Project Homekey discussions lead to financial and timing conflicts

Seaside, Calif. (KION) — Discussions are heating up in Seaside following a formal presentation to the City Council about Project Homekey, a statewide housing initiative that could transform the Sand Dollar Inn on Fremont Boulevard into permanent supportive housing.

The project would create 43 housing units for individuals experiencing homelessness, along with access to mental health and social services. The proposal, presented by the nonprofit Anabisis, has stirred strong reactions, not due to the concept, which many agree is necessary, but because of concerns surrounding timing, funding, and the long-term commitment required.

“This is a 55-year commitment,” said Sheri Damon, Seaside’s city attorney. “You need a sustainable plan to fund operations over that period. While Project Homekey offers initial state funding and Monterey County is potentially contributing up to $5 million, the project’s scope is far larger.”

Councilmember Alex Garcia-Arrazola added to the city’s hesitations, citing internal budget pressures and the short timeline to make a decision.

“There’s a lot already going on internally in the city with the budget, and trying to navigate this project in such a short time frame is tough,” Garcia-Arrazola said.

The city has until May 30 to decide whether to become the official applicant for the project. That tight deadline has left many community members frustrated, especially those hearing about the project for the first time just days ago.

Hotel and business owners near the proposed site expressed concern about potential increases in foot traffic, reduced property values, and economic impact.

“Homekey projects create more foot traffic on the street. It decreases the property value,” said one hotel owner on Fremont Boulevard.

However, the owner of the Sand Dollar Inn, where the housing would be located, supports the initiative.

“I believe this development represents a significant opportunity for Seaside,” said Patel. “One that strengthens our social fabric, improves neighborhood safety, and enhances the quality of life.”

While supportive housing is widely recognized as a growing need in the city, unresolved concerns about funding and the pace of the decision-making process remain central to the debate.

According to Supervisor Wendy Askew, the county is expected to revisit the topic during upcoming budget hearings. In the meantime, all eyes are on Seaside as the city approaches its May 30 deadline.