As part of a statewide initiative to remediate its housing shortage, the state of California has mandated that the city of Costa Mesa zone for 11,760 new units of housing by 2029. To this end, the city council last November approved the conversion of a Motel 6 near Newport Boulevard, and in June approved the conversion of a Travelodge near John Wayne Airport.
Once renovated, the Motel 6 will net 87 units and the Travelodge will provide 76 units. Upon completion both communities will provide permanent supportive housing to very low-income households while bringing the city that much closer to its goal of nearly 3,000 affordable units.
The city will contribute to the cost of the project conversions, having approved $5.8 million toward the Motel 6 project and $4 million toward the Travelodge project. The city of Newport Beach and the county of Orange are also contributing to the Travelodge deal: Newport Beach with $3 million and the county of Orange, $6.8 million.
The Travelodge conversion is estimated to cost $45 million. Over half of this cost will be covered by state-sponsored Project Homekey, a program launched in July 2020. The program awards funds specifically for the purpose of buying and rehabilitating buildings for the homeless and low-income individuals at risk of becoming homeless.
Non-profit Mercy House will partner with Costa Mesa in developing and operating the Motel 6. Thirty of the 87 units are designated for homeless veterans, and others will house those at risk of homelessness or those eligible for help under the Mental Health Services Act. Mercy House will provide on-site management and referral services for residents. The state awarded the city $10.675 in Project Homekey funding toward the project.
In developing the Travelodge, the city of Costa Mesa will partner with non-profit developer American Family Housing (AFH) headquartered in Midway City, also in Orange County. AFH primarily works with the homeless and currently operates 49 communities spanning nearly 400 units. Once up and running, the non-profit will include 24-hour on-site management staff and the standard wrap-around support services that have become an effective operational standard at their other communities.
These projects and others like them will house those “formally experiencing homelessness, who cannot live on their own because they were homeless for so long or have disabilities,” said Nate Robbins, the city’s neighborhood improvement manager.
The Motel 6 was built in 1956 and sits on 1.16 acres.
Built in 1969, the Travelodge structure is two-stories on 1.22 acres with 120 rooms averaging 250 sq. ft. The property includes a space that is subleased to a restaurant, a feature that will remain after the rehab. The property last sold in 2021 for $14 million.
