1. Funding Resources to Address Homelessness
California State
Funding Resources to Address Homelessness

2. Homelessness In California
According to the 2017 Point In Time count, California experienced a significant increase of nearly 14% from 2016.
lead the nation with the highest number of people experiencing homelessness (134,000 or 24%).
the highest proportion of unsheltered homeless persons of any state (68%).
California has the highest number of unaccompanied youth, veterans, and chronically homeless in the United States.

3. Homelessness in California
Source: 2018 AHAR: Part 1 - PIT Estimates of Homelessness in the U.S

4. Cost of Homelessness
The lack of shelter is expensive for communities and has severe consequences for homeless people.
Homelessness affects multiple systems, with medical costs making up the largest share of cost that homeless people incur.
We know that California is facing a housing crisis, with a major factor being a lack of housing.
We know that homelessness is a state-wide crisis
Partnering to identify resources is critical.

5. Funding Resources
Beginning in 2016, there was a state effort to support our communities in addressing homelessness.
Introduction of SB 1380
Enactment of the $2 billion No Place Like Home program, intended to fund permanent supportive housing for chronic homeless households with mental illness.
Placed on the November 2018 ballot, which was approved by voters.

6. Overview of SB 1380
SB 1380 was authored by Senator Mitchell in early 2016.
SB 1380 tasked the State to identify all programs that provide housing or housing-related services to people experiencing homelessness, or at-risk of homelessness, and implement them using a Housing First policy.
SB 1380 also established the creation of a Homeless Coordinating and Financing Council (HCFC) to oversee the implementation of the Housing First guidelines and regulations and to identify resources, benefits, and services to prevent and end homelessness in California.
SB 1380 was signed by Governor Brown on September 29, 2016.
The Council was established in 2017 and housed with the Department of Housing and Community Development (HCD).

7. Funding Resources (continued)
In 2017, the spike in the homeless count triggered an even greater need for a state-wide solution to homelessness.
Cities began to utilize their general fund resources and local voter- passed revenue measures to provide housing, shelter, supportive services and outreach to people experiencing homelessness.
Despite the best efforts of cities, counties, Continuums of Care (CoCs), and providers, Californians needed more.
California lawmakers approved and the governor signed a 15-bill housing package to help address the housing needs of struggling Californians.
SB 2, was a permanent revenue source expected to generate over $250 million per year. SB 2 legislation provided that 50% of 2018 revenues (current year) be made available to assist Californians experiencing and at risk of homelessness.

8. Funding Resources (continued)
In early 2018, the mayors of the 11 largest cities initiated conversations with the Legislature and Governor, for the State to allocate funds to address homelessness.
In April 2018, the California State Auditor’s report was published.
Highlighted factors contributing to the growth of homelessness in California, in comparison to other states who have seen a decline.
1) The lack of a specific entity dedicated to addressing homelessness.
2) Lower spending to address homelessness.
Follow-up legislation established the $53 million California Emergency Solutions and Housing (CESH) program and the $500 million Homeless Emergency Aid Program (HEAP).

9. Overview of SB 850
SB 850 was signed by Governor Brown on June 27, 2018 and augments SB 1380.
Elevates HCFC from the Department of Housing and Community Development (HCD) to the Business, Consumer Services and Housing Agency (BCSH).
Designates the Secretary of BCSH as Chair of HCFC.
Adds two representatives to HCFC (Department of Transportation and a young adult with lived experience who resides in California).
Provides permanent staff under BCSH to support HCFC mandates.
Establishes the Homeless Emergency Aid Program (HEAP) for purposes of providing localities with one-time flexible block grant funds to address their immediate homelessness challenges.

10. HCFC Priorities
The Council is comprised of up to nineteen members, representing the state agencies and departments with programs to address homelessness as well as representatives of local governments and community stakeholders. It also includes an adult and young adult with lived experience, who are also residents of California.
The Council meets quarterly and Council members provide input and recommendations on strategies to achieve the Council’s goals.
An Interagency working group was established to support the work of the Council
Meet twice a month
Provide input and support to the Council staff in achieving Council goals.
Currently, the major focus of the Interagency working group is implementing Housing First.

11. HCFC Priorities (continued)
Implement HEAP
Implement Housing First Policy
Implement SB 918-Homeless Youth Act
Explore development of a state-level homeless data integration system.
Facilitate coordination between state departments that have funding and programs to address homelessness.
Initiative to develop a data-driven, evidence-based, high-level strategic plan for the state.

12. Homeless Emergency Aid Program (HEAP)
$500 million block grant
Provides immediate, one-time, flexible funding.
Provides support until additional resources are available (SB 2, No Place Like Home, SB 3-Veterans and Affordable Housing Bond Act).
Category for Distribution
Funded Amount
Eligible Applicants
(a) CoC
-Based on Point in Time Count Ranges
$250M
CoC
(b) CoC
-Based on Percentage of Homeless Population
$100M
(c) City / City that is also a County
-Based on general population
$150M
Large cities with a population over 330,000

13. Eligible Applicants
Eligible applicants are the 11 largest cities (populations of 330,000 or more as of January 1, 2018) and the 43 Continuums of Care.
Funds are allocated using a formula that is based largely on the jurisdiction’s share of the state’s homeless population.
Individuals, cities (not identified as one of the 11 large cities), counties, and/or nonprofit organizations are not eligible to apply directly for HEAP funds. Those interested in receiving HEAP funds will apply directly to their local CoC.

14. Application Process Streamlined
Application Map released prior to the NOFA and application
Online application portal
There is one application for the CoCs and one application for the large cities.
Application does not have a “save” feature and must be submitted in one sitting.
The applicant received a confirmation that includes a copy of the application, a tracking number, and a checklist of documents that must be submitted.
The applicant must reply to the and attach all items listed on the checklist.
Documents must be submitted for the application to be considered complete
Round 1
Program Guidance Issued
August 2018
Application Map
NOFA Release
September 5, 2018
Application Cut-off Date
December 31, 2018
Final date to submit documents
January 15, 2019
Final date to award funds
January 31, 2019

15. Distribution of Funds
HCFC committed to disburse the HEAP funds within 60 days of the date the application is submitted and deemed complete.
day schedule.
15 days to prepare and mail the award letter and standard agreement to the applicant/awardee.
30 days for the applicant to review and return the signed standard agreement and Request for Funds Form (RFF).
15 days to disburse funds one executed agreements are received.  
100 percent of the allocation was disbursed directly to the Administrative Entity of the CoC.
The CoC will establish a process to disburse funds to all eligible cities, counties, and nonprofit organizations
100 percent of the funds must be expended by June 30, 2021.

16. Eligibility Criteria
CoCs and large cities must demonstrate that a local collaborative process has been conducted prior to application submission.
A shelter declaration for each jurisdiction wanting to be a recipient of HEAP funds must be in place at the time of award.
CoCs with fewer than 1,000 homeless people, based on the 2017 HUD Point in Time count are exempt and can file a waiver with their application.
The county may declare a shelter crisis for the unincorporated areas of the county and is allowed to expend HEAP funding for county activities that serve all county residents.
Jurisdictions are not required to declare a shelter crisis. However, any jurisdiction that does not declare a shelter crisis is ineligible to be a direct recipient of HEAP funds.

17. Eligible Uses of HEAP Funds
Services: Street outreach, health and safety education, criminal justice diversion programs, homelessness prevention activities, and other service activities.
Rental assistance or subsidies: Housing voucher, rapid re-housing programs, flexible housing subsidy funds, and eviction prevention strategies.
Capital improvements: Emergency shelter, navigation centers, transitional housing, permanent supportive housing, small/tiny houses, and improvements to current structures that serve homeless individuals and families.
Administrative costs: are allowed for both the AE and sub-recipients, but capped at five percent of program funds. This does not include staff costs directly related to carrying out program activities.
Other: Some communities are discussing solutions to address homelessness and the public health crisis by using funds for handwashing stations or public toilet and shower facilities.

18. Ineligible Uses of HEAP Funds
Jurisdictions that have not declared a shelter crisis may not be the direct recipient of HEAP funding.
HEAP funds cannot be used to fund HMIS infrastructure or improvements.
HEAP funds cannot be used to create a strategic plan for addressing homelessness.
CoCs, cities, counties, and nonprofit organizations may not use HEAP funds for capital projects, such as building or expanding a shelter or navigation center, or for rental assistance such as master leasing, within a jurisdiction that has not declared a shelter crisis.

19. Homeless Youth Set Aside
At least five percent of HEAP funds must be used to establish or expand services meeting the needs of homeless youth or youth at risk of homelessness.
5 percent is the minimum. Additional dollars may be allocated to youth providers/programs.
The HEAP team encourages and expects local CoCs and large cities to work with youth advocates and youth service providers to determine the most appropriate services for this target population.
Consistent with other state and federal definitions, HCFC considers “homeless youth” to mean an unaccompanied homeless individual who is not older than 24, for purposes of HEAP. Homeless individuals not older than 24 who are parents are included in this definition.

20. Overview of SB 918 Also known as the Homeless Youth Act of 2018
SB 918 is authored by Senator Weiner.
SB 918 was signed by Governor Brown on September 27, 2018.
Requires HCFC to assume additional responsibilities, including setting specific, measurable goals aimed at preventing and ending homelessness among youth in the state.
HCFC is working with youth homelessness program experts to support peer-to-peer learning opportunities, identify best practices and provide technical assistance to CoCs, cities, counties, and other stakeholders.

21. HEAP Updates
We received applications from all 43 Continuums of Care and the 11 large cities by December 31, 2018.
All 11 large cities and 43 Continuums of Care were awarded their HEAP funds by January 31, 2019, as mandated in statute.
We met our internal goal of awarding HEAP funds within 15 days of receipt of a completed application.
We have met our internal goal of disbursing HEAP funds within 15 days of receipt of an executed standard agreement.
As of February 19, over $400 million in HEAP funds have been disbursed and represent more than 80 percent of the $500 million total HEAP allocation.
We have disbursed 100% of HEAP funds to the 11 large cities and 75% (nearly $300 million dollars) of HEAP funds to the 43 CoCs.
We met our commitment to disburse HEAP funds within 60 days of the date the application is deemed complete.

22. Lessons Learned
First, the authorizing statute was clear but not too directive in the major program structure, eligible applicants and uses, and allocation formula provisions.
Second, we deliberately set out to make the program as simple, transparent, and streamlined as possible,
Third, we took partnership seriously. Not only with the CoCs and large cities but also with our state partners like HCD and CDSS.
Finally, we must continue to provide support and technical assistance, working with grantees to establish good reporting processes and monitoring performance over time.

23. Preliminary HEAP Impacts
Services: 38 percent of total funds awarded (190 million)
Capital improvements: 34percent of total funds awarded (170 million)
Rental assistance or subsidies: 13 percent of total funds awarded (60 million)
Homeless Youth Set-Aside: 7 percent of total funds awarded (34 million)
Administrative costs: 4 percent of total funds awarded (20 million)
Other: 3 percent of total funds awarded (13 million)

24. Contact Information
HCFC website
Questions:
To receive information releases regarding the HEAP program, please register for the program listserv
Social media
Lahela Mattox, Local Government Liaison and Acting Grant Manager

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