Gov. Newsom proposes investing $12 billion to end family homelessness in California within five years

(Justin Sullivan/Getty Images)

By Sri Ravipati

(SAN FRANCISCO) Gov. Gavin Newsom on Tuesday unveiled a $12 billion budget proposal to address California's homelessness with an ambitious goal to end family homelessness over the next five years.

Newsom is seeking to spend $3.7 billion toward rental support and other services to this end.

The lion's share of the budget would be given to his signature program Project Homekey, which is the second phase of Project Roomkey. The programs have provided housing to 36,000 Californians combined.

"These programs move with a sense of urgency unlike anything California has seen before," Newsom said during a press conference for the proposal Tuesday.

Newsom wants to spend $8.75 billion over two years for Project Homekey, which converts hotels, motels and vacant buildings into permanent housing options.

Homekey was piloted last year and funded by nearly $800 million in federal coronavirus aid. The program helped dozens of California's cities and counties, providing nearly 6,000 housing units with supportive services during the pandemic.

Of these converted spaces, more than 1,500 units are in the Bay Area, including San Francisco’s former Hotel Diva and the Granada Hotel, the San Francisco Chronicle reported.

"Converting hotels to housing is a key part of our Homeless Recovery Plan, which will be the largest expansion of permanent supportive housing in 20 yrs," San Francisco Mayor London Breed tweeted. "These investments by Governor Newsom will make a real difference transitioning people off our streets."

Newsom estimates that the new proposal would pay for at least 46,000 housing units for the homeless community.

The proposal is part of Newsom's $100 billion California Comeback Plan, which is aimed at addressing five of the state's biggest challenges, ABC 7 reported.

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