Exclusive | Gavin Newsoms homeless housing dream turns into $19M money pit in LA County city

A state-funded plan to turn a crime-ridden Southern California motel into housing for homeless people has become a years-long money pit – swallowing millions of taxpayer dollars while the project remains unfinished nearly six years later.Residents living next door say they have endured years of early-morning construction, flying dirt and debris and, more recently, repeated gas leaks at the former M Motel in El Monte, which was bought in 2020 as part of Gov.Gavin Newsom’s $3.8 billion Homekey program.The city received $10.35 million in original Homekey funding for the 93-room motel’s acquisition and rehabilitation, along with millions more in subsequent state, federal and county funding.But the site — renamed Hilda Solis Rose Court after powerful Los Angeles County Supervisor and former congresswoman Hilda Solis — remains under renovation years after officials first celebrated the Homekey project.“Why did they spend too long to fix the building?” said Edgar Gudiel, 63, a retired resident of neighboring Baldwin Valley Apartments whose first language is not English.“They’re spending too much, too long, too much time.”Homekey was launched during the pandemic to give local governments money to rapidly acquire motels and other properties and convert them into housing for homeless people.But the program has been plagued by delays, with 3,000 planned homes — about one in five of those promised — still not open at the end of 2025, according to a CalMatters investigation.El Monte was awarded Homekey funding in November 2020 to purchase the M Motel and neighboring Budget Inn, receiving a combined $17.7 million for the two properties.

The city acquired them the following month.The M Motel received $10.35 million for acquisition and rehabilitation, while the city later secured another $5.8 million in federal CDBG-Homekey funding for rehabilitation work at the property.Los Angeles County also provided $7.5 million toward Rose Court after the project face...