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
^aThis 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. ^bBecause 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. ^cIncludes $150 million provided in 2024‑25 and $100 million provided in 2025‑26. ^dReverts 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
^aThis 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. ^bReflects state General Fund authorizations since 2021‑22. ^cReflects 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. ^d2024‑25 budget also provided a $1 billion appropriation for Round Six of HHAPP. ^eBudget 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.