Governor rolls out Homekey+ and new housing and homelessness law

By Caroline Grinder, legislative affairs lobbyist

Last week, Gov. Gavin Newsom announced the upcoming availability of $2.25 billion in Proposition 1 funding, along with changes to the state’s housing planning process.

These investments will fund permanent supportive housing for people experiencing or at risk of homelessness. Half of the funding will be set aside for veteran housing projects. Cities are eligible to apply for all available funding.

The program, Homekey+, is modeled on the existing Homekey program but will go a step further by pairing new units with mental health and substance use services. The goal is to fund more than 4,000 new housing units with supportive services by converting existing buildings.

Homekey+ will launch in November, with applications opening in January. Funding will be distributed starting in May 2025.

The announcement also came with new resources, including a fact sheet on Homekey+ and a detailed program overview. The Department of Housing and Community Development is requesting feedback on these materials. Cities interested in providing feedback must do so by Sept. 30.

The state has expedited the rollout of Prop. 1 funds since its passage earlier this year. Applications are currently open for over $3 billion to fund behavioral health housing and infrastructure.

What will AB 3093 do?

The Governor also signed his sponsored bill, AB 3093 (Ward). The measure will add new income categories to the Regional Housing Needs Assessment, which lawmakers say would help assess the needs of homeless residents.

Cal Cities had an oppose unless amended position on AB 3093 since Asm. Chris Ward introduced the bill and worked closely with his office on several clarifying amendments. Asm. Ward incorporated many of Cal Cities’ requested changes. However, Cal Cities ultimately requested a veto as the measure did not come with any ongoing funding and duplicated existing efforts.

The Department of Housing and Community Development must develop guidance by the end of 2026 to help cities meet this measure's obligations. Cal Cities will provide updates as more information on implementation becomes available.