California spending billions to house homeless in hotels

Veronica Perez
Posted at 6:38 AM, Aug 05, 2021
and last updated 2021-08-05 09:38:37-04

LOS ANGELES (AP) — Project Homekey is set for a massive expansion in California. The program is repurposing vacant hotels, motels and other unused properties as permanent supportive housing for residents without a place to live.

Last year about 6,000 units were created. Now Gov. Gavin Newsom wants to spend $8.75 billion over two years to expand the program and create tens of thousands of housing units.

Under Homekey, the state buys the properties, covers all construction and conversion costs, then hands them over to cities or counties.

The local municipalities then contract with service providers and find the funding to keep them running.