Repealed (in Sec. 42) and added by Stats. 2023, Ch. 790, Sec. 43. (SB 326) Effective April 17, 2024. Approved in Proposition 1 at the March 5, 2024, election. Operative July 1, 2026, by its own provisions.
(a)(1) Each county shall establish and administer a program for housing interventions to serve persons who are chronically homeless or experiencing homelessness or are at risk of homelessness, as defined in Section 5892, and meet one of the following conditions:
(A) Eligible children and youth, as defined in Section 5892.
(B) Eligible adults and older adults, as defined in Section 5892.
(2)Housing interventions shall not be limited to
individuals enrolled in full-service partnerships pursuant to subdivision (d) of Section 5887.
(3)Housing interventions shall not be limited to individuals enrolled in Medi-Cal.
(4)Housing interventions shall not discriminate against or deny access to housing for individuals that are utilizing medications for addiction treatment or other authorized medications.
(5)Housing interventions shall comply with the core components of Housing First, as defined in subdivision (b) of Section 8255, and may include recovery
housing, as defined by the federal Department of Housing and Urban Development.
(b)(1) County programs for housing interventions may include any of the following:
(A) Rental subsidies.
(B) Operating subsidies.
(C) Shared housing.
(D) Family housing for eligible children and youth who meet the criteria specified in subdivision (a).
(E) The nonfederal share for transitional rent.
(F) Other housing supports, as defined by the State Department of Health Care
Services, including, but not limited to, the community supports policy guide.
(G) Capital development projects, including affordable housing, as described in paragraph (2).
(H) Project-based housing assistance, including master leasing of project-based housing.
(I) Funds pursuant to paragraph (1) of subdivision (a) of Section 5892 shall not be used for mental health and substance use disorder treatment services.
(2)(A) County programs for housing interventions may include capital development projects, under the provisions of Section 5831, to either construct or
rehabilitate housing units, or both, for the persons meeting the criteria specified in subdivision (a) consistent with the State Department of Health Care Services guidelines for this purpose.
(B)The units funded pursuant to this provision shall be available in a reasonable timeframe, as specified by the State Department of Health Care Services and consistent with the county integrated plan pursuant to Section 5963.02, and shall meet a cost-per-unit threshold as specified by the State Department of Health Care Services.
(C)For purposes of this section and Section 5831, “affordable housing” includes supportive housing. “Supportive housing” has the same meaning as defined in Section 50675.14 of the Health and Safety Code.
(3)County programs for housing interventions shall comply with all requirements specified by the State Department of Health Care Services, pursuant to Section 5963.05, for the purposes of administering paragraphs (1) and (2).
(c)(1) To the extent that necessary federal approvals have been obtained for the Medi-Cal program to cover housing interventions and federal financial participation is available and not otherwise jeopardized, the housing interventions funds distributed pursuant to paragraph (1) of subdivision (a) of Section 5892 may be used for the nonfederal share of Medi-Cal covered housing related services. The housing intervention funds distributed pursuant to paragraph (1) of subdivision (a) of Section 5892 shall only cover the costs that cannot be paid for with Medi-Cal program funds, including
costs for Medi-Cal members enrolled in a Medi-Cal managed care plan, as defined in subdivision (j) of Section 14184.101, that does not cover those services.
(2)Funds shall not be used for housing interventions covered by a Medi-Cal managed care plan, as defined in subdivision (j) of Section 14184.101.
(d)Notwithstanding any other law, a capital development project funded pursuant to this section shall not constitute a “low rent housing project,” as provided for in subdivision (e).
(e)“Low rent housing project,” as defined in Section 1 of Article XXXIV of the California Constitution, does not apply to a project that meets any of the following criteria:
(1)The project meets both of the following criteria:
(A)Is privately owned housing, receiving no ad valorem property tax exemption other than exemptions granted pursuant to subdivision (f) or (g) of Section 214 of the Revenue and Taxation Code, not fully reimbursed to all taxing entities.
(B)Not more than 49 percent of the dwellings, apartments, or other living accommodations of the development may be occupied by persons of low income.
(2)The project is privately owned housing, is not exempt from ad valorem taxation by reason of public ownership, and is not financed with direct long-term financing from a public body.
(3)The project is intended for
owner-occupancy, which may include a limited-equity housing cooperative, as defined in Section 50076.5 of the Health and Safety Code, cooperative, or condominium ownership rather than for rental-occupancy.
(4)The project consists of newly constructed, privately owned, one- to four-family dwellings not located on adjoining sites.
(5)The project consists of existing dwelling units leased by the state public body from the private owner of these dwelling units.
(6)The project consists of the rehabilitation, reconstruction, improvement, or addition to, or replacement of, dwelling units of a previously existing low-rent housing project or a project previously or currently occupied by lower income households, as defined in
Section 50079.5 of the Health and Safety Code.
(7)The project consists of the acquisition, rehabilitation, reconstruction, or improvement, or any combination thereof, of a project that, prior to the date of the transaction to acquire, rehabilitate, reconstruct, or improve, or any combination thereof, was subject to a contract for federal or state public body assistance for the purpose of providing affordable housing for low-income households and maintains, or enters into, a contract for federal or
state public body assistance for the purpose of providing affordable housing for low-income households.
(8)The project consists of the acquisition, rehabilitation, reconstruction, alterations work, or new construction, or a combination thereof, of lodging facilities or dwelling units using moneys received from the Behavioral Health Services Fund established pursuant to subdivision (a) of Section 5890.
(f)This section shall be implemented only to the extent that funds are provided from the Behavioral Health Services Fund for purposes of this section. This section does not obligate the counties to use funds from any other source for services pursuant to this section.
(g)This section shall become operative on July 1, 2026, if amendments to the Mental Health Services Act are approved by the voters at the March 5, 2024, statewide primary election.