Newsom announces $209 million in Project Homekey state funds for new permanent housing in LA

LOS ANGELES (KABC) -- Los Angeles received $209 million in funding through Project Homekey, a program that converts buildings into permanent housing in an effort to address the state's homelessness crisis, Gov. Gavin Newsom and city officials announced Wednesday.

The city will convert seven sites into permanent housing and contribute an additional $157 million in matching funds. In total, the city will create 15 new permanent housing sites and 1,235 units through the second round of funding for the program.

It's part of $694 million in funds for the program, providing 2,500 more units across 35 projects to 19 counties.

At a Project Homekey in Mid-City on Wednesday, Newsom helped prepare one of 78 units that formerly homeless families will call home.

The city and federal government are part of that Project Homekey site as well, which wasn't a former motel but an apartment building that the city took over and -- after 6 months -- is scheduled to families in September.

"This is permanent supportive housing, but the idea congresswoman bass said is to move people along to address the underlying issues. And allow people the opportunity to live in dignity and to get back on their feet," said Newsom.

So far, project Homekey includes 12,500 units and the state has made a $14.7 billion dollar commitment to addressing homelessness with billions of that heading to this program. Newsom said other states like new York want to replicate Homekey.

"We need to see results. It's unacceptable what's going on in this state. People are right to be angry. So many pundits attacking the state of California. The lowest unemployment rate in its history with its fastest growth rate of any western democracy with the highest reserves and surplus and yet people still feel that ca is on the wrong track. This fundamental issue, cost of living and housing and homelessness. I think can explain that why probably better than anything else."

The governor, also answering eyewitness's question about his veto of Senate Bill 57, which would have allowed for a pilot program of safe drug injection sites in Oakland, San Francisco, and Los Angeles.

"You have two mayor's race. You're going to have two new leaders. This is a commitment through this legislation for an unlimited number of theses sites with new leaders that may have different points of view in a matter of months, this was not ready," said Newsom.

"A problem the state and city has run into is neighborhoods don't want Homekey. But, mayor Garcetti said the city worked with the neighborhood council here and they supported the project.