The City of San Luis Obispo and People’s Self-Help Housing Corporation (PSHHC) were awarded a $19.4 million from the California Department of Housing and Community Development for the California Homekey Program to buy and convert a Motel 6 into housing options that will help reduce and prevent homelessness in San Luis Obispo.
“Homekey is a national model for rapidly creating affordable housing for Californians in need,” said Governor Gavin Newsom. “In a few short years, this initiative has created more than 15,000 homes, to help over 163,000 people. Homekey demonstrates what is possible when people think outside the box and refuse to accept the status quo.”
This Homekey Round 3 grant will fund the Calle Joaquin Homekey Project, which is an essential part of the City’s Homelessness Strategic Response Plan to provide much-needed permanent supportive housing units in San Luis Obispo.
Permanent supportive housing is designed to help people permanently avoid homelessness by receiving ongoing support such as case management, mental health services, education services, life skills training, transportation, and more. People’s Self-Help Housing will lead the project to convert Motel 6 North into more than 70 permanent supportive housing units for families, individuals and youth experiencing or at-risk of homelessness.
“We are grateful to the Governor’s Office and for our partnership with People’s Self-Help Housing Corporation and the County of San Luis Obispo,” said Derek Johnson, City Manager. “The award of these funds is significant in our efforts to reduce homelessness and permanent supportive housing is a key missing piece of our County and City strategic plans.
The average number of people experiencing homelessness in San Luis Obispo city limits has fluctuated between 482 and 385 since 2015, according to local Point-in-Time Count Data. Of those experiencing homelessness in the City, an average of 37% have been unsheltered, meaning that they reside in places not meant for human habitation including public spaces, vehicles, and abandoned buildings. Homelessness has also been on the rise in the United States since 2016. As a result, Federal and State funding has increased to address issues related to homelessness.
The California Department of Housing and Community Development manages the Homekey Program to sustain and rapidly expand housing for persons experiencing homelessness or at risk of homelessness throughout the state. This year, the California Department of Housing and Community Development announced the availability of $736 million of Homekey Program grant funding. To date, more than $605 million of funding has been awarded in the Homekey Round 3 to fund 35 projects.
“Over a three-year period, Homekey has funded projects that will provide housing security to more than 163,000 Californians over the decades to come,” said HCD Director Gustavo Velasquez. “The current set of awards includes housing dedicated to veterans, and the conversion of a shuttered hospital to shelter those experiencing homelessness. This program has allowed jurisdictions to get creative with adaptive reuse of existing spaces, and with providing a full array of services that help make homelessness rare, one time, and non-recurrent.”
In April 2023, City Council authorized staff to apply for the Homekey Round 3 Grant Program in partnership with People’s Self-Help Housing. In addition to Homekey grant funding, the County of San Luis Obispo has committed $2.6 million for Calle Joaquin Homekey Project. The Balay Ko Foundation has also committed $800,000 in gap funding towards acquisition costs and Wells Fargo committed $150,000 in Homekey Accelerator Funds. The Housing Authority of San Luis Obispo (HASLO) committed $1.152 million annually, for a 15-year term starting in year 4 of the project, for project-based vouchers for the permanent supportive housing units.
“We are very grateful for the City of San Luis Obispo’s leadership, that spurred this effort to substantially address our community’s critical need for more affordable housing,” said Ken Trigueiro, CEO & President of People’s Self-Help Housing Corporation. “And we are excited to play a part in such a collaborative and accelerated response to provide permanent supportive housing for those experiencing homelessness in San Luis Obispo County.”