The Brief

Riverside City Council Rejects $20.1 Million State Grant for Affordable Housing

In a contentious 4-3 vote, Riverside City Council declines state funding for a proposed 114-unit supportive housing project.

In a pivotal decision on January 13, 2026, the Riverside City Council voted 4-3 to reject a $20.1 million state grant intended to fund the conversion of the Quality Inn Motel on University Avenue into 114 studio apartments designated for permanent supportive housing. This project aimed to provide immediate housing solutions for low-income and homeless residents in the area. Councilmembers Philip Falcone, Steven Robillard, Chuck Conder, and Sean Mill voted against accepting the grant, while Councilmembers Clarissa Cervantes, Jim Perry, and Steve Hemenway voted in favor. Councilmember Cervantes, representing the ward where the project was proposed, expressed her support for the initiative, emphasizing the urgent need for affordable housing in Riverside. The rejection of the grant has sparked significant controversy and concern among housing advocates and community members. Housing rights groups have filed a civil rights complaint against the city, alleging that the council's decision violated anti-discrimination laws by denying funding for a project aimed at assisting vulnerable populations. The council's decision also drew criticism from local media and residents. The Riverside Record reported that the project had received opposition from nearby stakeholders, with Councilmember Cervantes noting that some businesses, such as the Farmhouse Collective, were vocal critics of the plan. She expressed suspicion that such businesses might have influenced the voting outcome. In response to the council's decision, Councilmember Cervantes highlighted the missed opportunity to address the city's homelessness crisis and provide much-needed housing for its residents. She emphasized the importance of collaboration and community engagement in developing solutions to the housing shortage. The rejection of the grant has raised broader questions about the city's approach to addressing homelessness and affordable housing. Community leaders and activists are calling for increased transparency and public involvement in future housing initiatives to ensure that the needs of Riverside's most vulnerable populations are met. As Riverside continues to grapple with housing challenges, the council's decision serves as a critical juncture in the city's ongoing efforts to balance development, community interests, and the welfare of its residents.

ℹ️ Researched and summarized from public reporting. Check the sources below.

Sources

Riverside Rejects $20.1M Homekey+ Grant, Halting 114-Unit Permanent Supportive Housing Project — iecn.com
Housing rights groups file civil rights claim against Riverside over failed Quality Inn housing project | KVCR News — kvcrnews.org
Riverside turns down a $20.1 million state funding for homeless housing - The Highlander Newspaper — highlandernews.org
[YouTube] Riverside City Council Meeting - January 13, 2026 — youtube.com
[Reddit] Riverside City Council Rejects Affordable Housing Grant — reddit.com
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