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California awards $419M for housing, with $500M more planned

January 21, 2026

California Gov. Gavin Newsom on Friday announced roughly $419 million in state awards to expand homelessness housing and services across major regions, as part of the state’s Homeless Housing, Assistance and Prevention (HHAP) program. The governor said an additional $500 million in funding is planned for later this year to further support communities’ housing efforts. 

The announcement comes amid a reported 9% drop in unsheltered homelessness across California, a milestone state officials attribute in part to targeted supportive services funded through HHAP and other initiatives. Nearly $5 billion has been appropriated through HHAP since the program’s inception, a multiyear grant designed to promote housing stability and reduce homelessness. 

The $419 million from this sixth and latest round of funding will support efforts in the Los Angeles, San Diego and San Francisco regions. 

The funds will go toward supportive services, rapid rehousing and prevention strategies, interim housing and permanent housing support, including:  

  • $39.9 million for shelters and navigation centers in San Francisco City and County, helping sustain operations and services through mid-2029. 
  • $328.8 million for housing efforts in Los Angeles County, the cities of Los Angeles and Long Beach and four Continuums of Care serving Glendale, Long Beach, Los Angeles City and County and Pasadena. 
  • $50.9 million for shelters in San Diego County, the City of San Diego and the Continuum of Care serving both. 

HHAP Round 6 funding is tied to heightened accountability measures. Recipients must maintain compliant housing elements under state law and meet performance benchmarks. The state can withdraw funds from jurisdictions that fail to demonstrate progress.  

A total of $500 million is expected to be allocated for HHAP Round 7 in the coming budget year, contingent on similar or enhanced accountability measures, officials said.  

These investments build on other state efforts, including the Homekey program, which has created nearly 16,000 homes across more than 250 projects and reached more than 172,000 Californians experiencing or at risk of homelessness. Additional state resources through Proposition 1 and Homekey+ have directed billions more to housing, treatment and supportive services.  

California’s latest HHAP funding continues the state’s multi-year effort to support local responses to homelessness by coupling significant financial resources with stronger accountability requirements. By directing millions to regions most affected and planning another $500 million round, state leaders say they expect continued focus on housing stability and services. As communities begin implementing this funding and prepare for the next round, local officials and advocates will be watching how these investments translate into measurable progress on homelessness and housing outcomes. 


Photo by D Goug from Pexels

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