SAN DIEGO — The State of California has awarded $20.75 million in Homekey funds for two San Diego affordable housing projects.

On Wednesday, the city said the allocated money will go towards creating additional affordable homes and supportive services for those experiencing homelessness.

“Outreach and shelter are critical components of our efforts to address homelessness, but what truly will solve this crisis is housing. That’s why this Homekey funding is crucial to our progress in meeting our city’s top challenge,” Mayor Todd Gloria said. “I’m grateful to Governor Newsom and our partners at the county and state for helping us put a roof over people’s heads with supportive services to permanently end their homelessness.”

The San Diego Housing Commission (SDHC) will use these funds to produce 75 new affordable rental housing units in City Council District 2.

Specifically, the state awarded $16.85 million for SDHC’s proposed purchase and rehabilitation of the Ramada Inn at 3737-3747 Midway Dr. in the Midway Community. A total of 62 affordable single-room occupancy units known as Pacific Village will be created.

An additional $3.9 million from the state will support SDHC’s collaboration with Wakeland Housing and Development Corporation to rehabilitate a vacant multifamily housing property at 2147 Abbott St. in Ocean Beach. There will be 13 affordable housing units created.

“The evidence could not be clearer. Housing ends homelessness — specifically homes with support services that meet the unique needs of people experiencing homelessness,” said Council President Sean Elo-Rivera. “This Homekey funding will allow us to rapidly transform the lives of 75 of San Diego’s most vulnerable residents.”