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Gavin Newsom’s homeless housing dream turns into $19M money pit in LA County city

A state-funded plan to turn a crime-ridden Southern California motel into housing for homeless people has become a yearslong money pit, swa

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Crime & Courts · September 22, 2026
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Gavin Newsom’s homeless housing dream turns into $19M money pit in LA County city
Gavin Newsom’s homeless housing dream turns into $19M money pit in LA County city

A state-funded plan to turn a crime-ridden Southern California motel into housing for homeless people has become a yearslong money pit — swallowing millions of taxpayer dollars while the project remains unfinished nearly six years later. Residents living next door say they have endured years of early-morning construction, flying dirt and debris and, more recently, repeated gas leaks at the former M Motel in El Monte, which was bought in 2020 as part of Gov.

Gavin Newsom’s $3.8 billion Homekey program. The city received $10.35 million in original Homekey funding for the 93-room motel’s acquisition and rehabilitation, along with millions more in subsequent state, federal and county funding.

First reported by New York Post.

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