Housing and homelessness funding in June 22 budget agreement

Budget package largely mirrors legislative budget plan that restored key housing production programs

Jun 24, 2024

The June 22 budget agreement —similar to the June 13 legislative budget plan—restores key housing production programs previously proposed for cuts and adds local homelessness grant funding to the 2024-25 budget. The legislative budget proposal prioritized key housing programs to preserve, while essentially funding such restorations and additions by targeted reductions to other programs.

Key restorations and new funding in the budget plan:

$315 million (one time funding) for the Multifamily Housing Program (MHP) restored.
$260 million (one time funding) for the Regional Early Action Program (REAP) 2.0 restored.
$14 million (ongoing) for the Housing Navigation and Maintenance Program restored.
$500 million new increment for the Low Income Housing Tax Credit (LIHTC) added (as in Governor’s May Revision).
$1 billion (one time funding) for a new round of local Homeless Housing, Assistance and Prevention (HHAP) program grants, including updated accountability rules in AB 166/SB 166.
$150 million in 2024-25 and $100 million in 2025-26 for Encampment Resolution Funding, including reporting rules in AB 166/SB 166.

Targeted housing program reductions, which help fund the items above, include:

$127.5 million from the Adaptive Reuse Program from 2022 and 2023.
$235 million from the Infill Infrastructure Grant Program.
$484 million from the Foreclosure Intervention Housing Preservation Program (of which $85 million was approved in early action).
$152.5 million from the CalHome Program.
$40 million from REAP 2.0.
$10 million from MHP.
$76 million from the Veterans Housing and Homeless Program (VHHP). See below for more information.

For more information on some of the programs affected, see Senate subcommittee agendas here and here and Assembly subcommittee agendas here and here and here. For example, with regard to VHHP, agenda items note “This proposal pulls back an unspent portion of the 2022-23 allocation and all of the 2023-24 allocation…The recently passed Behavioral Health Infrastructure Bond Act (Proposition 1 of 2024) provides a dedicated stream of funding to” veterans housing.