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Costa Mesa permanent supportive housing project gets gap funding from county

The Motel 6 at 2274 Newport Blvd. in Costa Mesa.
(Scott Smeltzer / Staff Photographer)
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A project designated to convert a Costa Mesa motel into affordable and supportive housing will receive $4.5 million in additional funding to aid with development costs and on-site services.

The Orange County Board of Supervisors approved $2.5 million toward partial development costs for the project, which will see a Motel 6 located at 2274 Newport Blvd. transition into permanent supportive housing for veterans and seniors experiencing or at risk of homelessness.

County officials also allocated up to $2 million in Mental Health Services Act funds for the location during Tuesday’s meeting.

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In a phone interview Thursday, Supervisor Lisa Bartlett said Tuesday’s action provided essential gap funding to allow for the completion of the Costa Mesa-based Project Homekey motel repurposing. She added that the county would work with Mercy House, which runs Costa Mesa’s bridge homeless shelter, to provide needed services to residents.

“It’s a combination of different categories for the occupants that are going to be housed there,” Bartlett said. “The wraparound services from the county will be all-encompassing and on an individualized basis.

“Some may need services relative to substance abuse or drug treatment or alcohol dependency. Some are going to be more intense relative to the mental health services, so the services will be individualized per occupant, but the county will be providing those wraparound services.”

The City Council will vote next month on whether to approve an overlay for the Surf City equestrian community.

Oct. 20, 2022

The project got underway after the state awarded $10.675 million in Project Homekey funding to proceed with it in April. Community Development Partners, a Newport Beach-based organization, is handling the development.

Costa Mesa Mayor John Stephens said the city’s contribution to the project came in the form of federal funds.

“From a financial standpoint and from a services standpoint, it’s a home run for the city,” said Stephens, who referred to the conversion of the motel as a major community benefit.

Stephens added that even after the city opened a homeless shelter, a prevalent issue faced by such facilities is placing people into permanent housing to end the cycle of homelessness.

“This particular project is focused on senior and veteran housing, so not only will Mercy House be on site coordinating everything, but the VA will be on site to help with the veterans and their services,” Stephens said. “I think it’s going to be an excellent project to basically take 88 people who are seniors and veterans — who at least are at risk of homelessness — and put them in a place where they’re safe and warm and dry.”

The breakdown of the 88 units at the location is expected to include 40 for people experiencing homelessness, including veterans, while the remainder would be converted into affordable housing for individuals who are at least 62 years of age.

Kyle Paine, the president of Community Development Partners, said the group is targeting a two-phased move-in period for the facility. The first stage would see veterans and those who qualify under the Mental Health Services Act move into the first 40 units in September 2023, while the affordable housing for seniors is anticipated to be completed in the final quarter of 2024.

“Project Homekey has been an unprecedented help for us to be able to address permanent supportive housing and get people off the streets, especially our veterans and individuals experiencing homelessness who might be single and unaccompanied,” Supervisor Katrina Foley said prior to a vote approving the funding on Tuesday.

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