California Legislative Agreement, the 2020-21 State Budget, and Funding Priorities Regarding Homelessness

The President Pro Tempore of the Senate, and the Assembly and Senate Budget Committee Chairs announced a legislative agreement on the 2020-21 state budget last week. This sets the stage for legislative negotiations on the budget with the Governor and his administration. The Legislature will meet the June 15 deadline to pass a balanced budget bill.

The legislative budget plan reflects a strong likelihood of more federal relief and uses reserves and other state balances to avoid overcutting now.

Homelessness related funding, which is noted on page 48, follows:

CARES Funding

• Approves $550 million for acquisition or acquisition and rehabilitation of motels, hotels, or hostels; master leasing of properties; acquisition of other sites and assets; conversion of units from nonresidential to residential in a structure with a certificate of occupancy as a motel, hotel, or hostel; and purchase of affordability covenants and restrictions for units. Adopts placeholder trailer bill to implement project room key.

• Provides $500 million to cities for homelessness, public health, public safety, and other services to combat COVID-19 pandemic.

• $225 million to cities with a population greater than 300,000 that did not receive a direct allocation from the Federal CARES Act. Allocated based on the share of each city’s population relative to the total population of the cities covered by the subsection.

• $275 million to cities with a population less than 300,000. Allocated based on the share of each city’s population relative to the total population of the cities covered by the subsection. No city shall receive less than $50,000.

• $1.289 billion to counties to be used for homelessness, public health, public safety, and other services to combat COVID-19 pandemic.  Allocated based on population.

Business, Consumer Services, and Housing Agency and Department of Housing and Community Development 

• Adopts an additional $350 million for homelessness subject to legislation.