City of Modesto Awarded Nearly $18 Million for Permanent Supportive Housing Project

Modesto, CA — The City of Modesto has been awarded nearly $18 million in Homekey+ funding from the State of California to create a transformative housing project that will convert a local motel into permanent supportive housing for individuals experiencing homelessness.

The award of $17,906,992 will fund the acquisition and rehabilitation of the El Capitan Motel, located at 1121 Needham Street. Once completed, the project will transform the 49-unit property into 48 units of permanent supportive housing, plus one on-site manager’s unit. An additional $5 million in capital from City, County, and development partners will further support the project’s construction. A portion of the funding will support the ongoing operations and services necessary to ensure long-term housing stability for residents.

The El Capitan development will serve individuals experiencing homelessness or at risk of homelessness, including:

  • 24 veterans and 24 individuals with a serious mental illness or substance use disorder.

Key service and housing partners for the project include:

  • Stanislaus County Behavioral Health and Recovery Services (BHRS)
  • Catholic Charities SSVF Veteran Program
  • Housing Authority of Stanislaus County, through the VASH program in partnership with the U.S. Department of Veterans Affairs

This initiative reflects the City’s continued commitment to innovative, community-based solutions to homelessness. The El Capitan project will build on the success of the recently opened Jenny’s Place, a converted motel providing 54 units of permanent supportive housing, and Grace Gardens, a new tiny home housing project slated to open later this summer…

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