(The Center Square) – California Gov. Gavin Newsom announced a new $827 million round of grants in state homelessness spending, along with new transparency protocols that reveal how and how much the Homeless Housing, Assistance and Prevention program spends.
Earlier this year, a state audit found the state had not tracked $24 billion in homelessness spending; Newsom vetoed one unopposed bill that would have required the state to evaluate its homelessness spending, and another unopposed bill that would have required public reports on homelessness spending and effectiveness.
As Newsom announced the new spending, the California Interagency Council on Homelessness issued new guidance for clearing out homeless encampments. These include a recommended 48 hour minimum notice before a sweep, and that if shelter is not available for individuals before a sweep, that “it’s recommended that a local government ensure that there are reasonably accessible locations within the jurisdiction where a person may lawfully sleep.”
In San Francisco, this policy has manifested in significant reductions in the number of tents on the streets, while the homeless individuals continue to live on the street, albeit without their tents, as reporting has found no uptick in homeless service utilization or use of sponsored bus tickets out of the city.
The guidance reiterated the state’s commitment to “person-centered, Housing First, and trauma-informed approaches when addressing the needs of persons living in encampments on public property.”
In the announcement, Newsom said the state has spent $27 billion on homelessness in recent years, $2.4 billon of which has been through HHAP, a grant system for keeping people out of homelessness, and for getting homeless individuals into permanent housing.
Of the $2.4 billion awarded via HHAP, $1.4 billion has been spent as of March 31, with 202,639 people having made use of HHAP programs since 2023 — though it’s not clear how many duplicates have been removed, and how many unique individuals this represents.
Of those who have exited HHAP programs, 64,004 went into “unknown” living situations, 47,952 went back on the street, 37,543 entered permanent housing, 10,522 entered temporary housing 4,573 went into “other” living situations, and 3,850 entered institutional living situations, which could include mental hospitals or prison.
This means the state spent approximately $7,089 per individual who used HHAP services, which could have been just a one-time contact from a street outreach contractor canvassing the area.
HHAP has provided $77,794,338 in homelessness prevention services to 8,877 people, suggesting an average cost of $8,763 to keep individuals out of homelessness.
With 37,543 individuals entering permanent housing and $1.36 billion in HHAP funds spent beyond homelessness prevention, HHAP grants provided $36,189 in state funds towards housing each individual moved into permanent housing. This figure does not include local funds; only California’s 14 cities with over 300,000 residents, 58 counties, and 48 continuums of care (major homeless services networks covering multiple jurisdictions) can apply for the grants, and many provide funding of their own to supplement, match, or exceed HHAP grants, meaning the actual cost of housing placements or of total spending in general is difficult to ascertain.
For this latest HHAP round, all housing and services were required to be “Housing First compliant,” meaning that “Individuals and families assisted with these funds must not be required to receive treatment or perform any other prerequisite activities as a condition for receiving interim or permanent housing, or other services for which these funds are used.”
The application also said “Housing First should be adopted within the entire local homelessness response system, including outreach and interim housing, short-term interventions like rapid re-housing, and longer-term interventions like supportive housing.”
Many wondered whether, in light of the state’s worsening homelessness, further spending would make any difference.
“Newsom spent $24 billion on homelessness, the problem got much worse, and the State Auditor found he lost track of the money. He then vetoed a bipartisan bill to hold him accountable for further spending,” said Congressman Kevin Kiley, R-Rocklin, on X. “Now, he’s spending more.”
