By Lookout Staff

December 17, 2025 -- A Downtown affordable housing project expected to cost $1 million per unit to build has received a major funding boost after the City received a nearly $50 million grant.

Of the total $49.9 million from the California Strategic Growth Council's (SGC) Affordable Housing and Sustainable Communities (AHSC) Program, $35 million will go toward the construction of a 122-unit EAH Housing project at the former site of Parking Structure 3 behind the Promenade.

The project -- which was initially scheduled to be completed in 2029 -- includes 50 units of Permanent Supportive Housing (PSH) for homeless residents, 116 underground parking spaces and a 19,000-square-foot grocery store on the ground floor.

“This funding is a crucial first step in financing the 1318 4th Street development and has the potential to accelerate the project timeline by up to one year,” said Natalie Verlinich, acting director of Housing and Human Services.

“This AHSC award will help us deliver key aspects of Santa Monica’s Realignment Plan faster, including affordable housing, sustainable transportation infrastructure and long term stability for our residents.”

City Manager Oliver Chi's two and a half year Realignment Plan lays the groundwork for bringing the cash-strapped City back by tackling crime and homelessness and boosting the City's economy ("Council Approves Ambitious Plan to Revitalize City," October 30, 2025).

The grant application "was the result of a months long collaborative effort between the city of Santa Monica, non-profit developer partner EAH Housing and multiple City departments," officials said.

The grant provides $14.3 million to fund sustainable transportation infrastructure projects, including purchasing five new zero-emissions battery electric Big Blue Buses.

The money will help the City meet its goal of transitioning from a renewable natural gas fleet to a 100 percent zero-emissions fleet by 2032, officials said.

In addition, the grant will be used to install bus shelters with seating at five Big Blue Bus stops, convert the 14th Street bike lanes into a two-way protected bikeway from Washington Avenue to Pico Boulevard and improve curb ramps "to enhance accessibility."

An additional $150,000 will go towards developing a rent registry for market-rate rental properties ("Rent Registry to Kick in for Market Rate Units," November 13, 2025).

"This award marks a major milestone in the City’s commitment to advancing affordable housing and climate-friendly transportation," City officials said.

AHSC Round 9 awarded over $835 million to 21 applications statewide and prioritized "greenhouse gas reductions, geographic equity, and support for disadvantaged communities."