Alameda taps state Homekey funds for housing project

Disnity Village will use $12M allocated before governor suspended distributions

Mayor Marilyn Ezzy Ashcraft and renderings of the project (Getty, Dignity Moves)
Mayor Marilyn Ezzy Ashcraft and renderings of the project (Getty, Dignity Moves)

The City of Alameda will use $12.3 million of state funds it received earlier this year to address homelessness to develop a two-story, 47-unit multifamily property, according to plans filed by the city.

The East Bay city is partnering with San Francisco-based Dignity Moves to develop the project. The funding came from Governor Gavin Newsom’s initiative, Project Homekey, which aims to help cities address homelessness in the state.

The plan for 2350 Fifth Street calls for 38 units allocated for chronically unhoused people, four units for general or recently unhoused people and five units for transitional age youth who are unhoused or at risk of being unhoused. Each unit will consist of 168-square-foot rooms, including a private bathroom. The project will have community spaces, including a dining space, community garden and courtyard, as well as meeting rooms and private offices.

“I’m thrilled that the State of California has recognized the significance of this project,” Mayor Marilyn Ezzy Ashcraft said in a statement. “As the city works to end homelessness in Alameda, Dignity Village will provide life-changing, and lifesaving, opportunities for its residents.”

The city also announced it has obtained $2.35 million from Alameda County to fund five years of operating expenses. Homekey rules state applicants must guarantee that operational costs for prospective projects are secured for at least five years.

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The city has partnered with the nonprofit Five Keys to run operations at the building. The organization will offer free adult education as well as support in obtaining permanent housing; addiction, mental health and medical care; public benefits; and referrals to employment services.

Project Homekey was announced in 2019 and provided $2 billion in homeless spending to local jurisdictions. The governor surprised many city officials across the state when he announced he was suspending $1 billion in funds until cities “do better” to address homelessness.

“Californians demand accountability and results, not settling for the status quo,” Newsom said in a statement. “As a state, we are failing to meet the urgency of this moment. … Everyone has to do better — cities, counties and the state included.”

This summer cities and counties were required to submit action plans to the state on how they will address homelessness. Collectively, plans would reduce homelessness by 2 percent from 2019-2024, which the governor called “unacceptable.” Some cities project double-digit increases in homelessness over the next four years. For Dignity Village, Alameda is using funds from the state’s previous round of financing that were dispersed this spring.

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