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Modesto secures $16 million for permanent homeless housing from California 'Homekey'

Gov. Gavin Newsom said he expects the total $179.7 million in statewide funding to create 710 homes across seven California counties.

MODESTO, Calif. — Modesto city officials announced Wednesday they received about $16 million from California's 'Homekey' project aimed at establishing permanent housing for homeless residents.

The grant is expected to fund a 55-unit permanent supportive housing facility dedicated mainly to serving homeless youth — with 38 units dedicated to youth and 16 units for the general homeless population.

Permanent supportive housing sites provide residents with ongoing financial assistance to help pay rent while they work, look for work or go to school. On-site services at the Modesto facility are set to include case management, peer support, mental health services and healthcare outreach.

“Affordable housing is a fundamental component of any strategy to combat homelessness. Homekey Project 3 helps us to provide stable housing which can significantly improve the lives of individuals and families in need,” said Jessica Hill, director of Modesto City Community and Economic Development.

Gov. Gavin Newsom said recently the third round of Homekey funding totals $179.7 million and is expected to pay for 710 new homes in seven counties statewide.

Sacramento County is also among the seven counties receiving funds.

“Gov. Newsom’s office has been working closely with the city and county of Sacramento to build a tiny home village on Stockton Boulevard that will be a model for the rest of the state,” Mayor Darrell Steinberg said Wednesday. “Residents will be embedded in a community wellness campus specializing in substance abuse disorder treatment and mental health care.”

The funding comes on top of a $736 million investment announced by Newsom March 29.

At least $3.4 billion has been dedicated to building nearly 12,800 permanent and temporary homes since Homekey was launched in 2020 to house homeless during the start of the COVID-19 pandemic.

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