Newsom’s $12B plan for homeless would build 45K homes

Facing recall, governor made ambitious program part of $100B economic recovery plan

Los Angeles /
May.May 12, 2021 11:47 AM
Gov. Gavin Newsom (Getty, iStock)
Gov. Gavin Newsom (Getty, iStock)

Gov. Gavin Newsom wants to spend $12 billion over the next two years to address one of the biggest crises facing California: Homelessness.

About $8.7 billion would go toward building 46,000 homes and expanding Project Homekey, the state’s program to buy and convert hotels and other buildings into residential housing, according to the Los Angeles Daily News.

Newsom, who is facing a recall election, announced the plan Tuesday, detailing a wider $100 billion economic recovery package. It would be paid for with $76 billion in surplus funds for the new fiscal year, and $26 billion in federal coronavirus relief dollars.

Some $5.2 billion is earmarked to help Californians cover back rent and another $2 billion for help with overdue utility bills. The state would hand out $600 stimulus checks for households with incomes below $75,000.

Newsom set a lofty goal of ending homelessness for families statewide within five years. Part of the funding for that goal includes $1.6 billion in rental support to prevent people from being evicted. He said that program could prevent 300,000 people from losing their homes.

The state launched Project Homekey last year as a successor to Project Roomkey, which rented hotel rooms as temporary housing for unhoused residents especially vulnerable to Covid-19. The state spent $850 million last year on the program, creating 6,000 new units of housing.

Newsom’s program also includes giving $50 million to local governments to address sidewalk encampments in a “responsible and respectful way.” Encampments have been a major source of tension between property owners and people living on the street.

Earlier this year, Jerico Development came under fire for blasting the “Barney & Friends” theme song to drive people from near one of their San Pedro properties.

[LADN] — Dennis Lynch 


Related Articles

arrow_forward_ios
Mayor Eric Garcetti (Wikipedia, iStock)
City of LA approves settlement to spend $3B to house the homeless
City of LA approves settlement to spend $3B to house the homeless
L.A. County Supervisor Kathryn Barger (Getty Images, iStock)
LA County to create new agency to focus on homelessness
LA County to create new agency to focus on homelessness
Mansion, Taxes, Rich, Ballots
Push for ballot measure to tax resi sales over $5M moves forward
Push for ballot measure to tax resi sales over $5M moves forward
A photo illustration of 1164 North Kenmore Avenue in East Hollywood (LoopNet, iStock)
LA County to convert East Hollywood apartments for homeless youth with Project Homekey
LA County to convert East Hollywood apartments for homeless youth with Project Homekey
Caruso takes lead in race for LA mayor: LA Times poll
Caruso takes lead in race for LA mayor: LA Times poll
Caruso takes lead in race for LA mayor: LA Times poll
L.A. Alliance for Human Rights' Elizabeth Mitchell (Getty, L.A. Alliance for Human Rights)
L.A. Alliance doubles down on federal lawsuit over homelessness solution
L.A. Alliance doubles down on federal lawsuit over homelessness solution
Good Night Inn 1675 Industrial Park Ave. and Former Ayres Lodge at 1900 (Google Maps, iStock)
State to pay for conversions of Inland Empire hotels for homeless
State to pay for conversions of Inland Empire hotels for homeless
850 La Brea Avenue (Urbanize.city, iStock)
City of LA eyes Mid-Wilshire apartment complex through Project Homekey
City of LA eyes Mid-Wilshire apartment complex through Project Homekey
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...