Modesto has $1.7 million grant for homeless apartment building

Apartments at 112 James Street n Modesto, Calif., on Thursday, May 12, 2022.

Apartments at 112 James Street n Modesto, Calif., on Thursday, May 12, 2022.

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Modesto has its second grant from Project Homekey, the state effort to provide permanent housing with services to people who are homeless or at risk of homelessness.

The city council accepted a grant of $1.7 million on Tuesday. It is a newly constructed seven-unit apartment building adjacent to the Modesto office of the Department of Motor Vehicles called James Street Apartments.

Modesto works with Stanislas Equity Partnersa non-profit community development corporation, Stanislaus County Affordable Housing Corporation.aka STANCO, and County Behavioral Health and Recovery Services on the Affordable Housing Project.

Stanislaus Equity Partners will own the building, STANCO will manage it, and BHRS customers will live there. The building consists of one one-bedroom apartment, four two-bedroom apartments and two three-bedroom apartments.

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Apartments at 112 James Street n Modesto, Calif., on Thursday, May 12, 2022. Andy Alfaro [email protected]

“This project will serve some of the most vulnerable homeless people in our community who are struggling with serious mental health and addiction issues with permanent housing and intensive case management,” said Jessica Hill, Community Development Manager of the city, in a press release issued in late April when the state awarded the grant.

Hill said in an interview that the building could be fully occupied by the end of June.

BHRS director Ruben Imperial said in an email that the building could accommodate up to 17 people, including family members of BHRS clients.

This is Modesto’s second Project Homekey grant. The state awarded the city $3.9 million in March, which the council accepted in April, for a project that converts a vacant downtown Ninth Street office building into apartments for seniors in 18 to 25 years old.

The project is a partnership between Modesto and the Center for Human Services, which provides services to young people. CHS will own the building and STANCO will manage it. The building will consist of five one-bedroom apartments and nine studios.

Hill said in the interview that the renovation of the office building is set to be completed in November. She said she expects residents to start moving in in early 2023.

Funding for these two projects came from Homekey’s Project second turn. (Modesto did not request funding in the first round.)

Governor Gavin Newsom announced in September that California has $1.45 billion available for the second round, including grants to local governments to buy and convert hotels, motels, vacant apartment buildings and other properties as permanent housing.

Hill said the second-round funding has either been fully awarded or is about to be. But she said the city expects a third round in the next state budget, which begins July 1. She said Modesto continues to review potential projects.

The need remains great.

For example, a city report indicates that Behavioral Health and Recovery Services provided housing for 206 households and has approximately 300 households on its housing waiting list. “Once a household is placed in permanent supportive housing, 98% of households remain housed,” according to the report.

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Kevin Valine covers local government, homelessness and general missions for The Modesto Bee. He graduated from San José State University.