County leaders say reorganization could help homelessness but urge statutory clarity and unified applications

Graham Knauss, chief executive officer of the California State Association of Counties, told the Little Hoover Commission on April 24 that the governor's plan to split the Business, Consumer Services and Housing Agency could sharpen focus on housing and homelessness but would not by itself solve implementation problems.

Knauss said the proposed reorganization “is smart, and would provide much greater focus in the work that is being done” while praising Secretary Moss’s leadership. He told commissioners that counties are the primary service providers on housing and homelessness and that the state–county relationship in California is unusually interdependent.

The core concern, Knauss said, is legal and organizational: “There are 0 responsibilities in statute around who's supposed to do what related to homelessness,” he told commissioners. Without defined statutory responsibilities and funding aligned with those duties, Knauss said, no single entity can be held accountable for outcomes. “If 1 of the 3 parties fails, you know exactly who and what, and then they can be held accountable. Currently, we're there there's not real accountability because there aren't real responsibilities,” he said.

Knauss also described administrative burdens that slow delivery. He said many local programs require multiple separate applications and reporting streams: “In Monterey County…they have a very successful rapid rehousing program. In order for them to fund that rapid rehousing program, it requires 8 different fund sources with 8 different applications, 4 different state departments, and all with different reporting requirements.” He urged the commission to consider pilots that would collapse multiple applications into a single unified form for homelessness and housing programs.

On timing and funding, Knauss said Proposition 1 dollars aimed at behavioral-health housing will begin moving in July but cautioned that Prop 1 does not serve all people experiencing homelessness. “The way that Proposition 1 is structured, if you are homeless and you do not have a behavioral health issue or significant substance abuse issue, Proposition 1 is not going to do anything for you,” he said, adding that the housing funds in Prop 1 focus on certain populations and must be paired with process and statutory fixes to speed project approvals.

Commissioners pressed Knauss on practical next steps. He said CSAC and nine counties have a pilot-ready proposal that would create a single unified application for homelessness funding, but it would require statutory change and a legislative vehicle (for example, a trailer bill or other statutory language) to implement. Knauss pointed to the Housing and Homelessness Accountability Program (HAP) as an example of a relatively flexible funding pot, noting HAP’s utility while adding that it is not a statutory definition of responsibilities.

Knauss repeatedly emphasized local variation: some counties (San Luis Obispo, Stanislaus/Modesto, Riverside) have developed local arrangements that clarify roles and achieve measurable progress, but those models are not yet statewide. He told the commission that the reorganization provides “an opportunity to create a reset” but only if the legislature and administration also set clear responsibilities, align funding, and give local partners flexibility.

The hearing moved on to other witnesses after Knauss concluded; commissioners indicated interest in follow-up written material and possible additional hearings to examine pilot language and statutory options.

Ending: County representatives told the commission they back the idea of a specialized agency for housing and homelessness, but they urged statutory clarity — defined roles for state, cities and counties — and simpler, consolidated application and reporting processes before Californians will see consistent, measurable reductions in street homelessness.