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Prepared by Precision Advocacy
Assembly Budget Subcommittee Hearing on Homelessness Funding and Accountability
The Assembly Budget Subcommittee #7 on Accountability and Oversight held an informational hearing on Tuesday, focused on homelessness funding and accountability. The hearing was chaired by Assemblymember Gregg Hart (D-Santa Barbara) and attended by Assemblymembers Buffy Wicks (D-Oakland), Sharon Quirk Silva (D-La Palma), Pilar Schiavo (D-Santa Clarita), Rhodesia Ransom (D-Stockton), Josh Hoover (R-Folsom), Celeste Rodriguez (D-San Fernando), John Harabedian (D-Pasadena), and Jessica Caloza (D-Los Angeles). During the hearing, panelists and legislators explored the implementation of the Homeless Housing, Assistance, and Prevention (HHAP) Program and the Encampment Resolution Fund (ERF) grants and associated accountability measures.
Chair Hart opened the hearing highlighting the state’s $20 billion investment to tackle the housing and homelessness crisis, including $5 billion for local governments and tribal governments to address homelessness in their communities. He pointed to the recent State Auditor’s report which called for the need for more data collection and accountability particularly for Encampment Resolution funding.
Homeless Housing, Assistance, and Prevention Program. Megan Kirkeby, Deputy Director of Housing Policy Development at the Department of Housing and Community Development (HCD), discussed HCD’s evolutions of the HHAP program for the sixth round of funding and new accountability measures that are being implemented under the program. She noted that large cities, counties, and Continuums of Care (CoCs) form regions and apply jointly for HHAP funds. They must develop a regional action plan and MOU to work together to improve their homelessness outcomes, demonstrate how their HHAP funds will directly impact homelessness metrics, and strategically pair HHAP with other local, state, and federal funds.
As part of the new accountability measures for the recently announced HHAP 6 disbursement of funds, for applicants to receive the first 50% of HHAP 6 funds, they must:
- Fully obligate HHAP Rounds 1–3 funds.
- Expend all HHAP Round 1 funds.
- Expend at least 50% and obligate 75% of the initial disbursement (first half) from HHAP
- Round 4.
- Be in good standing on all reporting requirements for prior rounds.
For the second disbursement of HHAP 6 funds, grantees must have obligated not less than 75% and expended not less than 50% of the initial Round 6 allocation no later than June 30, 2027. City and county grantees must have a compliant housing element, and grantees are required to submit a mid-award update on the Round 6 Regionally Coordinated Action Plan to HCD by January 31, 2027, including updates on expenditure and obligation activities, progress on the system performance and improvement plan, and adequately improving on at least half of the current system performance measures. If progress is deemed insufficient, HCD can prescribe a corrective action plan before disbursing funds.
Regions must now also have a plan to sustain all interim housing through the grant term. If new interim or non-housing uses are proposed, they are required to have a plan to sustain all existing and planned permanent housing within the region through the grant term. If a gap exists, regions must demonstrate how they will dedicate funds to sustain those investments, including bringing local and regional funding and Mental Health Services Act/Behavioral Health Services Act funds (Prop. 1) to the table. She also noted that two new stakeholder groups are now included in the development of the Homelessness Action Plans, including federally recognized tribes and developers of permanent affordable housing.
Under HHAP, regions must create an encampment response plan including the number of encampments within the region, with specific plans to address them. They must also share their policy or current practice to address encampments and confirm it complies with the California Interagency Council on Homelessness Guidance on Addressing Encampments.
Ms. Kirkeby covered the following online resources that allow policymakers and the general public to see how HHAP funds are being spent:
Encampment Resolution Fund Program. Ms. Kirkeby reviewed the ERF Program for committee members. Funds from the program are awarded on a competitive basis and are intended for actionable, person-centered, local proposals that provide stable housing and address the immediate health and safety needs of the individuals residing in specific encampments. She highlighted that ERF awardees are projected to transition more than 23,000 people into interim solutions with a pathway to permanent housing, or directly into permanent housing. Proposals for this program must resolve critical encampment concerns, such as immediate health and safety hazards and address the wellness of the people living in the encampment.
Five rounds of ERF have been included in the state budget to date, for a total of $1 billion, with $100 million in FY 2025-26 (ERF 5) notice of funding availability anticipated in Summer 2025. Ms. Kirkeby highlighted the following accountability online resources for the program:
Local Government Perspective. Appearing remotely, San Diego Mayor Todd Gloria emphasized his and other cities’ commitment to accountability and called out specific local projects that were funded by HHAP. He highlighted San Diego’s commitment to permit reform and building more housing. He noted how the new website can be a useful tool but called out the need for more granular data that tells more of the story around homelessness. He had similar comments for the behavioral health accountability website.
Mayor Gloria was somewhat critical of the San Diego CoC, saying it was not contributing significantly to shelter beds. He also called on the state to be more accountable for encampments on Caltrans owned land, suggesting that locals be given the authorization to clean up these encampments and be reimbursed for their costs.
Phil Skei, Assistant Director of Planning and Development, City of Fresno, highlighted his city’s effort to be a pro-housing jurisdiction including making all development ministerial, removing density caps, and zoning an additional 75,000 housing units in the downtown area. They have seen a 5.6% decrease in their overall homelessness numbers and expect further improvements.
Robert Ratner, the Housing and Health Division Director from the County of Santa Cruz Human Services Department, highlighted the county’s work in partnership with the city of Santa Cruz to clean up a large encampment right outside a county administration building. He praised HCD’s staff and their work on the new accountability website but indicated that the website may not show the full picture. He noted the tension between counties, CoC’s, and cities in determining where resources should be directed. He called on policymakers to take a holistic view of the issue and pursue strategies with proven effectiveness. He also expressed concerns over the use of the point-in-time count as a primary performance metric. He talked about the importance of targeting “sub-populations” with tailored solutions including families, and veterans.
Legislator questions. Assemblymember Wicks asked about the correlation between HHAP funding and reduced homelessness numbers, Ms. Kirkeby responded that the program has had a positive impact. In response to questions about key metrics from legislators, Ms. Kirkeby and other panelists emphasized the inherent connection between housing affordability and homelessness. Legislators generally asked for more information and greater ease of accessibility of the new online resources.
Chair Hart concluded the meeting emphasizing the importance of data driven policy decisions and increasing investments in programs that have demonstrated success.
Assembly Select Committee on Permitting Reform: Final Report
On March 4, the Assembly Select Committee on Permitting Reform, chaired by Assemblymember Buffy Wicks (D-Oakland) released its report on permitting challenges in addressing housing and climate crises, best practices, success stories, and opportunities for reform that would minimize uncertainty, speed up permitting, and reduce costs to necessary infrastructure projects. The report is significant as it provides a preview of anticipated legislation that will impact the county’s and other local jurisdictions’ permitting processes.
The Select Committee spent the last year working on the report, holding four public hearings, conducting site visits across the state, and engaging more than 100 stakeholders. The committee’s report highlights how permitting inefficiencies and bottlenecks drive up the cost of housing, electricity, water, and transportation projects.
The Select Committee focuses on housing and climate projects, including infill housing, clean energy, transit, and climate resilience. The final report represents Assemblymember Buffy Wicks' perspective, not necessarily that of all committee members or the California Assembly. Other members of the committee included Assemblymembers Diane Dixon, Cottie Petrie-Norris, and Sharon Quirk-Silva, among others.
Best Practices. The paper summarizes stakeholder feedback on a successful permitting process, which should be timely, transparent, consistent, and outcomes oriented. 11 best practices are identified, split into pre-application and post-application phases. Implementing all practices will yield strong outcomes, while failure in any one may undermine the process.
Prioritize objectives and workload: Regulatory bodies need to focus resources on addressing housing and climate crises, streamline efforts by reducing duplication, and concentrate on key programmatic areas.
Frontload input: Planning should involve technical studies and expert input to guide outcomes-oriented permitting. Including community members with practical expertise is essential, and regulatory agencies must actively seek feedback from those affected by their actions.
Ensure a transparent and efficient permit application process: A well-structured application process will clearly outline the necessary information an applicant must provide, the timeline for the regulatory body to review the application for completeness, and the procedures to follow if the application is found incomplete.
Establish specific time frames for reviewing permits: Time certainty is crucial for cost-effective projects. Permitting entities should specify their time frames for reviewing applications and ensuring regulatory compliance to maintain project urgency and progress. Time frames should match the project's complexity and required regulatory discretion. Review processes should occur concurrently, not sequentially.
Maximize consistency across permitting entities: Many permits require approval from multiple permitting entities. Each permitting entity has its own processes, often resulting in applicants needing to provide duplicative information. Additionally, each entity may have unique specifications that could conflict with those of another entity, adding time and uncertainty to projects. A best practice would be for permitting bodies to coordinate upfront to provide a consistent set of information and, where possible, align specifications for the project.
Predetermine mitigations: When feasible, identify mitigation strategies early so the project can be designed accordingly from the start.
Treat permit applicants as partners: Staff should engage with applicants to ensure the success of beneficial projects. This approach leverages staff expertise to guide applicants through complex processes and solve problems for optimal outcomes.
Designate a project manager from the regulatory side: This manager, dedicated to the project's success, should report directly to the executive branch overseeing all permitting bodies. They will serve as the main contact for the applicant and coordinate among entities, ensuring timely decisions and keeping the project on track.
Focus environmental review on project elements that could harm the environment: The California Environmental Quality Act (CEQA) is often used to block development projects for non-environmental reasons, such as local opposition, labor unions seeking agreements, community groups wanting benefits, and businesses targeting competitors, not for its intended environmental protection role.
Minimize potential harmful impacts: Permitting should reduce economic, environmental, and social harms, focusing on historically excluded groups and emphasizing outcomes. Success depends on results in housing, clean energy, and climate infrastructure. All permitting should aim for these goals.
Emphasize outcomes over process: California's current regulatory framework prioritizes caution and thoroughness. However, this approach may not always lead to improved outcomes and can sometimes diminish the positive benefits of a project. It is essential to streamline processes to effectively address California’s housing and environmental crises.
Success Stories
Accessory dwelling units: Accessory dwelling units (ADUs) have become a key part of California's housing strategy. Their construction has surged from about 1,300 per year before 2016 to over 22,300 ADUs in 2023, now comprising 20% of the state's new housing. This growth is driven by permitting reforms through state legislation which eased local restrictions and standardized approval processes.
ADUs are crucial for affordable housing, with one-third being affordable to lower-income households, creating over 7,000 affordable units in 2023 without public subsidies. In recent years, the legislature has continued passing legislation to further reduce local barriers and promote ADU construction.
Electric vehicle charging stations: In California, 25% of new passenger cars sold are electric vehicles (EVs), accounting for nearly 40% of all EV sales in the U.S. since 2011. The California Air Resources Board (CARB) aims for 35% of new vehicle sales to be zero-emission by 2026 and 100% by 2035. A major barrier to EV adoption is insufficient charging infrastructure. To address this, laws have been created to streamline permitting processes for EV chargers. As a result, 426 cities and counties have adopted or are developing these streamlined processes, leading to significant growth in EV charger installations—24,000 new chargers in the first eight months of 2024, up from 8,500 in 2021.
Environmental restoration: In 2020, the California Natural Resources Agency launched the Cutting the Green Tape initiative to improve efficiency in ecological restoration. Key reforms include:
- CEQA exemption for restoration projects: SB 155 (2021) exempts certain fish and wildlife restoration projects until 2030.
- Restoration management permit: Consolidates authorizations for habitat restoration into one permit.
- Interagency coordination: Streamlined application and permit review process by the California Department of Fish and Wildlife and Water Resources Control Board.
- Coastal Commission fuel reduction plans: Simplifies approval for fuel reduction projects in coastal zones, protecting sensitive resources and enhancing forest health.
These changes aim to make ecological restoration more efficient and cost-effective.
Permitting Reform. The central argument of this white paper is that significant permitting reform is crucial to tackle California's housing and climate crises. Areas specifically identified where such reform is needed include housing, electricity, water, and transportation. Due to the complexity and scope of the issues, the white paper does not cover every detail or perspective and does not provide specific recommendations. These should come from new or ongoing initiatives involving stakeholders and experts, considering political and financial feasibility.
Housing: California faces significant housing challenges, with 187,000 residents homeless and many more struggling to afford rent. Homeownership is out of reach for most, with only 16% of households able to purchase a median-priced home. The state aims to build over 310,000 units annually over the next eight years, including affordable housing, but fell short in 2023, producing less than 115,000 homes.
Several factors contribute to the shortfall, including high construction costs, interest rates, limited funding for affordable housing, labor shortages, and complex permitting processes. Legislative reforms have sought to streamline these processes by increasing land availability, removing CEQA reviews for certain projects, and enforcing time-certainty on permit reviews. Despite these efforts, further reforms are needed to eliminate uncertainty in application and entitlement processes, create consistency across jurisdictions, focus CEQA on environmental issues, and minimize uncertainties in post-entitlement permits.
Electricity: In 2023, California used 281,000 gigawatt hours of electricity from various sources, including fossil fuels, nuclear power, and renewables. Despite population and economic growth, electricity use has remained flat; however, the state's energy mix has become cleaner over time. By 2023, renewable resources increased to 37%, while greenhouse gas (GHG) emitting sources decreased to 42%.
California's climate goals require significant reductions in GHG emissions by 2030 and 2045, necessitating widespread electrification and thus an increase in electricity usage by nearly 50% by 2045. The state must build new electricity infrastructure rapidly, including solar, wind, battery storage, and transmission lines.
Key opportunities for permitting reform include:
- Improving implementation of AB 205 (Chapter 61, Statutes of 2022), which allowed a developer of certain types of clean energy project to request that the California Energy Commission permit its project, instead of any local, state, or federal permit requirements.
- Facilitating conversion of fallowed agricultural land for clean energy.
- Minimizing restrictions on battery storage.
- Reducing barriers to reconductoring.
- Aligning local, state, and federal agency efforts.
Water: California's precipitation and runoff patterns are increasingly volatile due to climate change, causing severe droughts (2012-2016, 2021-2022) and record rainfall (2022-2023). Climate change is reducing the water supply, projected to decrease by 10% by 2040. Warmer temperatures result in more rain than snow, potentially eliminating the Sierra Nevada snowpack by the 2040s. This affects water delivery and increases demand on groundwater, risking overdraft and decreased water quality.
Water shortages severely impact communities, agriculture, and the environment. Over 7 million Californians live in flood-prone areas due to rising sea levels, expected to increase significantly post-2050. The state mandates efficient water use, aiming to save 500,000 acre-feet annually by 2040. Significant investments in water infrastructure, groundwater balance, river restoration, and enhanced water management are necessary.
Governor Newsom’s “California Water Supply Strategy – Adapting to a Hotter, Drier Future” targets water recycling, desalination, stormwater capture, conservation, and storage expansion by 2040. Legislative actions have funded these efforts and streamlined permitting for projects like groundwater recharge.
Key opportunities for permitting reform include:
- Eliminate application process uncertainties.
- Enhance interagency coordination and consistency.
- Create distinct pathways for drought resilience and flood risk reduction projects.
Transportation: California's transportation sector, primarily personal vehicles, is the largest source of GHG emissions. Reducing vehicle miles traveled by 30% below 2019 levels by 2045 requires more zero-emission vehicles and shifts to alternative transport like walking, biking, and public transit. Legislative reforms aim to streamline permits for these projects, but stakeholders call for further improvements.
Key opportunities for permitting reform include:
- Increasing consistency across local permitting entities to avoid delays.
- Removing inefficiencies in repeat engagements by standardizing processes.
- Creating distinct permitting pathways for significant transit projects to ensure efficient and timely completion.
Upcoming Hearings
Agendas are typically posted on the committee websites in the Assembly and Senate a few days prior to the hearings. To view hearings after they take place, you may access them in the Assembly or Senate media archives where they are generally available within a few hours of committee adjournment.
Monday, March 17, 2025, 2:30 p.m.
Assembly Budget Subcommittee No. 1 on Health
State Capitol, Room 127
Item No. Description
4260 Department of Health Care Services
- Budget Overview, Medi-Cal and Family Health Estimates
- Proposition 35 Implementation
- Children and Youth Behavioral Health Initiative Fee Schedule
- Waiver Implementation Updates: CalAIM, BH-CONNECT, HCBA
- Budget Change Proposals and Trailer Bills
Monday, March 17, 2025, 2:30 p.m.
Assembly Budget Subcommittee No. 6 on Public Safety
State Capitol, Room 447
Item No. Description
0820 Department of Justice
0250 Judicial Branch
8830 Penal Code Revision Committee
5227 Board of State and Community Corrections
8140 State Public Defender
Tuesday, March 18, 2025, 1:30 p.m.
Assembly Health
1021 O Street, Room 1100
Informational Hearing: Impacts of Wildfires on Public Health and the Health Care System
Tuesday, March 18, 2025, 1:30 p.m.
Senate Elections and Constitutional Amendments
1021 O Street, Room 2100
Informational Hearing: Ensuring Every Vote Counts: California's Signature Curing Process
Tuesday, March 18, 2025, 3:00 p.m.
Assembly Joint Hearing Aging and Long-Term Care and Housing and Community Development
State Capitol, Room 444
Informational Hearing: Older Adult Homelessness
Wednesday, March 19, 2025, 9:00 a.m.
Senate Local Government
1021 O Street, Room 2200
Informational Hearing: Meeting the Moment: Strengthening Community Voices in Local Government Meetings
Wednesday, March 19, 2025, 9:30 a.m.
Assembly Budget Subcommittee No. 4 on Climate Crisis, Resources, Energy, and Transportation
State Capitol, Room 447
Item No. Description
Various Prop. 4 - Extreme Heat Mitigation Spending Plan
Various Prop. 4 - Outdoor Access Spending Plan
3930 Department of Pesticide Regulation
3960 Department of Toxic Substances Control
3970 Department of Resources Recycling and Recovery
3980 Office of Environmental Health Hazard Assessment
0650 Governor's Office of Land Use and Climate Innovation
3790 Department of Parks and Recreation
Wednesday, March 19, 2025, 9:30 a.m.
Assembly Insurance
State Capitol, Room 437
Oversight Hearing: California Department of Insurance: Sustainable Insurance Strategy: Post Southern California Wildfires
Wednesday, March 19, 2025, 1:00 p.m.
Assembly Communications and Conveyance
State Capitol, Room 127
Informational Hearing: Carrier of Last Resort (COLR): Obligations for California's Telephone Companies
Thursday, March 20, 2025, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services
1021 O Street, Room 1200
Item Description
5180 Department of Social Services
- Housing Programs
- Immigration and Refugee Programs
- In-Home Supportive Services
- SSI/SSP
- Adult Protective Services
- Community Care Licensing
Thursday, March 20, 2025, 9:30 a.m. or upon adjournment of Session
Senate Budget And Fiscal Review Subcommittee No. 4 on State Administration and General Government
State Capitol, Room 113
Item Description
Housing and Consumer Protection Agency Reorganization Oversight
0511 Government Operations Agency
0515 Business, Consumer Services, and Housing Agency
1111 Department of Consumer Affairs
1115 Department of Cannabis Control
8940 Military Department
8955 Department of Veterans Affairs
Governor’s Press Releases
Below is a list of the governor’s press releases beginning March 5.
March 12: Governor Newsom urges caution and preparedness as storm impacts much of California
March 12: ICYMI: California is home to 32 of the top 50 AI companies
March 11: Governor Newsom announces appointments 3.11.25
- Adele Burnes, of Berkeley, has been appointed Chief at the Division of Apprenticeship Standards
- Shrina Kurani, of Riverside, has been appointed Deputy Director of Venture Capital at the California Infrastructure and Economic Development Bank
- Tyler Sadwith, of Richmond, has been appointed Chief Deputy Director of Health Care Programs at the California Department of Health Care Services
March 11: Retail theft crackdown in 2024 recovers $13.5 million in stolen goods
March 11: California pre-deploys resources statewide ahead of incoming storms, continues coordination with Los Angeles to protect burn areas
March 7: Governor Newsom announces deadline extension to apply for federal assistance for Los Angeles fires
March 7: Governor Newsom announces appointments 3.7.25
- Andrew Rakestraw, of Kensington, has been appointed Chair of the Board of Environmental Safety
- Kenny Louie, of Sacramento, has been appointed Chief Counsel at the California Department of Finance
- Emily Morrison, of Roseville, has been appointed Chief of Contract Administration at the California High Speed Rail Authority
- Yvonne Dorantes, of Sacramento, has been appointed Deputy Director, Legislative and Governmental Affairs at the California Governor’s Office of Emergency Services
March 7: California awards nearly $300 million to local communities to make roadways safer
March 7: Governor Newsom extends protections for LA firestorm survivors
March 7: California’s economy forges ahead: Pacific Steel breaks ground on state’s first new steel mill in 50 years
March 6: What they’re saying: Governor Newsom’s state of emergency to fast-track wildfire prevention projects
March 5: With rain incoming, California takes action to protect fire-impacted communities in Los Angeles County
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