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California's Homekey: Billions Spent, Mixed Results
8 May
Summary
- Billions allocated to convert motels into homeless housing.
- Many projects faced significant delays and budget overruns.
- Transparency and accountability issues plague the program.
California's Homekey program, launched in 2020 with over $3.8 billion, aimed to quickly convert motels and other buildings into homeless housing. The initiative, born from the COVID-19 crisis, allowed local governments to bypass some usual building processes for speed.
However, the program's outcomes have varied significantly. While nearly 13,500 people are now housed in Homekey sites, around 1 in 5 promised homes were not finished by the end of last year. Issues like blown budgets, delays, and even developer bankruptcy have surfaced.
A lack of transparency and public accountability surrounds the program. State lawmakers recently rejected a bill to audit Homekey, and no state agency has thoroughly analyzed its successes and failures. This opacity continues as a new phase, Homekey+, receives up to $2 billion from a mental health bond.
Despite varied results, Governor Gavin Newsom considers Homekey a "phenomenal success," highlighting the scale of the effort. Critics point to a fundamental mismatch in the program's demands for speed, quality, and low budgets. Ongoing funding for the long-term operation of these projects remains a critical question.
