Newsom, Aguilar join city to open supportive housing project
Step Up in Redlands is set to welcome formerly unhoused residents

Dignitaries cut the ribbon marking the grand opening of Step Up in Redlands

Today, Gov. Gavin Newsom, Rep. Pete Aguilar and Redlands Mayor Paul Barich joined Shangri-La Industries and Step Up on Second Street as they celebrated the ribbon cutting of 100 new supportive housing units for the City’s most vulnerable population. The conversion of the former Good Nite Inn will serve as a significant investment in Redlands.

In August, Shangri-La Construction broke ground on the site, making this one of the fastest Homekey Projects, completed, from start to finish, in just over four months. By mid-January, the development will be 90% occupied by formerly unhoused residents enabling residents to start the new year with a safe, permanent home where they can regain their lives.

The conversion of the Good Nite Inn was made possible through collaborative partnerships and funding from the State of California’s Homekey initiative to fund supportive services and rental subsidies. 

The project, led by Shangri-La Industries, LLC (SLI), a fully integrated real estate firm and Step Up on Second Street, Inc. in partnership with the City of Redlands, will provide necessary housing as well as wrap-around services on site, including mental health care, vocational training and social activities needed to successfully reintegrate back into society. 

“Step Up in Redlands is a longstanding vision and commitment to the people of Redlands,” said Mayor Paul Barich. “We are grateful to Shangri-La and Step Up’s partnership and dedication to housing our most vulnerable population and we are proud to welcome residents home to start a new chapter.”

“Homekey is changing thousands of lives statewide because of local leaders like the City of Redlands who are stepping up to help tackle this crisis,” said Gov. Gavin Newsom. “Beginning next week, 100 new supportive housing units will be available in Redlands – providing dozens of people with shelter, critical resources, and community.”

“This important project was a creative solution formed through a partnership with federal, state and local officials using $24 million from the American Rescue Plan,” said Rep. Pete Aguilar. “I will keep delivering for the Inland Empire so we can alleviate homelessness and implement more solutions like this.”

“Step Up in Redlands is a model of what’s possible when our partners come together in a meaningful way,” said Andy Meyers, CEO of Shangri-La. “Every person who moves into these apartments isn’t just getting a roof over their head. They are getting an entire support system who wants to see them succeed. We are excited to finally welcome home Redlands residents where they can feel safe and supported.”

“The renovation of the former Good Nite Inn will provide much-needed permanent housing for the most vulnerable individuals who have been living on the streets of Redlands. This housing project, Step Up in Redlands, provides onsite intensive support services to each tenant and is a well proven model to solve homelessness in Redlands and other communities across the country,” said Tod Lipka, Step Up’s President & CEO.

Shangri-La Industries is committed to expanding affordable housing opportunities and improving the quality of life for underserved communities. To date, Shangri-La Industries has delivered more than 2,000 affordable housing units throughout California. Their projects include The All Star Lodge in San Bernardino, bringing 76 units of permanent supportive housing under Project Homekey and the Good Nite Hotel in Salinas, creating 101 units.  

ABOUT SHANGRI-LA INDUSTRIES, LP (SLI): SLI is a fully integrated commercial real estate firm based in Los Angeles, providing investment, development, and construction services. As the parent corporation of two leading businesses in the California real estate industry, Shangri-La Development, LP (SLD) and Shangri-La Construction, LP (SLC), SLI delivers as both the developer and general contractor to provide a wide range of services and execute a cost-conscious and efficient approach across its diverse portfolio of projects. As a general contractor, SLI has delivered some of Southern California’s landmark projects, including the Hotel Figueroa Renovation, Freehand Hotel, and 1133 Hope Apartments. From its inception, as a developer, expanding affordable housing opportunities and improving the quality of life for underserved communities has been a critical component of SLI’s mission and business model. SLI is focused on identifying well-located housing sites, securing challenging entitlements, providing financial security, and providing in-house compliance expertise for seniors, Veterans, and the mentally ill homeless. In all, SLI has delivered more than 2,000 affordable housing units throughout California. To learn more, visit

ABOUT STEP UP, INC.: Step Up is a 501(c)(3) organization that provides housing and support solutions to Veterans and adults experiencing chronic homelessness and who are also struggling with serious mental health issues. Their goal is to provide recovery, stability, and integration into the community. They boast a 97% retention rate for those they serve because they are a high-fidelity housing first provider. To learn more, visit