California Housing Initiative Funds Three New Housing Projects

The East Bay plans to welcome three homeless housing projects after $34.5 million in state grants were announced to support the Homekey homeless housing program. 

Homekey is an effort by the state of California to expand housing for unhoused individuals and those at risk of facing homelessness.  

The grants will house hundreds of unhoused community members. The project will open facilities in Oakland, San Leandro, and a joint venture in Hayward and Union City.

The breakdown of the grants includes:

  • $15.5 million in Oakland to purchase and renovate the Imperial Inn into 48 units of permanent supportive housing 
  • $9.3 million in San Leandro to purchase and repurpose the Nimitz Motel into 29 shelter units for temporary stays
  • $9.7 million for Hayward and Union City to acquire up to seven single-family homes to create 37 permanent housing units

With a budget of $3.75 billion, Homekey has funded over 14,000 housing and shelter units across California, aiding the state’s unhoused population of more than 170,000. 

“This new grant award brings Oakland to a total of 323 total housing units through seven awarded Homekey projects to date, meaning new homes for 323 of our most vulnerable residents,” said Oakland Mayor Sheng Thao.

The development of a single affordable housing unit can cost nearly $1 million in the Bay area. But Homekey is able to complete constructions for less than half that amount.

“Homekey continues to demonstrate that we can build quickly, and at a fraction of the usual cost, to deliver much-needed affordable homes for Californians struggling to find a place to live,”

said California Gov. Gavin Newsom

The state announced on November 7 its allocation of over $156 million in Homekey awards. This will generate 556 new homes and shelter units for a dozen projects across six counties. There is a remainder of approximately $400 million to be awarded during the current round of funding. 

If you are interested in learning about other Homekey awardees, visit


Scroll to Top