The No Place Like Home Program - Community Mental Health Services - CA Welfare And Institutions

Section § 5849.1

This section declares that housing is crucial for the stabilization and recovery of people with mental illnesses. It highlights how untreated mental illness increases homelessness risk, as shown by California's high homeless population. The document emphasizes the positive impact of supportive housing, including better health outcomes and cost reductions when people have stable homes. It suggests that bond funds could finance permanent supportive housing, with various state departments collaborating to execute grants and loans for housing programs. The goal is to better support homeless individuals with mental illness, with the new measures becoming active if amendments are approved in 2024.

(a) The Legislature finds and declares that this part is consistent with and furthers the purposes of the Mental Health Services Act, enacted by Proposition 63 at the November 2, 2004, statewide general election, within the meaning of Section 18 of that measure.

(b) The Legislature further finds and declares all of the following:

(1) Housing is a key factor for stabilization and recovery to occur and results in improved outcomes for individuals living with a mental illness.

(2) Untreated mental illness can increase the risk of homelessness, especially for single adults.

(3) California has the nation’s largest homeless population, which is disproportionally comprised of women with children and youth, veterans, and the chronically homeless.

(4) California has the largest number of homeless veterans in the United States at 24 percent of the total population in our nation. Fifty percent of California’s homeless veterans live with serious mental illness and 70 percent have a substance use disorder.

(5) Fifty percent of mothers experiencing homelessness have experienced a major depressive episode since becoming homeless, and 36 percent of these mothers live with post-traumatic stress disorder and 41 percent have a substance use disorder.

(6) Ninety-three percent of supportive housing tenants who live with mental illness and substance use disorders voluntarily participated in the services offered.

(7) Adults who receive two years of “whatever-it-takes,” or Full-Service Partnership services, experience a 68-percent reduction in homelessness.

(8) For every dollar of bond funds invested in permanent supportive housing, the state and local governments can leverage a significant amount of additional dollars through tax credits, Medicaid health services funding, and other housing development funds.

(9) Tenants of permanent supportive housing reduced their visits to the emergency department by 56 percent and their hospital admissions by 45 percent.

(10) The cost in public services for a chronically homeless Californian ranges from $60,000 to $100,000 annually. When housed, these costs are cut in half and some reports show reductions in cost of more than 70 percent, including potentially less involvement with the health and criminal justice systems.

(11) Californians have identified homelessness as their top tier priority. This measure seeks to address the needs of the most vulnerable people within this population.

(12) Having counties provide mental health programming and services is a benefit to the state.

(13) The Department of Housing and Community Development is the state entity with sufficient expertise to implement and oversee a grant or loan program for permanent supportive housing of the target population.

(14) The California Health Facilities Financing Authority is authorized by law to issue bonds and to consult with the Behavioral Health Services Oversight and Accountability Commission and the State Department of Health Care Services concerning the implementation of a grant or loan program for California counties to support the development of programs that increase access to, and capacity for, crisis mental health services. It is therefore appropriate for the authority to issue bonds and contract for services with the Department of Housing and Community Development to provide grants or loans to California counties for permanent supportive housing for the target population.

(15) Use of bond funding will accelerate the availability of funding for the grant or loan program to provide permanent supportive housing for the target population as compared to relying on annual allocations from the Behavioral Health Services Fund and better allow counties to provide permanent supportive housing for homeless individuals living with mental illness.

(16) The findings and declarations set forth in subdivision (c) of Section 5849.35 are hereby incorporated herein.

(c) This section shall become operative on January 1, 2025, if amendments to the Mental Health Services Act are approved by the voters at the March 5, 2024, statewide primary election.

mental illness recovery housing stabilization homelessness risk supportive housing homeless veterans homeless mothers substance use disorder public service costs bond funds California Department of Housing homelessness reduction mental health services permanent supportive housing counties mental health homeless individual support

(Repealed (in Sec. 67) and added by Stats. 2023, Ch. 790, Sec. 68. (SB 326) Effective October 12, 2023. Operative January 1, 2025, by its own provisions.)

Section § 5849.10

This law appropriates over six million dollars from the Mental Health Services Fund to help counties with technical support and application preparation. This assistance can be used for applying for program funds, creating supportive housing, coordinating with homelessness systems, offering supportive services, and data collection and evaluation. The department will distribute the funds to counties based on their size, with specific amounts allocated to large, medium, and small counties. If counties don't use their funds by mid-2020, the money will be reallocated to support further technical assistance. The department can hire experts to provide this assistance and may set up a dedicated unit to help counties.

(a) The sum of six million two hundred thousand dollars ($6,200,000) is hereby appropriated from the Mental Health Services Fund to the department to provide technical and application preparation assistance to counties.

(b) Eligible use of technical and application preparation assistance shall include, but is not limited to, assistance in performing one or more of the following activities:

(1) Applying for program funds.

(2) Implementing activities funded by moneys distributed pursuant to this part, including the development of supportive housing for the target population.

(3) Coordinating funded activities with local homelessness systems, including coordinated access systems developed pursuant to Section 578.7(a)(8) of Title 24 of the Code of Federal Regulations, as that section read on May 1, 2016.

(4) Delivering a range of supportive services to tenants.

(5) Collecting data, evaluating program activities, and sharing data among multiple systems, such as the Mental Health Services Act, enacted by Proposition 63 at the November 2, 2004, statewide general election, the Medi-Cal Act (Chapter 7 (commencing with Section 14000) of Part 3 of Division 9) and implementing regulations, and homelessness systems.

(c) The department shall provide funds to a county upon application as follows:

(1) To a large county and to the County of Los Angeles, the department shall provide one hundred fifty thousand dollars ($150,000).

(2) To a medium county, the department shall provide one hundred thousand dollars ($100,000).

(3) To a small county, the department shall provide seventy-five thousand dollars ($75,000).

(d) If a county does not expend the moneys allocated pursuant to subdivision (c) by June 30, 2020, those moneys shall be used to augment the funding pursuant to subdivision (e).

(e) The department may contract for expert technical assistance and application preparation assistance. The department shall deploy such assistance to counties based upon a process to be defined in guidelines.

(f) The department may establish a unit for the purpose of providing technical assistance to counties.

Mental Health Services Fund technical assistance application preparation counties supportive housing homelessness systems supportive services data collection program evaluation large county funding medium county funding small county funding Los Angeles County funding technical assistance contract assistance unit

(Added by Stats. 2016, Ch. 43, Sec. 5. (AB 1618) Effective July 1, 2016.)

Section § 5849.11

This law requires counties in California to report annually on how they use funds for supportive housing developments. They need to share details like project locations, the number of units, occupancy rules, and the characteristics of the people they serve, such as their income, homelessness, veteran status, or mental health needs.

The Department must include this information in an annual report, starting the year after the program begins. This report will detail how funds are distributed among counties and may suggest improvements for the program. By December 31 each year, the Department must also submit a comprehensive report with this data and service details to the authority overseeing the program.

(a) The counties shall annually report to the department on activities funded under this part, including information on the funded supportive housing development. Reported information shall include location of projects, number of units assisted, occupancy restrictions, number of individuals and households served, related income levels, and homeless, veteran, and mental health status.

(b) The department shall include a report on the program in the annual report required by Section 50408 of the Health and Safety Code, commencing with the year after the first full year in which the program is in effect. The report shall contain the following:

(1) The processes established for distributing funds.

(2) The distribution of funds among counties.

(3) Any recommendations as to modifications to the program for the purpose of improving efficiency or furthering the goals of the program.

(c) The department shall submit a report to the authority by December 31 of each year, commencing with the year after the first full year in which the program is in effect, that contains the information described in subdivision (a) and paragraphs (1) and (2) of subdivision (b) for all counties participating in the program and the services that have been provided pursuant to any service contracts entered into pursuant to Section 5849.35.

supportive housing funding distribution county reporting project location units assisted occupancy restrictions homeless status veteran status mental health status income levels recommendations for improvement efficiency of program annual report service contracts Health and Safety Code Section 50408

(Amended by Stats. 2023, Ch. 770, Sec. 22. (AB 1764) Effective January 1, 2024.)

Section § 5849.12

This section requires that when funds are allocated, the department must hire a research university in California to evaluate a specific program. The department is responsible for creating a research plan and requesting proposals for the evaluation contract, with help from certain state offices.

Additionally, the department must provide the finalized research plan and request for proposals to a legislative committee chairperson 30 days before finalizing any contract.

(a) Upon an appropriation of funds for the purpose of this section, the department shall contract with a public or private research university in this state to evaluate the program. The department shall develop the research design and issue a request for proposal for a contract for the evaluation, with the assistance of the Legislative Analyst’s Office and the Department of Finance.

(b) The department shall submit the final research design and request for proposal required by subdivision (a) to the Chairperson of the Joint Legislative Budget Committee no more than 30 days prior to executing a contract for the evaluation.

research university contract program evaluation fund appropriation research design request for proposal Legislative Analyst's Office Department of Finance contract execution Joint Legislative Budget Committee California state evaluation

(Added by Stats. 2016, Ch. 43, Sec. 5. (AB 1618) Effective July 1, 2016.)

Section § 5849.13

This law states that if someone wants to challenge the legality of a contract or loan created under Section 5849.35, or a bond issued under Section 15463 of the Government Code, they can do so by following the procedure in Section 17700 of the Government Code.

An action to determine the validity of any contract or loan authorized pursuant to Section 5849.35 or of any bond authorized to be issued pursuant to Section 15463 of the Government Code, and any contracts related to those bonds, may be brought in accordance with Section 17700 of the Government Code.

contract validity loan challenge bond challenge Section 5849.35 Section 15463 Government Code bonds contract disputes legal procedure Section 17700 loan disputes bond issuance legal action contract authorization loan authorization bond-related contracts

(Repealed and added by Stats. 2016, Ch. 322, Sec. 13. (AB 1628) Effective September 13, 2016.)

Section § 5849.14

This law allows the California Department of Finance to issue loans of up to $2 million from the General Fund to the No Place Like Home Fund to help manage cash flow. These loans can support starting program activities, like drafting guidelines, or handling legal and financial preparations related to specific actions and court cases. They must be short-term, repaid within 30 days after funding, and may have waived interest charges.

The Department of Finance may authorize one or more loans from the General Fund to the No Place Like Home Fund for cashflow purposes in an aggregate amount not to exceed two million dollars ($2,000,000) subject to the following conditions:

(a) The loans are for either of the following purposes:

(1) To allow the department to begin program implementation activities, including, but not limited to, drafting program guidelines and regulations.

(2) To allow the department, the authority, and the Treasurer to implement Section 5849.35 of this code and Section 15463 of the Government Code, including, but not limited to, payment for financial advisory and legal services to prepare for, and in connection with, any validation action pursuant to Section 5849.13 or any other court action regarding this part or Section 15463 of the Government Code.

(b) The loans are short term, and shall be repaid within 30 days after the deposit of bond proceeds into the fund pursuant to paragraph (1) of subdivision (b) of Section 5849.4.

(c) Interest charges may be waived pursuant to subdivision (e) of Section 16314 of the Government Code.

General Fund loans No Place Like Home Fund program implementation drafting guidelines financial advisory services legal services validation action short-term loans bond proceeds interest waiver cashflow purposes Section 5849.35 Section 15463 Government Code repayment terms court action

(Amended by Stats. 2017, Ch. 561, Sec. 274. (AB 1516) Effective January 1, 2018.)

Section § 5849.15

This law confirms and supports several legislative changes and bond issuances connected to Proposition 63, which was approved by California voters in 2004. It ratifies specific chapters and amendments to various sections of the law made in 2016 and 2017. The law also authorizes the issuance of up to $2 billion in bonds by the California Health Facilities Financing Authority to fund permanent supportive housing through the No Place Like Home Program. Additionally, it outlines the process for issuing, securing, and repaying these bonds.

The voters ratify all of the following provisions as being consistent with and in furtherance of Proposition 63, enacted by the voters at the November 2, 2004, statewide general election, and approve all of the following provisions for purposes of Section 1 of Article XVI of the California Constitution:

(a) Chapter 43 of the Statutes of 2016, which amended Sections 5830, 5845, 5847, 5848, 5897, and 5899 and added this part.

(b) Chapter 322 of the Statutes of 2016, which added Section 15463 to the Government Code, and amended Sections 5849.1, 5849.2, 5849.3, 5849.4, 5849.5, 5849.7, 5849.8, 5849.9, 5849.11, 5849.14, 5890, and 5891 of, added Section 5849.35 to, and repealed and added Section 5849.13 of, this code.

(c) Those provisions of Chapter 561 of the Statutes of 2017 that amended any of the provisions referenced in subdivisions (a) and (b).

(d) The amendments to Section 5849.35, 5849.4, and 5890 made by the act adding this section.

(e) The issuance by the California Health Facilities Financing Authority of bonds in an amount not to exceed two billion dollars ($2,000,000,000) for the purposes of financing permanent supportive housing pursuant to the No Place Like Home Program and related purposes as set forth in subdivision (b) of Section 15463 of the Government Code, the issuance of bonds for the purpose of redeeming, refunding, or retiring bonds as set forth in subdivision (c) of Section 15463 of the Government Code, and the process by which those bonds are issued, secured, and repaid, as set forth in the provisions referenced in subdivisions (a) to (d), inclusive.

Proposition 63 No Place Like Home Program permanent supportive housing California Health Facilities Financing Authority bond issuance housing finance $2 billion bonds legislative amendments supportive housing financing voter ratification Chapter 43 Chapter 322 Chapter 561 Section 5849.35 Section 15463

(Added by Stats. 2018, Ch. 41, Sec. 5. Effective December 19, 2018. Approved in Proposition 2 at the November 6, 2018, election.)

Section § 5849.2

This section defines key terms related to California laws on homelessness and housing support. It covers who is considered at risk of chronic homelessness, such as people with mental illnesses leaving institutions or young people facing homelessness. It also names the authorities involved, like the California Health Facilities Financing Authority and the Department of Housing and Community Development.

Additionally, it defines terms like 'permanent supportive housing' and outlines what the 'Program' refers to, including how funds are distributed and monitored. Importantly, these definitions will be effective in 2025 if certain amendments are approved by voters in 2024.

As used in this part, the following definitions shall apply:

(a) “At risk of chronic homelessness” includes, but is not limited to, persons who are at high risk of long-term or intermittent homelessness, including persons with mental illness exiting institutionalized settings, including, but not limited to, jail, mental health, and substance use disorder facilities, who were homeless prior to admission, transition age youth experiencing homelessness or with significant barriers to housing stability, and others, as defined in program guidelines.

(b) “Authority” means the California Health Facilities Financing Authority established pursuant to Part 7.2 (commencing with Section 15430) of Division 3 of Title 2 of the Government Code.

(c) “Capitalized operating reserves” has the same meaning as defined in Section 50058.8 of the Health and Safety Code.

(d) “Chronically homeless” has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations as that section read on May 1, 2016, or as otherwise modified or expanded by the State Department of Health Care Services.

(e) “Commission” means the Behavioral Health Services Oversight and Accountability Commission established by Section 5845.

(f) “Committee” means the No Place Like Home Program Advisory Committee established pursuant to Section 5849.3.

(g) “County” includes, but is not limited to, a city and a city and county receiving funds pursuant to Section 5701.5.

(h) “Department” means the Department of Housing and Community Development.

(i) “Development sponsor” has the same meaning as “sponsor” as defined in Section 50675.2 of the Health and Safety Code.

(j) “Fund” means the No Place Like Home Fund established pursuant to Section 5849.4.

(k) “Homeless” has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations as that section read on May 1, 2016.

(l) “Permanent supportive housing” has the same meaning as “supportive housing,” as defined in Section 50675.14 of the Health and Safety Code, except that “permanent supportive housing” shall include associated facilities if used to provide services to housing residents.

(m)

(1) “Program” means the process for awarding funds and distributing moneys to applicants established in Sections 5849.7, 5849.8, and 5849.9 and the ongoing monitoring and enforcement of the applicants’ activities pursuant to Sections 5849.8, 5849.9, and 5849.11.

(2) “Competitive program” means the portion of the program established by Section 5849.8.

(3) “Distribution program” means the portion of the program described in Section 5849.9.

(n) “Target population” means individuals or households, as provided in Section 5600.3, who are homeless, chronically homeless, or at risk of chronic homelessness.

(o) This section shall become operative on January 1, 2025, if amendments to the Mental Health Services Act are approved by the voters at the March 5, 2024, statewide primary election.

chronic homelessness mental illness institutional settings transition age youth housing stability California Health Facilities Financing Authority Behavioral Health Services Oversight and Accountability Commission No Place Like Home Program Department of Housing and Community Development permanent supportive housing No Place Like Home Fund homeless population competitive program distribution program Mental Health Services Act

(Amended by Stats. 2025, Ch. 22, Sec. 66. (AB 130) Effective June 30, 2025.)

Section § 5849.3

This section establishes the No Place Like Home Program Advisory Committee in California. It outlines the committee's membership, which includes various state department heads or their designees, as well as appointed representatives from small and large counties, cities, and organizations related to housing and behavioral health. The committee's main duties are to assist and advise the Department of Housing and Community Development on program implementation, review guidelines, monitor fund distribution, and provide advice on homelessness issues statewide. This provision is set to take effect on January 1, 2025, contingent upon voter-approved amendments to the Mental Health Services Act during the March 2024 election.

(a) There is hereby established the No Place Like Home Program Advisory Committee. Membership on the committee shall be as follows:

(1) The Director of Housing and Community Development, or their designee, who shall serve as the chairperson of the committee.

(2) The Director of Health Care Services, or their designee, and an additional representative.

(3) The Secretary of Veterans Affairs or their designee.

(4) The Director of Social Services or their designee.

(5) The Treasurer or their designee.

(6) The Chair of the Behavioral Health Services Oversight and Accountability Commission or their designee.

(7) A chief administrative officer of a small county or a member of a county board of supervisors of a small county, as provided by subdivision (d) of Section 5849.6, to be appointed by the Governor.

(8) A chief administrative officer of a large county or a member of a county board of supervisors of a large county, as provided by subdivision (b) of Section 5849.6, to be appointed by the Governor.

(9) A director of a county behavioral health department, to be appointed by the Governor.

(10) An administrative officer of a city, to be appointed by the Governor.

(11) A representative of an affordable housing organization, to be appointed by the Speaker of the Assembly.

(12) A resident of supportive housing, to be appointed by the Governor.

(13) A representative of a community behavioral health organization, to be appointed by the Senate Committee on Rules.

(14) A representative of a local or regional continuum of care organization that coordinates homelessness funding, to be appointed by the Governor.

(b) The committee shall do all of the following:

(1) Assist and advise the department in the implementation of the program.

(2) Review and make recommendations on the department’s guidelines.

(3) Review the department’s progress in distributing moneys pursuant to this part.

(4) Provide advice and guidance more broadly on statewide homelessness issues.

(c) This section shall become operative on January 1, 2025, if amendments to the Mental Health Services Act are approved by the voters at the March 5, 2024, statewide primary election.

No Place Like Home Program Homelessness Advisory Committee Housing and Community Development Behavioral Health Oversight Affordable Housing Supportive Housing Resident Statewide Homelessness Issues Veterans Affairs Social Services Mental Health Services Act Homelessness funding coordination City administrative officer Governor appointments Assembly and Senate appointments

(Repealed (in Sec. 71) and added by Stats. 2023, Ch. 790, Sec. 72. (SB 326) Effective October 12, 2023. Operative January 1, 2025, by its own provisions.)

Section § 5849.35

This law outlines how California's No Place Like Home Program operates in collaboration with state authorities. The authority can consult with relevant commissions and enter into contracts with the Department of Health Services to provide supportive housing services for targeted populations. They also certify required payments to the department twice a year. The Department of Health Services can make various financial arrangements with the authority and use payments from contracts to repay loans.

Importantly, the law specifies that these financial dealings don't place any debt or liability on the state unless approved by voters. The state promises not to change certain related laws that could negatively affect bondholders while any bonds are outstanding. Additionally, any agreements made under this section aren't tied to other legal requirements like environmental reviews or certain public contract laws.

(a) The authority may do all of the following:

(1) Consult with the commission and the State Department of Health Care Services concerning the implementation of the No Place Like Home Program, including the review of annual reports provided to the authority by the department pursuant to Section 5849.11.

(2) Enter into one or more single-year or multiyear contracts with the department for the department to provide, and the authority to pay the department for providing, services described in Sections 5849.7, 5849.8, and 5849.9, related to permanent supportive housing for the target population and to provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount created within the Behavioral Health Services Fund pursuant to paragraph (1) of subdivision (f) of Section 5890. Before entering into any contract pursuant to this paragraph, the executive director of the authority shall transmit to the commission a copy of the contract in substantially final form. The contract shall be deemed approved by the commission unless it acts within 10 days to disapprove the contract.

(3) On or before June 15 and December 15 of each year, the authority shall certify to the Controller the amounts the authority is required to pay as provided in Section 5890 for the following six-month period to the department pursuant to any service contract entered into pursuant to paragraph (2).

(b) The department may do all of the following:

(1) Enter into one or more single-year or multiyear contracts with the authority to provide services described in Sections 5849.7, 5849.8, and 5849.9, related to permanent supportive housing for the target population and to receive payments from amounts on deposit in the Supportive Housing Program Subaccount pursuant to paragraph (1) of subdivision (f) of Section 5890. Payments received by the department under any service contract authorized by this paragraph shall be used, before any other allocation or distribution, to repay loans from the authority pursuant to Section 15463 of the Government Code.

(2) Enter into one or more loan agreements with the authority as security for the repayment of the revenue bonds issued by the authority pursuant to Section 15463 of the Government Code. The department shall deposit the proceeds of these loans, excluding any refinancing loans to redeem, refund, or retire bonds, into the fund. The department’s obligations to make payments under these loan agreements shall be limited obligations payable solely from amounts received pursuant to its service contracts with the authority.

(3) The department may pledge and assign its right to receive all or a portion of the payments under the service contracts entered into pursuant to paragraph (1) directly to the authority or its bond trustee for the payment of principal, premiums, if any, and interest under any loan agreement authorized by paragraph (2).

(c) The Legislature hereby finds and declares both of the following:

(1) The consideration to be paid by the authority to the department for the services provided pursuant to the contracts authorized by paragraph (2) of subdivision (a) and paragraph (1) of subdivision (b) is fair and reasonable and in the public interest.

(2) The service contracts and payments made by the authority to the department pursuant to a service contract authorized by paragraph (2) of subdivision (a) and paragraph (1) of subdivision (b) and the loan agreements and loan repayments made by the department to the authority pursuant to a loan agreement authorized by paragraph (2) of subdivision (b) shall not constitute a debt or liability, or a pledge of the faith and credit, of the state or any political subdivision, except as approved by the voters at the November 6, 2018, statewide general election.

(d) The state hereby covenants with the holders from time to time of any bonds issued by the authority pursuant to Section 15463 of the Government Code that it will not alter, amend, or restrict the provisions of this section, paragraph (1) of subdivision (f) of Section 5890, subdivision (b) of Section 5891, Section 19602.5 of the Revenue and Taxation Code, or any other provision requiring the deposit of the revenues derived from the additional tax imposed under Section 17043 of the Revenue and Taxation Code into the Behavioral Health Services Fund in any manner adverse to the interests of those bondholders so long as any of those bonds remain outstanding. The authority may include this covenant in the resolution, indenture, or other documents governing the bonds.

(e) Agreements under this section are not subject to, and need not comply with, the requirements of any other law applicable to the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

(f) Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code shall not apply to any contract entered into between the authority and the department under this section.

No Place Like Home Program supportive housing services Department of Health Services financial arrangements bondholders Behavioral Health Services Fund target population loan agreements payments certification voter approval state liability environmental review exemptions public contract law exceptions

(Amended by Stats. 2024, Ch. 40, Sec. 44. (SB 159) Effective June 29, 2024. Operative January 1, 2025, pursuant to Sec. 85 of Stats. 2024, Ch. 40. Note: This section was amended on Nov. 6, 2018, by Prop 2.)

Section § 5849.4

The "No Place Like Home Fund" is a special fund in California's State Treasury dedicated to specific housing purposes. It is automatically allocated to various state departments and officials without needing additional approval. They can use up to 5% of the fund for administrative costs. Money in the fund comes from several sources: loan proceeds from bonds, government appropriations, grants or private donations, and any repayments or interest earned.

(a) The No Place Like Home Fund is hereby created within the State Treasury and, notwithstanding Section 13340 of the Government Code, continuously appropriated to the department, the authority, and the Treasurer for the purposes of this part. Accounts and subaccounts may be created within the fund as needed. Up to 5 percent of the amount deposited in the fund may be used for administrative expenses in implementing this part.

(b) There shall be paid into the fund the following:

(1) Any moneys from the receipt of loan proceeds by the department derived from the issuance of bonds by the authority under subdivision (b) of Section 15463 of the Government Code.

(2) Any appropriation or transfer to the fund from the General Fund or other funds.

(3) Any other federal or state grant, or from any private donation or grant, for the purposes of this part.

(4) Any interest payment, loan repayments, or other return of funds.

No Place Like Home Fund State Treasury administrative expenses loan proceeds bond issuance General Fund appropriations federal grants state grants private donations interest payments loan repayments funding sources housing funding California housing fund management

(Amended by Stats. 2018, Ch. 41, Sec. 4. Effective December 19, 2018. Approved in Proposition 2 at the November 6, 2018, election.)

Section § 5849.5

This law allows the department to create guidelines or emergency regulations to quickly allocate funds as needed. These guidelines are made in consultation with local county representatives and other important groups, but they do not have to comply with the normal procedures specified by the Administrative Procedure Act. The department is required to involve key stakeholders like county officials in this process.

The department may adopt guidelines or regulations, including emergency regulations to expedite the award of moneys pursuant to this part, in consultation with the California State Association of Counties and other stakeholders, as necessary to exercise the powers and perform the duties conferred or imposed on it by this part. Any guideline or regulation adopted pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall consult with key stakeholders, including, but not limited to, counties.

emergency regulations fund allocation stakeholder consultation county involvement Administrative Procedure Act exemption guideline creation California State Association of Counties expedited funding policy implementation stakeholder engagement

(Amended by Stats. 2016, Ch. 322, Sec. 7. (AB 1628) Effective September 13, 2016.)

Section § 5849.6

This law section explains how the department groups California counties to distribute funds for homelessness programs. Counties are organized based on population: Los Angeles County is in its own category, large counties have over 750,000 people, medium counties have 200,000 to 750,000 people, and small counties have fewer than 200,000 people. The funding distribution considers the number of homeless people in each county and what is needed for permanent supportive housing. The department may use other relevant factors to meet the program's goals.

For the purpose of administering Sections 5849.7 and 5849.8, the department shall organize counties into the following competitive groupings based on population:

(a) The County of Los Angeles.

(b) Large counties with a population greater than 750,000.

(c) Medium counties with a population between 200,000 to 750,000.

(d) Small counties with a population less than 200,000.

The competitive program shall distribute funding among the groupings based on a calculation made by the department that shall include the number of homeless persons residing within each county, as determined by the department, and considers minimum funding levels necessary for a permanent supportive housing development. The department, at its discretion, may consider other factors in the calculation if it supports the objectives of this part.

county population grouping Los Angeles County large counties medium counties small counties homelessness program funding permanent supportive housing development minimum funding levels competitive program homeless persons calculation department discretion funding objectives California counties homelessness funding distribution

(Added by Stats. 2016, Ch. 43, Sec. 5. (AB 1618) Effective July 1, 2016.)

Section § 5849.7

The law allows the department to contract with an authority to provide permanent supportive housing for vulnerable populations, backed by up to $2 billion in funding. This funding covers capital costs like building and maintenance and involves a competitive program for counties to apply. Housing projects must integrate the target population with the general public and use low-barrier tenant selection to aid vulnerable groups. Counties can apply independently or with development sponsors. Funding is available as deferred payment loans or grants. The department sets guidelines on income and rent standards for these projects.

(a) In order to finance permanent supportive housing for the target population, the department may enter into one or more contracts with the authority as authorized pursuant to Section 5849.35 to provide services for the benefit of the people of the state as described in this section and Sections 5849.8 and 5849.9. The department shall use its best efforts to provide or cause to be provided permanent supportive housing for the target population in consideration for service contract payments to be received from the authority.

(b) Under any service contract with the authority, the department shall administer a competitive program, pursuant to Section 5849.8, and distribution program, pursuant to Section 5849.9, for awarding a total amount not to exceed two billion dollars ($2,000,000,000) among counties to finance capital costs including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the target population. For purposes of this section and Sections 5849.8 and 5849.9, measurement of the dollar limit on amounts to be distributed by the department shall be based on the principal amount of bonds issued by the authority and loaned to the department, exclusive of any refunding bonds but including any net premium derived from the sale of the bonds, for deposit in the fund. There shall be no dollar limit on the distribution of moneys in the fund derived from the sources described in paragraphs (2) and (3) of subdivision (b) of Section 5849.4.

(c) For the competitive program established by Section 5849.8, the following shall apply:

(1) A county may apply as the sole applicant if it is the development sponsor or jointly with a separate entity as development sponsor.

(2) Funded developments shall integrate the target population with the general public.

(3) Funded developments shall utilize low barrier tenant selection practices that prioritize vulnerable populations and offer flexible, voluntary, and individualized supportive services.

(4) The guidelines may provide for alternative housing models, such as shared housing models of fewer than five units. Integration requirements may be modified in shared housing.

(5) Funds shall be offered as either of the following:

(A) Deferred payment loans to finance capital costs including acquisition, design, construction, rehabilitation, or preservation, of permanent supportive housing for the target population.

(B) Grants for the capitalized operating subsidy reserve, as specified by the department in its guidelines, for permanent supportive housing for the target population.

(6) The department shall adopt guidelines establishing income and rent standards.

permanent supportive housing vulnerable populations capital costs competitive program counties development sponsors low barrier tenant selection flexible supportive services housing integration deferred payment loans capitalized operating subsidy reserve income and rent standards housing models shared housing housing funding

(Amended by Stats. 2020, Ch. 165, Sec. 12. (SB 1030) Effective September 25, 2020.)

Section § 5849.8

This law allows California to allocate up to $1.8 billion towards creating supportive housing for people at risk of homelessness, especially those with mental health needs. Counties can apply for these funds through a competitive process by committing to provide mental health services for 20 years, using county or external funds, and by presenting a homelessness plan. The law also provides an option for direct fund allocation to larger counties that can administer these funds. It sets criteria for project evaluation and makes provisions for small counties, administrative processes, fund disbursement in multiple rounds, loan conditions, and protections against loan defaults. Regulatory agreements are required to ensure affordability and tenant selection standards are followed, and the department monitors and assists counties to ensure compliance and project success.

(a) Under any service contract entered into pursuant to Section 5849.35, the department may allocate an amount not to exceed one billion eight hundred million dollars ($1,800,000,000) from the fund for the purposes of the competitive program described in this subdivision and the alternative process described in subdivision (b). The department shall develop a competitive application process for the purpose of awarding moneys pursuant to this section. In considering applications, the department shall do all of the following:

(1) Restrict eligibility to applicants that meet the following minimum criteria:

(A) The county commits to provide mental health supportive services and to coordinate the provision of or referral to other services, including, but not limited to, substance use treatment services, to the tenants of the supportive housing development for at least 20 years. Services shall be provided onsite at the supportive housing development or in a location otherwise easily accessible to tenants. The county may use, but is not restricted to using, any of the following available funding sources as allowed by state and federal law:

(i) The Local Mental Health Services Fund established pursuant to subdivision (f) of Section 5892.

(ii) The Mental Health Account within the Local Health Welfare Trust Fund established pursuant to Section 17600.10.

(iii) The Behavioral Health Subaccount within the County Local Revenue Fund 2011 established pursuant to paragraph (4) of subdivision (f) of Section 30025 of the Government Code.

(iv) Funds received from other private or public entities.

(v) Other county funds.

(B) The county has developed a county plan to combat homelessness, which includes a description of homelessness countywide, any special challenges or barriers to serving the target population, county resources applied to address the issue, available community-based resources, an outline of partners and collaborations, and proposed solutions.

(C) Meet other threshold requirements, including, but not limited to, developer capacity to develop, own, and operate a permanent supportive housing development for the target population, application proposes a financially feasible development with reasonable development costs.

(2) The department shall evaluate applications using, at minimum, the following criteria:

(A) The extent to which units assisted by the program are restricted to persons who are chronically homeless or at risk of chronic homelessness within the target population.

(B) The extent to which funds are leveraged for capital costs.

(C) The extent to which projects achieve deeper affordability through the use of nonstate project-based rental assistance, operating subsidies, or other funding.

(D) Project readiness.

(E) The extent to which applicants offer a range of onsite and off-site supportive services to tenants, including mental health services, behavioral health services, primary health, employment, and other tenancy support services.

(F) Past history of implementing programs that use evidence-based best practices that have led to the reduction of the number of chronic homeless or at risk of chronic homelessness individuals within the target population.

(b) The department may establish an alternative process for allocating funds directly to counties, as calculated in Section 5849.6, with at least 5 percent of the state’s homeless population and that demonstrate the capacity to directly administer loan and grant funds for permanent supportive housing serving the target population and the ability to prioritize individuals with mental health supportive needs who are homeless or at risk of chronic homelessness, consistent with this part and as determined by the department. The department shall adopt guidelines establishing the parameters of an alternative process, if any, and requirements for local administration of funds, including, but not limited to, project selection process, eligible use of funds, loan and grant terms, rent and occupancy restrictions, provision of services, and reporting and monitoring requirements. Counties participating in the alternative process shall not be eligible for the competitive process and shall be limited to funds in proportion to their share of the percentage of the statewide homeless population, as calculated by the department in Section 5849.6. Funds not committed to supportive housing developments within two years following award of funds to counties shall be returned to the state for the purposes of the competitive program. The department shall consider the following when selecting participating counties:

(1) Demonstrated ability to finance permanent supportive housing with local and federal funds, and monitor requirements for the life of the loan.

(2) Past history of delivering supportive services to the target population in housing.

(3) Past history of committing project-based vouchers to supportive housing.

(4) Ability to prioritize the most vulnerable within the target population through coordinated entry system.

(c) The department shall set aside 8 percent of funds offered in rounds 1 to 4, inclusive, for the competitive program for small counties as provided in subdivision (d) of Section 5849.6.

(d) The department shall award funds for the competitive program in at least four rounds as follows:

(1) The department shall issue its first request for proposal for the competitive program no later than 180 days after the effective date of a final judgment, with no further opportunity for appeals, in any court proceeding affirming the validity of the contracts authorized by the authority and the department pursuant to Section 5849.35 and any bonds authorized to be issued by the authority pursuant to Section 15463 of the Government Code and any contracts related to those bonds.

(2) The second round shall be completed no later than one year after the completion of the first round.

(3) The third round shall be completed no later than one year after the completion of the second round.

(4) The fourth round shall be completed no later than one year after the completion of the third round.

(5) Subsequent rounds shall occur annually thereafter in order to fully exhaust remaining funds and the department may discontinue the use of the competitive groupings in Section 5849.6, the alternative process in subdivision (b) for any funds not awarded by the county, and the rural set-aside funds as set forth in subdivision (c).

(e)

(1) Any loans for capital costs made by the department pursuant to this section shall be in the form of secured deferred payment loans to pay for the eligible costs of development. All unpaid principal and accumulated interest is due and payable no later than completion of the term of the loan, which shall be established through program guidelines adopted pursuant to Section 5849.5. The loan shall bear simple interest at a rate of 3 percent per annum on the unpaid principal balance. The department shall require annual loan payments in the minimum amount necessary to cover the costs of project monitoring. For the first 15 years of the loan term, the amount of the required loan payments shall not exceed forty-two hundredths of 1 percent per annum. Funds shall be offered as grants for the capitalized operating reserves.

(2) The department may establish maximum loan-to-value requirements for some or all of the types of projects that are eligible for funding under this part, which shall be established through program guidelines adopted pursuant to Section 5849.5.

(3) The department shall establish per-unit and per-project loan limits for all project types.

(f)

(1) The department may designate an amount not to exceed 4 percent of funds allocated for the competitive program, not including funding allocated pursuant to subdivision (b), in order to cure or avert a default on the terms of any loan or other obligation by the recipient of financial assistance, or bidding at any foreclosure sale where the default or foreclosure sale would jeopardize the department’s security in the rental housing development assisted pursuant to this part. The funds so designated shall be known as the “default reserve.”

(2) The department may use default reserve funds made available pursuant to this section to repair or maintain any rental housing development assistance pursuant to this part to protect the department’s security interest.

(3) The payment or advance of funds by the department pursuant to this subdivision shall be exclusively within the department’s discretion, and no person shall be deemed to have any entitlement to the payment or advance of those funds. The amount of any funds expended by the department for the purposes of curing or averting a default shall be added to the loan amount secured by the rental housing development and shall be payable to the department upon demand.

(g)

(1) Before disbursement of any funds for loans or grants made pursuant to this section, the department shall enter into a regulatory agreement with the development sponsor that provides for all of the following:

(A) Sets standards for tenant selection to ensure occupancy of assisted units by eligible households of very low and low income for the term of the agreement.

(B) Governs the terms of occupancy agreements.

(C) Contains provisions to maintain affordable rent levels to serve eligible households.

(D) Provides for periodic inspections and review of yearend fiscal audits and related reports by the department.

(E) Permits a developer to distribute earnings in an amount established by the department and based on the number of units in the rental housing development.

(F) Has a term for not less than the original term of the loan.

(G) Contains any other provisions necessary to carry out the purposes of this part.

(2) The agreement shall be binding upon the developer and successors in interest upon sale or transfer of the rental housing development regardless of any prepayment of the loan.

(3) The agreement shall be recorded in the office of the county recorder in the county in which the real property subject to the agreement is located.

(h)

(1) The department shall monitor county compliance with applicable program regulations, loan agreements and regulatory agreements, and any agreements related to the program that designate the department as a third-party beneficiary, and enforce those regulations and agreements to the extent necessary and desirable in order to provide, to the greatest degree possible, the successful provision of permanent supportive housing.

(2) The department shall annually report to the authority the status of its efforts pursuant to this section and Section 5849.9, as set forth in Section 5849.11.

(i) The department may provide technical assistance to counties or developers of supportive housing to facilitate the construction of permanent supportive housing for the target population.

supportive housing mental health supportive services competitive application process homelessness plan county eligibility capital costs nonstate funding project readiness fund allocation loan terms default reserve regulatory agreement affordable rent tenant selection permanent supportive housing

(Amended by Stats. 2020, Ch. 165, Sec. 13. (SB 1030) Effective September 25, 2020.)

Section § 5849.9

This law allows California's Department of Health Care Services to distribute up to $200 million to support permanent housing for homeless individuals with mental health needs. The funds can be used for building, fixing, or maintaining housing, and also to help cover long-term operating costs. This money is available to all counties, with a focus on areas with higher homeless populations, to ensure mental health and other supportive services are provided for at least 20 years. If funds aren't used within 18 months, they revert to a competitive program for distribution. These funds will be managed following existing procedures or new ones to improve effectiveness. The initial allocation must happen within 150 days after legal confirmation of relevant contracts and bonds.

(a) Under any service contract entered into under Section 5849.35, in addition to the competitive program established by Section 5849.8, the department may distribute an amount not to exceed two hundred million dollars ($200,000,000) from the fund on an “over-the-counter” basis to finance the construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for individuals in the target population with a priority for those with mental health supportive needs who are homeless or at risk of chronic homelessness. Funds shall be offered as either deferred payment loans to finance capital costs, including acquisition, design, construction, rehabilitation, or preservation, of permanent supportive housing for the target population or grants for the capitalized operating subsidy reserve, as specified by the department in its guidelines, for permanent supportive housing for the target population. Funds to be awarded pursuant to this section shall be available to all counties within the state proportionate to the number of homeless persons residing within each county as calculated in Section 5849.6 or in the amount of five hundred thousand dollars ($500,000), whichever is greater. A county receiving these funds shall commit to provide mental health supportive services and coordinate the provision of, or referral to, other services, including, but not limited to, substance abuse treatment services, to the tenants of the supportive housing development for at least 20 years. Services shall be provided onsite at the supportive housing development or at a location otherwise easily accessible to the tenants.

(b) Funds not awarded within 18 months following the first allocation of moneys in accordance with subdivision (d) shall be used for the purposes of the competitive program.

(c) The moneys described in subdivision (a) shall be administered either in accordance with the procedures for awarding funds to local agencies established by the existing Mental Health Services Act housing program administered by the State Department of Health Care Services and the California Housing Finance Agency or alternative procedures developed by the department for distributing these moneys that enhance the efficiency and goals of the distribution program.

(d) The department shall make the first allocation of moneys pursuant to this section as soon as reasonably practical and in any event no later than 150 days after the effective date of a final judgment, with no further opportunity for appeals, in any court proceeding affirming the validity of the contracts authorized by the authority and the department pursuant to Section 5849.35 and any bonds authorized to be issued by the authority pursuant to Section 15463 of the Government Code and any contracts related to those bonds.

mental health support homelessness assistance permanent supportive housing construction financing rehabilitation funding capitalized operating reserves deferred payment loans counties allocation mental health services commitment substance abuse treatment services onsite services efficiency distribution procedures competitive program reallocation California Housing Finance Agency initial funds allocation timeframe

(Amended by Stats. 2020, Ch. 165, Sec. 14. (SB 1030) Effective September 25, 2020.)

Community Mental Health Services

Part 3.9The No Place Like Home Program

Section § 5849.1

Section § 5849.10

Section § 5849.11

Section § 5849.12

Section § 5849.13

Section § 5849.14

Section § 5849.15

Section § 5849.2

Section § 5849.3

Section § 5849.35

Section § 5849.4

Section § 5849.5

Section § 5849.6

Section § 5849.7

Section § 5849.8

Section § 5849.9

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