The 2024-25 California Spending Plan: Housing and Homelessness

The 2024-25 California Spending Plan: Housing and Homelessness Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only. The LAO is unable to guarantee the accuracy of this translation and is therefore not liable for any inaccurate information resulting from the translation application tool. Choose your language: × Skip to main content Home --> Policy Areas Capital Outlay, Infrastructure Criminal Justice Economy and Taxes Education Environment and Natural Resources Health and Human Services Local Government State Budget Condition Transportation Other Government Areas Publications The Budget Propositions and Initiatives Staff Careers About Us Search LAO Contact Paul Steenhausen See More Publications Like This Back to the Top --> Tweet October 16, 2024 The 2024-25 California Spending Plan Housing and Homelessness Budget Contains a Mix of Augmentations and Reductions. Figure 1 shows that the 2024-25 budget package authorizes a total of nearly $1.8 billion in new one-time funding for three programs. At the same time, the budget generates a total of about $1.5 billion in budget solutions by reducing funding for nine previously authorized purposes. Figure 1 Major Spending Increases and Reductions Related to Housing and Homelessness a General Fund (In Millions) One Time Spending HHAPP Round Six $1,000 Low Income Housing Tax Credit 500 b Encampment Resolution Fund program 250 c Total $1,750 One Time Reductions Foreclosure Intervention Housing Preservation Program $484 HHAPP Round Five supplemental grants 260 Infill Infrastructure Grant Program 235 CalHome 153 Homeless programs administrative set asides 142 d Adaptive Reuse Program 128 Veterans Housing and Homeless Prevention Program 76 Regional Early Action Planning grants 2.0 40 Multifamily Housing Program 10 Total $1,528 a This table contains the major discretionary actions within the state entities principally responsible for administering housing and homelessness programs. The 2024 25 budget package includes certain other actions in other department budgets pertaining to housing and homelessness, as described in the Human Services write up of the Spending Plan. b Because tax credits are not claimed until the housing units are complete, the General Fund impact of new program funding will not be observed for a few years. Amount shown is in addition to the approximately $100 million annually the state makes available for housing tax credits. c Includes $150 million provided in 2024 25 and $100 million provided in 2025 26. d Reverts unused funding originally provided for the administration to oversee certain homelessness related initiatives. HHAPP = Homeless Housing, Assistance and Prevention Program. Budget Actions Significantly Reduce Funding for Several Initiatives. Figure 2 shows that the enacted budget’s reductions vary by program. In some cases, such as the Foreclosure Intervention Housing Preservation Program, budget reductions effectively zero out funding for a previously authorized initiative. The budget package, however, largely preserves funding for certain other programs receiving more modest reductions (such as Regional Early Action Planning grants and the Multifamily Housing Program), which were identified by the Legislature as particularly high priorities. Figure 2 Budget Reductions Result in Varying Levels of Net Funding Provided for Programs Since 2021 22 a One Time General Fund (In Millions) Program Funds Previously Provided b 2024 25 Budget Reduction Net Funding Provided c Foreclosure Intervention Housing Preservation Program $485 $484 $1 HHAPP Round Five supplemental grants 260 260 — d Infill Infrastructure Grant Program 675 235 440 CalHome 300 153 148 Homeless programs administrative set asides 152 142 9 e Adaptive Reuse Program 400 128 273 Veterans Housing and Homelessness Prevention Program 100 76 24 Regional Early Action Planning grants 2.0 600 40 560 Multifamily Housing Program 425 10 415 Totals $3,397 $1,528 $1,869 a This table reflects funding and reductions within the state entities principally responsible for administering housing and homelessness programs. The 2024 25 budget package includes certain other reductions and budget solutions in other department budgets pertaining to housing and homelessness, as described in the Human Services write up of the Spending Plan. b Reflects state General Fund authorizations since 2021 22. c Reflects the net General Fund support provided by the state after reductions in the 2024 25 budget package; remaining spending balances by program recipients may be lower. d 2024 25 budget also provided a $1 billion appropriation for Round Six of HHAPP. e Budget reverted unused administrative funding related to HHAPP, Encampment Resolution Fund, and Family Homelessness Challenge Grants. HHAPP = Homeless Housing, Assistance and Prevention Program. Provides Positions for the Transfer of Homelessness Grant Programs. The 2023-24 budget package transferred the administration of the Homelessness Housing, Assistance and Prevention Program (HHAPP) from the California Interagency Council on Homelessness (Cal ICH) to the Department of Housing and Community Development (HCD). The 2024-25 budget package provides HCD with 39 positions to administer HHAPP and certain other programs—22 existing positions transferred from Cal ICH plus 17 new positions. Adds Accountability Requirements to Homeless-Related Programs. In providing increases to two initiatives (HHAPP and Encampment Resolution Fund grants), the budget package adds requirements intended to increase legislative oversight and program accountability. Specifically, the budget requires grantees to report more frequently on their expenditures; report on additional performance measures and adopt corrective action plans for those not meeting program goals; and, as a condition of receiving additional funding, comply with certain requirements in local housing plans. As part of the transition of programs to HCD, the budget also creates a new HCD unit to oversee homelessness initiatives. Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656