Orange County’s housing affordability crisis continues to put pressure on families, seniors, individuals experiencing homelessness and young adults transitioning out of foster care. In response, CalOptima Health has approved $8 million in grants to nine community organizations that will expand affordable housing, supportive housing and housing navigation services throughout Orange County.
The investment reflects a growing recognition that housing and health are deeply connected. Stable housing can improve physical and mental health outcomes, reduce emergency room visits and help residents access ongoing care.
According to CalOptima Health, the funding is part of the organization’s ongoing five-year commitment to addressing housing insecurity among its nearly 795,000 members. The grants are funded through California’s Housing and Homelessness Incentive Program (HHIP) and CalOptima Health reserves.
“The grants are part of CalOptima Health’s broader commitment to health equity,” said Kelly Bruno-Nelson, Executive Director of Medi-Cal/CalAIM at CalOptima Health. “Health begins with stable housing.”
Homelessness is a complex issue with no single cause. While some individuals living on the streets battle addiction or mental illness, others have become homeless because they simply cannot afford housing in one of California’s most expensive rental markets. The CalOptima Health grants seek to address both housing access and supportive services that help vulnerable residents remain stably housed.
Orange County’s Growing Need for Affordable Housing
The timing of the funding is significant. Orange County remains one of the least affordable housing markets in California and the nation. State housing officials require local jurisdictions across Orange County to plan for thousands of additional housing units during the current Regional Housing Needs Assessment (RHNA) cycle to address longstanding shortages and affordability challenges. Orange County communities continue to struggle with rising rents, overcrowding and limited housing options for low-income households.
Housing advocates note that affordability challenges disproportionately affect seniors, people with disabilities, low-income workers, families with children and individuals experiencing homelessness. The shortage of affordable units has also made it more difficult for employers throughout Orange County to attract and retain workers.
Where the $8 Million Will Go
The newly approved grants will support housing construction, supportive housing and innovative housing access programs throughout Orange County.
Major awards include:
- National CORE received $3 million to build a family housing development in Lake Forest featuring 50 affordable units, including 15 permanent supportive housing units for formerly unhoused individuals and families.
- Olive Crest received $2.4 million for a new 16-unit transitional housing development in Santa Ana serving transition-age youth exiting foster care.
- American Family Housing was awarded $1.1 million to support construction of a 20-unit permanent supportive housing project in Westminster.
- The City of Santa Ana received $1 million to develop a countywide affordable housing website that will provide real-time affordable housing listings and navigation assistance.
- Five additional nonprofits received $100,000 grants to support homelessness prevention and housing-related services:
- Action Alliance Foundation
- Hub for Integration, Reentry & Employment
- Korean Community Services of Orange County
- My Safe Harbor Inc.
- The Cambodian Family
Orange County Cities Seeing the Most Affordable Housing Growth
While affordable housing development varies from year to year, several Orange County cities have emerged as leaders in expanding affordable housing during the current housing cycle.
Based on recent housing production, affordable housing inventories and project approvals, the strongest performers over the past five years include:
- Santa Ana – Widely recognized as Orange County’s leading affordable housing producer, Santa Ana has already reached approximately 74% of its state housing target early in the current cycle and has completed numerous affordable housing developments.
- Irvine – Irvine reports more than 5,100 affordable housing units, the largest affordable housing inventory in Orange County, with additional projects under development.
- Anaheim – Anaheim continues to expand its affordable housing portfolio while implementing its updated Housing Element and pursuing additional housing opportunities.
- Westminster – Multiple affordable and supportive housing developments have recently secured funding and moved toward construction, including projects supported by American Family Housing.
- Lake Forest – Several significant affordable housing projects are advancing, including National CORE’s newly funded development backed by CalOptima Health.
Housing as a Public Health Solution
Supervisor Vicente Sarmiento, chair of the CalOptima Health Board of Directors, emphasized that addressing homelessness requires collaboration among government agencies, healthcare providers and nonprofit organizations.
The latest grants are designed to do more than build housing. They also support the systems that help people find housing, remain housed and connect to healthcare, behavioral health services and other critical resources.
With Orange County continuing to face a severe shortage of affordable homes, investments such as these may play an increasingly important role in reducing homelessness and improving health outcomes for some of the county’s most vulnerable residents.
For communities throughout Orange County, the message from CalOptima Health is clear: housing is healthcare, and expanding affordable housing options remains a critical part of improving quality of life across the region.