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HSH presents budget projections; OCO/Prop C funding and prevention programs discussed
Summary
HSH presented FY 2025-26 and FY 2026-27 spending plans for prevention and shelter/hygiene, saying prevention budgets would be sustained and problem-solving programs extended while noting some structural deficits in out years and the need to pursue competitive state and federal funds.
HSH presented its proposed multi-year spending plans for prevention and shelter programs and reviewed how OCO/Prop C and other revenue sources are being applied to homelessness prevention, shelter and hygiene services.
The presentation set out proposed budgets: approximately $69.8 million for prevention in FY 2025-26 and $65.6 million in FY 2026-27; a shelter and hygiene spending plan of about $32.5 million for FY 2025-26 and $32.4 million for FY 2026-27. HSH said the prevention budget maintains strategic-plan investments and extends one-time funds and that the department is using higher revenue projections and one-time fund balance to extend problem-solving programs through the budget cycle. HSH staff warned of a structural deficit in some fund sections in the out years and said some costs will be managed by continuing to use one-time fund balances and pursuing additional state competitive grants and other funding opportunities.
Why it matters: Commissioners and provider representatives told the commission that prevention and housing exits are crucial to reduce shelter demand and long-term costs. Several public speakers and Commissioner Kristen Evans urged HSH to provide site-level lists showing which shelter and housing programs were funded with OCO/Prop C and the distinction between one-time and ongoing operating expenses; HSH staff said they would provide additional detail as available and pointed to the department—s annual reports and an interactive dashboard for higher-level figures.
Notable budget details and funding sources: HSH said it is pursuing CalAIM billing for housing navigation and stabilization work (HSH staff estimated current billings near $6 million a year with potential for greater citywide revenue as programs scale). HSH noted that Prop 1 is a capital-only funding source and that municipal Medicaid-related operational funds and some Prop 1 capital reallocation decisions lie with other city departments. HSH also said it will seek competitive state encampment grants and expects an additional HAP (Homelessness Affordable Program) round; the department estimated proposing projects totaling $20–25 million for some state competitive opportunities.
Public comment: Providers thanked HSH for restoring problem-solving funding and urged that Prop C and OCO investments remain focused on prevention, youth and family exits rather than being shifted to short-term shelter-only solutions. Marnie Regan (HESPA) and Jennifer Freedombach (Coalition on Homelessness) asked for earlier engagement so provider budgets are not disrupted by late changes. Commissioner Evans said she favored showing both household counts and individual-person counts when reporting family shelter numbers to improve allocation decisions.
HSH actions and next steps: HSH said it will continue to refine budget presentations, provide additional site-level detail where possible, pursue competitive state and federal funding opportunities, and report back to the commission as budget conversations proceed with the mayor—s office and controller.
