SB 16: Ending Street Homelessness Act.

(1)Existing law, the Planning and Zoning Law, requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. Existing law requires the housing element to consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing, as provided. Existing law requires each city, county, and city and county to revise its housing element according to a specified schedule, as provided.

Existing law, for the 4th and subsequent revisions of the housing element, requires the Department of Housing and Community Development to determine the existing and projected need for housing for each region, and requires the appropriate council of governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county, as provided. At least 2 years before a scheduled revision of the housing element, as specified, existing law requires each council of governments, or delegate subregion as applicable, to develop, in consultation with the department, a proposed methodology for distributing the existing and projected regional housing need to jurisdictions, as specified. Existing law requires that the final allocation plan ensure that the total regional housing need, by income category, determined as specified, is maintained, and that each jurisdiction in the region receive an allocation of units for low- and very low income households. For the 7th and subsequent revisions of the housing element, existing law also requires that the allocation to each region include an allocation of units for acutely low and extremely low income households.

This bill, until January 1, 2032, would require the council of governments, or delegate subregion, as applicable, in developing the proposed allocation methodology that allocates each jurisdictions share of the regional housing need for acutely low income housing, to count any newly constructed interim housing, as specified, as meeting the needs of acutely low income households. By imposing additional duties on local governments, this bill would impose a state-mandated local program.

(2)Existing law establishes the Homeless Housing, Assistance, and Prevention: (HHAP) program, administered by the Interagency Council on Homelessness, with respect to rounds 1 through 5, inclusive, of the program, and the Department of Housing and Community Development, with respect to round 6 of the program, for the purpose of providing jurisdictions, as defined, with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. Existing law also requires the department to administer various other programs intended to promote the development or rehabilitation of housing, including the No Place Like Home Program, pursuant to which the department is required to award up to $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, as specified.

Upon appropriation by the Legislature, this bill would establish round 7 of the HHAP program. To be eligible for a round 7 or subsequent base program allocation, the bill would require an applicant to be eligible for a round 6 base allocation and submit to the department a housing now action plan that includes specified information, including, among other things, a description of key actions that will be taken within the applicants region to sustain the operation of interim living spaces, as defined, built pursuant to this plan. The bill would require the department to develop guidance and the housing now action plan application within 90 days. The bill would require the department to review and make a determination of conformity upon completion of the application for round 7 of the program and submission of the housing now action plan. The bill would make an applicant with a housing now action plan approved by the department additionally eligible for funding pursuant to specified housing and homelessness funding sources the department administers, including the No Place Like Home Program, to pay for capital and operating subsidies for interim living spaces. The bill would only authorize the department to allocate a round 7 or subsequent base program allocation to a participating jurisdiction that has enacted an encampment resolution ordinance, as specified, and would require each county and each city that submits a housing now action plan to sign a memorandum of understanding that commits the participating jurisdiction to participation, and compliance with, the housing now action plan, among other things. The bill would authorize smaller jurisdictions in the region to sign the memorandum of understanding and commit to participation in, and compliance with, its requirements, and would encourage counties to allocate resources from program funding to these smaller jurisdictions.

The bill would require the department to determine each regions 5-year housing inventory expansion target, as provided, and to develop a schedule for each region for the 202627 fiscal year through the 203031 fiscal year, inclusive. The bill would require each region, at the end of each fiscal year, to expand its homeless habitation capacity until it achieves its 5-year housing inventory expansion target in accordance with the schedule established by the department.

The bill would require the department to prepare and submit to the Legislature an annual report summarizing what is necessary to continue achieving functional zero unsheltered homelessness, as defined. The bill would repeal these provisions on January 1, 2032.

The No Place Like Home Program was ratified and amended by the No Place Like Home Act of 2018, approved by the voters as Proposition 2 at the November 6, 2018, statewide general election. Existing law authorizes the Legislature to amend Proposition 2 by a ²/₃ vote, so long as the amendment is consistent with and furthers the intent of that measure.

The bill would state the finding of the Legislature that these provisions are consistent with, and further the intent of, the No Place Like Home Act.

(3)The California Constitution provides that all property is taxable, and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. Existing property tax law, in accordance with the California Constitution, provides for a welfare exemption for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. Existing property tax law provides a partial welfare exemption for rental housing and related facilities and owned and operated by certain types of nonprofit entities that meet all of the requirements of welfare exemption, or by certain veterans organizations, as provided.

This bill, for property tax lien dates occurring on or after January 1, 2026, and before January 1, 2032, would deem property to be within the welfare exemption if (A) that property is owned and operated by a religious, hospital, scientific, or charitable fund, foundation, limited liability company, or corporation meeting specified requirements and (B) the property is used exclusively for interim housing, as defined. By expanding the duties of local tax officials, this bill would impose a state-mandated local program.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

(4)The bill would include findings that certain changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

(5)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.