Gov. Gavin Newsom announced $109.6 million in voter-approved Proposition 1 funding on July 23 for 278 new permanent supportive homes across California, including 103 units reserved for veterans experiencing homelessness. The awards, distributed through the state’s Homekey+ program, add to a housing pipeline that pairs behavioral health services with deeply affordable units in Sacramento, Contra Costa County, Fresno and Bakersfield.
The funding comes from Proposition 1, the $6.4 billion behavioral health bond California voters approved in March 2024, according to the governor’s office. Homekey+ specifically targets permanent supportive housing linked to mental health and substance use treatment for people who are homeless or at risk of homelessness.
Where the Proposition 1 housing money is going
The largest single award, $32.6 million, goes to Parkway Terrace in Fresno, which will convert interim housing into 84 permanent supportive homes, nine of them reserved for veterans, according to the California Department of Housing and Community Development. Sacramento’s Rio Linda Senior Housing Project will receive $31.9 million to build 100 homes for seniors, including 49 units for veterans experiencing homelessness with behavioral health needs.
Contra Costa County was awarded $28.8 million for an 82-unit senior housing community operated by Satellite Affordable Housing Associates, 62 of which are Homekey+-funded units with 30 reserved for veterans. In Bakersfield, a motel conversion project run by the Community Action Partnership of Kern will receive $14.1 million to create 30 permanent supportive homes, 15 of them for veterans.
An additional $2.3 million was allocated to three previously funded veteran-serving projects in Olivehurst, Sanger and Stockton, largely to cover operating expenses, under a March 2026 amendment to the Homekey+ funding notice designed to encourage developers to set aside more units for veterans, the state housing agency said.
What officials are saying
“Every Californian deserves a safe place to call home, particularly veterans who served our country,” Newsom said in the announcement. Business, Consumer Services and Housing Agency Secretary Tomiquia Moss said the investments “would not be possible without California voters and key interagency partners,” while California Department of Veterans Affairs Secretary Lindsey Sin said Homekey+ “continues to deliver real results for California veterans with stability and dignity.” Those characterizations reflect the state’s own assessment of a bond program it administers and funds.
To date, Homekey+ has allocated $968.4 million across 54 projects statewide, creating 2,749 affordable homes, of which 723 are reserved for veterans, according to the state housing department. California has also seen its overall housing prices climb to record levels even as the state pushes to expand its affordable and supportive housing stock through bond-funded programs like this one.
Proposition 1 restructured California’s Mental Health Services Act funding and authorized $6.4 billion in bonds, with roughly $4.4 billion earmarked for behavioral health treatment facilities and supportive housing. Homekey+ is a component of that broader bond program, distinct from the original pandemic-era Project Homekey initiative that funded hotel and motel conversions using separate state and federal dollars.
What it means
Verified facts: the $109.6 million total, the 278-home and 103-veteran-unit counts, the individual project awards and unit breakdowns, and the cumulative Homekey+ figures all come directly from the governor’s office and the California Department of Housing and Community Development.
Attributed interpretation: characterizations that the program is delivering meaningful results for homelessness and veterans come from Newsom administration officials, who have a direct interest in promoting the bond program’s outcomes.
RealtyWire analysis: the awards represent a small fraction of California’s estimated homeless population, which numbers well over 100,000 statewide, underscoring that even sustained bond-funded pipelines like this one are incremental relative to the scale of the state’s housing and homelessness challenges.
