The Modesto City Council unanimously approved a $23 million project on Tuesday to convert the decades-old El Capitan Motel into permanent supportive housing for veterans and people experiencing behavioral health challenges.The project will transform the motel into a 48-unit housing complex along Needham Street in south Modesto. According to city documents, 24 units will be reserved for veterans, while the remaining 24 units will serve behavioral health clients. One unit will be designated for staff.“There’s a huge need in both of those populations to help really kind of move them to more housing stability,” said Jessica Hill, Modesto’s director of community and economic development.City leaders say the development is backed by more than $18 million in California Homekey Plus funding, a state program aimed at converting existing buildings into long-term housing for people experiencing homelessness or housing instability.The furnished studio-style units will include on-site supportive services, including mental health resources and case management designed to help residents remain housed long term.Hill said the housing is intended for some of the city’s lowest-income residents.“So individuals will make between 0 and 30% of the area median income. So it is very, very low income. What the rents would be sent out would be 30% of their gross income,” Hill said.Based on Modesto city median income figures, qualifying tenants would make less than roughly $30,000 annually. With rents potentially priced at no more than $600 per month.“We’re in a housing crisis here in California. That’s not a secret. But Modesto, you know, we have a vision to try to bridge the gap of housing units available,” Councilmember Eric Alvarez said.According to the city, construction is expected to begin this summer, with residents potentially moving in by fall 2027.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
MODESTO, Calif. —
The Modesto City Council unanimously approved a $23 million project on Tuesday to convert the decades-old El Capitan Motel into permanent supportive housing for veterans and people experiencing behavioral health challenges.
The project will transform the motel into a 48-unit housing complex along Needham Street in south Modesto. According to city documents, 24 units will be reserved for veterans, while the remaining 24 units will serve behavioral health clients. One unit will be designated for staff.
“There’s a huge need in both of those populations to help really kind of move them to more housing stability,” said Jessica Hill, Modesto’s director of community and economic development.
City leaders say the development is backed by more than $18 million in California Homekey Plus funding, a state program aimed at converting existing buildings into long-term housing for people experiencing homelessness or housing instability.
The furnished studio-style units will include on-site supportive services, including mental health resources and case management designed to help residents remain housed long term.
Hill said the housing is intended for some of the city’s lowest-income residents.
“So individuals will make between 0 and 30% of the area median income. So it is very, very low income. What the rents would be sent out would be 30% of their gross income,” Hill said.
Based on Modesto city median income figures, qualifying tenants would make less than roughly $30,000 annually. With rents potentially priced at no more than $600 per month.
“We’re in a housing crisis here in California. That’s not a secret. But Modesto, you know, we have a vision to try to bridge the gap of housing units available,” Councilmember Eric Alvarez said.
According to the city, construction is expected to begin this summer, with residents potentially moving in by fall 2027.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel