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Legislators press HCD for performance data on Encampment Resolution Fund before further allocations
Summary
The subcommittee reviewed HCD's proposed continuation and deadline adjustments for the Encampment Resolution Fund; the Legislative Analyst said the Legislature still lacks comprehensive outcome data and recommended waiting for newly required reports before fully committing additional resources.
The Assembly subcommittee examined HCD's request to continue and adjust deadlines for the Encampment Resolution Fund, a homelessness response program that the Legislature has funded in multiple rounds.
HCD Deputy Director Megan Kirkby described why the department seeks rule changes tying expenditure deadlines to award dates rather than appropriation dates. That change, HCD said, would give later awardees the same practical time to expend funds rather than being penalized because awards across multiple NOFA windows are all governed by a single appropriation date.
But the Legislative Analyst's Office told members the legislature still lacks a clear picture of outcomes. Paul Steinhausen said the LAO's March report found the Legislature did not yet know how many people funded by these grants have been housed, what types of housing were created, or whether grantees properly reported progress. "To date though, the Legislature does not know how many people have actually been housed or the type of housing they've received and whether they've stayed housed," the LAO said.
HCD said it is working to improve quarterly and annual reporting and that grantees' April reports (statutory requirement) will provide additional publicly available information. Kirkby also said about half of awardees in the first round had met the department's definitions for "resolved" or "partially resolved" encampments, which HCD said means all residents were offered interim or permanent housing and the site was returned to its intended use.
Members pressed about coordination with Caltrans and the recurrence of encampments after closures. HCD said it has been improving interagency coordination and that Caltrans has been an active partner in the program, but acknowledged more work is needed to make partnerships consistent across districts.
Why it matters: the program has received nearly $1 billion in state funding since 2022 and the Legislature will weigh whether to continue or expand funding. Committee members and the LAO urged waiting for the incoming statutory reports and dashboard updates so the Legislature can evaluate the program's effectiveness before directing more dollars.
