CSAC Bulletin Article

Homelessness and Housing Funding Awaiting Final Approval

July 5, 2019

CSAC’s top budget priority, a direct allocation of funding for counties to tackle the homelessness crisis, is included in a budget trailer bill awaiting final action by the Assembly today. AB 101 reflects the final agreement between the Governor and Legislature on housing and homelessness budget items for fiscal year 2019-20. The measure includes $650 million to address the homelessness crisis, $500 million for infrastructure grants to support housing production, $500 million to support low-income housing tax credits, $500 million for mixed-income housing development, and $250 million to support local and regional housing plans.  

Following approval by the Senate Budget Committee, AB 101 was passed by the full Senate on July 1. After a joint informational hearing by the Assembly Budget and Local Government committees on July 3, the Assembly is expected to take a final vote on the bill this afternoon. Key provisions of the budget trailer bill are summarized below. CSAC will provide a more thorough summary of the final budget next week.

Homelessness Provisions

  • Homeless Housing, Assistance, and Prevention Program: Creates the program to support regional coordination and expand or develop local capacity to address immediate homelessness challenges. Funding allocations will be based on 2019 homeless point-in-time counts, with specified exemptions allowing certain jurisdictions to use 2017 numbers. Specifically,

    • $175 million to counties (40 percent cap for any single county)
    • $190 million to continuums of care (40 percent cap for any single CoC and $500,000 minimum allocation)
    • $275 million to cities with a population greater than 300,000 (45 percent cap for any single city)
  • Streamlined Process for Low Barrier Navigation Centers: Requires that a Low Barrier Navigation Center development be a use by right in areas zoned for mixed uses and nonresidential zones permitting multifamily uses if the shelter meets certain criteria.

Housing Provisions

  • Infill Infrastructure Grant Program of 2019: Allocates $500 million for the program to be established and administered by California Department of Housing and Community Development (HCD) for capital improvement projects.

    • $410 million in competitive grants for large jurisdictions
    • $90 million in over-the-counter grants for small jurisdictions
  • Local Government Planning Support Grants Program: Allocates $250 million to regions and jurisdictions through the program for planning activities to enable jurisdictions to meet the sixth cycle of the regional housing need assessment.
    • $125 million available to councils of governments and other regional entities
    • $125 million available to jurisdictions to assist in planning for other activities related to meeting the sixth cycle regional housing need
  • State Low-Income Housing tax Credit (LIHTC) Increase: Includes $500 million increase to the LIHTC allocation.
  • Self-Help Housing Fund Allocation: Appropriates $500 million to the Self-Help Housing Fund to finance low and moderate income housing.
  • Long-Term Housing Planning Reform: By December 2022, HCD and the Office of Planning and Research and after engaging in stakeholder participation must develop a recommended improved regional housing need allocation process and methodology to streamline housing development.
  • Housing Element Enforcement: Allows the court, after extensive due process, to impose fines ranging from $10,000 to $100,000 per month on local jurisdictions whose housing elements are not in substantial compliance with state law. In certain cases, the court would be able to appoint an agent of the court to bring the jurisdiction’s housing element into compliance.
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