Governor Newsom signs bipartisan housing package and launches Prop 1 Homekey+ initiative

More housing. More accountability. More transparency.

SAN FRANCISCO — Governor Gavin Newsom today signed a new bipartisan legislative package to strengthen California’s laws addressing the housing and homelessness crisis. The laws represent a comprehensive effort to streamline housing production, and hold localities accountable to state housing law.

Governor Newsom also announced the release of new program guidance for up to $2.2 billion in funding through Proposition 1 to build permanent supportive housing for veterans and other individuals with mental health and/or substance use disorder challenges who are at risk for or experiencing homelessness. The program, known as Homekey+, will extend the successful Homekey model by emphasizing the acquisition and rehabilitation of existing buildings or other project types that can be quickly converted or constructed into permanent affordable housing. Applications will open in November and funding will be continuously distributed beginning in May 2025.

Detailed information can be found HERE and a fact sheet can be found HERE.

The legislation will add to California’s ongoing efforts to address the decades-long housing and homelessness crisis and create foundational changes that will build strong communities now and in the future.

What these new laws do

• Mandate that locals plan for housing for extremely vulnerable residents, including people experiencing homelessness and other acutely and extremely low-income individuals.
• Increase accountability for local governments by creating stricter timelines and more robust requirements for local governments to report on housing progress and provide clear notice to the public.
• Strengthen enforcement and penalties by imposing monetary penalties on cities and counties that fail to adopt housing element revisions or approve housing developments, and ensuring effective consequences for those who fail to comply with state housing law.
• Streamline housing production by reducing regulatory barriers, promoting housing near transit, and providing incentives for senior housing, student housing, and accessory dwelling units.  

What the Prop 1 funding for new HomeKey+ housing does

• Creates more than 4,000  new permanent housing units, paired with services, for people with mental health and housing challenges
• Dedicates housing for veterans with half of the units reserved for veterans with behavioral health needs 
• Builds new housing faster by leveraging the proven HomeKey conversion model

Why this matters

California continues to address a decades-long homelessness and housing affordability crisis. According to the most recent verified data, in 2023 roughly 181,000 Californians experienced homelessness, with approximately 90,000 people in unsheltered conditions. Although there are many reasons why someone may lose access to housing, the lack of available affordable homes in California is a key driver. Most people who enter homelessness are rent-burdened and cite economic hardship such as increased rent or housing costs. Adding to the inventory of available housing is an essential part of the state’s strategy to address this challenge. 

Lack of affordable housing, quality mental health and addiction services, and homelessness are all part of the same problem — and much of the responsibility to address these problems directly falls on local jurisdictions. New accountability and more enforcement are needed to ensure taxpayer dollars are spent effectively.

Laying a strong foundation to create housing for all 

Since taking office, in partnership with the Legislature, Governor Newsom has invested over $40 billion to boost affordable housing and more than $27 billion to address homelessness and elevated the urgency of solving the housing and homelessness crisis. Governor Newsom has advanced significant laws and made structural policy changes that will create lasting and long-term positive impacts to provide Californians with housing access. 

These policy changes require cooperation from local jurisdictions to create enough housing units for every California resident. The Governor has enacted dozens of CEQA reforms into law and championed the creation of the Housing Accountability Unit at the California Department of Housing and Community Development to ensure cities and counties fulfill their legal responsibilities to plan and permit their fair share of housing. The unit has “unlocked” more than 7,500 housing units for California families by working with local jurisdictions or by taking actions to enforce. This focus on accountability has, in part, led to a 15-year high in housing starts in California.

Today’s announcement also follows Governor Newsom’s recent executive order that, among other things, urges local governments to use the unprecedented state funding to address unsanitary and dangerous encampments within their communities and provide people experiencing homelessness in the encampments with the care and supportive services they need.

California’s mental health transformation

California is modernizing the behavioral health delivery system to improve accountability, increase transparency, and expand the capacity of behavioral health care facilities for Californians. Proposition 1, which was passed by voters in May 2024, includes two parts: a $6.4 billion Behavioral Health Bond for treatment settings and housing with services, and historic reform of the Behavioral Health Services Act (BHSA) to focus on people with the most serious illnesses, substance disorders, and housing needs. More information about California’s transformation of our entire mental health and substance use disorder system can be found at mentalhealth.ca.gov.

Governor Newsom signed the full list of housing bills below

Preventing and Ending Homelessness 

• AB 3093 by Assemblymember Chris Ward — Land use: housing element
• AB 799 by Assemblymember Luz Rivas — Interagency Council on Homelessness: funding: state programs
• SB 7 by Senator Catherine Blakespear — Regional housing need: determination
• SB 1395 by Senator Josh Becker —  Shelter crisis: Low Barrier Navigation Center: use by right: building standards

Accountability 

• AB 1886 by Assemblymember David Alvarez — Housing Element Law: substantial compliance: Housing Accountability Act
• AB 1893 by Assemblymember Buffy Wicks —  Housing Accountability Act: housing disapprovals: required local findings
• AB 2023 by Assemblymember Sharon Quirk-Silva — Housing Element: Inventory of Land: Substantial Compliance: Rebuttable Presumptions
• SB 1037 by Senator Scott Wiener — Planning and zoning: housing element: enforcement 
• AB 1413 by Assemblymember Phil Ting — Housing Accountability Act: disapprovals: California Environmental Quality Act
• AB 2667 by Assemblymember Miguel Santiago — Affirmatively furthering fair housing: housing element: reporting
• SB 393 by Senator Steven M. Glazer — Civil actions: housing development projects
• SB 450 by Senator Toni Atkins — Housing development: approvals

Housing Streamlining and Production

• AB 2243 by Assemblymember Buffy Wicks — Housing development projects: objective standards: affordability and site criteria
• AB 2488 by Assemblymember Phil Ting – Downtown revitalization and economic recovery financing districts: City and County of San Francisco
• AB 2199 by Assemblymember Marc Berman — California Environmental Quality Act: exemption: residential or mixed-use housing projects
• AB 2694 by Assemblymember Christopher M. Ward — Density Bonus Law: residential care facilities for the elderly
• SB 312 by Senator Scott Wiener — California Environmental Quality Act: university housing development projects: exemption
• SB 1123 by Senator Anna Caballero — Planning and zoning: subdivisions: ministerial review
• SB 1211 by Senator Nancy Skinner — Land use: accessory dwelling units: ministerial approval

Transparency and Efficiency

• AB 1053 by Assemblymember Jesse Gabriel — Housing programs: multifamily housing programs: expenditure of loan proceeds
• AB 2117 by Assemblymember Joe Patterson — Development permit expirations: actions or proceedings.
• AB 2430 by Assemblymember David Alvarez — Planning and zoning: density bonuses: monitoring fees
• AB 2553 by Assemblymember Laura Friedman — Housing development: major transit stops: vehicular traffic impact fees
• AB 2663 by Assemblymember Timothy S. Grayson — Inclusionary housing: fees: reports
• AB 2926 by Assemblymember Ash Kalra — Planning and zoning: assisted housing developments: Notice of expiration of affordability restrictions
• SB 937 by Senator Scott Wiener — Development projects: fees and charges

Housing Protections 

• AB 2801 by Assemblymember Laura Friedman — Tenancy: security deposits
• AB 2747 by Assemblymember Matt Haney — Tenancy: credit reporting
• SB 611 By Senator Caroline Menjivar — Residential rental properties: fees and security
• SB 900 by Senator Tom Umberg — Common interest developments: repair and maintenance

Tribal Housing

• AB 1878 by Assemblymember Eduardo Garcia — Housing programs: tribal housing program
• SB 1187 by Senator pro tem Mike McGuire — Housing programs: Tribal Housing Reconstitution and Resiliency Act