Proposition 1 continues delivering support for vulnerable homeless populations in California

What you need to know: Governor Newsom's reforms and strengthening of California's mental health support systems are well underway, with billions of voter-approved Proposition 1 funding being distributed to communities throughout California, including Oakland, Los Angeles, Stockton, and San Jose. This is part of the Governor's strong statewide strategy helping California outperform the nation in reversing the decades-in-the-making homelessness crisis.

SACRAMENTO - Voter-approved Proposition 1 continues delivering for California, supporting mental health reform throughout the state to help reduce homelessness and get people the care they need. Today, Governor Newsom is announcing new awards of $106.2 million to fund the development of hundreds of supportive housing units serving veterans and other Californians with behavioral health challenges. Mental health reforms and housing are key components of California's comprehensive strategy to remove encampments and get people housing and support that will keep them off the streets for good.

"California has built a strong system to help local communities address the homelessness crisis. For decades prior to my administration, state leaders turned their backs on those dealing with mental health and addiction. I am committed to rebuilding a strong system of support and accountability to ensure that no one suffers on our streets without help. No more excuses - everyone must step up to address this crisis."

Governor Gavin Newsom

In 2019, during his first State of the State, Governor Newsom announced the state would begin focusing on the homelessness crisis - becoming the first Governor in history to make this issue a statewide priority. Through new programs and funding, California is outperforming the nation in turning around the decades-in-the-making homelessness crisis. Governor Newsom's structural and foundational model will have positive impacts for generations to come by:

• Addressing mental health and its impact on homelessness
• Streamlining and prioritizing the building of new housing
• Funding new shelters, housing, and supports
• Holding local governments accountable, including to address the needs of Californians living in encampments
• Creating new pathways for those who need it most by updating conservatorship laws for the first time in 50 years
• Connecting the most at-risk to necessary services through a new CARE court system

Governor Newsom has set a strong expectation for all local governments to address encampments in their communities and help connect people with support.

Reforming California's mental health system

More than 1.2 million adults in California live with a serious mental illness, and 1 in 10 residents meet the criteria for a substance use disorder. Additionally, shortages of behavioral health treatment sites contribute to rising rates of homelessness and incarceration among people with mental health disorders.

Prop 1, which was championed by Governor Newsom and approved by voters in 2023, is transforming California's mental health systems with a $6.4 billion Behavioral Health Bond for housing, services, and treatment for veterans and people experiencing homelessness. When fully awarded, funding from Proposition 1 bonds is estimated to create 6,800 residential treatment beds and 26,700 outpatient treatment slots for behavioral health.

Housing for the most vulnerable

More than $2.1 billion of this funding is available for local Homekey+ projects. Homekey+ is modeled after Governor Newsom's highly successful Homekey program and provides funding for local communities to build residential care settings and expand access to behavioral health treatment. In November 2024, the California Department of Housing and Community Development (HCD) invited local communities to apply for this funding, and today, HCD is awarding $106.2 million to six communities - including the cities of Oakland, Los Angeles, Chula Vista, Rancho Cordova, and Napa, as well as the county of Glenn. The projects will create 321 permanent supportive homes for veterans and vulnerable Californians.

With today's awards, Homekey+ has so far awarded $284.6 million to support 16 projects that will create 825 affordable homes with supportive services throughout California. In August, California awarded over $76 million for Homekey+ Projects, with most of this state funding going to a project located in the city of San Jose.

"California's Homekey+ program is investing in people and neighborhoods across the state, providing affordable housing and supportive services for Californians who are experiencing homelessness and living with behavioral health challenges," said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. "The supportive housing projects being awarded today are a testament to the Governor's ongoing partnership with local jurisdictions and unwavering commitment to create housing for all Californians, including our Veterans and our most vulnerable."

"This tremendous partnership with CalVet to house and support veterans and other Californians who are struggling is a testament to the Governor's fervent commitment to addressing a homelessness crisis decades in the making," said HCD Director Gustavo Velasquez. "Across agencies and departments, we are working together-and with local partners-focusing our combined resources to build on ongoing successes in reducing unsheltered homelessness."

"This new round of Homekey+ awards is more good news for California veterans and their families," said CalVet Secretary Lindsey Sin. "We appreciate the hard work of the California Department of Housing & Community Development and other partners in creating innovative housing solutions across the state for those who have served our nation with honor and courage."

Approximately $1.033 billion in Proposition 1 bond funds are available through Homekey+ to cities, counties, housing authorities, and tribal entities for projects serving eligible veterans. Another $1.11 billion is available for projects serving all target populations, through a combination of Proposition 1 bond funds and Homeless Housing, Assistance, and Prevention (HHAP) program funds.

Behavioral health care for the most vulnerable

Prop 1 is also expanding mental health services through the state's Bond Behavioral Health Continuum Infrastructure Program (BHCIP). Administered by the California Department of Health Care Services (DHCS), BHCIP is a key component of Mental Health for All, California's ongoing commitment to build a stronger and more equitable behavioral health system. The program will create a comprehensive behavioral health system, ensuring that individuals can access the right care at the right time, whether it be for crisis stabilization, inpatient care, or long-term treatment.

Through BHCIP, DHCS has competitively awarded grants to construct, acquire, and expand properties, as well as invest in mobile crisis infrastructure for behavioral health. These projects are moving forward at a rapid pace, with more behavioral health treatment facilities to be funded and built in 2025 and 2026.

Last week, in San Joaquin County near Stockton, the Department of Health Care Services (DHCS) and San Joaquin County Behavioral Health Services Department broke ground on the Be Well Campus, a new facility in French Camp that will expand access to mental health and substance use disorder treatment in the Central Valley. The campus will include 10 facility types, with 116 behavioral health treatment beds and 1,205 outpatient slots, enabling care for more than 72,000 individuals annually.

"Expanding behavioral health care is one of the most important investments we can make in California's future," said Health and Human Services Secretary Kim Johnson. "Settings like the Be Well Campus strengthen communities by making sure people have access to treatment and support when they need it most. This is how we break cycles of crisis, reduce homelessness, improve wellness, and give tens of thousands of Californians a real chance at recovery and stability.

More data and accountability

In addition to creating stronger accountability, California is creating better public data tools to help service providers and the state measure outcomes and develop key goals. This month, the California Interagency Council on Homelessness unveiled a dynamic new public data tool that presents vital insights into the experiences of domestic violence survivors, their children, and unaccompanied women navigating homelessness in California. In 2024 alone, over 74,000 domestic violence survivors, 24,000 of their children, and 98,000 unaccompanied women accessed homelessness services in the state-illuminating the urgent need for focused data-driven action.

The dashboard is powered by data from the Homeless Data Integration System (HDIS), which aggregates service interactions from California's 44 Continuums of Care (CoCs). While HDIS provides comprehensive insights, it intentionally excludes services delivered exclusively through Victim Service Providers (VSPs) to protect client privacy. Supplementary data from VSP-funded programs through the Governor's Office of Emergency Services is also included.

Highlights revealed by the dashboard include:

• A faster average time to exit homelessness into permanent housing in 2024 across the targeted populations.
• Higher rates of return to homelessness among domestic violence survivors and unaccompanied women compared to the general population.

The dashboard also calls to attention areas for improvement, including opportunities to help domestic abuse survivors remain in permanent housing. The dashboard showed this population was below the state's targeted benchmark.

Strong strategy. Real results

The Governor's strategy is producing real results throughout the state. California is making strong progress in reducing homelessness in communities throughout California, with many communities reporting through the state's support, more people are getting help than ever, and their homelessness rates continue to drop. Through Governor Newsom's support of local government efforts and state investments, like the funding announced today, California is reversing decades of inaction on homelessness.

Between 2014 and 2019-before Governor Newsom took office-unsheltered homelessness in California rose by approximately 37,000 people. Since then, under this Administration, California has significantly slowed that growth, even as many other states have seen worsening trends.

In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to just 3% - a lower rate than in 40 other states. The state also held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%. States like Florida, Texas, New York, and Illinois saw larger increases both in percentage and absolute numbers. California also achieved the nation's largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness.