The California Department of Housing and Community Development (HCD) Project Homekey is a $1.4 billion statewide initiative aimed at reducing and preventing homelessness throughout California. By offering this unprecedented funding opportunity to local governments along with additional tools to rapidly convert or construct new housing units, Project Homekey offers hope for those struggling with housing insecurity.
Data based on units permitted through 2020 and reported to the California Department of Housing and Community Development. Updated 2021 data to be posted once available.
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HCD’s Project Homekey offers competitive, project-specific awards to create a range of housing types, from hotel and motel conversions to single-family homes and multi-family apartments. For more background on Project Homekey, click here.
Consistent with the County’s strategic framework to address homelessness, the County of Santa Cruz has applied for Homekey funding for four projects to house extremely low income individuals and families at risk of homelessness. If awarded, these projects will reduce the impact of homelessness on individuals, families and the community.
The four proposed Homekey developments are not drop-in centers, congregate living facilities or overnight shelters. They will be permanent supportive housing, which is standard rental housing with the added benefit of onsite supportive services, such as help accessing health care, life skills and other services, provided by dedicated service providers that partner with the property owner and manager.
Permanent supportive housing provides one of the best opportunities for people experiencing or at risk of homelessness to establish housing stability and begin meeting life goals such as career development and financial stability. The proposed developments also meet the County’s strategic objectives and help meet regional requirements for creating new affordable housing (see graphic).
The proposed projects are distributed throughout the County including two in the unincorporated area, addressing another key objective to provide supportive housing throughout the County. Developments within local cities are being coordinated with those cities.
Veterans Village, 8705 Highway 9, Ben Lomond
In partnership with the Santa Cruz Veterans Memorial Building Board of Trustees, the project converts an existing motel at 8705 Highway 9 into 20 units of permanent supportive housing for veterans at risk of or currently experiencing homelessness. The project will offer modular or newly constructed units to supplement existing structures, serving an estimated 20-24 tenants. Units will be studios and one-bedroom units.
The Danco Group will provide property management and supportive services to tenants along with staff from the Santa Cruz County Veterans Memorial Building Board of Trustees.
Status: Awarded $6.4 million; Construction still pending; five formerly homeless households have moved in to housing on-site.
Project News: Veterans Village | A better future for all of our Veterans
Casa Azul (801 River Street), Santa Cruz
Led by Housing Matters in partnership with Envision Housing, the seven-unit Victorian office building conversion produces two studios and five one-bedroom units. The project offers new permanent supportive housing near Housing Matter’s existing services and campus on Coral Street, which includes the Loft, the Recuperative Care Center, the Rebele Family Center, and the Page Smith Community House.
Status: Awarded $2.24 million; Construction completed; The project reached full occupancy in September 2023.
Project News: Housing Matters completes Santa Cruz’s 7-unit ‘Casa Azul’ apartments – Santa Cruz Sentinel
Park Haven Plaza, Soquel
The project will provide 35 units, 31 for very low-income veterans and youth exiting the foster care system, and four units set aside for families with children under age 18, and one manager's unit. The project construction will be modular construction. The site is located near major transit and traffic routes and is near Cabrillo College, providing residents with educational and programmatic opportunities offered through the school.
Status: Awarded $10.66 million; Under construction.
Project News: Novin Development
Freedom House, Unincorporated Watsonville
In partnership with CFSC, Inc., the project includes rehabilitation and conversion of a children’s residential treatment program into a transitional housing program for youth experiencing homelessness. The project will include 11 self-contained studio units with kitchenettes and bathrooms, a common kitchen area, indoor and outdoor gathering spaces, and on-site supportive services.
Bill Wilson Center will provide the supportive services to the youth, while Front St. Services will provide the property management for the site.
Homekey application amount: Up to $3.5 million; Status: Awarded $3.58 million in Round 3 funding. Construction still pending.
If you have questions or would like more information about Project Homekey efforts in Santa Cruz County, please e-mail us at info@homelessactionpartnership.org or call (831) 454-7312.