City Awarded $9.2 million for Project Homekey

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News Date: 
October 22, 2020
Good Nite Inn motel in Salinas, light blue, three stories, late 80s architectural style

In August 2020, the City of Salinas (City) submitted a grant application to the California Department of Housing and Community Development (HCD) Project Homekey Program to purchase and convert the Good Nite Inn hotel on Work Street into housing for people experiencing chronic homelessness. This project would be developed in partnership with Shangri-La Construction, LP (Shangri-La) and Step Up on Second, Inc. (Step Up), who will also assist with the project financing. The conversion of the Property would result in 101 units of permanent supportive housing for those hardest to house and most in need of wrap-around services.

In October, the state notified the City the award of $9,223,536, contingent upon acquisition of the property before the end of 2020. In response to this deadline, Shangri-La will take the lead on the purchase agreement for the property, and the City will establish a partnership agreement with Shangri-La and Step Up. The Coalition for Homeless Services Providers has already secured eighty-five (85) project-based housing vouchers for the project. Residents could begin moving in as soon as mid-December following on site improvements.