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Santa Cruz and Santa Clara were awarded $24.9 million to create 79 homes with a particular focus on homeless youth, adding to the more than 10,000 homeless housing units already created through Homekey.

Homekey is a $3.75 billion nation-leading program creating thousands of new homeless housing units through the purchase of hotels and other buildings.

Governor Newsom’s $14 billion plan to confront the state’s homelessness crisis will provide 55,000 new homeless housing units.


“The awards announced today are a signal to our young people and families in need of assistance in these two cities that help is on the way,” Governor Newsom said. “Our commitment continues to be to use every tool available to us to get Californians of all ages the housing and services they need. And Homekey continues to lead the way with targeted investments and innovation.”

“Resources derived from Homekey will be used to maximize safe, permanent, supportive housing and on-site services for our local veterans, students and families who are unsheltered in Santa Cruz County,” said Senator John Laird. “Thank you to the Newsom Administration and all those who have led efforts to provide affordable housing solutions in our city and county government along with the passionate advocates who are determined to make Santa Cruz County affordable for all.”

“The high population of unhoused youth and veterans is frankly unacceptable and it is our responsibility to provide them with proper stability and support,” said Assemblymember Mark Stone. “These new housing projects will help us to do just that. This is an important and proactive step in combatting the homeless crisis.”

“About 80 percent of unaccompanied youth experiencing homelessness in California are unsheltered, sleeping in cars, on sidewalks, or in places not meant for human habitation,” said California Business, Consumer Services and Housing Agency Secretary Lourdes Castro Ramírez. “We know that to end homelessness, youth and young adults need stable housing, supportive connections and access to services. This requires significant investments from the state and decisive action from our local partners, such as those we see in Homekey.”

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