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Gov. Newsom signs $12 billion plan to address homelessness

Gavin Newsom
Posted at 3:52 PM, Jul 20, 2021

SAN DIEGO (KGTV) — This week, California Gov. Gavin Newsom signed a $12 billion plan to address homelessness throughout the state.

The investment is the state's largest in history focusing on solving homelessness, according to the Governor's office.

Part of the plan also includes a large amount of funding into the federal Homekey program, with reimburses states that purchase and rehabilitate hotels, motels, vacant apartment buildings, and other buildings and converts them into permanent housing.

The plan includes:

  • $5.8 billion for Homekey over two years, to create more than 42,000 new homeless housing units
    • $2.75 billion for the Department of Housing and Community Development
    • $3 billion for the Health and Human Services Agency to create clinically enriched behavioral health housing and funding for the renovation and acquisition of Board and Care Facilities and Residential Care Facilities for the Elderly.
  • $2 billion in HHAP grants over two years with accountability requirements for local governments
  • $1.75 billion for 7,200 units of housing in the pipeline for extremely low-income families and people exiting homelessness
  • $150 million to stabilize participants in Project Roomkey hotels
  • $50.6 million for encampment resolution efforts
  • $45 million for services and housing for homeless veterans

"I don’t think homelessness can be solved – I know homelessness can be solved," said Gov. Newsom. "We are going all-in with innovative solutions that we know work – with a focus on creating housing to support people with severe mental health challenges, and with more money than ever to move people out of encampments and into safer situations."

The $12 billion plan is part of a package signed Monday that also includes $10.3 billion for affordable housing. That plan includes funding for:

  • $850 million incentivizing infill development and smart growth
  • $800 million to preserve the state’s affordable housing stock
  • $100 million promoting affordable homeownership
  • Additional funding to scale up the state’s efforts to create more Accessory Dwelling Units, build more housing on state-owned excess land and invest in farmworker housing

This week's funding plans are included in Newsom's $100 billion "California Comeback" plan.