Camarillo drops plan to turn hotel into housing for people who are homeless

Camarillo is dropping plans to rehabilitate a hotel on Daily Drive into permanent supportive housing for the local homeless population.

The city said in a release Thursday it would no longer apply for funding from the third wave of state Project Homekey money due to a decrease in available money for Southern California.

Camarillo, the county of Ventura and developer Jamboree Housing Corp. had intended to apply for a Project Homekey grant to help fund the acquisition and rehabilitation of the 82-room Days Inn Hotel at 165 E. Daily Drive.

The project was previously estimated to cost about $32 million.

But the expected cost to rehabilitate the building and provide services had increased, city spokesperson Michelle Glueckert D’Anna said in an email.

City Manager Greg Ramirez said in the release the city continues to work on the issue. “We remain committed to collaborating with all stakeholders to address the needs of our unhoused and vulnerable populations,” he said.

California, using funding from federal coronavirus relief packages and the state budget, has released two prior waves of grant funding since 2020 aimed at helping house the homeless during the pandemic. Municipalities initially used the money to rapidly house people who would otherwise be on the street as the virus spread.

For the third wave of funding, the state has allocated about $736 million for Project Homekey grants, down from $1.45 billion in the second wave last year.

It's that overall decrease in available funding that's causing Camarillo to shy away from applying for a Project Homekey grant, D’Anna said.

The city could still pursue a similar project in the future, though Camarillo won't be applying for funding from the upcoming third wave, she added.

The city will instead expand homeless assistance programs and extend its hotel voucher program for more short-term housing.

Ramirez, the city manager, had also announced the change in plans during Wednesday's Camarillo City Council meeting while giving a short update on the project's status.

The possible hotel project had been one response to the city's growing homeless population.

The Ventura County Continuum of Care reported 78 homeless people in Camarillo during its annual homeless count in January. In 2022, there were 49 homeless people in the city, the count showed.

About 80% of the hotel units would have been converted into apartments that tenants could lease for 30% of their monthly income. The remaining units would have been used for transitional or short-term temporary shelter.

Earlier this month, the Oxnard City Council approved an application to apply for a $17.6 million Project Homekey grant from the state Department of Housing and Community Development. If approved, the money will be used to help purchase and convert the 55-room Del Playa Inn Hotel in south Oxnard into supportive housing.

City spokesperson Katie Casey said Thursday Oxnard's project was still moving forward.

In Ventura, the Housing Authority of the City of San Buenaventura has plans to convert the 142-room La Quinta Inn into 136 studio apartments for the homeless and other low-income individuals.

Ventura is hoping for its own Project Homekey grant to help fund the project. Denise Wise, CEO of the housing authority, said in an email Friday the project is still ongoing and the agency is ready to submit its grant application to the state.

-- Wes Woods II Contributed to this report.

Brian J. Varela covers Oxnard, Port Hueneme and Camarillo. He can be reached at brian.varela@vcstar.com or 805-477-8014. You can also find him on Twitter @BrianVarela805.

This article originally appeared on Ventura County Star: Camarillo drops plan to turn hotel into homeless housing