A suited speaker stands at a podium bearing the California governor’s seal, with U.S. and state flags behind the podium

Governor Newsom Launches the Prop 1 Homekey+ Initiative

By Jayden Park

The Public Policy Institute of California annually measures levels of sheltered and unsheltered homelessness via the point-in-time (PIT) count of a nation’s homeless population in a single January night. The 2023 PIT count released last December estimated that more than 180,000 people in California were experiencing poverty–a 6% increase from the previous count–but did not account for the unsheltered populations, so the number may be higher than quantified. Additionally, Continuums of Care (CoCs)—nonprofits and government entities focusing on homelessness and poverty—reported a 7.5% increase in homelessness between 2002 and 2023. These increases in sheltered and unsheltered homelessness can be attributed to rising rent costs since 2020 and shortages of shelter beds. Conversely, increased temporary housing and support services have reduced the unsheltered population, but those measures often faced backlash and rolled back due to encroaching on neighborhoods.

Instead of temporary housing, Governor Newsom signed a new bipartisan package on September 19 to address the housing crisis by streamlining housing production and increasing accountability for state housing laws. Newsom also announced Homekey+, which extends the previous Homekey model via $2.25 billion in funding through Proposition 1 to build 4,000 new houses for veterans and people with behavioral disorders and emphasize the recreation of existing buildings to ones that can house individuals. Specific details of the funds are to be released in November, but it is expected that of the $2.25 billion funding, $1.033 billion will go to veteran-serving projects, $1.096 to all projects including Proposition 1 and HHAP (Homeless Housing, Assistance, and Prevention Program) Homekey supplemental funds, and $121 million to Tribal Applicants.

Homekey+ will not award interim housing projects or previously awarded Homekey projects but provides applicants eligible uses on rehabilitation of motels, hotels, and hostels, construction of dwelling units, purchase of affordability covenants, and more that focus on the creation of new homes or rehabilitation of existing infrastructure.

References:

Office of Governor Gavin Newsom. (2024, September 19). Governor Newsom signs bipartisan housing package and launches Prop 1 Homekey initiative. State of California. https://www.gov.ca.gov/2024/09/19/governor-newsom-signs-bipartisan-housing-package-and-launches-prop-1-homekey-initiative/

Office of Governor Gavin Newsom. (2024, September 19). Homekey Plus draft guidelines. State of California. https://www.gov.ca.gov/wp-content/uploads/2024/09/20240919_Homekey-Plus_Draft-Guidelines.pdf

Public Policy Institute of California. (2023, September 25). An update on homelessness in California.https://www.ppic.org/blog/an-update-on-homelessness-in-california/

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