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Jan 30

Modesto is making meaningful progress in addressing affordable housing and homelessness.

Posted on January 30, 2026 at 3:07 PM by Sonya Severo

Affordable housing and homelessness continue to be among our community’s top priorities.  Through strong partnerships and regional collaboration, the City is making meaningful progress in addressing both, with additional initiatives already in development.

Over the last six years, the City has worked alongside nonprofit partners, housing developers, and regional agencies to bring 629 new transitional and affordable housing units to our community, with another 303 permanent supportive and affordable housing units currently in the pipeline. That is a grand total of 932 units designed to provide individuals and families with a stable place to call home and access to services that support long-term stability. 

Last year, the City celebrated the grand opening of Jenny’s Place, 54 units of permanent supportive housing at the former Travelers Motel located at 710 9th Street. Jenny’s Place provides more than just housing; it offers essential amenities and support services to help residents regain stability and move toward a secure future. 

Through the State of California Encampment Funding Program and a key partnership with the Stanislaus County Affordable Housing Corporation (StanCo), the City supported the development of Grace Gardens. A 12-unit bridge housing project located on the Modesto Gospel Mission main campus at 1530 Owens Drive. This project is administered by the Mission serving individuals and families facing homelessness by providing access to meals, laundry, and shower facilities. Residents are also connected to healthcare and substance use treatment services to help meet immediate needs and support their transition to permanent housing within six months of residency. 

In addition to Grace Gardens, last year the City celebrated the grand opening of Dignity Village, another bridge housing initiative developed in collaboration with Stanislaus County. This project is part of the Behavioral Health Bridge Housing Program, funded by the California Department of Health Care Services. Dignity Village is a 42-unit community located on 914 E Street, strategically positioned near existing support services. The housing units include access to essential amenities such as dining, shower, and laundry facilities along with on-site support to behavioral health services, creating a clear pathway to stability and permanent housing. 

Building on these efforts, the City has also seen strong early success through its Motel Voucher Program in collaboration with Turning Point Community Programs. This emergency shelter program provides short-term crisis support for individuals experiencing homelessness until they are able to connect to longer-term housing options. From June through December 2025, the program has served 42 individuals, with 27 exiting to permanent housing destinations, reinforcing the program’s role as an effective bridge to a more stable living situation through access to shelter, support services, and reunification with family or friends. 

The progress continues as other projects are already taking shape. The Seventh Street Village Affordable Housing Project represents the next step in our city’s housing efforts, bringing an additional 79 affordable housing units to downtown Modesto, providing one-, two-, and three-bedroom apartments. Beyond housing, the development will feature community centered amenities such as a leasing office, corner market, residence courtyard, and a Head Start program, creating a welcoming neighborhood that supports both residents and the broader community. 

While there is still more work to be done, the City is committed to building on this momentum through continued partnerships and innovative housing solutions. As we expand bridge housing, permanent housing, and affordable rental and ownership opportunities, residents can move along the housing continuum as their stability improves. Thus, opening space for others who are just beginning their path out of homelessness. We look forward to sharing more updates on future projects in the months ahead. We appreciate your continued support as we work together to improve outcomes for residents across Modesto.