the program was to expand and diversify housing options for homeless persons who are at high-risk for serious illness and impacted by COVID-19. Cities, counties, or other local public entities, including housing authorities or federally recognized tribal governments within California, were eligible to apply independently or jointly as the lead applicant with a non-profit or a for-profit corporation.
By December 29, 2020, Project HomeKey had resulted in the acquisition of 94 projects, representing 6,029 units of permanent housing for individuals experiencing homelessness. Approximately 86 percent of funds were awarded to acquisition or rehabilitation of motels, hotels, hostels and other types of buildings. Approximately 8,264 individuals, of which at least 1,207 are seniors, are housed or will be housed in 2021 within the nearly 6,000 units created by this first round of Homekey. In addition, there are as many as 24 of the awarded projects (25 percent of the total number of projects), that have or intend to house Transitional Age Youth (TAY) residents between the ages of 18-24 who are at risk of or experiencing homelessness.
Given the success of Project HomeKey 1.0, in January of 2021, the Governor's proposed FY21-22 budget included another $750 million allocation for Project Homekey 2.0. While this funding has yet to be approved by the Legislature, ...
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