AB505 - Multifamily Housing Program: Homekey: report.

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 505 Introduced by Assembly Member Castillo (Coauthors: Assembly Members DeMaio and Essayli) (Coauthors: Senators Choi and Grove) February 10, 2025 An act to add and repeal Section 50675.17 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 505, as introduced, Castillo. Multifamily Housing Program: Homekey: report. Existing law establishes the Multifamily Housing Program administered by the Department of Housing and Community Development. Existing law requires that specified funds appropriated to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases be disbursed in accordance with the Multifamily Housing Program for specified uses. This disbursement program is referred to as Homekey. This bill would require the Legislative Analyst’s Office to conduct an evaluation of the Homekey disbursement program described above to review the effectiveness of the program in relation to sustaining people experiencing homelessness, including, among other things, the number of housing units and projects funded since the program’s inception, and the timeliness of the allocation of program funds provided to localities participating in the program, including, among other things, the average time between application submission and fund disbursement. The bill would require the office, on or before July 1, 2027, to submit a report to the Legislature, subject to specified requirements, with the results of the above-described evaluation described that includes policy recommendations to address any issues identified during the evaluation. The bill would repeal its provisions on January 1, 2031, pursuant to specified provisions. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 50675.17 is added to the Health and Safety Code, immediately following Section 50675.16, to read: 50675.17. (a) The Legislative Analyst’s Office shall conduct an evaluation of the disbursement program, referred to as Homekey, for the Multifamily Housing Program to review both of the following: (1) The effectiveness of the program in relation to sustaining people experiencing homelessness, including, but not limited to, all of the following: (A) The number of housing units and projects funded by the program since the program’s inception. (B) The percentage of units funded by the project that remain occupied after one year of creation of the project. (C) The number of individuals who transitioned from program housing to stable, long-term housing. (D) The cost per unit of program housing compared to other affordable housing initiatives. (E) The demographic breakdown of individuals housed by the program, including, but not limited to, family status, veteran status, and individuals with disabilities. (2) The timeliness of the allocation of program funds provided to localities participating in the program, including, but not limited to, all of the following: (A) The average time between application submission and fund disbursement. (B) The percentage of funds allocated within applicable timelines. (C) The occurrence of any delays in project completion due to funding disbursement issues. (D) A comparison of funding distribution efficiency between funding rounds. (b) On or before July 1, 2027, the Legislative Analyst’s Office shall submit a report to the Legislature with the results of the evaluation conducted pursuant to subdivision (a). The report shall include policy recommendations to address any issues identified during the evaluation. (c) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code. (d) Pursuant to Section 10231.5 of the Government Code, this section shall remain in effect only until January 1, 2031, and as of that date is repealed.