Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to pass a bill that requires state and local governments to develop plans to reduce homelessness by 90% from their current levels by December 31, 2029.

Highlights:

• Establishes the Department of Housing and Community Development is hereby designated as the state agency responsible for administering funds received by the state from the federal Housing Trust Fund and implementing federal regulations. The department may use up to 10% of the federal Housing Trust Fund annual grant awards for expenses of administering these funds (Sec. 1.a).

• Requires the department to administer the funds through any existing or newly created programs that produce, preserve, rehabilitate, or support the operation of rental housing for extremely low income and very low-income households, except that up to 10% of funding may be used to support homeownership for extremely low-income and very low income households (Sec. 1.b).

• Requires the department to collaborate with the California Housing Finance Agency to develop an allocation plan to demonstrate how the funds will be distributed, based on the priority housing needs identified in the state’s consolidated plan (Sec. 1.c).

• Requires the allocation plan and guidelines to give priority to projects based on (Sec. 1.d):

• Geographic diversity;

• The extent to which rents are affordable, especially to extremely low-income households;

• The merits of a project;

• Applicants readiness; and

• The extent to which projects will use nonfederal funds.

• Requires the department to award funds to projects serving people experiencing homelessness, to the extent that a sufficient number of projects exist. The department may alter priority for funding to align eligibility for possible benefits, including Medi-Cal benefits intended to fund services for people experiencing homelessness (Sec. 1.e).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires state and local governments to develop plans to reduce homelessness by 90% from their current levels by December 31, 2029.

Highlights:

• Establishes the Department of Housing and Community Development is hereby designated as the state agency responsible for administering funds received by the state from the federal Housing Trust Fund and implementing federal regulations. The department may use up to 10% of the federal Housing Trust Fund annual grant awards for expenses of administering these funds (Sec. 1.a).

• Requires the department to administer the funds through any existing or newly created programs that produce, preserve, rehabilitate, or support the operation of rental housing for extremely low income and very low-income households, except that up to 10% of funding may be used to support homeownership for extremely low-income and very low income households (Sec. 1.b).

• Requires the department to collaborate with the California Housing Finance Agency to develop an allocation plan to demonstrate how the funds will be distributed, based on the priority housing needs identified in the state’s consolidated plan (Sec. 1.c).

• Requires the allocation plan and guidelines to give priority to projects based on (Sec. 1.d):

• Geographic diversity;

• The extent to which rents are affordable, especially to extremely low-income households;

• The merits of a project;

• Applicants readiness; and

• The extent to which projects will use nonfederal funds.

• Requires the department to award funds to projects serving people experiencing homelessness, to the extent that a sufficient number of projects exist. The department may alter priority for funding to align eligibility for possible benefits, including Medi-Cal benefits intended to fund services for people experiencing homelessness (Sec. 1.e).

Full Bill Text