New funding more than doubles available Homekey+ housing for veterans statewide

October 16, 2025 - SACRAMENTO – While the Trump administration turns its back on those who served, California continues to honor its 1.5 million veterans — creating stronger supports and housing dedicated to serving veterans. Governor Gavin Newsom today announced new awards to fund the development of 707 permanent supportive homes with services for veterans and other Californians who are experiencing or at risk of homelessness and living with behavioral health challenges, along with 13 manager units. 

Finding affordable housing can be extremely difficult for veterans, especially if they have experienced post-traumatic stress disorder, have suffered from a traumatic brain injury, or live with mental-health issues. Remaining stably housed can be even more difficult, especially without mental health support.

California stands with veterans

Prop 1, which was championed by Governor Newsom and approved by voters in 2024, is transforming California’s mental health systems with a $6.4 billion Behavioral Health Bond for housing, services, and treatment for veterans and people experiencing homelessness.  Additionally, more than $2.1 billion of this funding is available for local Homekey+ projects. Homekey+ provides funding for local communities to build permanent supportive housing with wrap-around services, with approximately 50% of the funding set aside for projects serving veterans.

Honoring those who served

In November 2024, the California Department of Housing and Community Development (HCD), in collaboration and partnership with the California Department of Veterans Affairs (CalVet), released a $2.145 billion Notice of Funding Availability (NOFA) for permanent supportive housing through the Homekey+ program. Modeled after Governor Newsom’s highly successful Homekey program, Homekey+ was created with funding from voter-approved Proposition 1, which also provides funding to build residential care settings and expand access to behavioral health treatment. 

With today’s awards, Homekey+ has so far allocated $540.4 million to support 32 projects that will create 1,517 affordable homes with supportive services throughout California. Of these homes, 395 are reserved for veterans experiencing or at risk of homelessness with behavioral health challenges. 

“California is continuing to invest in people and neighborhoods across the state, providing affordable housing and supportive services for Californians who are experiencing homelessness and living with behavioral health challenges”, said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. “Through Homekey+, California will continue to lead—as it has on so many fronts—in demonstrating what is possible through interagency partnership, state and local collaboration, and a shared commitment to basic human dignity for our veterans and others facing behavioral health challenges.”

“CalVet celebrates another round of new Homekey+ awards, as well as expanded support for previously announced projects,” said CalVet Secretary Lindsey Sin. “California once again demonstrates national leadership in providing housing solutions for veterans and their families. We recognize the dedication of the California Department of Housing & Community Development and all our partners as we move forward with much-needed housing for those who have served our nation.” 

“Each of these awards represents a pathway to stability and opportunity for so many Californians who have struggled to maintain housing amid rising costs and personal challenges, including our nation’s veterans,” said HCD Director Gustavo Velasquez. “Modeled on the Governor’s highly successful Homekey program—and made possible by the forward-thinking voters of this state—Homekey+ is laying the foundation for generational impacts and continued reductions in unsheltered homelessness.”

The awards announced today total $251.8 million to create 707 permanent supportive homes, with 231 units for veterans, in the counties of Alameda, Amador, Fresno, Los Angeles, Marin, Riverside, San Diego, San Francisco, San Joaquin, Solano, Sonoma, and Tulare. A full list of awards can be viewed here.

Programs that work

The Homekey+ program is modeled after the Governor’s highly successful Homekey program, which helped local governments transform existing buildings — such as commercial spaces, hotels, motels, adult residential facilities, and manufactured housing — to permanent or interim housing for the target population. Across three rounds of the original Homekey program, HCD awarded more than $3.6 billion to fund 261 projects with 15,962 homes expected to house more than 175,000 Californians over the projects’ lifetimes.

Getting veterans housing

The Homekey+ program is just one strategy to ensure that veterans can access supportive housing. In addition, the Veterans Housing and Homelessness Prevention program helps develop new affordable housing specific for veterans and their families who are experiencing homelessness or have extremely low income. CalVet so far has awarded $580.5 million in permanent loan financing to 99 multifamily affordable, permanent, supportive housing projects through eight competitive rounds of funding. As of October 2025, 75 projects have completed construction, with 5,190 units occupied or in the process of leasing. Once all awarded projects are built, California will have added 6,561 units of affordable, permanent supportive housing for veterans. 

Through legislative action, budget investments and key partnerships, California continues to stand up for our esteemed military members and veterans. Through CalVet, the state provides resources and support to veterans and their families through state and federal benefits they have earned through their selfless military service.  Learn more about the many ways that California honors veterans here. 

Results that matter

Since taking office in 2019, Governor Newsom has created unprecedented policy and structural changes in state government to help California better address its housing and homelessness crises, including additional and unprecedented support for local governments, stronger accountability and enforcement, transformational changes to mental health services and state government, and groundbreaking reforms to create more housing, faster than ever before.

Turning a national crisis around

The Newsom administration is making significant progress in reversing decades of inaction on homelessness. This year, many of California’s communities are reporting reductions in homelessness.

Last year, California also achieved the nation’s largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness. The state also held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%. States like Florida, Texas, New York, and Illinois saw larger increases both in percentage and absolute numbers. In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to just 3% — a lower rate than in 40 other states.

Source: Office of the Governor