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California awards $29 million Homekey grant for supportive housing project in Costa Mesa

For immediate release:
Homekey Costa Mesa

Costa Mesa, CA Assemblywoman Cottie Petrie-Norris and Supervisor Katrina Foley proudly announce that the California Department of Housing and Community Development (HCD) has awarded a $29 million Homekey grant to convert the Travelodge by Wyndham Orange County Airport/Costa Mesa located at 1400 Bristol St. into affordable housing units for our most vulnerable residents.

“This project represents a strong commitment by the State of California, County of Orange and cities of Costa Mesa and Newport Beach to provide housing and supportive services for individuals and families experiencing, or at risk of, homelessness,” said Assemblywoman Cottie Petrie-Norris (D-Irvine). “I’m proud to have advocated for these state funds and partner with American Family Housing to advance this much needed project to create a safe and nurturing environment for those unable to find stable housing in our community.”

“The investment by the State of California of $29 million adds to the investment by the County of Orange of more than $7 million and nearly 50 project-based vouchers to turn another downtrodden, crime magnet, motel into permanent supportive housing for our Veterans, seniors, and homeless residents,” said Supervisor Katrina Foley, representing the Fifth District on the Orange County Board of Supervisors. “The solution to the homelessness crisis requires aggressive redevelopment and partnership between developers and the State, County, and Federal government. This project joins all five successful Homekey projects in Orange County as a result of my ‘Homekey in a Box’ program for the cities in our District.”

"It's exciting to have the opportunity capture these one-time funds and bring them home," said Milo Peinemann, Chief Executive Officer at American Family Housing. "This high-quality community will deliver practical, local solutions, right here."

The residential community represents a partnership between the County of Orange, the Cities of Costa Mesa and Newport Beach, and developer American Family Housing. American Family Housing will transform the aging hotel into a high-quality private rental housing community of 78 units, providing rental homes for individuals who are coming out of homelessness or at-risk of homelessness. These households will have the opportunity to sign a lease for one of 36 studio units, or one of 40 one-bedroom units. Two two-bedroom units will be set aside for staff.

 The Homekey grant award will allow American Family Housing to convert the property into a private rental community, reconfiguring the former hotel into a welcoming community with a variety of amenities, updated landscaping, and a reconfigured layout. Construction will take one year, with the apartments set to be fully leased by the end of 2025. This partnership represents a first of its kind in many ways, with two cities, Costa Mesa and Newport Beach, partnering to make it possible.