California tackles homelessness with $119M rural housing initiative

May 7, 2025

California Gov. Gavin Newsom and the state’s Department of Housing and Community Development (HCD) have announced $118.9 million in federal funding. The money is intended to expand affordable housing and supportive services across 29 rural and tribal communities in the state.

Numerous projects will be completed using the funding. Each will focus on serving qualifying populations, including those experiencing homelessness, survivors of domestic violence or trafficking and others with a high risk of housing instability. The awards will fund the development of 487 affordable rental homes, emergency shelters, rapid rehousing initiatives and outreach services. All are intended to help low-income and unhoused Californians achieve housing stability. The projects will be completed across numerous California counties including Del Norte, El Dorado, Kings, Lake, Madera, Mendocino, Merced, Monterey and Placer.

The more than $100 million in federal funding comes from the American Rescue Plan Act of 2021, which allocated $5 billion nationwide to reduce homelessness. The state of California received $512 million directly from the U.S. Department of Housing and Urban Development (HUD). An additional $155 million was administered by HCD for use in rural and non-entitlement jurisdictions.

The newly announced project funding was awarded from three federally backed programs: the HOME Investments Partnerships American Rescue Plan (HOME-ARP), HCD’s Housing Plus Support Program (HPSP) and the Emergency Solutions Grants (ESG).

HOME-ARP

$89 million in rental housing grants was awarded to 10 projects that will complete 487 affordable rental homes. This also includes 184 HOME-ARP funded units for low-income households and other qualifying populations. Another $18.7 million of this award will be directed to the Yurok Indian Housing Authority and the Big Valley Band of Pomo Indians to build 31 affordable units.

HCD’s HPSP

Six projects designed to assist households currently experiencing or at risk of homelessness will be funded through a $26.4 million grant. The awards were given to the top-scoring applications in each region.

  • Region 1: Northern California – $6,534,000 to True North Housing Alliance, Inc., primarily serving Butte County
  • Region 2: Bay Area – $3,267,000 to SHELTER, Inc., primarily serving Solano County
  • Region 3: Central California – $6,831,000 to Kings Community Action Organization, primarily serving Kings County
  • Region 4: Greater Los Angeles – $3,267,000 to N.O.A.H’s Foundation, primarily serving Los Angeles County
  • Region 5: Southern California – $3,267,000 to His Daughter’s House, primarily serving Riverside County
  • Tribal Target: Yurok Indian Housing Authority – $2,970,000, primarily serving Humboldt County

ESG

The ESG program’s competitive Balance of State awards will fund 19 grants totaling $3.4 million. The money can be used on projects engaging Californians experiencing homelessness, supporting emergency shelters and the services they provide and rapidly rehousing Californians experiencing homelessness.


Photo by Pixabay via Pexels

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