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May revision proposes no new general fund for homelessness; HAP pipeline and accountability remain central
Summary
Finance and HCD told the committee the May revision includes no new general fund for homelessness in 2025-26 but retains prior appropriations and $760 million in HAP Round 6 is expected to be awarded this summer. Officials said HCD has more than $3.4 billion in active NOFAs and emphasized oversight and equity metrics for grant recipients.
Department of Finance and the Department of Housing and Community Development briefed the subcommittee on the May revision's homelessness proposals and the state's ongoing homelessness program pipeline.
Main points - No new general fund in 2025-26: Megan Tokonaga Block (DOF) said the May revision proposes no new general fund for homelessness programs in 2025-26, though it does not propose reductions to current funding levels. - Existing pipeline and awards: HCD staff noted a large pipeline of funds and the upcoming award schedule. HCD said $760 million appropriated for HAP Round 6 (the Homeless Housing Assistance and Prevention program) will be awarded starting this summer; the department also cited roughly $3.4 billion in active notices of funding availability for various programs that remain to be allocated. - Targeted actions and accountability: HCD described enhanced technical assistance, an accountability unit, and racial-equity plans and system-performance metrics embedded in HAP rounds. HCD staff said those metrics include race, gender and other disaggregations to detect disproportionate impacts and to guide targeted technical assistance.
Concerns raised by lawmakers - Predictability and multi-year funding: Senators pressed administration officials on the need for predictable multi-year funding, arguing local jurisdictions and service providers need certainty to retain staff and plan long-term services. - Spend-down variation: HCD acknowledged wide variation across grantees in how quickly and effectively they have obligated and spent awarded funds; officials said the department is working to redeploy unspent or underspent awards to regions prepared to use the money quickly.
Subcommittee action: The committee left the item open for further negotiation and stressed oversight and accountability will be central to any future funding decisions.
Why this matters: Lawmakers said homelessness and housing production remain top voter concerns; the subcommittee emphasized that, even in a constrained fiscal year, withdrawal of promised or appropriated funds can undermine local planning and the state's partnership with counties and cities.
