Following 9% drop in unsheltered homelessness, Governor Newsom announces new investments to create more shelter and services — with stronger accountability

HHAP is a multi-year grant available to local communities to create permanent housing, sustain interim housing, and accelerate proven local interventions. The Newsom Administration, in partnership with the Legislature, made historic investments into the program, with nearly $5 billion appropriated through current and previous rounds of HHAP to support local jurisdictions in promoting housing stability and reducing homelessness.

Today’s announcement awards the first funding from HHAP Round 6, with a total of $419 million to the Los Angeles, San Diego, and San Francisco regions. The awards announced today represent three of 42 regional applications submitted for HHAP Round 6, with additional awards expected in the coming months.

HHAP Round 6 builds on enhanced accountability measures and responds to the Governor’s call to ensure funds have the greatest impact for Californians experiencing homelessness. These measures include requirements that grantees have and maintain a compliant housing element, prioritization for communities designated as “pro-housing,” and mechanisms to claw back funding from local governments that fail to demonstrate progress. For more information about how your community is performing in addressing housing, homelessness, and mental health care, visit www.accountablity.ca.gov.

In addition to the remaining funds from HHAP 6, there is a seventh round of HHAP totaling $500 million planned for the coming budget year, contingent on enhanced accountability and performance requirements. HHAP Round 7 will expand existing accountability metrics to ensure grantees make meaningful investments in housing solutions and adopt housing policies that will increase downstream housing supply, a critical tool in preventing future homelessness.

“In San Francisco, we are changing our approach to homelessness to get people off the streets and on a path toward stability. In December, we reached a record-low number of encampments—down 44% from 2024. But we can’t do this alone,” said Mayor Daniel Lurie. “The resources provided by the state are crucial—whether that’s Prop 1, HHAP dollars, or funding to make sure our freeway on-ramps and off-ramps are clean. I want to thank Governor Newsom for helping make that progress possible. We have more work to do, but we are now on the right track, and with strong partnerships and continued investment, we will keep moving forward.”

The awards today as part of the first allocation from HHAP 6 include the following investments:

• San Francisco City and County and the Continuum of care serving the city and county— $39.9 million to sustain operations and services for two semi‑congregate shelters and three navigation centers through June 2029—serving more than 600 adults and 75 youth nightly—with additional support for the San Francisco Online Navigation and Entry System.
• Los Angeles County, the cities of Los Angeles and Long Beach, and four Continuums of care that serve Glendale, Long Beach, Los Angeles City and County, and Pasadena — $328.8 million to fund operations and services for interim housing (including for youth), services in permanent supportive housing, rapid rehousing and time‑limited subsidies, and encampment resolution efforts
• San Diego County, the City of San Diego, and the CoC serving the city and county — $50.9 million to fund existing emergency shelters and expand emergency shelter capacity—including through hotel/motel vouchers—in addition to significant investments in permanent housing solutions (rental subsidies, flexible housing resources, extended rapid rehousing, and prevention/diversion).

This adds to state investments to help local communities address homelessness since 2019 which have included the launch of the first-in-the-nation Homekey program that has created nearly 16,000 homes across 250 projects and reached over 172,000 Californians; $2.25 billion through Homekey+ to serve individuals with mental health or substance use challenges and veterans; $1 billion in Encampment Resolution Funds to provide services and housing to help 23,000 individuals across 120 encampment sites transition from homelessness.