Homekey Palo Alto opening delayed
Developer Devcon said a contract dispute has delayed the Homekey Palo Alto project's opening and is seeking a temporary certificate of occupancy so residents can begin moving in while parties resolve the issue. The setback pushes back the city's timetable for using that building as emergency housing. (sanjosespotlight.com)
A contract dispute has pushed back the opening of Palo Alto’s Homekey housing site, delaying when unhoused residents can move into the 88-unit complex on San Antonio Road. (paloaltoonline.com) Developer Devcon Construction said it is seeking a temporary certificate of occupancy so residents can begin moving in while the dispute is resolved. LifeMoves, the nonprofit that will operate the site, told local outlets it still expects an opening in late spring 2026 but has not given a firm date. (paloaltoonline.com) (sanjosespotlight.com) The project is at 1237 North San Antonio Road and was designed as an 88-unit emergency shelter with modular buildings and support structures. City planning records describe a mix of family and single-adult units, with 24 family units and 64 for single adults. (cityofpaloalto.org 1) (cityofpaloalto.org 2) The delay has already changed Palo Alto’s shelter plan for this winter and spring. LifeMoves, with support from Palo Alto and Santa Clara County, opened a temporary hotel-based program in Sunnyvale in mid-December to house people until the Homekey site is ready. (sanjosespotlight.com) That bridge program is aimed at longtime Palo Alto residents and is intended to feed directly into the new building once it opens. LifeMoves said everyone placed in the Sunnyvale hotel can expect a room at Homekey Palo Alto if they follow program rules. (sanjosespotlight.com) Palo Alto and LifeMoves began pursuing the project in 2021 under California’s Homekey program, which funds interim and permanent housing for people experiencing homelessness. A city resolution from November 2021 authorized a joint application for up to $27 million in Homekey funding. (hcd.ca.gov) (cityofpaloalto.org) A city presentation from that period put total capital funding at about $27.17 million, including $16.2 million in base Homekey funds, $4.89 million in supplemental matching funds, a $1.08 million bonus award and $5 million from a private donor. The same presentation projected roughly $29.8 million in operating costs over seven years. (cityofpaloalto.org) City and nonprofit leaders publicly launched construction in fall 2023, presenting the Baylands-area project as a key addition to Palo Alto’s shelter system. More than two years later, the building appears close to finished from the outside, but the occupancy dispute is still keeping the doors closed. (paloaltoonline.com 1) (paloaltoonline.com 2) For now, Palo Alto’s near-term shelter expansion depends on whether Devcon can secure temporary occupancy and whether the contractors settle their claims. Until then, the city’s promised move from hotel rooms in Sunnyvale to the new San Antonio Road site remains on hold. (paloaltoonline.com) (sanjosespotlight.com)
