Board approves revised Homekey hotel purchase despite last‑minute state funding changes

The Alameda County Board of Supervisors approved a revised Homekey grant and associated authorizations on Nov. 17 to acquire and operate a hotel for homeless housing, after staff said the state reduced operating funds but still allowed acquisition funding to close by Dec. 2.

County staff read revised recommendations into the record, asking the board to "accept a COVID‑19-related Homekey grant from the State of California for the purpose of acquiring and operating real property as homeless housing in an amount up to $15,100,000 for acquisition, due diligence, and closing costs" and to approve use of up to $3,100,000 from Measure A1 as local match. Staff also sought delegation to the Healthcare Services Agency director to execute state agreements.

Supervisor Chan moved approval and Supervisor Miley seconded. Vice President Carson said he felt "like a gun is held to my head" by the last‑minute schedule but voted in favor, saying the county needs the housing. President Valle voted aye; the item passed on a 5–0 roll call.

Staff explained the state had informed the county late that operating-subsidy funds previously requested (about $3.288 million) were likely unavailable, prompting a downward revision of the state's capital grant ask and a commitment that county match levels for acquisition remain unchanged. Staff said they are negotiating with the state to replace lost operating funds, and that if needed the county could backfill operations from local resources such as Whole Person Care.

Board members asked technical questions about the revised dollar amounts, whether any capital needs changed, and how other local funds (including innovation/opportunity and CARES-designated funds) would be used to support the overall homelessness portfolio. Staff said an escrow would open the following day and noted the state's Dec. 2 tranche deadline for closing.

The vote secures authorization to proceed with the acquisition under the revised grant terms; staff said they will return with any negotiated changes to operating funding.