A 21-unit affordable housing project for those experiencing or at risk of homelessness is moving forward at a motel on Santa Paula's east side.
The Housing Trust Fund Ventura County recently approved a $500,000 predevelopment loan for the Gateway Grove project at 1445 E. Main St.
Renovations at the Santa Paula Motel are planned to start in early 2027, with tenants moving in during the first quarter of 2028, said Alexander Russell, CEO of Homes & Hope, an affordable housing developer based in Ventura.
“These are for households that are on the lower end of the income spectrum, extremely low-income households, people who are struggling to get by, and some units for veterans,” he said.
The project will include 20 permanent supportive housing units,
including two reserved for veterans, and one as a manager’s unit, Russell said. The motel rooms will all become studio apartments, he said.
The project will also provide on-site space for resident services, including case management, behavioral health coordination and veteran-specific resources, he said.
The motel will undergo substantial rehabilitation, including new kitchens, Americans with Disabilities Act accessibility upgrades and energy-efficient systems, according to a news release. The project will also include community space, laundry facilities and landscaped outdoor areas.
The project is a partnership of Homes & Hope, Thousand Oaks nonprofit Many Mansions and the Santa Paula Housing Authority.
How much will the project cost?
Total development costs are projected at approximately $11 million, according to the release.
Linda Braunschweiger, CEO of Housing Trust Fund Ventura County, said the loan, distributed in two $250,000 advances, helps cover early costs such as architecture fees and city fees.
In addition to the trust fund loan, project leaders expect to secure about $6.3 million from the state and about $3 million from Ventura County, as well as other funding sources, including the city of Santa Paula.
Funding is expected to include aHomekey+ grant, an expanded version of the state's Project Homekey program that supports housing for people experiencing homelessness.
State Homekey funding was used in 2025 to convert Ventura’s former La Quinta Inn into housing for residents who were homeless or at risk of homelessness.
Homekey+ is $2.2 billion state funding pool that supports the development of permanent supportive housing for veterans and others experiencing or at risk of homelessness who also face mental health or substance-use challenges, according to the state.
Russell said Homes & Hope plans to apply for about $6.3 million through Homekey+ and expects a decision before the end of the year.
Funding is expected in early 2027, and Homes & Hope will have 12 months to complete improvements and prepare the property for residents to move in, Russell said.
The project also has a commitment of about $3 million in Ventura County Behavioral Health Services Act funding and a full rental subsidy, he said.
The group is also seeking funding from the city of Santa Paula, Russell said.
James Mason, community and economic development director for Santa Paula, said a $600,000 loan for the project will go to the City Council in October.
Who will live in the converted motel?
All 20 studios will be reserved for households earning no more than 30% of the area median income. In Ventura County, the area median income for a one-person household is $94,900, according to recent state figures.
The site is across the street from Spirit of Santa Paula, now known as the Harvard Navigation Center, a homeless shelter and service provider. Kay Wilson-Bolton, shelter volunteer director, said the proximity creates “synergy” between the two facilities.
“It’s the perfect project to transition people from emergency shelter to supportive housing,” she said.
In the meantime, the motel remains occupied while the property purchase is being finalized. Some guests are staying short-term, while others are extended-stay residents, Russell said. Other rooms are being kept vacant.
A relocation consultant has been hired to help eligible residents currently living at the motel, he said.
“We have part of our budget to make sure those households aren’t just displaced, that they have a place to live,” Russell said.
He said the project is covering moving costs and when necessary, rent differences for an extended amount of time.
“We interviewed everyone so no one is getting kicked out on the street,” he said. “What is the point of providing this housing if people are kicked out on the street?”
Wes Woods II covers West County for the Ventura County Star. Reach him at wesley.woodsii@vcstar.com, 805-437-0262 or @JournoWes.
This article originally appeared on Ventura County Star: Santa Paula motel eyed for transformation into affordable housing
