On January 13, the Riverside City Council voted 4–3 to reject the proposed University Terrace Homes project, turning down a large-scale housing initiative aimed at addressing homelessness in the city.
The no vote was led by Councilmembers Philip Falcone, Steven Robillard, Chuck Condor, and Sean Mill.
The plan would have used state Homekey+ funding to convert the 114-room Quality Inn at 1590 University Avenue into 114 studio homes—94 permanent supportive housing units for individuals experiencing or at risk of homelessness, along with 20 affordable housing units.
Voting in favor were Councilmembers Clarissa Cervantes, Jim Perry, and Mayor Pro Tem Steve Hemenway, who argued that Riverside cannot afford to pass on a rare, ready-to-go housing opportunity of this scale.
The project carried a $29.7 million total price tag, including a $20.137 million state grant and approximately $9.5 million in already-allocated local housing funds. With the vote, that funding is now effectively left unused—despite a homelessness crisis that continues to grow more urgent across the city.
As Riverside residents grapple with rising housing insecurity, the decision raises tough questions about how—and how quickly—the city is willing to act when substantial outside funding is on the table.