State budget proposal jeopardizes years of progress on homelessness, warn local government officials and housing and homelessness advocates

Contact:

Kayla Sherwood, League of California Cities, (530) 844-1744, [email protected]
Ben Adler, California State Association of Counties, (916) 879-3979, [email protected]
Jonathan Lopez, California Big City Mayors Coalition, (323) 215-6777, [email protected]
Alex Visotzky, Bring California Home Coalition, (202) 304-3609, [email protected]

FOR IMMEDIATE RELEASE

Sacramento - City leaders, county officials, homeless advocates, and affordable housing providers are raising the alarm with state leaders on the threat to progress the Governor's budget proposal will have on reducing homelessness throughout California.

The proposed budget follows through on significant reductions to the state's flagship Homeless Housing, Assistance and Prevention (HHAP) grant program outlined in last year's budget agreement. Funding for the program is being reduced to $500 million - half of its historic funding level.

In a letter, the League of California Cities, California State Association of Counties, California Big City Mayors Coalition, and Bring California Home Coalition call on the Governor and legislative leadership to restore HHAP funding to its previous funding levels of $1 billion and commit to annual investments that match the scale of the crisis.

Reducing funding for the vital HHAP program would significantly reduce shelter capacity, eliminate rental assistance, and halt the development of supportive housing. The Governor's proposal includes additional reporting and accountability requirements - a commitment the coalition shares. However, it is important to ensure these measures do not slow progress or delay implementation.

"The state has a moral responsibility to ensure Californians have a roof over their heads and are connected to the services they deserve," said League of California Cities President and El Cerrito Mayor Gabe Quinto. "Cities fully expect to be held accountable for the public money we spend to get Californians off the streets and housed, but the state must be a strong funding partner to stem the tide on homelessness."

Local governments and housing and homeless service providers in every corner of the state are leveraging HHAP funds alongside an investment of their own dollars and are seeing meaningful reductions in homelessness.

"Local governments can't solve homelessness alone," says California State Association of Counties President and Santa Clara County Supervisor Susan Ellenberg. "We need the state to partner with us. Unless the state fully funds this successful program, we all risk eroding much of the progress that has been made in counties across the state."

HHAP investments are making a difference in communities throughout California and have helped reduce unsheltered homelessness statewide by 9%. Now is the time for the state to double down on its investment, not walk away from this crucial partnership.

"HHAP funding has been critical in the state's recent success reducing homelessness," said California Big City Mayors Coalition Chair and Mayor of Riverside Patricia Lock Dawson. "However, the proposed $500M reduction of Round 7 of HHAP in the Governor's January budget threatens that success, resulting in the loss of rental assistance, homes, and services for housing families, veterans, and individuals with mental illness. To sustain the progress that has been made, we request that the Governor and Legislature restore HHAP to $1 billion and commit to sustained annual investments to address California's ongoing homelessness crisis."

Since 2023, HHAP funding has helped place over 90,000 residents into permanent housing. However, federal funding cuts and policy changes are placing over 41,000 people at extreme risk of falling back into homelessness.

"We need California to lead now more than ever before, when the federal government is trying to pull the rug out from the thousands of Californians who have made it off the streets," said National Alliance to End Homelessness Senior California Policy Fellow and Bring California Home Coalition Policy Co-Chair Alex Visotzky. "State investment in homeless programs has yielded progress and gotten more people housed, but California must stay the course or lose that progress.''

Long-term, reliable funding from the state is key to solving this crisis, and would result in greater regional collaboration, more informed policymaking, and speed up the rate at which California's most vulnerable residents are getting the housing and services they need.

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