Governor Gavin Newsom Awards $239 Million to Fast-Track 1,700 Affordable Rental Homes Across California

SACRAMENTO, CA — Expanding the state’s aggressive multi-billion-dollar push to tackle homelessness and severe housing shortages, California Governor Gavin Newsom and the California Department of Housing and Community Development (HCD) announced the award of $239 million in competitive capital grants to finance the immediate construction and rehabilitation of 20 transit-oriented affordable residential communities across 12 counties.

The major funding package, distributed through the state’s consolidated Multifamily Housing Program (MHP) and the Super NOFA streamlined allocation framework, directly unlocks the development of 1,700 deeply affordable rental apartments. The newly funded projects are reserved for low-income working families, agricultural farmworkers, disabled military veterans, and individuals transitioning out of chronic homelessness, with units restricted to households earning between 30% and 60% of Area Median Income (AMI) for a minimum covenant duration of 55 years.

Strategic Urban Infill and Regional Housing Distribution

The 20 approved housing developments are geographically distributed to alleviate extreme urban rent burdens while revitalizing rural agricultural corridors. Major project allocations include:

• Los Angeles County ($72 Million): Four mixed-use residential developments totaling 520 units sited within a quarter-mile of Metro transit rail stations in South Los Angeles, Long Beach, and East Los Angeles.
• San Francisco Bay Area ($65 Million): Five modular high-density infill developments delivering 460 units across Oakland, San Jose, and Santa Rosa, incorporating ground-floor licensed early childhood education centers.
• Central Valley & Inland Empire ($58 Million): Six family and agricultural workforce housing complexes across Fresno, Bakersfield, Riverside, and Modesto, featuring dedicated three- and four-bedroom apartments for multi-generational agricultural families.
• Central Coast & Northern California ($44 Million): Five supportive residential complexes in Salinas, Santa Cruz, Redding, and Eureka.

All funded developments must comply with stringent state climate standards, utilizing all-electric heat pump heating and cooling systems, rooftop solar photovoltaic arrays, and high-efficiency greywater recycling systems.

"California will not slow down until every Californian has access to a safe, dignified, and affordable place to call home," Governor Newsom stated. "By cutting bureaucratic red tape and consolidating our state housing funding into one competitive pipeline, we are getting shovels in the ground faster, creating thousands of good-paying construction jobs, and building vibrant transit-connected neighborhoods where working families can thrive."

California Housing Consortium and Labor Unions Applaud

The funding announcement received strong praise from non-profit housing developers and state labor federations, who highlighted the efficiency gains of the state’s consolidated funding rounds.

"Securing multiple disparate layers of public tax credits and municipal loans used to take affordable housing developers three to five years before a single foundation could be poured," said Ray Pearl, Executive Director of the California Housing Consortium. "Governor Newsom’s consolidated Super NOFA process has shaved years off the development timeline, allowing non-profit builders to deliver homes when our communities need them most."

The State Building and Construction Trades Council of California commended the grant awards, noting that all 20 projects are subject to prevailing wage requirements and skilled apprenticeship utilization standards, ensuring that public housing dollars support local union tradesworkers.

Construction Timeline and Tenant Move-In Milestones

HCD confirmed that financial escrow closings for all 20 development sites will finalize by November 2026. Groundbreaking excavations across the major project sites will commence in winter 2026, with the first residential apartment buildings scheduled to open for tenant leasing in early 2028.