Linc Housing has completed the turnaround of two motels into permanent affordable homes in Long Beach, California.
“I think the public appreciates that we are using existing buildings to create housing faster, smarter, more cost-effectively than ever before,” said Los Angeles County supervisor Janice Hahn. “The state’s Project Homekey program has been a game changer for us. By partnering with Linc Housing and using state funding to convert these two buildings, we have 177 new apartments for the people who most need them in Long Beach. We need to address the homelessness crisis with the urgency it demands, and I appreciate the city of Long Beach and mayor Rex Richardson for being my partner in this work and being willing to embrace solutions.”
Zephyr, formerly a Holiday Inn, includes 135 studio apartments and two manager’s units, and Crescent, formerly a Motel 6, has 39 studios and one manager’s unit. Both properties include a community room, outdoor spaces, and private offices for case management.
Both were used during the COVID pandemic as temporary housing prior to the county selecting Linc to convert the units to permanent housing. All homes are for households at or below 30% of the area median income.
“When I saw the ‘welcome home’ sign in my apartment, I couldn’t believe it was real,” said Lashawn, a new resident at Zephyr. “Now, it’s peaceful, my health has improved, and I finally feel safe again.”
She has been hardworking and independent, juggling multiple jobs to make ends meet. But after her apartment flooded, the water damage and mold made it unlivable and left her seriously ill, with severe rashes, swelling, and difficulty breathing. When her landlord failed to fix the problems, she was forced to leave and spent more than a year without stable housing, staying with friends or sleeping outside. After connecting with the Long Beach Multi-Service Center, she moved into temporary housing until she was approved for a home at Zephyr, said officials.
The majority of financing for the initial acquisitions came from Project Homekey funds from the California Department of Housing and Community Development and administered by Los Angeles County. Project Homekey is the state’s groundbreaking initiative to transform underused properties into long-term affordable and supportive housing.
Permanent funding sources for Zephyr include about $21.4 million in American Rescue Plan Act (ARPA) funds from the county and a $6.5 million loan commitment from Freddie Mac through Capital One. In addition, Sterling Bank provided a construction loan.
Permanent funding sources for Crescent include about $11.9 million in ARPA funds from the county, a $1.8 million loan commitment from Freddie Mac through Capital One, and $69,000 grant from Wells Fargo. In addition, a construction loan came from Genesis LA.
The Long Beach Housing Authority is providing project-based Section 8 rental vouchers for both properties.
With funding support from Los Angeles County Department of Health Services/Housing for Health, residents receive wraparound services and case management to ensure they thrive. Supportive services include mental and physical health services, employment counseling and job placement, education, substance use counseling, money management, assistance in obtaining and maintaining benefits, and referrals to community-based services and resources.
“At Linc Housing, our mission is to create communities where every person has the stability and opportunity to thrive,” said Suny Lay Chang, president and chief operating officer at Linc Housing. “Together, Zephyr and Crescent demonstrate how Long Beach and Los Angeles County are leveraging Project Homekey to tackle the region’s housing shortage head-on, creating pathways to healing, belonging and hope.”
Renovations on Zephyr and Crescent began in March 2024 with designs by Sparano + Mooney Architecture and construction by Imperial Contracting.
In all, nonprofit Linc Housing has four Project Homekey communities with nearly 400 apartments, most with wraparound supportive services. Zephyr and Crescent join Atlas in Los Angeles, which opened earlier this year, and Azure in Anaheim, scheduled to open in early 2026. All are named after butterflies, which are symbols of transformation, rebirth, and embracing change.