King City joins larger cities tackling homelessness through Homekey program.

There’s been a longstanding problem in King City of unhoused people living along the banks of the Salinas River, as well as residents who live precariously on the edge of homelessness. Which is why Mayor Mike LeBarre is excited about the prospect of offering homes to possibly all of the city’s 30-50 unhoused people through the state’s Homekey program, which repurposes hotels into permanent housing for those on extremely low incomes.

Gov. Gavin Newsom announced March 15 that King City will receive $12.4 million toward the purchase of a 45-unit hotel, joining Salinas, which in February received funding to repurpose two hotels. And while most cities on the Homekey awards list are larger, LeBarre believes even small cities can play a role in ending homelessness.

King City is partnering with the same entities that built the first Salinas Homekey project in 2020, builder Shangri-La Industries and nonprofit social service provider Step Up. LeBarre says Shangri-La approached the city about possibly purchasing the Days Inn on Broadway during the second round of Homekey grants.

The collaboration with Shangri-La has led to another possible project that would transform a small downtown hotel into low-income senior housing.

In addition to the Homekey money, King City will received $350,000 in Homeless Housing Assistance and Prevention funds previously awarded to Monterey County by the state. The Coalition of Homeless Service Providers also provided $1 million in HHAP funds.

The city is paying $447,000 in housing funds coming from three sources: HHAP; American Rescue Plan; and California’s Permanent Local Housing Allocation fund. The total amount will allow Shangri-La to renovate the hotel and pay for supportive services by Step Up for eight years.

There’s been no pushback from residents about the King City Homekey project, unlike what happened in Pacific Grove in January when a proposed project was scuttled there. King City’s project is not without some upset from Days Inn management. Assistant Manager Neil Ahir notes there has been no sale yet: “We’re still waiting for our end of the agreement.”

The state’s announcement has made employees think of taking jobs elsewhere, he says, and guests with reservations for the Salinas Valley Fair in May are asking if they need to change reservations. “For us, we still have to keep going as a business,” Ahir says.