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Posted on: January 24, 2022

City to Apply for State’s Homekey Program to Convert Motel into Affordable Housing for Homeless

exterior of two story motel with courtyard area

On Tuesday, January 18, the Fremont City Council voted unanimously for the City to apply for the second round of funding available through the State’s Homekey program. The City will apply for a $40.2 million State grant to purchase a motel and convert it to permanent affordable housing for those who are homeless or at risk of becoming homeless. If awarded, the funding will be used to convert the Motel 6 located at 46101 Research Ave. in Fremont to 156 units of affordable housing.

The City Council also authorized the City to enter into an agreement with affordable housing developer Shangri-La Industries for them to acquire, rehabilitate, and own the Motel 6 Homekey project in Fremont. The agreement also includes partnering with service provider Step Up for them to manage the property and provide supportive services to tenants.

Next steps are for the City to submit the Homekey application to the State by January 31, 2022. The funding is expected to be awarded in March 2022. If awarded, construction of the project would begin shortly thereafter, with an anticipated completion date of March 2023. The goal would be to have all the units occupied by June 2023, following a thorough tenant selection process.

The City is excited about this possible funding opportunity to help provide more affordable housing for individuals and families experiencing homelessness. Addressing homelessness in Fremont remains a top priority.

The City will provide updates on this project as information becomes available. Stay tuned.

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