Governor Newsom announces $145.4 million in HHAP funding to help eight California regions reduce homelessness

Sacramento, CA

Building on California's 9% reduction in unsheltered homelessness in 2025 and the first drop in homelessness in 15 years, Governor Gavin Newsom today continued state support for local communities with $145.4 million in Homelessness Housing, Assistance and Prevention (HHAP) program funding to prevent and address homelessness.

Eight communities, including the Lake, Orange, Riverside, Sacramento, Santa Clara, Solano, Yolo and Yuba regions will receive funding to get homeless people off the street and into supportive services and interim and permanent housing. The HHAP program has already transitioned more than 100,000 Californians from homelessness into permanent housing and accelerated local interventions.

"We're making critical investments through programs to help local communities expand housing, strengthen services, and better support people experiencing homelessness. But just investing money is not enough - we have to invest in programs and local governments that are producing real results," said Governor Gavin Newsom.

Local results

HHAP is a multi-year grant program that helps local communities prevent and end homelessness through targeted housing solutions. Eligible recipients include 58 counties, 14 large cities with populations over 300,000, and 44 Continuums of Care (CoCs). In partnership with the Legislature, the Newsom Administration has made historic investments in the program, with nearly $5 billion appropriated through current and prior HHAP rounds to support local jurisdictions in promoting housing stability and reducing homelessness. Earlier this year, $419 million was awarded to the Los Angeles, San Diego, and San Francisco regions in the first HHAP Round 6 funding announcement. Another $159.3 million was later awarded to 20 California regions. In the eight communities awarded today, 80% of HHAP budgets is dedicated to permanent and interim housing

More accountability

Governor Newsom has called to ensure funding has the greatest impact for people experiencing homelessness. Today's Round 6 awards underwent a rigorous review by the California Department of Housing and Community Development (HCD), where awardees had to demonstrate state funding will make an impact on reducing homelessness. Additional measures include requirements that grantees have and maintain a compliant housing element and mechanisms to claw back HHAP 6 funding from grantees that fail to demonstrate progress. Californians can visit www.accountablity.ca.gov for more information about how your community is performing in addressing housing, homelessness, and mental health care.

There is a seventh round of HHAP totaling $500 million planned for the coming budget year. HHAP Round 7 will expand existing accountability metrics to ensure grantees continue to make meaningful investments in housing solutions and adopt policies that will increase local housing supply.

"HHAP grants are a testament to California's commitment to driving real results through responsible, outcome-focused leadership in partnership with local regions," said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. "By investing in proven, collaborative solutions that prevent and address homelessness, we are strengthening local systems, expanding access to stable housing, and ensuring our communities can deliver meaningful support to the Californians who need it most."

"It is tremendously rewarding to see our HHAP grantees succeed in lifting more than 100,000 Californians out of homelessness," said HCD Director Gustavo Velasquez. "We are seeing real, measurable progress in connecting vulnerable people to a life of stability and opportunity, moving us toward an incredibly hopeful California future where homelessness is rare, brief, and non-recurring."

Today's investments into homelessness prevention:

• Lake County and the Lake County Continuum of Care - $1.4 million to support operations of the county's emergency shelter, provide initial move-in rental assistance, rental subsidies for eligible formerly homeless individuals and households at risk of homelessness, prevention and diversion activities, and supportive services for youth.
• Orange County, the cities of Anaheim, Irvine, and Santa Ana, and the Santa Ana, Anaheim/Orange CoC - $35.1 million to support rapid rehousing activities such as rental assistance, security deposits, holding fees, and move-in expenses for individuals and families. The region will also support operation of a 325-bed low barrier shelter, a 20-unit non-congregate shelter, the Santa Ana Navigation Center, and existing permanent housing in the region. Additional funds will go toward supportive services, case management, housing counseling, prevention and diversion programs, and creating nine affordable housing units for youth.
• Riverside County, the City of Riverside, and the Riverside City & County CoC - $20.4 million to support shelter operations, fund hotel/motel vouchers, and provide financial assistance for move-in costs to prevent homelessness and relocate homeless individuals and families into housing.
• Sacramento County, City of Sacramento, and the Sacramento City & County CoC - $31.7 million for prevention and diversion activities to support individuals at risk of homelessness and fund existing emergency shelter and interim shelter programs, including those serving transitional aged youth, and to help sustain long-term, stable housing.
• Santa Clara County, the City of San Jose, and San Jose/Santa Clara City & CoC - Nearly $49.9 million invested in the longer-term sustainability of interim housing and supportive services across the county. Also, fund prevention and diversion activities, a rapid rehousing program, case management, and other supportive services.
• Solano County and the Vallejo/Solano CoC - Nearly $4.1 million will support ongoing operating expenses to sustain existing interim housing solutions, including emergency shelter, navigation centers, and/or transitional housing. Funds will also go toward sustaining existing rapid rehousing programs, housing navigation, rental subsidies, case management, and problem solving and diversion.
• Yolo County and the Davis, Woodland/Yolo County CoC - More than $2.2 million to fund prevention and diversion activities to help individuals at risk of homelessness maintain existing housing and stability, permanent supportive housing services, interim housing services, short-term rental assistance, move-in cost assistance, street outreach, and harm reduction services.
• Yuba County - Nearly $600,000 to make improvements and expand existing interim housing, including adding kitchens, laundry, food storage, bathrooms and showers, and counseling space.

Today's announcement builds off of the Newsom Administration's historic investments in regional solutions to prevent and address homelessness through multiple rounds of HHAP. With the awards announced today, 31 of 42 regional applications submitted for HHAP Round 6 have been granted more than $724.3 million.

Reversing decades of inaction on homelessness

Governor Newsom is the first Governor in state history to make addressing the housing and homelessness crises a statewide priority. Creating affordable housing for Californians and ensuring that every community follows state housing laws are key components in meeting this goal. Governor Newsom is creating a structural and foundational model for America:

✅ Streamlining and prioritizing building of new housing - Governor Newsom made creating more housing a top state priority for the first time in history. He has signed into law groundbreaking reforms to break down systemic barriers that have stood in the way of building the housing Californians need, including broad CEQA reforms.

✅ Creating shelter and support - Providing funding and programs for local governments, coupled with strong accountability measures to ensure that eachlocal government is doing its share to build housing, and create shelter and support, so that people living in encampments have a safe place to go. Recently, the Jordan Downs Project in Los Angeles, through a $77 million investment from California's cap and invest program became the largest public housing project in the region.

✅ Addressing mental health and its impact on homelessness - Ending a long-standing behavioral health bed shortfall in California by rapidly expanding community treatment centers and permanent supportive housing units. In 2024, voters approved Governor Newsom's Proposition 1 which is transforming California's behavioral health systems - delivering more than the promised 6,800 residential treatment beds (6,919) and 26,700 outpatient treatment slots (27,561) for behavioral health care to date.

✅ Creating new pathways for those who need the most help - Updating conservatorship laws for the first time in 50 years to include people who are unable to provide for their personal safety or necessary medical care, in addition to food, clothing, or shelter, due to either severe substance use disorder or serious mental health illness. Creating anew CARE court system that creates court-ordered plans for up to 24 months for people struggling with untreated mental illness, and often substance use challenges.

✅ Removing dangerous encampments - Governor Newsom has set a strong expectation for all local governments to address encampments in their communities and help connect people with support. In 2024, Governor Newsom filed an amicus brief with the Supreme Court defending communities' authority to clear encampments. After the Supreme Court affirmed local authority, Governor Newsom issued an executive order directing state entities and urging local governments to clear encampments and connect people with support, using a state-tested model to address encampments humanely and provide people with adequate notice and support.

In 2025, just a year after he issued an executive order urging local governments to better address encampments, the Governor announced his State Action for Facilitation on Encampments (SAFE) Task Force to address encampments in California's ten largest cities. In just a few months, the task force has addressed encampments in San Francisco, Los Angeles, Long Beach, Sacramento, and Fresno - connecting dozens of people with shelter. Since 2021, Caltrans has removed more than 20,600 encampments on state right-of-way, offered services to nearly 62,000 people, and collected approximately 3.4 million cubic yards of litter and debris.