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SB-166 Housing.(2023-2024)

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Date Published: 06/22/2024 12:40 PM
SB166:v98#DOCUMENT

Amended  IN  Assembly  June 22, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 166

Introduced by Committee on Budget and Fiscal Review

January 18, 2023

An act relating to the Budget Act of 2023. to amend Section 65585 of the Government Code, to amend Sections 50220.7, 50220.8, 50221, 50222, 50223, 50230, 50231, 50238, 50250, 50515.07, 50515.09, and 50515.10 of, to add Sections 50157 and 50254.5 to, to add the heading of Article 1 (commencing with Section 50232) to, and to add Article 2 (commencing with Section 50239) to, Chapter 6.5 of Part 1 of Division 31 of, and to add and repeal Section 51526.1 of, the Health and Safety Code, and to amend Section 5965.04 of the Welfare and Institutions Code, relating to housing, and making an appropriation therefor, to take effect immediately, bill related to the budget.


LEGISLATIVE COUNSEL'S DIGEST


SB 166, as amended, Committee on Budget and Fiscal Review. Budget Act of 2023. Housing.
(1) Existing law establishes the Interagency Council on Homelessness and requires the goals of the council to include, among other things, identifying mainstream resources, benefits, and services that can be accessed to prevent and end homelessness in California. Existing law requires the council to administer certain grant programs to assist local governments in addressing homelessness. Existing law states the intent of the Legislature to transfer grant administration from the council to the Department of Housing and Community Development, as specified.
This bill would set a deadline of July 1, 2024, for that transfer of responsibilities for specified programs, including the Homeless Housing, Assistance, and Prevention program and the Encampment Resolution Funding program, described below. The bill would update the above-described intent statement and make other conforming changes.
(2) Existing law establishes the Homeless Housing, Assistance, and Prevention program for the purpose of providing jurisdictions with grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. Existing law provides for the allocation of funding under the program among continuums of care, cities, counties, and tribes in 5 rounds, which are administered by the Interagency Council on Homelessness.
This bill would establish round 6 of the program, and would require the Department of Housing and Community Development, no later than January 31, 2025, to make available an application for round 6 base program allocations, as specified. Among other things, the bill would require applicants to demonstrate how the region will use available resources to sustain all existing and proposed interim housing investments within the region, as specified. To be eligible for a round 6 base program allocation, the bill would require a jurisdiction that is not a tribe to apply as part of a region and must be signatory to a round 6 regionally coordinated homelessness action plan that has been approved by the department. The bill would require the department to approve a plan when it determines that the plan includes specified components, including certain performance measures for the region as well as age, racial, and ethnic disparities for specified information, and a system performance and improvement plan.
This bill would require a round 6 grantee, or on before January 31, 2027, to submit to the department an updated regionally coordinated homelessness action plan that includes updates on the performance measures and corresponding key actions carried out, as applicable. The bill would require a round 6 recipient to contractually obligate not less than 75%, and to expend not less than 50%, of the initial round 6 program allocations made to it no later than June 30, 2027. The bill would require any remaining amounts of round 6 base program allocation funds not expended by June 30, 2029, to revert to, and be paid and deposited in, the General Fund.
Existing law requires a program recipient to perform specified duties, including, by January 1 of the year following receipt of program funds and annually on January 1 thereafter until all funds have been expended, to submit a report to the council, as specified.
This bill would instead require reports to be submitted to the department by April 1 of those years.
Beginning with round 3, existing law requires a program applicant, in addition to other prescribed information, to provide specified information for all rounds of the program allocations through data collection, reporting, performance monitoring, and accountability framework, as established by the council. Existing law requires those program applicants to submit specified fiscal reports quarterly. With regard to round 3, existing law requires that jurisdictions that meet their outcome goals be eligible for bonus funding, as specified, and prohibits jurisdictions that do not meet their outcome goals from being eligible for bonus funding.
This bill would make revisions to the data that applicants must provide. The bill would instead require the fiscal reports to be submitted monthly, and would revise the dates by which certain data and other reports must be submitted. The bill would remove the above-described requirement and prohibition regarding bonus-funding eligibility and instead provide that specified returned funds be reallocated to round 3 grantees, as provided.
(3) Existing law establishes the Encampment Resolution Funding program to increase collaboration between specified entities to assist cities and counties in ensuring the safety and wellness of people experiencing homelessness in encampments, to provide encampment resolution grants to cities, counties, and continuums of care to resolve critical encampment concerns and transition individuals into safe and stable housing, and to encourage a data-informed, coordinated approach to address encampment concerns, as specified. Existing law requires recipients of program funds to provide data elements to their local Homeless Management Information System for tracking in the statewide Homeless Data Integration System.
This bill would require a recipient of program funding appropriated in fiscal years 2021–22, 2022–23, and 2023–24 to submit to the Department of Housing and Community Development a final report pursuant to the above-described reporting provision no later than April 1 of the year following the expiration of the encumbrance period of funds, and beginning April 1, 2025, an annual report, as provided. The bill would require a recipient of program funding appropriated in fiscal years 2024–25 and 2025–26 to submit to the department certain data elements, to provide an annual report beginning April 1, 2026, and to provide a final report no later than April 1 of the year following the expiration of the encumbrance period of funds. The bill would appropriate $150,000,000 from the General Fund to the department to provide grants to address encampments for persons experiencing homelessness, as specified.
(4) Existing law requires the Department of Housing and Community Development to notify a city or county, and authorizes the department to notify the Attorney General for specified enforcement, that the city or county is in violation of state law if the department finds a violation of specified housing laws.
This bill would include among those housing laws the Homeless Housing, Assistance, and Prevention program, the Encampment Resolution Funding program, and the Family Homelessness Challenge Grants and Technical Assistance Program.
(5) Existing law establishes the Regional Early Action Planning Grants Program of 2021 for the purpose of providing regions with funding, including grants, for housing, planning, infrastructure investments supporting infill housing, and other actions that enable meeting housing goals that also result in per capita vehicle miles traveled reductions, as specified . Existing law requires the Department of Housing and Community Development to develop and administer the program, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, and to distribute funds, upon appropriation, in accordance with specified requirements. Existing law requires the department to set aside up to 5% of the total amount of moneys appropriated for purposes of the program for program administration, including state operations expenditures and technical assistance. Existing law also makes those funds available pursuant to a specified schedule based on specified percentages of those appropriated moneys to various entities including metropolitan planning organizations (MPOs), councils of governments (COGs), regional transportation planning agencies, cities, counties, transit agencies and districts, county transportation agencies, and tribal entities.
This bill would revise that schedule to instead specify the dollar amounts that would be available to those entities for those purposes, including setting aside $20,000,000 to the department for program administration.
(6) Existing law establishes the California Housing Finance Agency in the Business, Consumer Services, and Housing Agency and authorizes the agency to, among other things, make loans to finance affordable housing, as specified. Existing law establishes the California Dream for All Program, administered by the California Housing Finance Agency, to provide shared appreciation loans, as defined, to qualified first-time homebuyers. Existing law requires the agency to annually report to the Legislature details of program implementation, including the number of loans made and the characteristics of the borrowers, as specified.
This bill would require the agency, in consultation with the staff of the Legislative Analyst’s Office, the Senate Committees on Banking and Financial Institutions, Budget and Fiscal Review, and Housing, and the Assembly Committees on Banking and Finance, Budget, and Housing and Community Development, to, among other things, develop options for the next phase of the program, including an option to expand the program to enable participation by specified entities. The bill would require the agency, on or before January 31, 2026, to provide the Legislature with a report detailing its assessment, recommendations, and options. The bill would repeal these provisions on January 1, 2027.
(7) Existing law, the Behavioral Health Infrastructure Bond Act of 2024 (bond act), establishes the Behavioral Health Infrastructure Fund, requires specified proceeds of interim debt and bonds that are issued and sold pursuant to the bond act to be deposited in the fund, and continuously appropriates the fund for purposes of the bond act. Existing law requires the moneys in the fund to be used for certain purposes, including making loans or grants administered by the Department of Housing and Community Development to state, regional, and local public entities and development sponsors to acquire capital assets for the conversion, rehabilitation, or new construction of permanent supportive housing for persons who are homeless, chronically homeless, or are at risk of homelessness, and are living with a behavioral health challenge, are veterans, or are part of a veteran’s household (behavioral health and veterans housing programs). Existing law allocates moneys in the fund for those purposes, including for administrative costs related to the behavioral health and veterans housing programs.
This bill would limit the use of bond proceeds for those administrative costs to 3% of all bond proceeds allocated for each of those behavioral health and veterans housing programs.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(8) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The Legislature has made significant investments in addressing the homelessness crisis and it remains an urgent and critical priority for the state.
(b) The state and the cities, counties, and continuums of care have a shared interest in ensuring that these resources are deployed with increased accountability, efficiency, and urgency.
(c) It is the intent of the Legislature through the amendments to subdivision (j) of Section 65585 of the Government Code contained in this act to enhance the authority of the Department of Housing and Community Development to oversee, monitor, and enforce accountability for the effective administration of the Homeless Housing, Assistance and Prevention program, the Encampment Resolution Funding program, and the Family Homelessness Challenge Grants and Technical Assistance Program.

SEC. 2.

 Section 65585 of the Government Code is amended to read:

65585.
 (a) In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.
(b) (1) At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting the draft revision to the department.
(2) The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county and provide these comments to each member of the legislative body before it adopts the housing element.
(3) The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element. The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).
(c) In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.
(d) In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.
(e) Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the department’s findings are not available within the time limits set by this section, the legislative body may act without them.
(f) If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:
(1) Change the draft element or draft amendment to substantially comply with this article.
(2) Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings that explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department.
(g) Promptly following the adoption of its element or amendment, the planning agency shall submit a copy to the department.
(h) The department shall, within 60 days, review adopted housing elements or amendments and report its findings to the planning agency.
(i) (1) (A) The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (B).
(B) If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article.
(2) The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.
(j) The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:
(1) Housing Accountability Act (Section 65589.5).
(2) Section 65863.
(3) Chapter 4.3 (commencing with Section 65915).
(4) Section 65008.
(5) Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).
(6) Section 8899.50.
(7) Section 65913.4.
(8) Article 11 (commencing with Section 65650).
(9) Article 12 (commencing with Section 65660).
(10) Section 65913.11.
(11) Section 65400.
(12) Section 65863.2.
(13) Chapter 4.1 (commencing with Section 65912.100).
(14) Section 65905.5.
(15) Chapter 13 (commencing with Section 66310).
(16) Section 65852.21.
(17) Section 65852.24.
(18) Section 66411.7.
(19) Section 65913.16.
(20) Article 2 (commencing with Section 66300.5) of Chapter 12.
(21) Section 65852.28.
(22) Section 65913.4.5.
(23) Section 66499.41.
(24) Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code).
(25) Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code).
(26) Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).
(k) Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j).
(l) In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.
(1) If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction’s failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2) If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction’s failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(3) If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:
(A) If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction’s failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(B) The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdiction’s housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the department’s determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.
(4) This subdivision does not limit a court’s discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j).
(m) In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(n) Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section.
(o) Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j), the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding.
(p) Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).
(q) The amendments to this section made by the act adding this subdivision shall not be construed to limit the department’s ability to enforce programmatic requirements or remedies against cities, counties, and continuums of care pursuant to the Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code), the Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250)), and the Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255)).

SEC. 3.

 Section 50157 is added to the Health and Safety Code, to read:

50157.
 In accordance with subdivision (e) of Section 50231, responsibility for administering the following programs shall transfer from the Interagency Council on Homelessness to the Department of Housing and Community Development on or before July 1, 2024:
(a) The Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230)).
(b) The Encampment Resolution Funding program authorized by Chapter 7 (commencing with Section 50250).
(c) The Family Homelessness Challenge Grants and Technical Assistance Program authorized by Chapter 8 (commencing with Section 50255).

SEC. 4.

 Section 50220.7 of the Health and Safety Code is amended to read:

50220.7.
 (a) (1) No later than September 15, 2021, the council shall issue a standard agreement for applicants to apply for round 3 program funds, which shall include, at minimum, a requirement for applicants to submit an application that includes a local homelessness action plan and specific outcome goals system performance measures based on the Homeless Management Information System performance metrics measures as described in subdivision (b).
(2) A standard agreement from an applicant shall be due to the council no later than 30 days from the date the council issues the standard agreement pursuant to paragraph (1).
(3) If an applicant does not submit a completed standard agreement by the deadline specified in paragraph (2), the council may distribute that applicant’s share of round 3 program funds to an eligible overlapping jurisdiction, as determined by the council.
(4) (A) (i) Upon receipt of a standard agreement, and except as otherwise provided in clause (ii), the council shall allocate 20 percent of an eligible city’s, county’s, or continuum of care’s total allocation pursuant to subdivision (a) of Section 50218.6.
(ii) (I) A city, city and county, single continuum of care, or county may apply jointly with a counterpart entity or entities. An applicant that applies jointly pursuant to this paragraph shall instead be allocated 25 percent of the jointly applying jurisdictions’ total allocation pursuant to subdivision (a) of Section 50218.6.
(II) A joint application submitted pursuant to this clause shall include, at minimum, evidence of collaboration between the jointly applying applicants and an explanation of how the jointly applying applicants will administer the funds allocated to them pursuant to this section.
(B) A recipient may use initial funds awarded pursuant to this paragraph to complete the local homeless action plan, required as provided pursuant to paragraph (1) and in accordance with the requirements of subparagraph (A) of paragraph (3) of subdivision (b), including paying for any technical assistance or contracted entities to support the completion of the homeless action plan.
(5) Priority for initial funds, above the costs of completing the application, shall be for systems improvement, including, but not limited to, all of the following:
(A) Capacity building and workforce development for service providers within the jurisdiction, including removing barriers to contracting with culturally specific service providers and building the capacity of providers to administer culturally specific services.
(B) Funding existing evidence-based programs serving people experiencing homelessness.
(C) Investing in data systems to meet reporting requirements or strengthen the recipient’s Homeless Management Information System.
(D) Improving homeless point-in-time counts.
(E) Improving coordinated entry systems to strengthen coordinated entry systems to eliminate racial bias, to create a youth-specific coordinated entry system or youth-specific coordinated entry access points, or to improve the coordinated entry assessment tool to ensure that it contemplates the specific needs of youth experiencing homelessness.
(b) To receive the remaining balance of its round 3 program allocation, an applicant shall submit an application to the council by June 30, 2022, that includes a local homelessness action plan and specific outcome goals system performance measures in accordance with the following requirements:
(1) The applicant shall engage with the council on its local plan and outcome goals system performance measures before submitting a complete application.
(2) For city, county, and continuum of care applicants, local homelessness action plans pursuant to subparagraph (A) of paragraph (3) and outcome goals system performance measures pursuant to subparagraph (C) of paragraph (3) shall be agendized at a regular meeting of the governing body, including receiving public comment, before being submitted to the council.
(3) A complete application submitted pursuant to this section shall provide the following information, in the form and manner prescribed by the council:
(A) A local homelessness action plan, which shall include all of the following:
(i) A local landscape analysis that assesses the current number of people experiencing homelessness and existing programs and funding which address homelessness within the jurisdiction, utilizing any relevant and available data from the Homeless Data Integration System, the United States Department of Housing and Urban Development’s homeless point-in-time count, continuum of care housing inventory count, longitudinal systems analysis, and Stella tools, as well as any recently conducted local needs assessments.
(ii) Identification of the number of individuals and families served, including demographic information and intervention types provided, and demographic subpopulations that are underserved relative to their proportion of individuals experiencing homelessness in the jurisdiction.
(iii) Identification of all funds, including state, federal and local funds, currently being used, and budgeted to be used, to provide housing and homelessness-related services to persons experiencing homelessness or at imminent risk of homelessness, how this funding serves subpopulations, and what intervention types are funded through these resources.
(iv) Applicants may submit an analysis that was completed in the last three-years if it meets the requirements of this subparagraph, with any relevant updates to the current available funding.
(B) A narrative that includes the following:
(i) An outline of proposed uses of funds requested and an explanation of how the proposed use of funds will complement existing local, state, and federal funds and equitably close the gaps identified pursuant to subparagraph (A).
(ii) Evidence of connection with the local homeless Coordinated Entry System.
(iii) An agreement to participate in a statewide Homeless Data Integration System, and to enter individuals served by this funding into the local Homeless Management Information System, in accordance with local protocols.
(iv) A demonstration of how the jurisdiction has coordinated, and will continue to coordinate, with other jurisdictions, including the specific role of each applicant in relation to other applicants in the region.
(v) A demonstration of the applicant’s partnership with, or plans to use funding to increase partnership with, local health, behavioral health, social services, and justice entities and with people with lived experiences of homelessness.
(vi) A description of specific actions the applicant will take to ensure racial and gender equity in service delivery, housing placements, and housing retention and changes to procurement or other means of affirming racial and ethnic groups that are overrepresented among residents experiencing homelessness have equitable access to housing and services.
(vii) A description of how the applicant will make progress in preventing exits to homelessness from institutional settings, include plans to leverage funding from mainstream systems for evidence-based housing and housing-based solutions to homelessness.
(viii) Specific and quantifiable systems improvements that the applicant will take to improve the delivery of housing and services to people experiencing homelessness or at risk of homelessness, including, but not limited to, the following:
(I) Capacity building and workforce development for service providers within the jurisdiction, including removing barriers to contracting with culturally specific service providers and building the capacity of providers to administer culturally specific services.
(II) Strengthening the data quality of the recipient’s Homeless Management Information System.
(III) Increasing capacity for pooling and aligning housing and services funding from existing, mainstream, and new funding.
(IV) Improving homeless point-in-time counts.
(V) Improving coordinated entry systems to strengthen coordinated entry systems to eliminate racial bias, to create a youth-specific coordinated entry system or youth-specific coordinated entry access points, or to improve the coordinated entry assessment tool to ensure that it contemplates the specific needs of youth experiencing homelessness.
(ix) Plans shall include strategies to meet outcome goals system performance measures pursuant to subparagraph (C).
(C) (i) Applicants shall establish outcome goals system performance measures that prevent and reduce homelessness from July 1, 2021, through June 30, 2024, informed by the findings from the local landscape analysis described in subparagraph (A) and the jurisdiction’s base system performance measure from 2020 calendar year data in the Homeless Data Integration System. The outcome goals system performance measures shall set definitive metrics, based on the United States Department of Housing and Urban Development’s system performance measures, for achieving the following:
(I) Reducing the number of persons experiencing homelessness.
(II) Reducing the number of persons who become homeless for the first time.
(III) Increasing the number of people exiting homelessness into permanent housing.
(IV) Reducing the length of time persons remain homeless.
(V) Reducing the number of persons who return to homelessness after exiting homelessness to permanent housing.
(VI) Increasing successful placements from street outreach.
(VII) Homeless Management Information System trackable data goals related to the outcome goals system performance measures listed above as they apply to underserved populations and populations disproportionately impacted by homelessness.
(ii) Each applicant shall determine its outcome goals system performance measures in consultation with the council, and shall not submit its final outcome goals system performance measures before consulting with the council.
(iii) The council shall assess outcome goals system performance measures in the application based on the information provided in the local homeless action plan and the applicant’s baseline data on the system performance metrics measures described in this subparagraph and determine whether the outcome goals system performance measures adequately further the objectives of reducing and preventing homelessness pursuant to this subparagraph.
(iv) Initial outcome goals system performance measures should be met no later than June 30, 2024, and outcome goals system performance measures shall be updated regularly, as funding continues.
(c) The council may request additional documentation and information from the applicant during consultation consistent with respect to round 3 program allocations consistent with the requirements of subdivision (b).
(d) (1) Within 30 days of receiving the final applications pursuant to subdivision (b), the council shall either approve the application and issue the notice of award to allocate the remaining percent of an applicant’s funding pursuant to subdivision (a) of Section 50218.6 or return it to the applicant with written, detailed comments and request one or more of the following specific amendments to the application:
(A) Greater detail on any aspect of the application so that the council can ensure fidelity with the applicant’s proposed use of funds and agreed upon measurable outcome goals. system performance measures.
(B) Modifications or provision of additional information on the applicant’s proposed funding plan to ensure alignment with the applicant’s stated measurable outcome goals system performance measures and with evidence-based solutions to reduce homelessness.
(C) Any other modifications or provision of information that would allow the council to better monitor and evaluate the applicant’s ability to meet objective outcome standards in accordance with Sections 50221, 50222, and 50223.
(2) An applicant whose application has been returned pursuant to paragraph (1) shall respond to the council’s requested amendments and submit a revised application within 30 days of receipt of the council’s detailed comments and request for specific amendments. If the revised application differs from the council’s requests, the applicant shall include an explanation of the differences and the rationale for departing from the council’s requested amendments.
(3) The council shall have 30 days to approve a revised application if, as amended, it addresses the council’s concerns or to provide the grantee with additional guidance and a deadline extension in the case of documented extenuating circumstance for further amending to fully address the council’s concerns.
(e) Except as provided in subdivision (f), a recipient of a round 3 program allocation, including tribal recipients, shall expend funds on evidence-based solutions that address and prevent homelessness among eligible populations, including any of the following:
(1) Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees.
(2) Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves.
(3) Street outreach to assist persons experiencing homelessness to access permanent housing and services.
(4) Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing.
(5) Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations, including families and homeless youth.
(6) Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions.
(7) Prevention and shelter diversion to permanent housing, including rental subsidies.
(8) Interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or existing noncongregate shelters, and operations of existing navigation centers and shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following:
(A) The number of available shelter beds in the city, county, or region served by a continuum of care.
(B) The number of people experiencing unsheltered homelessness in the homeless point-in-time count.
(C) Shelter vacancy rate in the summer and winter months.
(D) Percentage of exits from emergency shelters to permanent housing solutions.
(E) A plan to connect residents to permanent housing.
(F) Any new interim sheltering funded by round 3 funds must be low barrier, comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code, and prioritize interventions other than congregate shelters.
(9) Improvements to existing emergency shelters to lower barriers and increase privacy.
(f) An applicant shall not use more than 7 percent of a round 3 program allocation for administrative costs incurred by the city, county, continuum of care, or tribe to administer its program allocation. For purposes of this subdivision, “administrative costs” does not include staff or other costs directly related to implementing activities funded by the program allocation.
(g) A recipient of a round 3 program allocation shall comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.
(h) Notwithstanding Section 27011 of the Government Code, or any other law governing the deposit of funds in the county treasury, a county may accept or deposit into the county treasury funds from any source for the purpose of administering a project, proposal, or program under this chapter.
(i) For purposes of Section 1090 of the Government Code, a representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county.
(j) The council and recipients shall post final round 3 program applications to their respective internet websites within 30 days of disbursal to the applicant.
(k) (1) (A) Except as otherwise provided in subparagraph (B), a recipient shall contractually obligate not less than 50 percent of round 3 program allocations no later than May 31, 2024.
(B) Recipients that are counties shall contractually obligate the full amount of round 3 program allocation awarded to them by the council on or before the date specified in subparagraph (A). Any funds that are not contractually obligated by this date shall revert to the continuum of care that serves the recipient county.
(2) If less than 50 percent is obligated after May 31, 2024, recipients that are continuums of care and cities shall not expend any remaining portion of the 50 percent of round 3 program allocations required to have been obligated pursuant to subparagraph (A) of paragraph (1) unless both of the following occur:
(A) On or before June 30, 2024, the recipient submits an alternative disbursement plan that includes an explanation for the delay.
(B) The council approves the alternative disbursement plan submitted pursuant to subparagraph (A).
(3) On or before December 31, 2024, recipients that are continuums of care and cities shall return to the council any funds that have not been expended pursuant to an alternative disbursement plan approved pursuant to subparagraph (B) of paragraph (2), to and those funds shall be allocated as bonus awards by the council reallocated to eligible recipients in accordance with subdivision (g) round 3 grantees pursuant to the provisions of Section 50218.6. this chapter.

(4)Recipients that do not meet the requirements of paragraph (1) shall not be eligible for bonus funding awarded pursuant to subdivision (g) of Section 50218.6.

(l) (1) No later than June 30, 2024, recipients shall demonstrate whether they have successfully met their outcome goals system performance measures pursuant to subparagraph (C) of paragraph (3) of subdivision (b).

(2)Jurisdictions that meet their outcome goals shall be eligible for bonus funding, as provided in subdivision (g) of Section 50218.6.

(3)

(2) Jurisdictions that have not met their outcome goals system performance measures shall not be eligible for bonus funding and shall accept technical assistance from council staff. In addition, jurisdictions that have not met their outcome goals system performance measures may also be required to limit the allowable uses of these program funds, as determined by the council.
(m) The council may request additional information from applicants, as needed, to meet other applicable reporting or audit requirements.
(n) In addition to requirements in Section 50222, the council may monitor the expenditures and programmatic activities of an applicant, as the council deems necessary, to ensure compliance with round 3 program requirements and adequate progress towards meeting outcome goals. system performance measures.
(o) The council may, as it deems appropriate or necessary, request the repayment of round 3 program funds from an applicant, or pursue any other remedies available to it by law for failure to comply with program requirements.
(p) Any remaining amounts of round 3 program allocation funds not expended by June 30, 2026, shall be available for round 4 of the program pursuant to Section 50218.7.

SEC. 5.

 Section 50220.8 of the Health and Safety Code is amended to read:

50220.8.
 (a) (1) The council shall make an application for round 4 program allocations available no later than September 30, 2022.
(2) Applications shall be due to the council no later than 60 days from the date the council makes those applications available pursuant to paragraph (1).
(3) Within 30 days of receiving an application pursuant to paragraph (2), the council shall either approve the application or return it to the applicant with written, detailed comments and request one or more of the following specific amendments to the application:
(A) Greater detail on any aspect of the application so that the council can ensure fidelity with the applicant’s proposed use of funds and stated system performance goals. measures.
(B) Modifications or provision of additional information on the applicant’s proposed funding plan to ensure alignment with evidence-based solutions to reduce homelessness.
(C) Any other modifications or provision of information that would allow the council to better monitor and evaluate the applicant’s ability to meet objective performance standards in accordance with Sections 50221, 50222, and 50223.
(4) An applicant whose application has been returned pursuant to paragraph (3) shall respond to the council’s requested amendments and submit a revised application within 30 days. Where the revised application differs from the council’s requests, the applicant shall include an explanation of the differences and the rationale for departing from the council’s requested amendments.
(5) The council shall have 30 days within which to approve the application if, as amended, it addressed the council’s concerns or to provide the grantee with additional guidance and a deadline for further amending to fully address the council’s concerns.
(b) To receive a round 4 program allocation, an applicant shall submit an application to the council. A complete application submitted pursuant to this section shall provide the following information, in the form and manner prescribed by the council:
(1) A local homelessness action plan that includes the following, with data updated from the local homelessness action plan included in an application for a round 3 program allocation pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 50220.7:
(A) A local landscape analysis that assesses the current number of people experiencing homelessness and existing programs and funding which address homelessness within the jurisdiction, utilizing any relevant and available data from the Homeless Data Integration System, the United States Department of Housing and Urban Development’s homeless point-in-time count, continuum of care housing inventory count, longitudinal systems analysis, and Stella tools, as well as any recently conducted local needs assessments.
(B) Identification of the number of individuals and families served, including demographic information and intervention types provided, and demographic subpopulations that are underserved relative to their proportion of individuals experiencing homelessness in the jurisdiction.
(C) Identification of all funds, including state, federal and local funds, currently being used, and budgeted to be used, to provide housing and homelessness-related services to persons experiencing homelessness or at imminent risk of homelessness, how this funding serves subpopulations, and what intervention types are funded through these resources.
(2) (A) New outcome goals system performance measures that are specific, ambitious, achievable, and quantifiable to prevent and reduce homelessness from July 1, 2022, through June 30, 2025, informed by the findings from the local landscape analysis described in subparagraph (A) of paragraph (1) and the jurisdiction’s outcome goals system performance measures specified in its application for a round 3 program allocation pursuant to subparagraph (C) of paragraph (3) of subdivision (b) of Section 50220.7. The outcome goals system performance measures shall be based on the United States Department of Housing and Urban Development’s system performance measures, including:
(i) Reducing the number of persons experiencing homelessness.
(ii) Reducing the number of persons who become homeless for the first time.
(iii) Increasing the number of people exiting homelessness into permanent housing.
(iv) Reducing the length of time persons remain homeless.
(v) Reducing the number of persons who return to homelessness after exiting homelessness to permanent housing.
(vi) Increasing successful placements from street outreach.
(vii) Homeless Management Information System trackable data goals related to the outcome goals system performance measures listed above as they apply to underserved populations and populations disproportionately impacted by homelessness.
(B) (i) Each applicant shall determine its outcome goals system performance measures that build upon prior year goals system performance measures in consultation with the council, and shall not submit its final outcome goals system performance measures before consulting with the council.
(ii) The council shall assess outcome goals system performance measures in the application based on the information provided in the local homeless action plan and the applicant’s baseline data on the system performance metrics measures described in this paragraph and determine whether the outcome goals system performance measures adequately further the objectives of reducing and preventing homelessness pursuant to this paragraph, and may request additional documentation, information, or revisions to the outcome goals. system performance measures.
(3) A narrative that includes the following:
(A) An outline of proposed uses of funds requested and an explanation of how the proposed use of funds will complement existing local, state, and federal funds and equitably close the gaps identified pursuant to paragraph (1).
(B) Evidence of connection with the local homeless Coordinated Entry System.
(C) An agreement to participate in a statewide Homeless Data Integration System, and to enter individuals served by this funding into the local Homeless Management Information System, in accordance with local protocols.
(D) A demonstration of how the jurisdiction has coordinated, and will continue to coordinate, with other jurisdictions, including the specific role of each applicant in relation to other applicants in the region.
(E) A demonstration of the applicant’s partnership with, or plans to use funding to increase partnership with, local health, behavioral health, social services, and justice entities and with people with lived experiences of homelessness.
(F) A description of specific actions the applicant will take to ensure racial and gender equity in service delivery, housing placements, and housing retention and changes to procurement or other means of affirming racial and ethnic groups that are overrepresented among residents experiencing homelessness have equitable access to housing and services.
(G) A description of how the applicant will make progress in preventing exits to homelessness from institutional settings, include plans to leverage funding from mainstream systems for evidence-based housing and housing-based solutions to homelessness.
(H) Specific and quantifiable systems improvements that the applicant will take to improve the delivery of housing and services to people experiencing homelessness or at risk of homelessness, including, but not limited to, the following:
(i) Capacity building and workforce development for service providers within the jurisdiction, including removing barriers to contracting with culturally specific service providers and building the capacity of providers to administer culturally specific services.
(ii) Strengthening the data quality of the recipient’s Homeless Management Information System.
(iii) Increasing capacity for pooling and aligning housing and services funding from existing, mainstream, and new funding.
(iv) Improving homeless point-in-time counts.
(v) Improving coordinated entry systems to eliminate racial bias or to create a youth-specific coordinated entry system.
(vi) Plans shall include strategies to meet outcome goals system performance measures pursuant to paragraph (2).
(4) For city, county, and continuum of care applicants, an application pursuant to this subdivision shall be agendized at a regular meeting by the governing body, including receiving public comment, before being submitted to the council.
(c) The council may request additional documentation and information from the applicant during consultation consistent with respect to round 4 program allocations consistent with the requirements of subdivision (b).
(d) (1) Within 30 days of receiving the final applications pursuant to subdivision (b), the council shall either approve the application and issue the notice of award to disburse 50 percent of an applicant’s funding pursuant to subdivision (a) of Section 50218.7 or return it to the applicant with written, detailed comments and request one or more of the following specific amendments to the application:
(A) Greater detail on any aspect of the application so that the council can ensure fidelity with the applicant’s proposed use of funds and agreed­upon measurable outcome goals. system performance measures.
(B) Modifications or provision of additional information on the applicant’s proposed funding plan to ensure alignment with the applicant’s stated measurable outcome goals system performance measures and with evidence-based solutions to reduce homelessness.
(C) Any other modifications or provision of information that would allow the council to better monitor and evaluate the applicant’s ability to meet objective outcome standards in accordance with Sections 50221, 50222, and 50223.
(2) Upon approval of an application pursuant to this section, the council shall disburse 50 percent of an eligible city’s, county’s, or continuum of care’s total allocation pursuant to subdivision (a) of Section 50218.7.
(e) Except as provided in subdivision (f), a recipient of a round 4 program allocation, including tribal recipients, shall expend funds on evidence-based solutions that address and prevent homelessness among eligible populations, including any of the following:
(1) Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees.
(2) Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves.
(3) Street outreach to assist persons experiencing homelessness to access permanent housing and services.
(4) Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing.
(5) Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations, including families and homeless youth.
(6) Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions.
(7) Prevention and shelter diversion to permanent housing, including rental subsidies.
(8) Interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or existing noncongregate shelters, and operations of existing navigation centers and shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following:
(A) The number of available shelter beds in the city, county, or region served by a continuum of care.
(B) The number of people experiencing unsheltered homelessness in the homeless point-in-time count.
(C) Shelter vacancy rate in the summer and winter months.
(D) Percentage of exits from emergency shelters to permanent housing solutions.
(E) A plan to connect residents to permanent housing.
(F) Any new interim sheltering funded by round 4 funds must be low-barrier, comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code, and prioritize interventions other than congregate shelters.
(9) Improvements to existing emergency shelters to lower barriers and increase privacy.
(f) An applicant shall not use more than 7 percent of a round 4 program allocation for administrative costs incurred by the city, county, continuum of care, or tribe to administer its program allocation. For purposes of this subdivision, “administrative costs” does not include staff or other costs directly related to implementing activities funded by the program allocation.
(g) A recipient of a round 4 program allocation shall comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.
(h) Notwithstanding Section 27011 of the Government Code, or any other law governing the deposit of funds in the county treasury, a county may accept or deposit into the county treasury funds from any source for the purpose of administering a project, proposal, or program under this chapter.
(i) For purposes of Section 1090 of the Government Code, a representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county.
(j) The council and recipients shall post final round 4 program applications to their respective internet websites within 30 days of disbursal to the applicant.
(k) (1) A recipient shall contractually obligate not less than 75 percent, and shall expend not less than 50 percent, of the initial round 4 program allocations made to it pursuant to paragraph (2) of subdivision (d) no later than May 31, 2025.
(2) Upon demonstration by a recipient city, county, or continuum of care that it has complied with the requirement to contractually obligated and expend a minimum amount of its round 4 program allocation pursuant to paragraph (1), and remains on track to meet its outcome goals, system performance measures, as determined by the council pursuant to Section 50223, the council shall disburse to that recipient the remaining 50 percent of its total allocation pursuant to subdivision (a) of Section 50218.7.
(3) If less than 75 percent of a recipient’s round 4 program allocation made pursuant to paragraph (2) of subdivision (d) is obligated, or less than 50 percent of that amount is expended, after May 31, 2025, the recipient shall not contractually obligate or expend any remaining portion of its round 4 program allocations, and the council shall not allocate to the recipient the remaining 50 percent of its total allocation, unless both of the following occur:
(A) On or before June 30, 2025, the recipient submits an alternative disbursement plan that includes an explanation for the delay.
(B) The council approves the alternative disbursement plan submitted pursuant to subparagraph (A).
(4) On or before December 31, 2026, a recipient shall return to the council any funds that have not been expended pursuant to an alternative disbursement plan approved pursuant to subparagraph (B) of paragraph (3), to be reallocated for distribution pursuant to Chapter 6.5 (commencing with Section 50230).
(l) No later than June 30, 2025, recipients shall demonstrate whether they have successfully met their outcome goals system performance measures pursuant to paragraph (2) of subdivision (b).
(m) The council may request additional information from applicants, as needed, to meet other applicable reporting or audit requirements.
(n) In addition to requirements in Section 50222, the council may monitor the expenditures and programmatic activities of an applicant, as the council deems necessary, to ensure compliance with round 4 program requirements and adequate progress towards meeting outcome goals. system performance measures.
(o) The council may, as it deems appropriate or necessary, request the repayment of round 4 program funds from an applicant, or pursue any other remedies available to it by law for failure to comply with program requirements.
(p) Any remaining amounts of round 4 program allocation funds, including bonus funds, funds not expended by June 30, 2027, shall revert to, and be paid and deposited in, the General Fund.
(q) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2023.

SEC. 6.

 Section 50221 of the Health and Safety Code is amended to read:

50221.
 (a) After receiving program funds, a recipient, by January April 1 of the year following receipt of the funds and annually on that date thereafter until all funds have been expended, shall submit a report to the council department on a form and method provided by the council, department that includes all of the following, as well as any additional information the council department deems appropriate or necessary:
(1) An ongoing tracking of the specific uses and expenditures of any program funds broken out by eligible uses listed, including the current status of those funds.
(2) The number of homeless individuals served by the program funds in that year, and a the total number of homeless individuals served in all years of the program, as well the homeless population served. program.
(3) The types of housing assistance provided, broken out by the number of individuals.
(4) Outcome data for an individual served through program funds, including the type of housing that an individual exited to, the percent of successful housing exits, and exit types for unsuccessful housing exits.
(b) No later than January April 1, 2026, each applicant that receives a round 1 program allocation shall submit to the council department a final report in a format provided by the council, department, as well as detailed uses of all program funds.
(c) The council department shall post this information to its internet website within 30 days of receipt and provide notice to the Senate Housing Committee, Assembly Housing and Community Development Committee, and the appropriate Fiscal Committees. budget committees.

SEC. 7.

 Section 50222 of the Health and Safety Code is amended to read:

50222.
 (a) Beginning in 2021, in addition to the data required on the report under Section 50221, applicants shall provide the following information for both rounds of program allocations through a data collection, reporting, performance monitoring, and accountability framework, as established by the council:
(1) Data collection shall include, but not be limited to, information regarding individuals and families served, including demographic information, information regarding partnerships among entities or lack thereof, and participant and regional outcomes.
(2) The performance monitoring and accountability framework shall include clear metrics, which may include, but are not limited to, the following:
(A) The number of individual exits to permanent housing, as defined by the United States Department of Housing and Urban Development, from unsheltered environments and interim housing resulting from this funding.
(B) Racial equity, as defined by the council department in consultation with representatives of state and local agencies, service providers, the Legislature, and other stakeholders.
(C) Any other metrics deemed appropriate by the council department and developed in coordination with representatives of state and local agencies, advocates, service providers, and the Legislature.
(3) Data collection and reporting requirements shall support the efficient and effective administration of the program and enable the monitoring of jurisdiction performance and program outcomes.
(b) Based on the data collection, reporting, performance monitoring, and accountability framework established by the council department pursuant to subdivision (a), all recipients of a program allocation, no later than January April 1 of the year following receipt of funds, and annually on that date thereafter until all funds have been expended, shall submit a report to the council department in a format provided by the council. department.
(c) No later than January April 1, 2027, each recipient that receives a round 2 program allocation shall submit to the council department a final report in a format provided by the council, department, as well as detailed uses of all program funds.
(d) Data collection and data sharing pursuant to this chapter shall be conducted and maintained in accordance with all applicable state and federal privacy and confidentiality laws and regulations.
(e) The client information and records of services provided pursuant to this chapter shall be subject to the requirements of Section 10850 of the Welfare and Institutions Code and shall be exempt from inspection under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Part 1 of the Government Code).
(f) Notwithstanding any other law, data collected through the administration and operation of this chapter shall be captured based on the Homeless Management Information System data standards set forth by the United States Department of Housing and Urban Development and by any other means specified by the council, department, and may be shared with other programs to maximize the efficient and effective provision of public benefits and services, and to evaluate this chapter or its impact on other public benefit and services programs.

SEC. 8.

 Section 50223 of the Health and Safety Code is amended to read:

50223.
 (a) Beginning with round 3 of the program, in addition to the data required under Sections 50221 and 50222, applicants shall provide the following information for all rounds of program allocations through a data collection, reporting, performance monitoring, and accountability framework, as established by the council:
(1) (A) Data on the applicant’s progress towards meeting their outcome goals, system performance measures, which shall be submitted annually on April 1 of each year reporting through December 31 of each the prior year through for the duration of the program.
(B) If the applicant has not made significant progress toward their outcome goals, system performance measures, the applicant shall submit a description of barriers and possible solutions to those barriers.
(C) Applicants that do not demonstrate significant progress towards meeting outcome goals system performance measures shall accept technical assistance from the council department and may also be required to limit the allowable uses of these program funds, as determined by the council. department.
(2) (A)A quarterly monthly fiscal report of program funds expended and obligated in each allowable budget category approved in their application for program funds.
(b) No later than April 1, 2027, each recipient that receives a round 3 program allocation shall submit to the department a final report in a format provided by the department, as well as detailed uses of all program funds.

(B)If

(c) No later than April 1, 2028, each recipient that receives a round 4 program allocation shall submit to the applicant has not made significant progress toward their outcome goals, then department a final report in a format provided by the applicant shall report on their outcome goals in their quarterly report. department, as well as detailed uses of all program funds.

(3)The council

(d) No later than April 1, 2029, each recipient that receives a round 5 program allocation shall compile and post submit to the department a statewide final report that aggregates each applicant’s outcome goals into a single statewide set in a format provided by the department, as well as detailed uses of metrics. all program funds.

(b)

(e) No later than October April 1, 2026, 2030, each recipient that receives a round 3 program 6 allocation shall submit to the council department a final report in a format provided by the council, department, as well as detailed uses of all program funds.

(c)No later than October 1, 2027, each recipient that receives a round 4 program allocation shall submit

(f) The department shall post the information described in this section on its internet website within 30 days of its receipt of the information, and provide notice to the council a final report in a format provided by Senate Committee on Housing, Assembly Committee on Housing and Community Development, and the council, as well as detailed uses of all program funds. appropriate budget committees.

SEC. 9.

 Section 50230 of the Health and Safety Code is amended to read:

50230.
 For purposes of this chapter:
(a) “Agency” means the Business, Consumer Services, and Housing Agency.
(b) “Applicant” has either of the following meanings:

(b)“Applicant”

(1) For purposes of Article 1 (commencing with Section 50232), “applicant” means a continuum of care, city, county, or a region for purposes of the regionally coordinated homelessness action plan requirements pursuant to this chapter. Article 1.
(2) For purposes of Article 2 (commencing with Section 50239), “applicant” means a continuum of care, city, county, or a region for purposes of the regionally coordinated homelessness action plan requirements pursuant to Article 2.
(c) “City” means a city or city and county that is legally incorporated to provide local government services to its population. A city can be organized either under the general laws of this state or under a charter adopted by the local voters.
(d) “Continuum of care” means the same as defined by the United States Department of Housing and Urban Development in Section 578.3 of Title 24 of the Code of Federal Regulations.
(e) “Coordinated Entry System” means a centralized or coordinated process developed pursuant to Section 578.7 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019, designed to coordinate homelessness program participant intake, assessment, and provision of referrals. In order to satisfy this subdivision, a centralized or coordinated assessment system shall cover the geographic area, be easily accessed by individuals and families seeking housing or services, be well advertised, and include a comprehensive and standardized assessment tool.
(f) “Regionally coordinated homelessness action plan” means the regionally coordinated homelessness action plan described in Section 50233.
(g)  “Council” (1)  Subject to paragraph (2), “council,” unless context requires otherwise, means the associated staff within the Interagency Council on Homelessness, formerly known as the Homeless Coordinating and Financing Council created pursuant to Section 8257 of the Welfare and Institutions Code.
(2) Unless context requires otherwise, “council,” with respect to the administration of this chapter or Chapter 6 (commencing with Section 50216) on or after the effective date of the act adding this paragraph, means department.
(h) “Department” means the Department of Housing and Community Development.
(i) “Emergency shelter” has the same meaning as defined in subdivision (e) of Section 50801.
(j) “Grantee” has either of the following meanings:

(j)

(1)  “Grantee” For purposes of Article 1 (commencing with Section 50232), “grantee” means an eligible applicant that has received its initial round 5 base allocation or total round 5 base allocation, as applicable. applicable, pursuant to Article 1 (commencing with Section 50232).
(2) For purposes of Article 2 (commencing with Section 50239), “grantee” means an eligible applicant that has received its initial round 6 base allocation or total round 6 base allocation, as applicable, pursuant to Article 2 (commencing with Section 50239).
(k) “Homeless” has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(l) “Homeless Management Information System” means the information system designated by a continuum of care to comply with federal reporting requirements as defined in Section 578.3 of Title 24 of the Code of Federal Regulations. The term “Homeless Management Information System” also includes the use of a comparable database by a victim services provider or legal services provider that is permitted by the federal government under Part 576 of Title 24 of the Code of Federal Regulations.
(m) “Homeless point-in-time count” means the most recently available point-in-time count data as reflected in the Annual Homeless Assessment Report released by the United States Department of Housing and Urban Development.
(n) “Homeless youth” means an unaccompanied youth between 12 and 24 years of age who is experiencing homelessness, as defined in Section 725(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)). “Homeless youth” includes unaccompanied youth who are pregnant or parenting.
(o) “Housing First” has the same meaning as in Section 8255 of the Welfare and Institutions Code, including all of the core components listed therein.
(p) “Jurisdiction” means a city, county, continuum of care, or tribe, as defined in this section.
(q) “Memorandum of understanding” has the same meaning as defined in subdivision (f) of Section 50233.
(r) “Navigation center” means a Housing First, low-barrier, service-enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.
(s) “Program” has either of the following meanings:

(s)

(1)  “Program” For purposes of Article 1 (commencing with Section 50232), unless context otherwise requires, “program” means round 5 of the Homeless Housing, Assistance, and Prevention program, or round 5, established pursuant to this chapter. Article 1 (commencing with Section 50232).
(2) For purposes of Article 2 (commencing with Section 50239), unless context otherwise requires, “program” means round 6 of the Homeless Housing, Assistance, and Prevention program, or round 6, established pursuant to Article 2 (commencing with Section 50239).
(t) (1) “Base program allocation” means the portion of program funds available to expand or develop local capacity to address immediate homelessness challenges pursuant to the allowable uses specified in Section 50236.
(2) “Homekey supplemental allocation” means the portion of program funds available to eligible jurisdictions as supplementary Homekey resources, as defined in Section 50237.
(u) “Recipient” means a jurisdiction that receives funds from the council pursuant to this chapter for the purposes of the program.
(v) (1) Except as set forth in paragraph (2), “region” means the geographic area served by a county, including all cities and continuum of care within it. A region that has a continuum of care that serves multiple counties may submit a plan that covers multiple counties and the cities within them or the continuum of care may participate in the regionally coordinated homelessness action plan of each individual county that is part of the continuum of care along with the cities within the county.
(2) All continuums of care within the County of Los Angeles shall be considered part of a single region, along with the county and big cities within the county.
(w) “Small jurisdiction” means a city that is under 300,000 in population as of January 1, 2022, according to data published on the internet website of the Department of Finance.
(x) “Tribe” or “tribal applicant” means a federally recognized tribal government pursuant to Section 4103 of Title 25 of the United States Code that is located in California.

SEC. 10.

 Section 50231 of the Health and Safety Code is amended to read:

50231.
 (a) It is the intent of the Legislature for the council to administer the program with the department.
(b) In every instance in which the council is called upon to perform a task pursuant to this chapter or Chapter 6 (commencing with Section 50216), the obligation to perform that task shall be modified by the terms of this section.
(c) It is the intent of the Legislature to enact future legislation to further support the efforts of the Interagency Council on Homelessness in providing statewide policy coordination and development by transferring grants administration to the Department of Housing and Community Development.
(d) It is the further intent of the Legislature to enact statutory changes to effectuate this transfer through the Budget Act of 2024, to commence with the 2024–25 fiscal year and no later than July 1, 2024.
(e) It is the further intent of the Legislature to effectuate the transfer of grant administration from the Interagency Council on Homelessness to the Department of Housing and Community Development in a phased manner, beginning with the transfer of the administration of the Homeless Housing, Assistance, and Prevention grants beginning in the 2023–24 2024–25 fiscal year. The transfer of all other grant programs and related administrative functions shall be effectuated through statutory changes enacted through the Budget Act of 2024, to commence with the 2024–25 fiscal year and no later than July 1, 2024.
(f) Notwithstanding any other provision of law, in the 2023–24 and 2024–25 fiscal year years the Department of Finance shall make the final determination of the budgetary and accounting transactions and treatments to ensure the proper implementation of the transfer of the administration of the Homeless Housing, Assistance, and Prevention grants from the Interagency Council on Homelessness to the Department of Housing and Community Development, as specified in subdivision (d).
(g) It is the intent of the Legislature to provide additional funding for the Homeless Housing, Assistance, and Prevention Program (Chapter 6 (commencing with Section 50216)) in the 2024–25 fiscal year.

SEC. 11.

 The heading of Article 1 (commencing with Section 50232) is added to Chapter 6.5 of Part 1 of Division 31 of the Health and Safety Code, to read:
Article  1. Round 5 of the Homeless Housing, Assistance, and Prevention program

SEC. 12.

 Section 50238 of the Health and Safety Code is amended to read:

Funding shall be distributed, upon appropriation of the Legislature, as follows:

50238.
 (a)For Upon appropriation of the Legislature, for 2023–24 fiscal year funding, one hundred million dollars ($100,000,000) shall be made available to cities, counties, and continuums of care that are eligible for round 5 consistent with the formula funding distribution provided by this chapter and upon approval of their regionally coordinated homelessness action plan pursuant to the requirements of round 5 provided pursuant to this chapter.

(b)(1)For 2024–25 fiscal year funding, two hundred sixty million dollars ($260,000,000) shall be made available to cities, counties, and continuums of care that are eligible for round 5, who shall be eligible, separately, for supplemental program funding pursuant to this section consistent with the formula funding distribution provided by this chapter upon satisfying all of the following, as applicable:

(A)The city, county, or continuum of care has an approved regionally coordinated homelessness action plan pursuant to this chapter.

(B)The city or county demonstrates it has a compliant housing element as defined in Section 65589.9 of the Government Code.

(2)A city or county shall not receive funding provided pursuant to this subdivision until it has satisfied subparagraph (B) of paragraph (1).

(c)The council shall award supplemental program funding available pursuant to subdivision (b) upon the jurisdiction receiving its round 5 base allocation award.

(d)On or before November 1, 2024, the council shall make an application available for supplemental program funding pursuant to subdivision (c).

SEC. 13.

 Article 2 (commencing with Section 50239) is added to Chapter 6.5 of Part 1 of Division 31 of the Health and Safety Code, to read:
Article  2. Round 6 of the Homeless Housing, Assistance, and Prevention program

50239.
 (a) Round 6 of the Homeless Housing, Assistance, and Prevention program is hereby established.
(b) Upon appropriation by the Legislature, the department shall make available the following amounts in accordance with this article:
(1) One billion dollars ($1,000,000,000) in the 2024–25 fiscal year for implementation of the program.
(2) Further amounts as the Legislature may appropriate to the program in the future.
(c) (1) The department shall administer all aspects of the program in accordance with this article.
(2) No more than 5 percent of the total allocation for each round of funding shall be used to cover the department’s costs of administration of this article, including state operations expenditures and activities in support of statewide capacity building for recipients, including providing ongoing training and technical assistance, measuring data and performance, conducting research, and evaluation of funding service delivery demonstration projects.
(A) The department may utilize any unused funds from moneys set aside for program administration to augment existing allocation categories using existing allocation methodologies.
(B) Any unused funds from moneys set aside for program administration remaining by the expenditure deadline for the given appropriation shall be rolled over into the next round of appropriated funding, or will revert back to the General Fund.
(d) Contracts entered into or amended shall be exempt from all of the following:
(1) Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code.
(2) The personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.
(3) Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code and the State Contracting Manual.
(4) Notwithstanding Section 11546 of the Government Code, from review or approval of any division of the Department of Technology, upon approval from the Department of Finance.
(5) From the review or approval of any division of the Department of General Services.
(e) The department shall approve or deny an application, and the determination of the amount of funding to be provided shall be final.
(f) If the applicant identifies substantive errors or omissions in their required data submissions, the department may, at its sole discretion, allow jurisdictions to modify or resubmit their data and, if applicable, may allow applicants to modify their data accordingly.
(g) The department shall maintain and make available to the public on its internet website records of all of the following:
(1) The number of applications for program funding received by the department.
(2) The number of applications for program funding denied by the department.
(3) The name of each recipient of program funds.
(4) Each applicant receiving funds pursuant to this article who shall provide a list of all awards to subrecipients.
(5) Annual reports filed by recipients pursuant to Sections 50221, 50222, and 50223.
(h) In administering this article, the department shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).

50240.
 (a) To be eligible for a round 6 base program allocation, a jurisdiction that is not a tribe must apply as part of a region and must be signatory to a round 6 regionally coordinated homelessness action plan that has been approved by the department. An update to the round 5 plan may constitute a round 6 regionally coordinated homelessness action plan.
(b) The department shall approve a round 6 regionally coordinated homelessness action plan when the department determines that the plan meets all of the requirements of this section.
(c) The round 6 regionally coordinated homelessness action plan shall include all of the following components:
(1) Identification and analysis of the specific roles and responsibilities of each participating jurisdiction in the region regarding outreach and site coordination, siting and use of available land, the development of shelter, interim, and permanent housing options, and the coordination and connection to the delivery of services to individuals experiencing homelessness, or at risk of experiencing homelessness, including specifying roles and coordination plans in relation to Mental Health Services Act or Behavioral Health Services Act, within the region. The plan may also include roles and responsibilities of small jurisdictions in the region that elect to engage and collaborate on the plan.
(2) Most recent system performance measures for the region, which shall include all of the following, as well as age, racial, and ethnic disparities for all of the following:
(A) The number of people experiencing homelessness.
(B) The average length of time people experience homelessness.
(C) The percentage of people exiting homelessness into permanent housing.
(D) The number of people who return to homelessness after exiting homelessness into permanent housing.
(E) The number of people exiting homelessness into permanent housing.
(F) The number of people falling into homelessness for the first time.
(G) The number of people who return to homelessness after exiting institutional settings, including, but not limited to, jails, prisons, and hospitals.
(3) A system performance and improvement plan, which shall include a description of key actions the region intends to take to improve the system performance measures described in paragraph (2). The system performance and improvement plan may also include key actions of small jurisdictions in the region that elect to engage and collaborate in the regionally coordinated homelessness action plan. In naming key actions in the system performance and improvement plan, a region will identify all of the following:
(A) The lead entity on the key action and collaborating entities partnering to achieve the key action.
(B) A timeframe for steps and completion of each key action.
(C) The methods of measuring the success of each key action and related system performance measures that will demonstrate success of the key action.
(D) An explanation of how each participating jurisdiction is utilizing local, state, and federal funding programs as key actions to improve the system performance measures, including, but not limited to, all of the following:
(i) The Homekey program, as described in Section 50675.1.1.
(ii) The No Place Like Home Program (Part 3.9 (commencing with Section 5849.1) of Division 5 of the Welfare and Institutions Code).
(iii) The Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(iv) The Housing for a Healthy California Program (Part 14.2 (commencing with Section 53590)).
(v) The Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216)). All items currently being funded through rounds 1 through 4, inclusive, pursuant to the Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216)) and round 5 pursuant to the Round 5 of the Homeless Housing, Assistance, and Prevention program (Article 1 (commencing with Section 50232)), and those items proposed to be funded by round 6 pursuant to this article must be included as key actions. If an item proposed to be funded under the rounds will not lead to improvement of the system performance measures described in paragraph (2), it is not an eligible use of funding pursuant to those rounds.
(vi) Funding distributed to local jurisdictions pursuant to subparagraph (B) of paragraph (2) of subdivision (b) of Section 50470.
(vii) The California Emergency Solutions Grants Program (Chapter 19 (commencing with Section 50899.1) of Part 2).
(viii) The National Housing Trust Fund established pursuant to the Housing and Economic Recovery Act of 2008 (Public Law 110-289), and implementing federal regulations.
(ix) HOME Investment Partnerships Act (Chapter 16 (commencing with Section 50896)).
(x) Parolee or probation programs that are intended to prevent homelessness upon release.
(xi) CalWORKs (Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code).
(xii) CalFresh (Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code).
(xiii) Supplemental Security Income/State Supplemental Program (SSI/SSP) (Subchapter 16 (commencing with Section 1381) of Chapter 7 of Title 42 of the United States Code and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code) and the Cash Assistance Program for Immigrants (CAPI) pursuant to Chapter 10.3 (commencing with Section 18937) of Chapter 10.3 of Part 6 of Division 9 of the Welfare and Institutions Code.
(xiv) In-home supportive services.
(xv) Adult protective services.
(xvi) Child welfare.
(xvii) Child care and development.
(xviii) Disability benefits advocacy.
(xix) Medi-Cal program (Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code).
(xx) Mental Health Services Act and Behavioral Health Services Act.
(E) A description of how the key actions will ensure racial and gender equity in service delivery, housing placements, and housing retention and changes to procurement or other means of affirming racial and ethnic groups that are overrepresented among residents experiencing homelessness have equitable access to housing and services.
(d) Participating jurisdictions shall collaborate to complete the regionally coordinated homelessness action plan and shall engage in a public stakeholder process that includes at least three public meetings before completing the plan.
(e) The participating jurisdictions shall invite and encourage all of the following to engage in the public stakeholder process:
(1) People with lived experience of homelessness.
(2) Youth with lived experience of homelessness.
(3) Local department leaders and staff of qualifying small jurisdictions, including child welfare, health care, behavioral health, justice, and education system leaders.
(4) Homeless service and housing providers, including non-profit developers of permanent supportive housing, working in that region.
(5) Each Medi-Cal Managed Care Plan contracted with the State Department of Health Care Services in the region.
(6) Street medicine providers and other providers directly serving people experiencing homelessness or at risk of homelessness.
(7) Federally recognized tribal governments pursuant to Section 4103 of Title 25 of the United States Code that are within the region.
(f) The regionally coordinated homelessness action plan shall be reflected in a memorandum of understanding committing each signatory to participation in, and to comply with, the regionally coordinated homelessness action plan.
(g) Smaller jurisdictions in the region may also sign the memorandum of understanding and commit to participation in, and compliance with, the regionally coordinated homelessness action plan. Counties are encouraged to allocate resources from program funding to smaller jurisdictions that participate in and commit to complying with the regionally coordinated homelessness action plan.
(h) Upon receipt of a proposed regionally coordinated homelessness action plan, the department shall review it in coordination with the council, the State Department of Health Care Services, and the State Department of Social Services.
(i) A qualifying jurisdiction participating in a regionally coordinated homelessness action plan shall post on its internet website the proposed, approved, and amended regionally coordinated homelessness action plan.
(j) The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action by a participating jurisdiction in determining whether the regional coordinated homeless action plan substantially complies with this article.

50241.
 (a) Upon appropriation by the Legislature, the funds administered pursuant to this article, less the set aside funds provided for the department’s costs of administration in subdivision (c) of Section 50239, shall be made available in the 2024–2025 fiscal year for implementing round 6 of the program, as follows:
(1) Not more than 80 percent of the funding available pursuant to this section shall be available to cities, counties, or continuums of care, for basic program allocations, as follows:
(A) Thirty percent of the funds described in this paragraph shall be available to continuums of care. The department shall calculate these allocations to a continuum of care based on each continuum of care’s proportionate share of the state’s total homeless population, based on the homeless point-in-time count. The department shall not award more than 40 percent of the allocation made pursuant to this subparagraph to a continuum of care.
(B) Forty-two percent of the funds described in this paragraph shall be available to each city, or a city that is also a county, that has a population of 300,000 or more, as of January 1, 2022, according to data published on the Department of Finance’s internet website. The department shall calculate the allocation to a city based on the city’s proportionate share of the total homeless population of the region served by the continuum of care within which the city is located, based on the homeless point-in-time count. The department shall not award more than 45 percent of the program allocation made pursuant to this subparagraph to a city. If more than one recipient within the continuum of care meets the requirements of this subparagraph, the proportionate share of funds shall be equally allocated to those jurisdictions.
(C) Twenty-eight percent of the funds described in this paragraph shall be available to each county. The department shall calculate the allocation to a county based on the county’s proportionate share of the total homeless population of the region served by the continuum of care within which the county is located, based on the homeless point-in-time count. The department shall not award more than 40 percent of the program allocation made pursuant to this subparagraph to a county.
(2) Not more than 17 percent of the funding available pursuant to this section shall be available to eligible cities, counties, and tribal applicants for the purpose of providing supplemental support for the Homekey program pursuant to Section 50244.
(3) Not more than 3 percent of the funding available pursuant to this section shall be available to tribal applicants. Notwithstanding any other provision of this article, the funds described in this paragraph shall be allocated as follows:
(A) A tribe may apply for program funds and the department shall make allocations to tribes on the basis of need. Tribes that apply for program funds pursuant to subparagraph (B) shall be allocated funds up to their requested amount. If the total requested funds exceeds the amount available collectively among all tribal applicants, the department shall determine an allocation methodology based on each tribal applicant’s proportionate share of need relative to all tribes that submit an application for funding.
(B) A tribal applicant seeking funds pursuant to this section shall submit an application to the department, in the form and manner prescribed by the department, no later than June 30, 2025, with all of the following information:
(i) The amount of grant funds the tribe is requesting.
(ii) An explanation of the tribe’s local need, including an estimation of the number of people who need homelessness services and the current resources that exist.
(iii) A description of the services on which the tribe plans to spend its grant funds. These activities shall be allowable pursuant to Section 50243.
(C) Any funds available to tribal applicants pursuant to this paragraph that are unallocated as of July 1, 2027, shall be reallocated for distribution to tribal applicants as part of future program rounds.
(D) A tribal applicant is encouraged to partner with a local continuum of care or coordinated entry system.
(b) An applicant applying for round 6 program funds pursuant to this section shall comply with the requirements set forth in Section 50220.6.
(c) A program recipient shall not use funding from the program allocated under this section to supplant existing local funds for homelessness services under penalty of disallowance or reduction, or both, of future program funds, as determined by the department.
(d) (1) No more than 5 percent of the appropriated funds shall be used to cover state administrative costs pursuant to subdivision (c) of Section 50239.
(2) The department may expend administrative funds until December 31, 2029, to complete grant closeout activities.
(e) A program recipient shall use at least 10 percent of the funds allocated under this section for services for homeless youth populations. This subdivision does not prohibit program recipients from spending a greater percentage on services for homeless youth populations.
(f) Moneys allocated pursuant to this section shall be expended in compliance with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.

50242.
 (a) The department shall make an application for round 6 base program allocations available no later than January 31, 2025.
(b) Applications shall be due no later than 180 days from the date applications are made available pursuant to subdivision (a).
(c) (1) Applicants from each region shall submit a single, regional application from their shared region.
(2) Each applicant shall have the discretion to receive their base program allocation directly or may designate a corresponding eligible applicant in their region to serve as the fiscal agent responsible for the administration of funding made available pursuant to this article.
(d) Within 30 days of the application deadline pursuant to subdivision (b), the department shall either approve the application or return it to the applicant with written, detailed comments and request one or more of the following specific amendments to the application:
(1) Greater detail on any aspect of the application so the department can ensure fidelity with the applicant’s proposed use of funds and impact on system performance measures.
(2) Modifications or provision of additional information on the applicant’s proposed funding plan to ensure compliance with this section, and ensure alignment with evidence-based solutions to reduce homelessness.
(3) Any other modifications or provision of information that would allow the department to better monitor and evaluate the region’s compliance with its regionally coordinated homelessness action plan and whether it is meeting objective performance standards.
(e) (1) An applicant whose application has been returned pursuant to this section shall respond to the department’s requested amendments and submit a revised application within 30 days. Where the revised application differs from the department’s requests, the applicant shall include an explanation of the differences and the rationale for departing from requested amendments.
(2) The department shall have 30 days within which to approve the application if, as amended, it addressed the department’s concerns or to provide the applicant with additional guidance and a deadline for further amending to fully address the department’s concerns.
(f) (1) To receive a round 6 base program allocation, an applicant shall submit an application to the department. A complete application submitted pursuant to this section shall include, in the form and manner prescribed by the department, all of the following:
(A) A regionally coordinated homelessness action plan that the department finds compliant with Section 50240. This may be an updated version of the action plan submitted in prior rounds if that action plan was found compliant by the department.
(B) A detailed proposal for how the applicant intends to use the funds for which it is applying that complies with Section 50243.
(C) All other components that the department shall deem necessary to the proper administration of the program.
(2) After approval of an application pursuant to this section, the department shall disburse 50 percent of an eligible city’s, county’s, or continuum of care’s total allocation pursuant to subdivision (a) of Section 50241 upon a determination that the eligible city, county, or continuum of care has done all of the following:
(A) Contractually obligated all of its funding from rounds 1 through 3 of the program.
(B) Expended all of its funding from round 1 of the program.
(C) Expended at least 50 percent of its funding and contractually obligated 75 percent of its funding from the first disbursement of round 4 of the program.
(g) The department and recipients shall post final round 6 program applications to their respective internet websites within 30 days of disbursal to the applicant.
(h) (1) On or before January 31, 2027, a grantee shall submit to the department an update on their round 6 regionally coordinated homelessness action plan activities, which shall include updates on the obligation and expenditure activities, progress on their system performance and improvement plan, key actions and corresponding updates on system performance measures carried out pursuant Section 50240, as applicable.
(2) The department shall, within 30 days, review the update and report its findings to the participating grantee pursuant to this subdivision.
(3) If the department finds that the grantee has adhered to the requirements of this section, or concludes that the grantee has addressed any shortcomings in the update, the department shall approve the update.
(4) (A) If the department finds that a grantee failed to adhere to the requirements of this section, the department may require the participating jurisdictions in the region to make specific changes needed to meet the requirements of this section. If the department concludes that the grantee made insufficient progress on key actions or failed to improve on at least one-half of the region’s system performance measures, the department may require the participating jurisdictions to provide a corrective action plan to the update to the regionally coordinated action plan to address these findings. Participating jurisdictions shall accomplish these changes or submit a corrective action plan, as applicable, within 30 days of being notified by the department.
(B) The department shall have 30 days to review the changes or corrective action plan, as applicable, to determine if they addressed the department’s concerns and approve the update, or to provide the grantee with additional guidance and a deadline for making changes or further amending the corrective action plan to address the department’s concerns.
(5) (A) The department may withhold the remaining 50 percent of funds from a grantee until the department has approved the update to the grantee’s round 6 regionally coordinated homelessness action plan.
(B) The department shall provide technical assistance and support of jurisdictions efforts to comply with the requirements of this paragraph.
(6) Regions are encouraged to update their memorandums of understanding to reflect their updated regionally coordinated homelessness action plan that have been approved pursuant to this subdivision. The department may ask for confirmation that a region has updated its memorandum of understanding to reflect a part of a corrective action required under this section.
(7) In making determinations pursuant to this subdivision the department may provide exceptions to the requirement if the recipient demonstrates hardship by a disaster for which a state of emergency is proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.
(8) After the department has deemed a regionally coordinated action plan compliant with this section, the grantee shall submit any proposed revisions to the department for review and approval. No later than 30 days from submission, the department shall review the proposed revisions and either approve the revisions or recommend changes.
(9) All proposed, approved, and amended regionally coordinated homelessness action plans shall be posted on the internet website of all participating jurisdictions in the regionally coordinated homelessness action plan, and the department shall post all action plans received from participating jurisdictions.
(10) In determining whether the regionally coordinated homelessness action plan substantially complies with this article, the department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action by a participating jurisdiction.
(i) (1) A recipient shall contractually obligate not less than 75 percent, and shall expend not less than 50 percent, of the initial round 6 program allocations made to it pursuant to paragraph (2) of subdivision (f) no later than June 30, 2027.
(2) The department shall disburse the remaining 50 percent of a recipient’s total base allocation pursuant to Section 50241 only after the recipient demonstrates all of the following:
(A) Compliance with subdivision (h).
(B) Compliance with the requirement to contractually obligate and expend a minimum amount of its round 6 program allocation pursuant to paragraph (1).
(C) That the recipient has a compliant housing element as defined in Section 65589.9 of the Government Code, if the recipient is a city or county. If the recipient does not have a compliant housing element, the department shall hold the disbursement until the recipient is housing element compliant, consistent with paragraph (3).
(3) On or before December 31, 2028, a recipient shall return to the department any funds that have not been expended pursuant to this subdivision, to be allocated as supplemental awards by the department in accordance with Section 50244.
(j) The department may request additional information from applicants, as needed, to meet other applicable reporting or audit requirements.
(k) In addition to requirements in Section 50222, the department may monitor the expenditures and programmatic activities of an applicant, as the department considers necessary, to ensure compliance with round 6 program requirements.
(l) The department may, as it considers appropriate or necessary, request the repayment of round 6 program funds from an applicant, or pursue any other remedies available to it by law for failure to comply with program requirements.
(m) Any remaining amounts of round 6 base program allocation funds not expended by June 30, 2029, shall revert to, and be paid and deposited in, the General Fund.

50243.
 (a) The intent of round 6 is to reflect the state’s priorities to prevent and expeditiously reduce unsheltered homelessness through homelessness prevention activities, sustaining existing interim housing solutions, and permanent housing solutions, including long-term sustainability of affordable permanent supportive housing.
(b) Applicants shall develop data-driven plans that fund the state’s priorities.
(c) Applicants shall demonstrate how the region will use available resources to sustain all existing and, as applicable, any proposed interim housing investments within the region, including, but not limited to, use of local dedicated funding, Behavioral Health Services Act funds, or any funds pursuant to Chapter 6 (commencing with Section 50216) or this chapter as long-term capitalized operating reserves, or any other local, state, or federal funding source.
(d) Before proposing to use round 6 resources to fund new interim housing other than new interim housing for youth or proposing to use round 6 resources to fund nonhousing solutions, applicants shall first demonstrate that their region has dedicated sufficient resources from other sources to sustain their existing and planned portfolio of long-term permanent affordable housing and existing interim solutions, including capital and operating costs.
(e) Subject to subdivision (d), allowable uses of round 6 base program allocation funds include all of the following:
(1) Permanent housing solutions that can prevent or serve those experiencing unsheltered homelessness, including, but not limited to, persons experiencing homelessness coming from encampment sites. These uses include all of the following:
(A) Rental subsidies, including to support placement of individuals in CARE Court.
(B) Landlord incentives, such as security deposits, holding fees, funding for needed repairs, and recruitment and relationship management costs.
(C) Move-in expenses.
(D) Operating subsidies in new and existing affordable or supportive housing units serving people experiencing or at risk of homelessness, including programs such as Homekey, new or existing residential care facilities, funded by the Behavioral Health Continuum Infrastructure Program or the Community Care Expansion Program. Operating subsidies may include capitalized operating reserves.
(E) Supportive services for people in permanent housing, so long as the services are trauma-informed and practice harm reduction, to include intensive case management services, assertive community treatment services, critical time intervention services, other tenancy support services, evidence-based employment services, coordinating mental health, substance use, and primary care treatment, or other evidence-based supportive services to increase housing retention.
(F) Capital for permanent housing that serves people experiencing homelessness, including conversion of underutilized buildings or existing interim or transitional housing into permanent housing.
(G) Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in permanent supportive housing.
(2) Homelessness prevention includes, but is not limited to, both of the following:
(A) Rental assistance, rapid rehousing, and other programs as long as they prioritize households with incomes at or below 30 percent of the area median income.
(B) Diversion support programs that prevent people at risk of or recently experiencing homelessness from entering unsheltered or sheltered homelessness.
(3) Interim housing solutions, that can provide shelter to those experiencing unsheltered homelessness, including, but not limited to, persons experiencing homelessness coming from encampment sites. These uses include all of the following:
(A) Navigation centers that are low barrier, as defined in Sections 65660 and 65662 of the Government Code.
(B) Operating expenses for existing congregate shelter sites.
(C) Operating expenses in new or existing noncongregate shelter sites and transitional housing for youth.
(D) Motel or hotel vouchers.
(E) Services provided to people in interim housing, to include trauma-informed and evidence-based intensive case management services, housing navigation, connecting people to substance use or mental health treatment, public benefits advocacy, and other supportive services to promote stability and referral into permanent housing.
(F) Capital funding to build new noncongregate shelter sites and transitional housing sites for homeless youth, including for construction, rehabilitation, and capital improvements to convert existing congregate sites into noncongregate sites.
(G) Capital funding for clinically enhanced congregate or noncongregate shelter sites.
(H) Youth-focused services in transitional housing.
(I) Improvements to existing emergency shelters to lower barriers and increase privacy.
(J) Any new interim sheltering funded by round 6 funds shall be low barrier, comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code, and prioritize interventions other than congregate shelters except clinically enhanced congregate shelters as specified in subparagraph (G).
(4) Nonhousing solutions, including nonhousing services for people experiencing unsheltered homelessness, including, but not limited to, persons experiencing homelessness from encampment sites and those transitioning out of encampment sites. This includes street outreach, evidence-based engagement services, intensive case management services, assertive community treatment, housing navigation, harm reduction services, coordination with street-based health care services, and hygiene services for people living in encampments and unsheltered individuals.
(f) (1) Applicants may request, in a form prescribed by the department, approval to utilize round 6 funding on allowable expenditures outside of the state’s intended priorities, as enumerated in this section.
(2) The department may grant applicants preapproval to utilize program funding on allowable uses only after an applicant has demonstrated that state priorities are adequately resourced, and the applicant has exhausted all means to accomplish these priorities.
(g) An applicant shall not use more than 7 percent of a round 6 program allocation for administrative costs incurred by the city, county, continuum of care, or tribe to administer its program allocation. For purposes of this subdivision, “administrative costs” does not include staff or other costs directly related to implementing activities funded by the program allocation.
(h) (1) The department may authorize an applicant to use up to an additional 1 percent for costs related to the Homeless Management Information System. Related costs include Homeless Management Information System licenses, training, system operating costs, and costs associated with carrying out related activities.
(2) Upon agreement between the grantee and the Homeless Management Information System lead entity, the grantee shall transfer the authorized amount of funds pursuant to paragraph (1) for related costs to the Homeless Management Information System lead entity. The department shall specify the method and manner for this transfer of funds.
(i) A recipient of a round 6 program allocation shall comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.
(j) Notwithstanding Section 27011 of the Government Code, or any other law governing the deposit of funds in the county treasury, a county may accept or deposit into the county treasury funds from any source for the purpose of administering a project, proposal, or program under this article.
(k) For purposes of Section 1090 of the Government Code, a representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this article shall have no financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county.
(l) A program recipient shall not use funding from the program allocated under this section to supplant Encampment Resolution Funding program grant funds provided under Section 50251.

50244.
 (a) For the purposes of this section, the supplemental Homekey program shall be the same as the program set forth in Section 50675.1.3, except that the applicants are limited to those described in meeting the criteria set forth in subdivisions (b) and (c).
(b) Tribal applicants, cities, and counties that are eligible for round 6 shall be eligible, separately, for supplemental Homekey funding pursuant to this section.
(c) To be eligible for the supplemental Homekey program, a city or county must satisfy both of the following:
(1) Have a compliant Housing Element as defined in Section 65589.9 of the Government Code by the time of being granted the award. This requirement does not apply to tribal applicants.
(2) Have an approved regionally coordinated homelessness action plan pursuant to this article. This requirement does not apply to tribal applicants.
(d) On or after January 1, 2026, the department shall make an application available for supplemental Homekey funding pursuant to this section.
(e) Funding allocated by this section shall consist of round 6 funding provided in paragraph (2) of subdivision (a) of Section 50241.

SEC. 14.

 Section 50250 of the Health and Safety Code is amended to read:

50250.
 For purposes of this chapter, the following definitions shall apply:
(a) “Additional funding round moneys” means moneys appropriated for the program in or after fiscal year 2022–23.
(b) “Agency” means the Business, Consumer Services, and Housing Agency.
(c) “Applicant” means a continuum of care or local jurisdiction
(d) “Continuum of care” has the same meaning as in Section 578.3 of Title 24 of the Code of Federal Regulations.
(e)  “Council” (1)  Subject to paragraph (2), ”council,” unless context requires otherwise, means the California Interagency Council on Homelessness, previously known as the Homeless Coordinating and Financing Council created pursuant to Section 8257 of the Welfare and Institutions Code.
(2) Unless context requires otherwise, “council,” with respect to the administration of this chapter on or after the effective date of the act adding this paragraph, means the department.
(f) “County” includes, but is not limited to, a city and county.
(g) “Department” means the Department of Housing and Community Development.

(g)

(h) “Funding round 1 moneys” means moneys appropriated for the program in fiscal year 2021–22.

(h)

(i) “Homeless” has the same meaning as in Section 578.3 of Title 24 of the Code of Federal Regulations.

(i)

(j) “Local jurisdiction” means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county.

(j)

(k) “Program” means the Encampment Resolution Funding program established pursuant to this chapter.

(k)

(l) “Recipient” means an applicant that receives grant funds from the council for the purposes of the program.

(l)

(m)  “State right-of-way” means real property held in title by the State of California.

SEC. 15.

 Section 50254.5 is added to the Health and Safety Code, to read:

50254.5.
 (a) (1) For funding appropriated in fiscal years 2021–22, 2022–23, and 2023–24 for purposes of this chapter, no later than April 1 of the year following the expiration of the encumbrance period of funds, each recipient that receives a program allocation shall submit to the department a final report pursuant to Section 50254.
(2) Beginning April 1, 2025, and ending the April prior to the appropriation’s encumbrance period expiration, each recipient that receives a program allocation shall submit to the department an annual report in a format determined by the department as well as detailed uses of the program funds.
(b) For funding appropriated in fiscal years 2024–25 and 2025–26 for purposes of this chapter, the following provisions apply:
(1) Notwithstanding any other law, all recipients of funds pursuant to this chapter shall provide data elements, including, but not limited to, health information, in a manner consistent with state and federal law, to their local Homeless Management Information System for tracking in the statewide Homeless Data Integration System.
(2) (A) The department shall specify the form and substance of the required data elements.
(B) The department may, as required by operational necessity, amend or modify data elements, disclosure formats, or disclosure frequency.
(C) Grantees shall report individual, client-level data for persons served by grant funding to the department, in addition to any data reported through local Homeless Management Information Systems, as required by the department for purposes of research and evaluation of grant performance, service pathways, and outcomes for people served.
(D) Department staff may use information reported directly from grantees and through the statewide Homeless Data Integration System for the purposes of research and evaluation of grant performance, service pathways, and outcomes for people served.
(3) Any health information or personal identifying information provided to or maintained within the statewide Homeless Data Integration System pursuant to this section shall not be subject to public inspection or disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). For purposes of this paragraph, “health information” includes “protected health information,” as defined in Section 160.103 of Title 45 of the Code of Federal Regulations, and “medical information,” as defined in subdivision (j) of Section 56.05 of the Civil Code.
(4) All recipients shall provide information and products developed with grant funds on service delivery models in support of the overall program goal to mitigate risk and address safety concerns in encampments, while ensuring a pathway for individuals living in encampments to move into safe and stable housing, in a format and timeframe specified by the department.
(5) Beginning April 1, 2026, and ending the April prior to the appropriation’s encumbrance period expiration, each recipient that receives a program allocation shall submit to the department an annual report in a format determined by the department as well as detailed uses of the program funds.
(6) No later than April 1 of the year following the expiration of the encumbrance period of funds, each recipient that receives a program allocation shall also submit to the department a final report in a format determined by the department as well as detailed uses of the program funds. Each grantee shall provide either through their local Homeless Management Information System or alternative format determined by the department all of the following data elements as part of the final report:
(A) The number of homeless individuals served using the program funds in that year.
(B) The total number of individuals served in all years of the program, as well the homeless population served.
(C) Aggregate outcome data for individuals served using program funds, including all of the following:
(i) The type of housing that the individuals exited to from the encampment, including whether the housing is permanent or interim.
(ii) The percentage of successful housing exits.
(iii) Exit types for unsuccessful housing exits.
(D) The eligible uses and expenditures of awarded program funds.
(E) The number and size of the encampment addressed.
(F) The number of encampments that the grantee has resolved.
(G) The types of housing assistance provided, including, but not limited to, permanent or interim housing, broken out by the number of individuals served.
(c) The department shall post the annual reports and final reports submitted pursuant to this section on its internet website within 30 days of receipt and provide notice to the appropriate policy and budget committees.

SEC. 16.

 Section 50515.07 of the Health and Safety Code is amended to read:

50515.07.
 (a) (1) The Regional Early Action Planning Grants Program of 2021 is hereby established for the purpose of providing regions with funding, including grants, for transformative planning and implementation activities.
(2) Upon appropriation by the Legislature for this purpose, funds shall be distributed under the program in accordance with this chapter.
(b) The department, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, shall develop and administer the program and, consistent with the requirements of this chapter, provide grants to eligible entities for implementing planning and implementation activities. The department shall seek input from the transportation and housing coordination workgroup established through Section 50407.5.
(c) Distribution and expenditures of funds shall be made consistent with the state planning priorities, established pursuant to Section 65041.1 of the Government Code, and shall consider geographic equity among regions of the state.
(d) Of the total amount of any moneys appropriated for purposes of this chapter, the department shall set aside up to 5 percent twenty million dollars ($20,000,000) for program administration, including state operations expenditures and technical assistance, as well as expenditures by recipients of funding pursuant to Sections 50515.08 and 50515.09.

SEC. 17.

 Section 50515.09 of the Health and Safety Code is amended to read:

50515.09.
 (a) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 85 percent four hundred eighty million dollars ($480,000,000) shall be available to the entities described in paragraphs (1) to (6), inclusive, of subdivision (a) of Section 50515.08 for transformative planning and implementation activities. The maximum amount that an entity may receive pursuant to this subdivision shall be determined as follows:
The maximum amount that an eligible entity may receive pursuant to this subdivision shall be based on the most recent Department of Finance P-2A County Population Projections as of July 1, 2021. Amounts shall be calculated based on aggregate 2030 projected population per each eligible applicant as a percentage of projected 2030 statewide population.
(b) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 5 percent thirty million dollars ($30,000,000) shall be available to the eligible entities described in paragraph (7) of subdivision (a) of Section 50515.08 for transformative planning and implementation activities.
(c) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 5 percent thirty million dollars ($30,000,000) shall be available as a competitive set aside available to all eligible entities for transformative planning and implementation activities that demonstrably exceed the requirements of this chapter and further multiple policy objectives. Scoring criteria for this competitive set aside will include, but are not limited to, the extent of acceleration of infill housing production and reduction of per capita vehicle miles traveled.

SEC. 18.

 Section 50515.10 of the Health and Safety Code is amended to read:

50515.10.
 (a) (1) Subject to paragraph (2), an eligible entity that receives an allocation of program funds pursuant to Section 50515.08 shall submit a report, in the form and manner prescribed by the department, to be made publicly available on its internet website, by April 1 of the year following the receipt of those funds, and annually thereafter until those funds are expended, that includes, but is not limited to, the following information:
(A) The status of the proposed uses and expenditures listed in the eligible entity’s application for funding and the corresponding impact, including, but not limited to, housing units accelerated and reductions in per capita vehicle miles traveled.
(B) All status and impact reports shall be categorized based on the eligible uses specified in Section 50515.08.
(2) The department may request additional information, as needed, to meet other applicable reporting or audit requirements.
(b) The department shall maintain records of the following and provide that information publicly on its internet website:
(1) The name of each applicant for program funds and the status of that entity’s application.
(2) The number of applications for program funding received by the department.
(3) The information described in subdivision (a) for each recipient of program funds.
(c) A recipient of funds under this program shall post, make available, and update, as appropriate on its internet website, land use maps and vehicle miles traveled generation maps produced in the development of its adopted sustainable communities strategy.
(d) A recipient of funds under this program shall collaborate and share progress, templates, and best practices with the department and fellow recipients in implementation of funds. To the greatest extent practicable, adjacent eligible entities shall coordinate in the development of applications, consider potential for joint activities, and seek to coordinate housing and transportation planning across regions.
(e) (1) A recipient of funds under the program shall obligate those funds no later than June September 30, 2024, and expend those funds no later than June 30, 2026.
(2) No later than June 30, December 31, 2026, each eligible entity that receives an allocation of funds pursuant to Section 50515.08 shall submit a final report on the use of those funds to the department, in the form and manner prescribed by the department. The report required by this paragraph shall include an evaluation of actions taken in support of the entity’s proposed uses of those funds, as specified in the entity’s application, including, but not limited to, housing units accelerated and per capita reductions in vehicle miles traveled.
(f) (1) If an eligible entity described in paragraphs (1) to (6), inclusive, of subdivision (a) of Section 50515.08 that received an allocation of funds pursuant to Section 50515.08 has unexpended funds after June 30, 2026, the department may, pursuant to procedures prescribed by the department, make those funds available to other eligible entities described in paragraphs (1) to (6), inclusive, of subdivision (a) of Section 50515.08 for reimbursement of other expenditures incurred prior to June 30, 2026, that were included in an application approved pursuant to paragraph (2) of subdivision (c) of Section 50515.08 no later than December 31, 2026.
(2) Paragraph (1) applies to all eligible entities, including an eligible entity that received a suballocation from an eligible entity described in paragraphs (1) to (6), inclusive, of subdivision (a) of Section 50515.08.

(f)

(g) The department may monitor expenditures and activities of an applicant, as the department deems necessary, to ensure compliance with program requirements.

(g)

(h) The department may, as it deems appropriate or necessary, request the repayment of funds from an applicant, or pursue any other remedies available to it by law for failure to comply with program requirements.

(h)

(i) The department, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, may implement the program through the issuance of forms, guidelines, application materials, funding allocation methodologies, and one or more notices of funding availability, as the department deems necessary, to exercise the powers and perform the duties conferred on it by this chapter. Any forms, guidelines, application materials, funding allocation methodologies, or notices of funding availability prepared or adopted pursuant to this section are exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).

(i)

(j) The department’s decision to approve or deny an application or request for funding pursuant to the program, and its determination of the amount of funding to be provided or request for repayment or other remedies for failure to comply with program requirements, shall be final.

SEC. 19.

 Section 51526.1 is added to the Health and Safety Code, to read:

51526.1.
 (a) The agency, in consultation with the staff of the Legislative Analyst’s Office, the Senate Committees on Banking and Financial Institutions, Budget and Fiscal Review, and Housing, and the Assembly Committees on Banking and Finance, Budget, and Housing and Community Development, shall do all of the following:
(1) Assess outcomes and lessons learned from the first two rounds of the program.
(2) Provide recommendations for further improvements to the existing program.
(3) Develop options for the next phase of the program, including, but not limited to, an option to expand the program to enable participation by entities such as local governments, public institutions of higher education, nonprofit organizations, school districts, community foundations, and large private employers.
(b) (1) On or before January 31, 2026, the agency shall furnish a report to the Legislature detailing its assessment, options, and recommendations, pursuant to subdivision (a).
(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(c) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.

SEC. 20.

 Section 5965.04 of the Welfare and Institutions Code is amended to read:

5965.04.
 (a) Moneys in the fund shall be used for any of the following purposes:
(1) Making loans or grants administered by the Department of Housing and Community Development to eligible entities specified under Section 50675.1.3 of the Health and Safety Code or loans to development sponsors as defined under Section 50675.2 of the Health and Safety Code to acquire capital assets for the conversion, rehabilitation, or new construction of permanent supportive housing, including scattered site projects, for veterans or their households, who are homeless, chronically homeless, or are at risk of homelessness, as defined by Part 578.3 of Title 24 of the Code of Federal Regulations, and meet the criteria of the target population.
(2) Making loans or grants administered by the Department of Housing and Community Development to eligible entities specified under Section 50675.1.3 of the Health and Safety Code or loans to development sponsors as defined under Section 50675.2 of the Health and Safety Code to acquire capital assets for the conversion, rehabilitation, or new construction of permanent supportive housing, including scattered site projects for persons who are homeless, chronically homeless, or are at risk of homelessness, as defined by Part 578.3 of Title 24 of the Code of Federal Regulations, and are living with a behavioral health challenge.
(3) Making grants administered by the State Department of Health Care Services, as specified under the Behavioral Health Continuum Infrastructure Program to eligible entities specified pursuant to Chapter 1 (commencing with Section 5960) to construct, acquire, and rehabilitate real estate assets or to invest in needed infrastructure to expand the continuum of behavioral health treatment resources to build new capacity or expand existing capacity for short-term crisis stabilization, acute and subacute care, crisis residential, community-based mental health residential, substance use disorder residential, peer respite, community and outpatient behavioral health services, and other clinically enriched longer term treatment and rehabilitation options for persons with behavioral health disorders in the least restrictive and least costly setting.
(4) (A) Paying the costs of issuing bonds, paying the annual administration costs of the bonds, and paying interest on bonds.
(B) In addition, moneys in the fund or other proceeds of the sale of bonds authorized by this chapter may be used to pay principal of, or redemption premium on, interim debt issued prior to the issuance of bonds authorized by this chapter.
(b) Moneys in the fund shall be allocated as follows:
(1) One billion sixty-five million dollars ($1,065,000,000) of the proceeds of the bonds, after allocation of bond proceeds to the purposes described in paragraph (4) of subdivision (a), shall be used for the loans or grants, loan or grant implementation, and loan or grant oversight described in paragraph (1) of subdivision (a) and administrative costs. Administrative costs shall not exceed 3 percent of all bond proceeds allocated for purposes of paragraph (1) of subdivision (a), as described in this paragraph.
(2) Nine hundred twenty-two million dollars ($922,000,000) of the proceeds of the bonds, after allocation of bond proceeds to the purposes described in paragraph (4) of subdivision (a), shall be used for the loans or grants, loan or grant implementation, and loan or grant oversight, as described in paragraph (2) of subdivision (a), and administrative costs. Administrative costs shall not exceed 3 percent of all bond proceeds allocated for purposes of paragraph (2) of subdivision (a), as described in this paragraph.
(3) One billion five hundred million dollars ($1,500,000,000) of the proceeds of the bonds shall be awarded to cities, counties, city and counties, and tribal entities, after allocation of bond proceeds to the purposes described in paragraph (4) of subdivision (a) for grants, grant implementation, and grant oversight, as described in paragraph (3) of subdivision (a), and administrative costs. Of this amount, thirty million dollars ($30,000,000) shall be designated to tribal entities.
(4) Up to two billion eight hundred ninety-three million dollars ($2,893,000,000) of the proceeds of the bonds, after allocation of bond proceeds to the purposes of paragraph (4) of subdivision (a), shall be used for grants, grant implementation, and grant oversight, as described in paragraph (3) of subdivision (a), and administrative costs.

SEC. 21.

 (a) The sum of $150,000,000 is hereby appropriated from the General Fund to the Department of Housing and Community Development to provide grants to address encampments for persons experiencing homelessness, in accordance with applicable laws.
(b) Of the amount appropriated in subdivision (a), up to 5 percent shall be allocated to the Department of Housing and Community Development to fund the support and administration of resolving critical encampments and transition individuals into permanent housing. The amount appropriated in subdivision (a) and any amount allocated to the Department of Housing and Community Development shall be available for encumbrance or expenditure until June 30, 2029.
(c) Of the amount appropriated in subdivision (a), up to 50 percent of funds shall be reserved for local jurisdictions, as defined in subdivision (j) of Section 50250, with projects that address encampments on state right-of-ways, as defined in Section 50250 of the Health and Safety Code, and that meet priority criteria established by the Department of Housing and Community Development, in consultation with the Department of Transportation. Upon a date specified by the department, if a local jurisdiction that is eligible for funding pursuant to this section does not apply to the department by the date established, the applicable continuum of care in the local jurisdiction’s region shall be eligible for such funds. The department shall administer these funds pursuant to subdivisions (a), (b), (d), and (e) of Section 50251 and Sections 50254 and 50254.5 of the Health and Safety Code.

SEC. 22.

 The Legislature finds and declares that Section 15 of this act, which adds Section 50254.5 to the Health and Safety Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is necessary to protect the personal and private information, including medical information, of individuals as required by law.

SEC. 23.

 This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.

It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.