California's Billion Dollar Investment in Homelessness: What Has It Achieved?

Photo byJeff Scheid

California has been facing a homelessness crisis for years, with over 161,000 individuals experiencing homelessness on any given night, according to recent data from the U.S. Department of Housing and Urban Development. The state has invested billions of dollars in recent years to combat the issue, but questions remain about what impact this funding has had.

In 2018, California voters approved Proposition 2, which authorized the state to issue $2 billion in bonds to fund supportive housing for individuals experiencing homelessness who also have mental health conditions. This funding was expected to provide up to 20,000 units of supportive housing over a ten-year period.

In 2019, the state allocated $1 billion in funding for the Homeless Emergency Aid Program (HEAP), which provided cities and counties with funding to address homelessness. The program funded a variety of initiatives, including emergency shelters, rental assistance, and street outreach programs.

In 2020, Governor Gavin Newsom launched Project Homekey, which provided $600 million in funding to convert hotels and other properties into permanent housing for individuals experiencing homelessness. The program helped to create over 6,000 housing units across the state.

In 2021, Governor Newsom proposed a $12 billion investment in homelessness efforts as part of the state's budget. This investment included $1.75 billion for the Homekey Homeless Housing Assistance Program (HHAP), which provides funding for cities and counties to purchase hotels and other properties to convert into permanent housing for individuals experiencing homelessness. The budget also included $7.75 billion for housing production and preservation, $650 million for behavioral health services, and $2.75 billion for rental assistance and homelessness prevention.

In 2022, Governor Newsom's proposed budget includes an additional $12.2 billion for homelessness efforts. This includes $1.75 billion for the HHAP funding and $7.75 billion for housing production and preservation. The budget also includes $650 million for behavioral health services and $2.75 billion for rental assistance and homelessness prevention.

Despite these significant investments, homelessness remains a persistent issue in California. Critics argue that the state's approach has focused too much on providing affordable housing and not enough on addressing the underlying causes of homelessness, such as poverty, mental illness, and substance use disorders.

The COVID-19 pandemic has also presented new challenges for the state's efforts to combat homelessness. The economic downturn caused by the pandemic has led to a significant increase in homelessness, as individuals have lost their jobs and struggled to pay rent. At the same time, the pandemic has made it more difficult to provide essential services and programs to individuals experiencing homelessness.

To address these challenges, the state has implemented new programs and policies, including an eviction moratorium to protect renters from losing their homes during the pandemic. Despite these efforts, homelessness remains a complex issue in California, and the state will need to continue to invest in comprehensive solutions to address the issue and provide a better future for all of its residents.