It will help provide affordable housing in the North Valley.
On Wednesday, Gov. Gavin Newsom awarded $130 million in grants to nine new projects with the goal of building 533 permanent, supportive homes.
The money is going to Merced, Richmond, San Francisco, and Sebastopol, the counties of Orange, Riverside, and San Mateo, and Housing authorities in Kern and Sacramento counties.
The state estimates the projects could help house upwards of 4,800 residents currently on the streets or at risk of becoming unhoused.
Homekey funding has been used locally to transform hotels, motels, hostels and other properties into permanent housing.