The money comes from a federal program called Veterans Affairs Supportive Housing - or VASH.
Vets who qualify will be able to get housing vouchers through the Sacramento Housing and Redevelopment Agency. La Shelle Dozier is that agency's executive director:
"This is going to give us an opportunity to continue to reach out and to serve more veterans. It equates to about, vouchers for 75 veterans and their families."
Some of the VASH funding will also used by the Mather Veterans Affairs Medical Center to provide support services to vets and their families.
Local homeless advocates say about 10% of the people living on the streets in Sacramento are veterans.