Sunnyvale Hotel Helps Palo Alto Housing Launch

LifeMoves and Palo Alto officials opened the Homekey Palo Alto interim housing complex on May 14, putting into service an 88-unit site that had been in planning for nearly five years. The development at 1237 San Antonio Road is the city’s first interim housing project of its kind for families and individuals experiencing homelessness, according to Palo Alto Weekly and the city. (sanjosespotlight.com) The opening came after construction delays pushed the project beyond earlier expectations. (sanjosespotlight.com) When officials broke ground in October 2023, the city and LifeMoves said the $37.2 million project was scheduled for completion by early 2025; LifeMoves later described the opening target as spring 2026. (sanjosespotlight.com) A Sunnyvale hotel became a key part of getting the Palo Alto project over the line. LifeMoves began placing future Homekey residents there in February while the modular site was still unfinished, using the hotel as short-term bridge housing until the Palo Alto units were ready. ### Why did a Sunnyvale hotel matter to a Palo Alto housing project? (sanjosespotlight.com) California’s Homekey program requires full occupancy within 15 months of the award letter, according to the state Department of Housing and Community Development. That deadline created pressure for local operators to have eligible residents in place even as the Palo Alto site was delayed. The Sunnyvale hotel housed dozens of unhoused Palo Alto residents whom LifeMoves planned to move into Homekey Palo Alto in late spring 2026, Palo Alto Weekly reported in February. (lifemoves.org) LifeMoves spokesperson Maria Prato said at the time that the hotel served as a bridge during the cold months between mid-December and the Homekey opening. (lifemoves.org) ### What opened at 1237 San Antonio Road? The site at 1237 San Antonio Road contains 88 apartments, including units for single adults and families, with en suite bathrooms and kitchens or food-preparation space, according to LifeMoves and city materials. The campus also includes laundry, a children’s play area, a dog run and space for counseling, vocational training and other services. (hcd.ca.gov) LifeMoves said the project can serve more than 200 people annually. The development was partially funded by a $26.5 million award from the California Department of Housing and Community Development, and the total project cost is estimated at $37.2 million, according to LifeMoves and the city. (sanjosespotlight.com) ### Who is paying to run it now that construction is done? Mayor Vicki Veenker said at the ribbon-cutting that Palo Alto will pay $1 million annually to help fund operations. The city also provided the land for the project, which sits near the Mountain View border and the Palo Alto Baylands. Santa Clara County is also part of the operating structure. A city staff report said the county would manage pass-through funding from Palo Alto for operations, while entering into an operating agreement with LifeMoves that includes performance measures and reporting requirements. (sanjosespotlight.com) (lifemoves.org) ### Why was the opening under added pressure this year? Santa Clara County’s 2025 point-in-time count found 10,711 people experiencing homelessness countywide, up 8.2% from 2023. In Palo Alto, the homeless population more than doubled over that period, from 187 to 399, according to local reporting based on the county count. (sanjosespotlight.com) At the May 14 ceremony, Tasheana Price, a volunteer coordinator at LifeMoves’ Opportunity Services Center who said she had once been homeless in Palo Alto, called the new site “monumental” and said it was something she had prayed for when she was unhoused. (cityofpaloalto.primegov.com) ### What happens next for the people in the hotel? LifeMoves said in February that the Sunnyvale hotel residents were expected to transition into the Palo Alto project once the site opened. The move-in process is now set to unfold over the coming weeks as the operator fills the new apartments and begins on-site case management aimed at permanent housing, jobs and health care connections. (news.santaclaracounty.gov) Spring 2026 was the timetable LifeMoves had listed for the opening, and the May 14 ribbon-cutting put the project into service within that window. The next visible step is resident transfer from the Sunnyvale hotel to 1237 San Antonio Road, where LifeMoves will run the site with support from Palo Alto and Santa Clara County. (sanjosespotlight.com) (lifemoves.org) (sanjosespotlight.com)