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City of Sacramento receives $29 million for Homekey project

The money, from the California Department of Housing and Community Development, will help the city open 116 housing units.

SACRAMENTO, Calif. — Money approved Tuesday by The California Department of Housing and Community Development could be the key to housing for some in the city of Sacramento.

The department announced a total of $113 million in funding for five projects to build 392 units of housing across the state as part of Gov. Gavin Newsom's project Homekey

The Housing Authority of the city of Sacramento was awarded more than $29 million in Tuesday's round of funding to acquire and renovate an existing hotel which will turn into 116 units of permanent and temporary housing for those experiencing homelessness or at risk. 

The hotel, formerly known as Staybridge Suites Sacramento Airport Natomas is located on Promenade Circle. Vista Nueva, as it will be called, will be open for families in the spring, according to city councilmember Angelique Ashby. 

The department of housing said onsite services will include behavioral, physical health and life skills support services, social and recreational events, education and unemployment services and housing retention services.

According to the state, the hotel being used for the project is located less than a mile from transit, grocery and outdoor park spaces. 

Tuesday's awards are part of Newsom's $2.75 billion extension of project Homekey. More Homekey awards will be announced in the coming weeks.

Watch more from ABC10: Vigil for 139 unhoused residents lost on Sacramento streets in 2021 highlights crisis

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