Motel 6 in SLO will become affordable housing thanks to $20 million state grant
The city of San Luis Obispo and one of the region’s largest affordable housing providers received nearly $20 million in state funding to buy and convert a Motel 6 into housing.
According to a Friday news release from the city, the California Department of Housing and Community Development awarded a $19.4 million Project Homekey grant to San Luis Obispo and People’s Self-Help Housing.
This most recent funding announcement from the third round of the Homekey program totals around $95.6 million and will be used to create 396 homes in six communities within San Luis Obispo, Oakland, Marin, Lassen, Santa Cruz and San Bernardino counties, the release said.
Since the third round of Homekey funds was announced last year, more than $605 million of the third round’s $736 million has been distributed across 35 projects, the release said.
People’s Self-Help Housing’s renovation project at 1433 Calle Joaquin will convert the existing Motel 6 North into more than 70 affordable housing units, according the news release said.
“Homekey is a national model for rapidly creating affordable housing for Californians in need,” Gov. Gavin Newsom said in the release. “In a few short years, this initiative has created more than 15,000 homes to help over 163,000 people. Homekey demonstrates what is possible when people think outside the box and refuse to accept the status quo.”
The San Luis Obispo City Council first voted to authorize staff to apply for the state funds along with People’s Self-Help Housing in spring last year, according to the release.
The Calle Joaquin Homekey project is part of the city’s Homelessness Strategic Response Plan, and will provide supportive housing units to families, individuals and youth experiencing or at-risk of homelessness.
Permanent supportive housing is a long-term means of homeless recovery and prevention, involving consistent access to case management, mental health services, education, life skills training and transportation.
“We are grateful to the Governor’s Office and for our partnership with People’s Self-Help Housing Corporation and the County of San Luis Obispo,” San Luis Obispo city manager Derek Johnson said in the release. “The award of these funds is significant in our efforts to reduce homelessness, and permanent supportive housing is a key missing piece of our county and city strategic plans.”
The city of San Luis Obispo will allocate $400,000 of matching affordable housing funds for the project, while Wells Fargo committed $150,000 in Homekey Accelerator funds, the release said.
San Luis Obispo County has committed $2.6 million in capital and operational funding to the project, while the Balay Ko Foundation, a Los Angeles-based private donor, will provide $800,000 in gap funding, according to the release.
Project-based vouchers — which keep units affordable long-term — will be provided for the project by HASLO to the tune of $1.152 million annually, for a 15-year term starting in year 4 of the project, the release said.
Because the core structure is already in place, renovations will likely be complete by the end of this year, People’s Self-Help Housing CEO Ken Triguiero told The Tribune in July 2023.
“We are very grateful for the City of San Luis Obispo’s leadership, that spurred this effort to substantially address our community’s critical need for more affordable housing,” Trigueiro said in the release. “We are excited to play a part in such a collaborative and accelerated response to provide permanent supportive housing for those experiencing homelessness in San Luis Obispo County.”
This story was originally published January 19, 2024 at 1:20 PM.
