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Council approves Homekey Plus application and $1.3M allocation for Hunter House project
Summary
Stockton approved a resolution to apply for $36 million in Homekey Plus funds, acting as lead applicant with Service First, and allocated an additional $1.3 million in city HAP funds to the Hunter House affordable housing project to help close a funding gap; council vote was unanimous (7–0).
The Stockton City Council voted April 1 to authorize the city to apply as lead applicant for Homekey Plus grant funds on behalf of the Hunter House affordable housing project and to allocate an additional $1.3 million in city homeless-assistance (HAP) funds toward the development.
Staff described the resolution as two actions: (1) authorize submission of the Homekey Plus application with Service First as co-applicant to request up to $36 million in state funding for the Hunter House project, and (2) formalize allocation of $1.3 million in HAP funds so the city’s contribution is a confirmed part of the project funding plan. The project would provide 120 one- and two-bedroom units targeted to very-low-income households and people at risk of homelessness, with supportive services through partnerships that include San Joaquin Behavioral Health and the U.S. Department of Veterans Affairs.
City staff said existing state and city commitments already total about $29.545 million and that the Homekey Plus request would bring total state funding to about $65.5 million if awarded. Staff explained that Service First had been awarded earlier city allocations in 2021–22 and that the additional $1.3 million identified in 2024 had been previously earmarked within economic development but not formally allocated by council; the resolution formalizes that allocation now. Staff noted the city’s HAP allocation is from special grant funds and that there is no impact to the general fund.
Council asked about project readiness; staff and the applicant said entitlements are in place, building permits remain, and if Homekey Plus funds are awarded the project could break ground as early as October 2025 with construction and occupancy timetables into 2026. The resolution includes a provision that the city would de-obligate its funding if Homekey Plus funding is not awarded, reflecting timing constraints in state funding.
The council moved, seconded, and approved the resolution unanimously, 7–0. Staff is authorized to submit the application, execute related legal documents, and proceed with the funding plan if the award is granted.
Next steps: city manager and Service First to submit the Homekey Plus application by the state deadline, finalize legal documents if awarded, and return to council as necessary for implementation actions.
