Pamela Cruz. Peninsula 360 Press [P360P].
California Governor Gavin Newsom announced that all 94 projects in the "Homekey" low-income housing subsidy program have closed escrow, which means there will be buildings providing 6,029 units of critically needed housing for the homeless throughout California.
In this regard, the official highlighted that a total of $750 million has been allocated from the COVID-19 Federal Aid Fund to 51 applicants for the 94 projects.
Such critical investments allow the high-risk population to follow public health guidelines to curb the spread of COVID-19, using innovative approaches, such as converting temporary, uncongested housing, including hotels, motels, vacant apartment buildings and other properties, to permanent, he said.
Through a statement, the state government stressed that the long-term housing is for people who are homeless or at risk of homelessness, in addition to which $96 million in operating supports, a combination of state funds and philanthropic investment, have been granted in full.
Thus, in total, Homekey used $846 million to quickly purchase and subsidize the six thousand 029 units in less than six months from start to finish.
"In a matter of months and in the midst of a pandemic, we did what many said was impossible: California created more than 6,000 new units, on time and under budget, helping thousands of homeless Californians move from cars and tents into housing," Newsom said.
He added that Homekey has been made possible by federal support to stop the spread of COVID-19, the Legislature's partnership and local leaders who "didn't settle for excuses and instead got to work to do something historic."
The statewide average cost per unit for Homekey is $123,987 and the statewide average local cost is $23,987, bringing the total average cost per unit to $147,974.
"With equity and inclusion built into Homekey, communities and Californians who are too often overlooked will benefit, including at-risk and former foster youth, LGBTTTIQ+ youth, people living with HIV, essential farmworkers, vulnerable seniors, veterans, people with disabilities, and women escaping domestic violence," said Gustavo Velasquez, director of the Department of Housing and Community Development (HCD).
The purpose of "Homekey" and procurement is to create permanent places for at-risk homeless people to live safely, protecting them from many public health risks, including the impacts of the COVID-19 pandemic.
HCD began accepting Homekey applications on July 22, 2020, and by the priority application deadline on August 13, a total of 138 applications had been received from 67 jurisdictions statewide, with a total of nearly $1.06 billion requested.
As of December 29, 2020, all 51 local agencies that received awards had secured their funding and had purchased and closed escrow on their projects.
In addition to funding to purchase units, all 51 awardees have received at least one operating support grant from philanthropic or state General Fund sources to help ensure the long-term viability of each applicant's Homekey portfolio.
