Funding for homeless housing falls short
Many much-needed projects across Bay Area will get rejection letters
When he launched Project Homekey, Gov. Gavin Newsom touted the new program as part of a permanent solution to homelessness that would outlast the coronavirus pandemic.
But data released Thursday shows that in the Bay Area, the program will fall far short of housing everyone who was given temporary shelter during the pandemic.
Cities, counties and organizations in the nine-county Bay Area submitted 29 applications seeking $324 million to convert hotels, apartments and homes into homeless housing. But the state has set aside just $100 million in Homekey funding for the region, meaning local projects will receive less than a third of what they need.
“Due to the overwhelming response to Homekey, not all applicants will receive funding,” Russ Heimerich, deputy communications secretary for the state’s Business, Consumer Services and Housing Agency, said in an email.
Statewide, Project Homekey received 138 applications requesting $1.06 billion. The state has just $600 million available.
Newsom launched Project Homekey in June, promising funding for long-term homeless housing. The effort followed a massive, statewide effort to move elderly or sick unhoused residents off the streets and into hotels and temporary shelters to protect them from COVID-19. When the pandemic ends and those temporary programs close, housing built with Project Homekey is intended to catch those residents and prevent them from ending up back on the street.
Ifthestatefundedall29ofthe Bay Area’s Project Homekey applications, it would result in 1,990 new units of housing. But in just San Francisco, Santa Clara and Alameda counties — which together bear the brunt of the region’s homelessness crisis — there are more than 4,000 people in temporary pandemic hotels, shelters and trailers.
In total, all applications submitted around the state seek to build 7,677 units. But many of those projects won’t make the cut.
That’s no surprise to Abode Services CEO Louis Chicoine, who was hoping to snag $10 million in Project Homekey funds. AbodewantstoturnCasadeNovo
— a 56-unit hotel that has housed homeless residents since 2016 — into more than 100 units of permanent supportive housing.
“Unfortunately that’s pretty typical of affordable housing funding sources,” Chicoine said. “They’re way oversubscribed. It’s just a reflection of not having enough resources, so when there are resources available, people jump to apply for them.”
Abode already has run into challenges finding other funding sources for its Casa de Novo project, he said.
The state did not provide more details on Bay Area projects proposed under Homekey, saying officials are still sorting through the applications. But it has been confirmed applications have been submitted in counties including Alameda, Contra Costa, San Mateo and Santa Clara.
The state intends to begin issuing awards in the next two weeks, according to Heimerich.
“The response of local governments and housing providers to the $600 million Notice of Funding Availability for Homekey has been exceptionally enthusiastic, showing they have embraced our approach,” he said.
The Bay Area sought more money than nearly any other California region. The only region to ask for more was Los Angeles, which is seeking $368 million to build 2,301 units.
The first deadline to apply for funding was Aug. 13, and projects submitted by that date will get first crack at the available funding. The final deadline is Sept. 29. Once funding is awarded, most of it must be spent by the end of the year.
Chicoine doesn’t know what his San Jose project’s chances are, but he’s hopeful.
“We think we have a really good proposal. Part of the reason we think it’s good is that it’s a really good collaboration with the county and the city of San Jose,” he said. “I think the state looks at making sure the local jurisdictions are very supportive.”