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Modesto approves Homekey Plus award for El Capitan motel conversion and accepts FY 2026–27 HUD allocations
Summary
The council accepted a Homekey Plus award of roughly $18.69 million and authorized a $3.0 million CDBG loan and related agreements to convert El Capitan Motel into 48 permanent supportive housing units; the council also accepted HUD annual allocations totaling about $2.816 million and advanced other affordable-housing pipeline projects.
The Modesto City Council on May 12 approved multiple funding actions to expand affordable and supportive housing, including accepting a Homekey Plus award and the city’s annual HUD allocations.
Jessica Hill, director of community and economic development, told the council the Homekey Plus award would support acquisition and rehabilitation of the El Capitan Motel at 1121 Needham Street, converting the site into 48 permanent supportive housing units (24 targeted to veterans and 24 for people with behavioral-health needs) plus one on-site manager unit. "We're looking to do a motel conversion into 48 units of permanent supportive…
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