State Allocates $109.6 Million for Veteran Housing and Behavioral Health Projects

SACRAMENTO, California —

Governor Gavin Newsom has directed $109.6 million in voter-approved Proposition 1 funds toward the development of 278 permanent supportive residences in Bakersfield, Contra Costa County, Fresno, and Sacramento. A key component of this allocation is the designation of 103 units specifically for veterans via the state’s Homekey+ program. This funding represents a continuation of California’s broader strategy to address housing instability by expanding access to permanent supportive housing alongside behavioral health services.

According to data released by the Department of Housing and Community Development, the Homekey+ initiative has now distributed $968.4 million across 54 projects statewide. These efforts are projected to result in 2,749 affordable homes. Of the total units created under this specific program, 723 are set aside for veterans. The department noted that these resources are intended to support individuals dealing with behavioral health challenges who are currently homeless or at risk of losing their housing.

Gustavo Velasquez, director of the Department of Housing and Community Development, emphasized the dual purpose of these developments. "The projects create homes with supportive services to give veterans and others a stable foundation for a more hopeful future," Velasquez said. This statement highlights the state’s focus on integrating residential stability with necessary care resources for vulnerable populations.

Lindsey Sin, secretary of CalVet, confirmed that the program currently supports more than 700 homes designated for veterans. She noted that the expansion of these units is critical to meeting the growing demand for specialized housing within the state. The administration stated that these awards help accelerate construction timelines, aiming to provide immediate relief and long-term stability for those served by the initiative.

Proposition 1, which voters approved, established a $6.4 billion Behavioral Health Bond. Once all funded projects are completed, the bond is expected to add more than 6,900 residential treatment beds and 27,500 outpatient treatment slots across California. These additions aim to expand the capacity for housing, services, and treatment for veterans and others experiencing homelessness.

Saratoga, in Santa Clara County in the West Valley of Silicon Valley about 50 miles south of San Francisco, is an affluent suburban community.

"These investments would not be possible without the support of California voters and our key interagency partners." — California Housing and Homelessness Agency Secretary Tomiquia Moss

Source: https://www.gov.ca.gov/2026/07/23/governor-newsom-delivers-109-6-million-in-voter-approved-prop-1-funding-for-278-supportive-homes-including-housing-for-veterans/

Additional information: https://www.hcd.ca.gov/grants-and-funding/homekey-plus