State to pay for conversions of Inland Empire hotels for homeless

Project Homekey program behind 99 rooms in Redlands, 53 rooms in Corona

Los Angeles /
Mar.March 17, 2022 02:30 PM
Good Night Inn 1675 Industrial Park Ave. and Former Ayres Lodge at 1900 (Google Maps, iStock)
Good Night Inn 1675 Industrial Park Ave. and Former Ayres Lodge at 1900 (Google Maps, iStock)

Two hotels in the Inland Empire will be acquired for homeless housing through a $42-million Project Homekey grant from the state.

California awarded the City of Redlands $30 million to buy a 99-room Good Night Inn at 1675 Industrial Park Ave. and convert it into supported housing units for homeless residents, the San Bernardino Sun reported. A $12 million grant was also given to Riverside County and the City of Corona to buy and convert a 53-room former Ayres Lodge at 1900 Frontage Rd.

The Project Homekey grants were among $181 million awarded across the state for 13 hotels and apartment buildings, containing 605 housing units for interim or permanent supportive housing.

The Good Night Inn conversion in Redlands will serve homeless residents, and those verging on homelessness who earn less than 30 percent of the county’s median income. In November, city officials reached an agreement with Shangri-La Industries to acquire and renovate the inn, and with Step Up On Second Street to run the facility.

A major part of the grant will go toward buying and renovating the inn, a Redlands spokesman said. The grant will also pay nearly all the cost of operations for three years, after which the city will begin to pay operating expenses, amortized at about $550,000 a year over seven years.

The converted Ayres Lodge in Corona will be called Vista Dorado, and include supportive housing for homeless residents that will offer mental health services, medical care, education or employment help.

Such grants are being used to target homelessness across Southern California.

Last month, the Housing Authority of the City of Los Angeles voted to spend $508 million on 16 properties for its second round purchases for Project Homekey, a state program that provides funding to buy hotels and apartment buildings for interim or permanent supportive housing.

The 16 properties from Northridge to Harbor Gateway contain 1,276 units, for an average cost of $398,000 per apartment.

At the same time, Los Angeles County targeted another 18 hotels and apartment buildings for a new round of housing purchases for homeless residents for Project Homekey. https://therealdeal.com/la/2022/02/23/la-county-eyes-acquisitions-of-18-hotels-apartments-for-homeless/

Last year, the state allocated $2.75 billion in federal funds to the Project Homekey program through 2023. Since then, it has approved more than 2,400 units of homeless housing

[The Sun, The Press-Enterprise] – Dana Bartholomew





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