SACRAMENTO, Oct. 26, 2026 — California has awarded another $115.2 million through its Homekey+ housing program, financing five projects that together include 329 apartments in Yuba City, San Francisco, Riverside County, Lompoc and Los Angeles, according to an announcement Monday from Gov. Gavin Newsom.

The new awards include 168 homes designated for veterans. State officials say the program has now funded 2,905 permanent supportive homes since its launch in 2024, including 828 for veterans. These are awarded or funded homes—not a claim that every apartment has been completed or occupied.

Where the latest housing awards are going

  • Yuba City, Sutter County: Merriment Village Apartments Phase II will receive nearly $40.6 million for 138 apartments across four buildings. Seventy units are designated for veterans experiencing homelessness and behavioral health challenges.
  • San Francisco: Nearly $18.7 million will support rehabilitation of an existing 63-unit apartment building in partnership with Swords to Plowshares. Forty-four homes are designated for eligible veterans.
  • Riverside County: Camino Terrace will receive $16.2 million in gap financing toward an 80-unit development. Thirty-five units are designated for the Homekey+ target population, including 28 for veterans.
  • Lompoc, Santa Barbara County: Brisa Encina, a proposed 49-unit community, will receive nearly $20.9 million in gap financing; 19 homes are reserved for eligible veterans.
  • Los Angeles: Casa Bella will receive $18.8 million to convert a former motel into a 62-unit development, including 61 permanent supportive homes and one manager’s unit. Seven supportive homes are designated for veterans.

The project descriptions distinguish total apartment counts from units specifically reserved for people eligible under Homekey+. The five developments have different construction and rehabilitation needs; an award does not mean residents can move in immediately.

How Proposition 1 supports housing

California voters approved Proposition 1 in 2024. The measure authorized approximately $6.4 billion in behavioral health bonds, including funding for treatment facilities and supportive housing. The California Department of Housing and Community Development administers Homekey+, which helps local governments and their partners acquire, convert, rehabilitate or construct long-term housing for eligible people experiencing or at risk of homelessness who also face behavioral health challenges.

Unlike a short-term shelter, permanent supportive housing combines a place to live with access to services. HCD’s program guidelines generally require a 55-year affordability term for Homekey+ permanent supportive housing projects.

What the numbers do—and do not—show

In its announcement, the governor’s office cited a 6.8% decline in unsheltered homelessness and described it as California’s first year-over-year decrease in 15 years. That is a statewide statistical claim from the administration; it does not establish that the five newly funded developments have already reduced homelessness, or that every California community has seen a decline.

The earlier Homekey program has separately funded nearly 16,000 interim and permanent homes, according to state housing officials. Homekey and Homekey+ should not be confused: they have different funding rounds, eligibility rules and project histories.

What happens next: Local partners must complete the applicable financing, construction or rehabilitation work before residents can move into the new homes. California58 will follow project milestones and local impacts in the communities receiving these awards.

Primary sources: Governor’s Office announcement, Oct. 26, 2026; California Department of Housing and Community Development — Homekey+ program and eligibility.

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