SACRAMENTO (CBS SF) – Gov. Gavin Newsom on Monday announced the state has issued a new round of grants totaling $236 million to help house homeless in the Bay Area and California, as part of the “Project Homekey” initiative.

“There is simply not a state in America that’s committed to this kind of capital infusion to purchase motels and provide for permanent supports of housing for homeless individuals,” the governor said at his briefing, where he also discussed the ongoing wildfires, the state’s COVID-19 response and the current backlog of claims with the Employment Development Department.

Newsom said 12 jurisdictions are among those receiving grants in this round of funding. In the Bay Area, San Francisco received $45 million to purchase and rehabilitate the Granada Hotel, a 232-room single room occupancy building in Lower Nob Hill.

“We know that housing is the solution to homelessness,” Mayor London Breed said in a statement. “Homekey funding will help our transition from response to recovery.”

Newsom said other Bay Area jurisdictions receiving awards include Oakland, whose award is going towards two projects with 163 units, along with Mountain View, which plans to double available shelter beds in the city. Santa Clara County has also received a grant.

The Newsom administration last week issued $76.5 million to seven jurisdictions in its first round of grants, including Contra Costa County, where money will be used to convert a 174-room motel in Pittsburg into a permanent hub for supportive services.

A total of $600 million in grants will be awarded to local jurisdictions to purchase hotels, motels, vacant apartment complexes and other buildings for supportive housing. Most of the grant money will be dispersed by the end of the year.

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