LA set to receive $20 million for housing project

Los Angeles will receive nearly $20.5 million in funding for the Estrella Azul Project, a permanent housing project that will consist of 79 units dedicated to homeless individuals experiencing behavioral health challenges.

The funds come from Homekey+, a program through the California Department of Housing and Community Development that is geared toward building affordable housing specifically for veterans and individuals at risk of or currently experiencing homelessness who also deal with mental health or substance use challenges. Voters approved Proposition 1 in March 2024, which allocated $2.2 billion for the program.

“California has built a strong system to help local communities address the homelessness crisis," said Gov. Gavin Newsom in a news release on Wednesday, adding "For decades prior to my administration, state leaders turned their backs on those dealing with mental health and addiction. I am committed to rebuilding a strong system of support and accountability to ensure that no one suffers on our streets without help. No more excuses — everyone must step up to address this crisis.”

In collaboration with A Community of Friends, a non-profit that develops, owns and manages affordable rental housing, L.A. will build 80 units in total, including one manager’s unit, a 615-square foot fitness room, onsite laundry, a computer lab, a BBQ area and gardens.

The Estrella Azul Project will also be supported with financing by the National Housing Trust Fund, No Place Like Home, a Community Development Block Grant as well as an Infill Infrastructure Grant, totaling more than $30.9 million. 

Mental health and support services will be an integral part of the housing project and will be supported by the L.A. County Department of Mental Health and Department of Health Services.

Local communities were able to apply for the funding last November. In addition to LA, the cities of Rancho Cordova, Chula Vista, Oakland, Napa and Glenn County will receive $52.7 in total funding, bringing the number of supportive housing units in this award round to 321. 76 of those units are reserved for veterans and six units will be for on-site managers.

“This new round of Homekey+ awards is more good news for California veterans and their families,” said CalVet Secretary Lindsey Sin in the news release. “We appreciate the hard work of the California Department of Housing & Community Development and other partners in creating innovative housing solutions across the state for those who have served our nation with honor and courage.”

The road to Homekey+ started in April 2020, when the state launched Project Roomkey, a temporary emergency housing program that put high-risk, homeless individuals with COVID-19 in hotels. A few months later, this turned into the original Homekey program, which was launched to acquire hotels, motels, hostels and other properties that could be converted into temporary and permanent housing for people experiencing homelessness.

Three rounds of the original Homekey project gave $3.6 billion for communities to develop 261 projects and nearly 16,000 affordable units for vulnerable populations.

Including the awards announced on Wednesday, Homekey+ has so far funded an additional $284.6 million worth of affordable housing, including 825 homes spanning across 16 projects throughout the state.