Homekey+

The Homekey+ Program is administered by the California Department of Housing and Community Development in collaboration with the California Department of Veterans Affairs. It is a large-scale state funding initiative designed to expand the availability of Permanent Supportive Housing for individuals and households experiencing or at risk of homelessness who also have behavioral health challenges. The program builds on prior Homekey efforts and is funded primarily through Proposition 1, which includes the Behavioral Health Infrastructure Bond Act and supplemental state homelessness funding sources. The program reflects California’s broader strategy to reduce homelessness while integrating housing with behavioral health services. The primary purpose of the Homekey+ Program is to fund the development, acquisition, rehabilitation, or construction of permanent supportive housing units. These units must serve individuals with behavioral health conditions, including serious mental illness or substance use disorders, and who are homeless or at risk of homelessness. A significant portion of funding is prioritized for veteran-serving projects, and additional allocations are designated for youth and rural communities. The program emphasizes the Housing First model, which requires that housing be provided without preconditions such as sobriety or participation in treatment programs. Eligible uses of funds are broad and include acquisition and rehabilitation of existing buildings such as hotels, apartments, or commercial properties; adaptive reuse projects; new construction; master leasing; gap financing; and operating subsidies. Interim housing is not eligible. Projects must result in permanent supportive housing with long-term affordability restrictions of at least 55 years. Funding may also support relocation costs, supportive services infrastructure, and capitalized operating reserves. The program includes both capital and operating funding components, with structured match opportunities to increase funding per unit. Eligible applicants include local public entities such as cities, counties, public housing authorities, and regional agencies, as well as tribal entities. These entities may apply independently or jointly with nonprofit or for-profit development partners. Applicants must demonstrate capacity to develop and operate supportive housing, including experience with Housing First principles and provision of supportive services. Projects must include comprehensive supportive services plans addressing case management, mental health care, substance use treatment, employment services, and other supports necessary to maintain housing stability. The application process is continuous and over-the-counter, meaning proposals are accepted on a rolling basis until funds are exhausted. Applicants are required to complete a pre-application consultation with the state prior to submission. Applications must include detailed development plans, funding commitments, site control documentation, environmental assessments, and supportive services strategies. Evaluation prioritizes readiness, inclusion of veteran units, operational sustainability, and strength of partnerships, particularly with local behavioral health agencies. Awards are issued on a continuous basis, with announcements expected to begin in mid-2025 and continue as long as funding remains available. Projects must meet strict timelines, including completing construction within 12 to 24 months depending on project type, and achieving occupancy shortly thereafter. Operating funds may extend up to ten years or longer in some cases. The program is expected to operate on a recurring basis aligned with state funding cycles, with annual reporting requirements following project completion. For additional information, applicants can access program materials through the California Department of Housing and Community Development website or contact the program directly via the Homekey email address. The program reflects a significant investment in long-term housing solutions tied to behavioral health services and prioritizes scalable, rapid deployment of supportive housing across California.

Prioritize project readiness secure long term service funding demonstrate strong partnerships and select sites that can be quickly converted or developed