Santa Monica awarded nearly $50 million for housing and transportation projects
December 16, 2025 2:05 PM
SANTA MONICA, Calif. (Dec. 16, 2025) — The California Strategic Growth Council (SGC) unanimously approved a $49.9 million grant last week through the Affordable Housing and Sustainable Communities (AHSC) Program to support the development of 1318 4th Street (formerly Parking Structure 3) and sustainable transportation infrastructure projects across the city.
This award marks a major milestone in the city’s commitment to advancing affordable housing and climate-friendly transportation. The 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 including Housing and Human Services, the Department of Transportation (DOT) and the City Attorney’s Office.
Funding breakdown:
- $35 million will go toward the construction of the 1318 4th Street affordable housing development, which is part of the city’s approved Housing Element. A Development and Disposition Agreement was approved by the City Council for the site on Oct. 7 of this year.
- $14.3 million will fund sustainable transportation infrastructure projects led by DOT, including:
- Acquisition of five new zero-emissions battery electric Big Blue Buses, in furtherance of our goal to convert to a fully electric fleet by 2032
- Installation of bus shelters with seating at five Big Blue Bus stops, to add to the 10 recently installed citywide
- Upgrades to 14th Street bike lanes, converting them into a two-way protected bikeway from Washington Avenue to Pico Boulevard (2.6 lane miles)
- Curb ramp improvements to enhance accessibility
- An additional $150,000 is allocated for anti-displacement efforts, specifically the development of a rent registry for non-rent-controlled rental properties.
“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,” Acting Housing and Human Services Director Natalie Verlinich said. “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.”
“This transformative grant supports the city’s Realignment Plan and advances DOT’s mission of delivering safe, sustainable, comfortable and accessible transportation options that accommodate all ages and abilities,” Department of Transportation Director Anuj Gupta said. “The award ensures continued progress in expanding protected bike lanes, transitioning to a zero-emissions fleet, and improving bus stop amenities and pedestrian access, while strengthening Santa Monica’s capacity to offer a world-class transportation network for residents and visitors during major regional events.”
AHSC Round 9 awarded over $835 million to 21 applications statewide, making it the second-largest funding round in SGC’s history. These investments will support the development of nearly 2,400 new rent-restricted homes and expand zero-emission transit, bikeways, and pedestrian infrastructure. Round 9 prioritized greenhouse gas reductions, geographic equity, and support for disadvantaged communities. Santa Monica’s 1318 4th Street development exemplifies these priorities and will contribute to the city’s inclusive economic growth for decades to come.
For more information on the AHSC Program click here. View the SGC council meeting here.
Media Contact
Tati Simonian
Public Information Officer
Tati.Simonian@santamonica.gov
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