California: Governor Newsom delivers $109.6 million in voter-approved Prop 1 funding for 278 supportive homes, including housing for veterans

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Jul 23, 2026

Governor Newsom delivers $109.6 million in voter-approved Prop 1 funding for 278 supportive homes, including housing for veterans

What you need to know: California is expanding permanent supportive housing through Prop 1-funded Homekey+ investments, helping veterans and Californians who are experiencing or at risk of homelessness access stable housing and behavioral health services.

SACRAMENTO – Governor Gavin Newsom announced today the creation of 278 new permanent supportive homes in the communities of Bakersfield, Contra Costa County, Fresno, and Sacramento, including 103 homes reserved for veterans through $109.6 million in Prop 1-funded Homekey+ awards. The investments build on the state's ongoing work to reduce homelessness by expanding behavioral health services, while strengthening support for veterans across the state.

Every Californian deserves a safe place to call home, particularly the veterans who bravely served our country. California voters approved Proposition 1 because they know we must do more to address homelessness and behavioral health challenges. These Homekey+ investments are delivering on that promise by creating supportive housing, connecting people to care, and helping veterans and other Californians move toward stability.

Governor Gavin Newsom

Today's announcement is part of the Newsom administration's 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.

"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."

To date, Homekey+ has allocated $968.4 million to support 54 permanent supportive housing projects. These projects will create 2,749 affordable homes throughout California for individuals with behavioral health challenges who are experiencing or at risk of homelessness. Of these 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."

Local investments with real results

Today's 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 nearly $31.9 million from Homekey+ for the Rio Linda Senior Housing Project. The development will include 100 homes, including 49 homes dedicated to veterans 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, 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 Homekey+ units, 30 homes will be reserved for veterans. In addition to Homekey+ funding, Choice in Aging received just over $6 million in November 2021 from HCD's Veterans Housing and Homelessness Prevention Program. This 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, will receive just under $32.6 million in Homekey+ funding to convert 106 interim housing units into 84 permanent supportive homes at Parkway Terrace. The interim housing project was a Round 2 Homekey project. 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. 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.

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City of Bakersfield: In partnership with Community Action Partnership of Kern, 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. 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.

In addition, 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.

"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."

The Homekey+ 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.

Adding to hundreds of pieces of legislation signed since 2019, and groundbreaking CEQA reform enacted last year, last week Governor Gavin Newsom signed housing trailer bill legislation as part of the 2026–27 State Budget that advances the next major phase of California's housing strategy. The legislation modernizes how California finances and delivers affordable housing and builds on the Governor's efforts that have reversed decades of inaction on housing and homelessness — creating more affordable homes and achieving the largest reduction in unsheltered homelessness in more than 15 years.

Prop 1 in action: expanding supportive housing

Today's awards continue the implementation of Proposition 1 while expanding permanent supportive housing for Californians experiencing or at risk of homelessness and living with behavioral health challenges. According to the 2025 Annual Homelessness Assessment Report published by the U.S. Department of Housing and Urban Development, California reduced unsheltered homelessness by 8,391 people, or 6.8% — more than any other state.

More than 1.2 million adults in California live with a serious mental illness, and 1 in 10 residents meet the criteria for a substance use disorder, increasing their risk of homelessness. Proposition 1 is helping California transform its behavioral health system with a $6.4 billion Behavioral Health Bond to expand housing, services, and treatment for veterans and others experiencing homelessness. Once completed, Prop. 1 projects are expected to add more than 6,900 residential treatment beds and 27,500 outpatient treatment slots for behavioral health.

The Homekey+ NOFA made approximately $1.03 billion in Proposition 1 bond funds available for permanent supportive housing projects serving veterans, and another $1.11 billion in Proposition 1 and Homeless Housing Assistance and Prevention Program funds available for projects serving all target populations.

Reversing decades of inaction

This work has created immediate, measurable results and the critical foundation necessary to finally solve California's housing and homelessness crisis. Governor Newsom's policies have had a significant impact, as indicated by new federal data:

• Historic drops in homelessness — California achieved the largest statewide reduction in unsheltered homelessness in 16 years. New federal data also shows California last year saw:
  • Largest reduction in unsheltered homelessness in the nation. California reduced unsheltered homelessness by 8,391 people, or 6.8% — more than any other state. That decline is more than twice the national reduction of 2.9% and significantly exceeds that of the next-largest state by population, Texas, which saw a 1.4% decrease.
  • Total homelessness declined. California's overall homeless population dropped by 2.8% — the state's largest numerical decline since 2009.
  • Leading the nation in reducing homelessness in key populations. From 2023 to 2025, California ranked first among all states and the District of Columbia in reducing the numbers of veteran homelessness, chronic homelessness, homelessness among young adults ages 18-24, and homelessness among parents under 25.

In addition, Governor Newsom is addressing a housing shortage that has been decades in the making. Since 2019:

• Building is happening faster — Annual residential construction has increased by 59%, from 70,000 homes built in 2018 to about 111,000 in 2024.
• Multifamily construction has reached its highest level in decades — Over the last five years, more multifamily housing units have been built than in any five-year period in over 30 years, and more than 682,000 homes overall have been built statewide since 2019.
• Approval times have been slashed — Streamlining laws enacted since 2019 have cut average time from development application to entitlement by 57%, from 160 days to 68 days in 2024. The time from entitlement to permit also dropped by 9%.  
• Communities are ready to build more — Through Governor Newsom's work to ensure all jurisdictions do their part, communities throughout the state have laid the groundwork and have planned to accommodate at least 3.6 million new homes, including 1.4 million affordable units, moving California closer to meeting its long-term housing needs.

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