The Pacific Motor Inn will provide interim housing for 72 formerly unhoused individuals for two years before being redeveloped into permanent supportive housing.

Today’s Homekey awards include $51.6 million for 204 interim units in San Jose and $26.6 million for 108 interim units in Palo Alto.

The City Council voted Tuesday to build 400 more emergency interim housing units, buy Arena Hotel with state funds and finance 561 new affordable housing units.

The city says that the state housing and transportation funds will provide 79 units of affordable housing, bike/pedestrian transportation improvements to Roosevelt Park and two electric buses for VTA.

The funds will be used to convert the 90-unit Arena Hotel, 817 The Alameda, to interim and future permanent housing for homeless individuals and couples.

Santa Clara County will receive $16.7 million to buy and convert the Crestview Hotel in Mountain View into 48 housing units for chronically homeless residents, homeless youth and young people at risk of becoming homeless. The county has already approved spending roughly $23 million on the project in addition to the state funding, which means each apartment unit will cost approximately $827,000.