Important Update:

Only four months after the legislation was enacted, Governor Newsom announced the availability of up to $3.3 billion in grants aimed at increasing access to treatment for individuals facing mental health and substance use challenges. Additionally, he rolled out a guide for counties detailing how to utilize funds from the Behavioral Health Services Act for housing initiatives.

Exciting New Housing Funding in California!

Governor Gavin Newsom recently unveiled a substantial funding opportunity of up to $3.3 billion through Proposition 1, targeting enhancements in mental health services, particularly for those who are severely ill, vulnerable, or experiencing homelessness. Proposition 1 allocates $6.4 billion toward two primary areas: establishing treatment facilities alongside supportive housing, and reforming the Behavioral Health Services Act to better address the needs of those with the most pressing issues.

The state has also published a guide for counties to facilitate the deployment of Behavioral Health Services Act resources for housing solutions. Under Proposition 1, 30% of these funds are mandated to be directed toward housing every year, amounting to around $950 million annually by the 2026-2027 fiscal year. This guide is accessible online.

Governor Newsom emphasized, “We are working quickly to get this money out to help our most at-risk and vulnerable people. We are investing billions in new treatment settings and providing a guide to counties on how to use nearly $1 billion annually for housing interventions. We won’t slow down, and I’m proud to see the progress from Proposition 1.”

Grant Details: The California Department of Health Care Services (DHCS) has initiated the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP). Applications are open for cities, counties, non-profits, for-profits, and tribal entities until December 13, 2024, with additional funding expected in 2025. This initiative is anticipated to generate 6,800 residential treatment beds and 26,700 outpatient treatment slots.

Annual Funding: From 2026-2027 onward, 30% of county allocations from the Behavioral Health Services Act will be designated for housing, equating to roughly $950 million each year. Counties may adjust this figure slightly based on their specific needs.

Bigger Picture: California is in the process of overhauling its behavioral health system to enhance accountability and transparency. To date, DHCS has granted $1.7 billion for new facilities and mobile crisis services. Proposition 1 will further extend the financial resources necessary to broaden these essential services.

What’s Next: The Department of Housing and Community Development (HCD) and the California Department of Veterans Affairs (CalVet) will oversee up to $2 billion dedicated to creating housing solutions for veterans and others experiencing homelessness or at risk. Additional guidelines are expected to be released in late 2024, and DHCS will roll out a new funding opportunity in May 2025.

Learn More and Apply: For more details and eligibility criteria, interested applicants can visit the BHCIP website. Additional information regarding housing supports and California’s mental health and substance use disorder system is available at mentalhealth.ca.gov. To explore affordable housing options in your area, be sure to check out Section8Search.org, the most comprehensive housing database available online. Visit here!