Housing Policy to Pay Attention to Right Now in Sacramento

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– What’s in (and out of) the state budget

– The housing bills gaining traction and the ones quietly dying

– How this legislative session could shape housing access in our region for years to come

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July 16, 2025

First Homekey+ Awards Signal Major Step Forward

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Image Source: Office of the Governor via Los Angeles Blade

The state has announced the first awards under Homekey+, a bold initiative to create permanent supportive housing for veterans and Californians with behavioral health needs. Nearly $103 million was awarded to seven projects across five counties. While no projects in Santa Clara County received funding in this round, additional opportunities remain as the program continues to review applications on a rolling basis.

Last month, Governor Newsom and the California Department of Housing and Community Development (HCD) announced the first round of Homekey+ funding allocations, awarding nearly $103 million to seven projects that will create 315 permanent supportive housing units across 5 counties. These awards mark a significant milestone in the rollout of Homekey+, a program which was modeled on the state’s successful Homekey initiative and expanded through Proposition 1, approved by voters in March 2024.

Although no projects in Santa Clara County were selected in this initial round, Homekey+ funding remains available, and more awards are expected in the coming months. HCD has already received 67 applications totaling over $1.1 billion in requests, and the program continues to accept and evaluate proposals on a rolling basis. We encourage local jurisdictions and developers to continue pursuing this resource.

So, what exactly is Homekey+? The program expands the mission of the original Homekey initiative by combining capital funding with wraparound services, specifically for veterans and individuals facing behavioral health challenges. It represents a housing-first approach designed to deliver deeply affordable, service-enriched homes faster than traditional affordable housing models.

The funding that powers Homekey+ comes largely from the $6.38 billion Behavioral Health Infrastructure Bond Act (BHIBA), a component of Proposition 1, which was narrowly approved by California voters in March 2024. In addition to creating a general obligation bond, this measure restructures the Mental Health Services Act (MHSA) such that a greater proportion of its existing funds will be used to finance permanent supportive housing for veterans and Californians managing behavioral health needs or chronic homelessness. While this shift sparked important conversations about maintaining existing culturally-responsive and community-based mental health services, it also opened the door to a more integrated system where housing is recognized as a cornerstone of wellness within the broader behavioral health care continuum.

At SV@Home, we view Homekey+ as a promising and pragmatic approach to expanding the supportive housing pipeline. By streamlining financing and integrating services, the program helps deliver urgently needed housing more quickly and at lower cost. While discussions around Proposition 1 illuminated potential trade-offs and valid concerns around state-wide shifts in the behavioral health system, the resulting investments are beginning to yield tangible, long-term housing solutions for Californians with the most acute needs.