FY 20-21 State Budget Includes Funding for Homeless Services
Following the passing of the June 15th deadline to pass the State budget, the Legislature and the Governor’s Office agreed to details around additional funding for homeless services, despite the state facing a $40 billion deficit heading into FY 20-21.
There will be two primary allocations of funding in the State’s FY 20-21 budget:
$550 million of California’s allocation of federal Coronavirus Relief Funds will be directed to a program for acquisition and conversion of hotels, motels, and other properties into permanent and interim housing. This funding must be used by December 30, 2020, in alignment with federal CARES Act guidelines.
In addition to this acquisition funding, the State will allocate $50 million in General Fund money to finance an initial period of operations at these sites while longer-term funding is secured.
An additional $300 million in General Fund moneys that will be allocated through the existing Homeless Housing Assistance and Prevention (HHAP) program. Estimates on expected allocations of this funding are still forthcoming, but LAHSA expects approximately $54 million to go to the City of Los Angeles, $30 million to the Los Angeles CoC, and $30 million to Los Angeles County.
Federal Funding Still in Limbo
Additional funding for homelessness may be allocated as part of another round of federal stimulus. With COVID-19 continuing to cause significant health and economic impacts, Congress is likely to consider another stimulus package later in July.
This additional stimulus could include funding for local governments, funding for homelessness, and another round of stimulus payments to individuals, similar to what was provided in the CARES Act in March 2020.
For more information on State and federal funding, feel free to contact Alex Visotzky, Legislative Affairs Manager.