New survey underscores the need for consistent access to state homelessness funding

By Caroline Grinder, legislative advocate (community services)

Last week, Cal Cities released new data highlighting how the lack of strong state funding threatens cities' efforts to address homelessness. Eight in 10 cities have not received money from the largest source of state homelessness funding for local governments: the Homeless Housing, Assistance and Prevention (HHAP) grant program.

“Oceanside does not directly receive HHAP funding,” said Oceanside Mayor Esther Sanchez last week in advance of lobbying lawmakers. “We leaned in with General Fund dollars, a new sales tax, new programs, local partnerships, and a determination not reflected in a state budget spreadsheet.”

Cities are investing significant local dollars and leveraging one-time state and federal funding to connect unhoused residents with services, shelter, and housing. But state funding is often difficult to access and unreliable, creating uncertainty about sustaining and expanding these efforts.

The survey results demonstrate why access to state funding is critical. Seven in 10 cities reported concerns about providing existing services long-term. According to the survey, most of those cities would use flexible state funding to sustain and expand existing programs.

If cities lose access to existing state and federal funding, eight in 10 said they would have to reduce, eliminate, or delay projects — increasing reliance on already-strained county services.

Cities are also already collaborating to address regional homelessness challenges. According to the survey, seven in 10 cities reported partnering with nonprofits to address homelessness in their communities; nearly two-thirds are collaborating with neighboring cities. 

Cal Cities is using this data to urge lawmakers and Gov. Gavin Newsom to not only make HHAP funding ongoing, but also to improve the program. The Cal Cities-sponsored AB 1708 (Solache) would increase access to HHAP funding for small and mid-size cities. The bill passed out of the Assembly Human Services Committee last week and is headed to appropriations.

The Governor will release an updated budget proposal by May 14, before lawmakers pass the final budget in the summer. To learn how your city can make its voice heard, contact your regional public affairs manager.