California allocating up to $2.2 billion for housing to combat homelessness

California is making a major investment to tackle the crisis of homelessness and mental health needs. In an announcement last week, the state unveiled plans to allocate up to $2.2 billion for permanent supportive housing through its new Homekey+ program. The initiative aims to create over 4,000 new housing units for individuals with mental health and substance use disorders who are experiencing or at risk of homelessness.

The funding, primarily sourced from Proposition 1 passed by voters in May 2024, will be administered by the California Department of Housing and Community Development (HCD) in partnership with the California Department of Veterans Affairs (CalVet). Notably, half of the new housing units will be reserved for veterans, addressing a critical need within this vulnerable population.

This funding comes as California grapples with a severe housing crisis and rising rates of homelessness. Approximately 181,000 Californians experienced homelessness in 2023, with nearly half living in unsheltered conditions. The intersection of homelessness and mental health is particularly stark, with estimates suggesting that 25-30% of the homeless population suffers from severe mental illness. By supporting this vulnerable group with both housing and supportive services, Homekey+ aims to address the root causes of chronic homelessness.

The Homekey+ program builds on the success of previous initiatives like the original Homekey, which created more than 15,000 permanent housing units. Local public entities, including cities, counties, and public housing authorities, are eligible to apply for Homekey+ funding, with the option to partner with housing developers. The program has also set aside approximately $120 million specifically for tribal nations which will be distributed through a separate application process.

The program emphasizes rapid deployment and quick turnaround times to address the urgent need for housing. The Request for Applications (RFA) will be available in November 2024, with a rolling application process that allows for continuous submissions. Awards will begin to be distributed in May 2025, and successful applicants must complete construction within 12 months of receiving their award.

Flexibility is a key feature of Homekey+, allowing for various housing types to suit different community needs. Projects can involve the conversion of existing structures, new construction, or the development of shared housing models.

Homekey+ goes beyond just providing housing by mandating comprehensive supportive services for residents. These services must include case management, 24/7 support, and behavioral health care. Additionally, the program has a specific focus on youth, with 8 percent of funds targeted towards homeless or at-risk individuals aged 18-25.

Public feedback on the program guidance is being accepted through September 30, 2024, allowing stakeholders to shape the final details.

Levi Clancy, CC0, via Wikimedia Commons