Santa Monica receives $49.9 million grant for affordable housing and transportation
On Dec. 16, 2025, Santa Monica was awarded $49.9 million to supplement their affordable housing and transportation projects. This grant was given to Santa Monica from the California Strategic Growth Council (SGC) through the Affordable Housing and Sustainable Communities Program (AHSC).
Sophia Friedman / The Samohi
Sign on 4th and Arizona that provides details about the upcoming affordable housing development.
$35 million is being allocated to the building of a sustainable housing project on 1318 4th St., formerly Parking Structure 3. This project is a part of the city’s Housing Element, a state-mandated plan that includes how the city will address its housing needs.
This project is being developed in a collaborative effort between the city and EAH Housing, a non-profit organization that focuses on developing affordable housing in California and Hawaii. The city has been working with EAH Housing on this project since March 2025, when the project was initially presented in a staff report to the Santa Monica Architectural Review Board.
The plans for this project include 122 apartments, with 50 of the units being specifically designated to currently homeless residents in Santa Monica. These units are permanent supportive housing units, a solution designed to house homeless people that utilizes affordable housing and supportive services. The rent for these units will be covered through 30 percent of the tenant's income, as well as 50 Project-Based Vouchers. These vouchers do not cover the full cost of the supportive housing units, but subsidize the difference between the cost of the unit and the amount the tenant can pay.
Clarice Veloso-Lugo, vice president of communications at EAH Housing, explains how the project’s goal is to target Santa Monica’s unhoused population, as well as aid in providing affordable housing near jobs and amenities.
“Santa Monica is in dire need of affordable housing. This mixed-use and mixed-income community in the heart of downtown is a block from the world famous third street promenade. This would allow people who work in retail and work in the community to be able to live where they work,” Veloso-Lugo said.
According to an agreement with the city, residents earning 30-60 percent of the median income will be able to qualify as residents for the remaining 72 units. The construction of the project is set to begin in 2027 and conclude in 2029.
EAH housing will also provide tenants with free, unlimited bus passes that can be used for a period of three years. Along with encouraging the use of alternative transportation, the building will offer supportive services and at least three, full time staff.
Caroline Metz (’28) explains how the rising costs of housing poses an issue for affordability in Santa Monica. Metz is a part of Rays of Hope, a club at Samo that focuses affordability and on gathering resources for underprivileged youth in Santa Monica.
“I feel like housing in general here is a big issue, with real estate being so expensive,” said Metz.
$14.3 million was also allocated to funding sustainable transportation in Santa Monica. This includes five new zero-emission batteries for the Big Blue Bus, which is being done in support of Santa Monica’s goal of having an all-electric bus fleet by 2032.
Aside from improving the emission of the buses, this money is also being used to convert the 14th St. bike lines into a two-lane path and curb ramp to enhance accessibility. This path is set to cover 2.6 miles, and span from Washington Avenue to Pico Boulevard.
The AHSC awarded an overall $835 million dollars to 21 applications state-wide. This award was part of a larger effort from the AHSC to fund projects in California, whose goals are to support the reduction of greenhouse gas emissions through the development of affordable and sustainable infrastructure.