On Jan. 13, 2026, the Riverside City Council voted to reject a $20.1 million state grant intended for homeless housing with four councilmembers voting against the grant and three councilmembers voting in support of it.
Initially, the council voted in favor of pursuing funding on May 20, 2025. The project, University Terrace Homes, aimed to create 30 affordable housing units and proposed acquiring and converting the Quality Inn Motel located on University Avenue. The funding was awarded in November through the Homekey+ program and aimed at creating permanent supporting housing for those at risk of homelessness.
According to IE Community News, the project received opposition from nearby stakeholders. Councilmember Clarissa Cervantes, who voted for the project, singled out Farmhouse Collective as one of the most vocal critics of the project and noted her suspicion that the business might have influenced the voting result.
According to The Press-Enterprise, Councilmember Sean Mill, who voted against the project, argued that models which have prioritized housing have “always been a failure” and “a transitional housing model” with the capacity to adequately respond to mental health and substance abuse problems is a more appropriate alternative. Councilmembers Philip Falcone and Chuck Conder, who voted no, remained silent about the reason for the decision.
Cervantes responded to the concern raised by Mill by pointing out that the issues were addressed through an operation plan and employment of staff. She said her opponents “came with premeditated decisions or had already made their mind up” which she pointed out is “not a fair public hearing for an item like this.” She also spoke critically about the councilmembers who did not justify the votes, saying she “was very shocked and disappointed.”
Despite the recent decrease in homelessness in the area, both the City of Riverside saw 614 people unsheltered and the county saw nearly 4,000 people unsheltered in 2025. Riverside Mayor Patricia Dawson said that she was “disappointed that the money isn’t going to be able to be spent” and that such projects need to be led and supported by the community.
