California Today

Newsom's $3.8B Hotels-to-Housing Program: Mixed Results

07 May 2026 06:35

A CalMatters investigation into California's Homekey program reveals a mixed record of success and failure. The program, which allocated $3.8 billion to convert motels into homeless housing, has housed nearly 13,500 people but left about 3,000 promised homes unfinished.

- In Glenn County, the program funded the county's first-ever homeless housing, a major achievement for a small rural community. - In Coachella and other areas, projects faced delays, cost overruns, and even fraud charges.

- The lack of public oversight has raised concerns, as state lawmakers recently killed a bill to audit the program. Despite these challenges, Governor Newsom has called Homekey a "phenomenal success." The program's next phase, Homekey+, is already underway, but questions about transparency and long-term funding remain.

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Coachellahousingpoliticsmoney