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	<ns0:Description>
		<ns0:Id>20250AB__122997AMD</ns0:Id>
		<ns0:VersionNum>97</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-21</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-07-02</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-08-29</ns0:ActionDate>
			</ns0:Action>
		</ns0:History>
		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>AB</ns0:MeasureType>
			<ns0:MeasureNum>1229</ns0:MeasureNum>
			<ns0:MeasureState>AMD</ns0:MeasureState>
		</ns0:LegislativeInfo>
		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Members Schultz and Quirk-Silva</ns0:AuthorText>
		<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_ORIGINATING">(Principal coauthors: Assembly Members Ávila Farías, Caloza, Mark González, Haney, Kalra, and Lee)</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Schultz</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Quirk-Silva</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Ávila Farías</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Caloza</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Mark González</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Haney</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Kalra</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Lee</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title>An act to add Chapter 2.6 (commencing with Section 50480) to Part 2 of Division 31 of the Health and Safety Code, and to add Section 5036 to the Penal Code, relating to housing.</ns0:Title>
		<ns0:RelatingClause>housing</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Adult Reentry Grant Program.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>The Budget Act of 2018 appropriated $50,000,000 to the Board of State and Community Corrections for a grant program, known as the Adult Reentry Grant Program, for the purpose of awarding competitive grants to community based organizations to support offenders formerly incarcerated in state prison. The Budget Act of 2018 allocated a specified amount of those funds for, among other things, rental assistance, rehabilitation of existing property or buildings, and to support the warm hand-off and reentry of offenders transitioning from prison to communities. Subsequent budget acts have continued to fund the program.</html:p>
			<html:p>This bill, instead, commencing July 1, 2026, and upon appropriation of funds, would transfer the administration of the grant program to the Department of Housing and Community Development. The bill would require the department, on or
			 before December 1, 2026, to modify the grant program to provide 5-year renewable grants to geographically diverse regional administrators responsible for funding permanent supportive housing and reentry services for eligible people, as specified. The bill would require the department to issue proposed guidelines or a draft notice, as specified, establishing the grant program and require the department to competitively score applicants applying for grant funds as regional administrators. The bill would require the department to work collaboratively with the State Department of Health Care Services, Department of Corrections and Rehabilitation, and homeless continuums of care, and seek to work collaboratively with county probation departments, to establish a process for referrals of people eligible to participate in the program, as specified. The bill would also require the department to establish specified benchmarks to promote and track ideal outcomes from the program.</html:p>
			<html:p> This bill would require the department to distribute program funds by executing contracts with awarded regional administrators and would impose certain requirements on those regional administrators. The bill would prescribe eligibility requirements for a person scheduled for release from, or who has been be formerly incarcerated in, state prison, to participate in the program. The bill would require program funds to be used for specified purposes, including specified administrative fees, permanent housing, rental and operating subsidies, incentives to landlords, and voluntary multidisciplinary services, as specified. The bill would require the department, upon implementation of the program, to design an evaluation and hire an independent evaluator to assess outcomes from the program, and would require the evaluation to be submitted to specified committees of the Legislature. </html:p>
			<html:p>This bill would require the board to continue to
			 oversee and administer existing program grants that have not yet expired, using resources allocated to the board through funds allocated by the Budget Act of 2025.</html:p>
			<html:p>This bill would require the Department of Corrections and Rehabilitation to establish a process to engage an individual scheduled for discharge, within at least 210 days of the scheduled release date, for the purpose of assessing the individual’s risk of homelessness upon discharge, as specified. </html:p>
		</ns0:DigestText>
		<ns0:DigestKey>
			<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
			<ns0:LocalProgram>NO</ns0:LocalProgram>
		</ns0:DigestKey>
		<ns0:MeasureIndicators>
			<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
			<ns0:ImmediateEffectFlags>
				<ns0:Urgency>NO</ns0:Urgency>
				<ns0:TaxLevy>NO</ns0:TaxLevy>
				<ns0:Election>NO</ns0:Election>
				<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
				<ns0:BudgetBill>NO</ns0:BudgetBill>
				<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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	</ns0:Description>
	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_5B5707AB-258D-41F8-8AD0-E1E8597BC9B1">
			<ns0:Num>SECTION 1.</ns0:Num>
			<ns0:Content>
				<html:p>The Legislature finds and declares all of the following:</html:p>
				<html:p>
					(a)
					<html:span class="EnSpace"/>
					Fifteen percent of Californians on parole are unhoused and nearly all are unsheltered. The rate of individuals on parole who suffer from homelessness is over 17 times higher than the rate of homelessness among all Californians. Thirty percent of firefighters battling wildfires in California are people serving time in prison who are within one year of reentering their communities, and who are at great risk of homelessness.
				</html:p>
				<html:p>
					(b)
					<html:span class="EnSpace"/>
					People on parole are seven times more likely to recidivate when unhoused than when housed.
				</html:p>
				<html:p>
					(c)
					<html:span class="EnSpace"/>
					Evidence shows supportive housing, or housing that is affordable to people living in extreme poverty that does not limit the length of stay and offers tenant services promoting housing stability, reduces recidivism and improves the tenant’s ability to recover from health conditions.
				</html:p>
				<html:p>
					(d)
					<html:span class="EnSpace"/>
					In 2018, the Legislature passed, and the Governor signed, Senate Bill 840 of the 2017–18 Regular Session, which was known as the Budget Act of 2018. The Budget Act included funding to the Board of State and Community Corrections for local assistance to award competitive grant funds to community-based organizations to support people who were formerly incarcerated in prison through rental subsidies, rehabilitation of existing housing, and the warm hand-off of people transitioning from prison to
				communities. The funding was primarily intended for, and directed to, housing resources. This funding became known as the Adult Reentry Grant Program and currently receives ongoing funding.
				</html:p>
				<html:p>
					(e)
					<html:span class="EnSpace"/>
					Transformation of the Medi-Cal program and the state’s behavioral health system will increase justice-involved access to support services upon exiting prison, if people are able to access these services. The Justice-Involved Reentry Initiative, under the umbrella of the California Advancing and Innovating Medi-Cal (CalAIM) initiative, for instance, offers people exiting prison the services they need prior to their release to reenter communities successfully. CalAIM’s community supports offers people supportive services they need to access housing and remain stably housed. CalAIM’s Enhanced Care Management benefit offers linkage to health
				care providers and other community services people may need to access health and housing stability. These transformations offer opportunities to braid housing resources from the Adult Reentry Grant Program with existing health programs to further improve the housing, health, and reentry outcomes of
				participants, and to bring more resources to formerly incarcerated people trying to reintegrate into their communities. Braiding these resources will also allow the state to boost housing stability and reduce recidivism among people exiting prison or on parole.
				</html:p>
				<html:p>
					(f)
					<html:span class="EnSpace"/>
					It is the intent of the Legislature to connect the Adult Reentry Grant Program’s housing resources with existing health resources toward reducing substantially the number of Californians experiencing homelessness upon exit from prison. Through funding evidence-based models of housing and services that allow parolees to obtain and maintain housing stability during and after their term of parole, the state would allow people with a history of prison incarceration to exit or avoid homelessness for good, thereby reducing recidivism.
				</html:p>
				<html:p>
					(g)
					<html:span class="EnSpace"/>
					The Department of Housing and Community Development, with its expertise in overseeing grant programs for housing and services, is the appropriate entity to administer programs offering evidence-based housing and services interventions to people with a history of incarceration in prison experiencing or at risk of homelessness.
				</html:p>
				<html:p>
					(h)
					<html:span class="EnSpace"/>
					Other states and local communities have created programs that fund rental subsidies with services for people reentering the community from incarceration. These programs successfully promote health, housing, and employment stability and dramatically reduce recidivism among participants. Whereas California’s recidivism rate during the last year tracked is almost 42 percent, recidivism rates among participants of the Returning Home Ohio program, for example, have recidivism rates of 5 percent
				
				</html:p>
			</ns0:Content>
		</ns0:BillSection>
		<ns0:BillSection id="id_B99AF735-4D91-413B-8DDF-4BF9AEACD967">
			<ns0:Num>SEC. 2.</ns0:Num>
			<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:HSC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'31.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.6.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 50480" ns3:type="locator">
				Chapter 2.6 (commencing with Section 50480) is added to Part 2 of Division 31 of the 
				<ns0:DocName>Health and Safety Code</ns0:DocName>
				, to read:
			</ns0:ActionLine>
			<ns0:Fragment>
				<ns0:LawHeading id="id_AD85E473-D1BE-4B9C-BE98-477298EDC35F" type="CHAPTER">
					<ns0:Num>2.6.</ns0:Num>
					<ns0:LawHeadingVersion id="id_16E23728-0DF8-4B52-999E-19F38317B2E0">
						<ns0:LawHeadingText>The Adult Reentry Grant Program for Persons Experiencing or Likely to Experience Homelessness</ns0:LawHeadingText>
					</ns0:LawHeadingVersion>
					<ns0:LawSection id="id_CEE4E98C-8E67-4CC2-ADD0-1F67BBCD71B5">
						<ns0:Num>50480.</ns0:Num>
						<ns0:LawSectionVersion id="id_D7DAD222-EBD5-4AE8-A6EB-1B0FFDED78E8">
							<ns0:Content>
								<html:p>For purposes of this article, the following definitions apply:</html:p>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									“Adult Reentry Grant Program” means the program created by funding allocated to the Board of State and Community Corrections in Item 5227-110-0001 of Section 2.0 of the Budget Act of 2018 (Chapter 29 of the Statutes of 2018) and all subsequent allocations of funding thereafter to this program.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									“Chronic homelessness” has the same meaning as “chronically homeless” as defined in Parts 91 and 578 of Title 24 of the Code of Federal Regulations, as those parts read on January 1, 2018, except that the definition also includes people being discharged from
						  an institution who were chronically homeless before entering an institution, regardless of the length of institutional stay.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									(1)
									<html:span class="EnSpace"/>
									“Community supports” has the same meaning as defined in the California Advancing and Innovating Medi-Cal (CalAIM) Waiver Special Terms and Conditions Waiver Control No. CA 17.R10. Community supports especially relevant to this program include the following:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									Housing transition navigation services for services helping an individual access permanent housing.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									Housing deposits.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									Housing tenancy and sustaining services after a participant moves into permanent housing.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Community supports also includes any other community supports a participant is eligible to receive in the county in which the participant is reentering or living.
								</html:p>
								<html:p>
									(d)
									<html:span class="EnSpace"/>
									“Continuum of care” has the same meaning as that term is defined in Section 578.3 of Title 24 of the Code of Federal Regulations.
								</html:p>
								<html:p>
									(e)
									<html:span class="EnSpace"/>
									“County” includes a city and county or a city that is working with one or more counties to apply for grant funds.
								</html:p>
								<html:p>
									(f)
									<html:span class="EnSpace"/>
									“Department” means the Department of Housing and Community Development, unless otherwise identified.
								</html:p>
								<html:p>
									(g)
									<html:span class="EnSpace"/>
									“Fair market rent” means the rent, including the cost of utilities, other
						  than the telephone, as established by the United States Department of Housing and Urban Development, for units of varying sizes, as determined by the number of bedrooms, that is paid in the market area to rent privately owned, existing, decent, safe, and sanitary rental housing of a modest nature with suitable amenities.
								</html:p>
								<html:p>
									(h)
									<html:span class="EnSpace"/>
									“Homelessness” has the same meaning as “homeless” as defined in Section 91.5 of Title 24 of the Code of Federal Regulations, except that a person who is being released from prison who was homeless before their incarceration and who does not have an identified residence upon release is also “homeless,” regardless of their length of stay in prison.
								</html:p>
								<html:p>
									(i)
									<html:span class="EnSpace"/>
									“Housing First” has the same meaning as in Section 8255 of the Welfare and Institutions Code.
								</html:p>
								<html:p>
									(j)
									<html:span class="EnSpace"/>
									“Interim interventions” means housing that does not qualify as permanent housing as defined under subdivision (m), including, but not limited to, transitional housing, emergency shelters, motel vouchers, tiny homes, or navigation centers, as defined under other federal, state, or local programs, offering services or partnerships with homeless services to connect individuals and families to housing transition navigation services and permanent housing.
								</html:p>
								<html:p>
									(k)
									<html:span class="EnSpace"/>
									“Justice-Involved Reentry Initiative” has the same meaning as defined under the amendment to the California Advancing and Innovating Medi-Cal (CalAIM) Section 1115 Demonstration Waiver, as approved on January 26, 2023, Project Number 11-W-00193/9.
								</html:p>
								<html:p>
									(l)
									<html:span class="EnSpace"/>
									“Likely to
						  become homeless upon release” means the individual has a history of experiencing homelessness and the individual satisfies either of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									The individual has not identified a fixed, regular, and adequate residence to occupy upon release.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									The individual’s only identified nighttime residence for release includes a supervised publicly or privately operated shelter designed to provide temporary living accommodations, or a public or private place not designed for, or not ordinarily used as, a regular sleeping accommodation for human beings.
								</html:p>
								<html:p>
									(m)
									<html:span class="EnSpace"/>
									“Permanent housing” means a structure or set of structures with subsidized or unsubsidized rental housing units subject to applicable landlord-tenant law, without a
						  limit on the length of stay and without a requirement to participate in supportive services as a condition of access to, or continued occupancy of, the housing. Permanent housing includes supportive housing.
								</html:p>
								<html:p>
									(n)
									<html:span class="EnSpace"/>
									“Permanent supportive housing” and “supportive housing” mean permanent housing without a limit on the length of stay that is linked to onsite and offsite housing tenancy sustaining services that are easily accessible to tenants and assist participants in retaining the housing, improving the participant’s health status, and maximizing the participant’s ability to live and, when possible, work in the community. Permanent supportive housing includes associated facilities if used to provide services to tenants.
								</html:p>
								<html:p>
									(o)
									<html:span class="EnSpace"/>
									“Program” means the Adult Reentry Grant Program, as modified
						  by this act.
								</html:p>
								<html:p>
									(p)
									<html:span class="EnSpace"/>
									“Provider” or “subrecipient” means a community-based organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code and that contracts with a participating regional administrator, for the purpose of providing housing or services to participants experiencing or at risk of homelessness, with demonstrated fidelity to the Housing First model.
								</html:p>
								<html:p>
									(q)
									<html:span class="EnSpace"/>
									“Reasonable rent” means the maximum amount of rent a landlord may charge under the program, taking into consideration the maximum amount of rent landlords may charge when receiving subsidies from the local housing authority. Reasonable rent shall not exceed two times the fair market rent. 
								</html:p>
								<html:p>
									(r)
									<html:span class="EnSpace"/>
									“Regional
						  administrator” means an entity coordinating funding from existing sources, including, but not limited to, funding under the program, the Justice-Involved Reentry Initiative, community supports, and Medi-Cal Enhanced Care Management, to offer housing subsidies and services following evidence-based models to eligible participants. A regional administrator may be a county agency, community-based organization that is a nonprofit, a homeless continuum of care, or a flexible housing subsidy pool administrator.
								</html:p>
								<html:p>
									(s)
									<html:span class="EnSpace"/>
									“Rental subsidies” means a subsidy provided to a permanent housing provider, including a developer that has received government subsidies to build affordable or supportive housing or private market landlord, to assist a tenant to pay the difference between 30 percent of the tenant’s income and fair market rent or reasonable
						  market rent as determined by the grant recipient and approved by the department.
								</html:p>
								<html:p>
									(t)
									<html:span class="EnSpace"/>
									“Voluntary services” means services offered in conjunction with housing that are not contingent on participation in services, from which tenants are not evicted based on failure to participate in services, where the service provider engages the tenant to encourage the tenant to voluntarily participate in services using evidence-based engagement models, and services are flexible and tenant centered.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_0E46BE9C-2F24-40F0-8720-8BF3CD162132">
						<ns0:Num>50481.</ns0:Num>
						<ns0:LawSectionVersion id="id_44D4C6DF-FE30-4B75-98A3-1F3668D29E12">
							<ns0:Content>
								<html:p>Commencing July 1, 2026, and upon appropriation of funds for this purpose, the department shall begin administering the Adult Reentry Grant Program as provided in this chapter.</html:p>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									On or before December 1, 2026, the department shall do all of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Modify the Adult Reentry Grant program to provide grants to geographically diverse regional administrators responsible for funding permanent supportive housing and reentry services for eligible people.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Issue proposed guidelines establishing the grant program, or a draft notice of funding
						  availability for stakeholder feedback, to select regional administrators for five-year renewable grants. Guidelines or the notice of funding availability shall require regional administrator applicants to demonstrate all of the following:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									At least three years of experience administering a rental subsidy program, master leasing to sublet to tenants with a history of homelessness, or subcontracting to administer rental subsidies in permanent housing that follows evidence-based practices. The experience shall include recruiting landlords, including partnerships with affordable housing property managers, to accept subsidies and administration and oversight of vouchers or other forms of rental subsidies.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									Experience administering requests for proposals or a similar competitive
						  process for selecting subrecipients meeting the criteria of the program and a viable plan for judging applications based on an assessment of subrecipient applicants’ ability to offer supportive services using evidence-based practices.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									A relationship with a public housing authority to connect people to federal vouchers as they turn over.
								</html:p>
								<html:p>
									(D)
									<html:span class="EnSpace"/>
									Experience working with a homeless continuum of care and, if the regional administrator is different from the continuum of care in the region, a coordinated entry system administrator.
								</html:p>
								<html:p>
									(E)
									<html:span class="EnSpace"/>
									A relationship with at least one managed care plan or at least two community supports providers, or a direct contract with a managed care plan contracted provider.
								</html:p>
								<html:p>
									(F)
									<html:span class="EnSpace"/>
									A viable plan to administer or contract with subrecipients to administer rental subsidies for permanent housing to connect participants to permanent housing as quickly as possible.
								</html:p>
								<html:p>
									(G)
									<html:span class="EnSpace"/>
									A viable plan to connect participants, as needed and eligible, to community supports, Justice-Involved Reentry Initiative in-reach services, and behavioral health treatment and services for so long as medically necessary.
								</html:p>
								<html:p>
									(H)
									<html:span class="EnSpace"/>
									A viable plan to meet reporting requirements, as required by this chapter.
								</html:p>
								<html:p>
									(I)
									<html:span class="EnSpace"/>
									A viable strategy to assess participants’ ability to move on from the program, including through relationships with housing authorities.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									Establish criteria
						  to competitively score applicants applying for grant funds as regional administrators. Scoring criteria shall include, but not be limited to, the following:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									The extent to which the applicant has experience providing or coordinating housing, homeless services, or reentry services in the region or is based in the region, or the extent to which the applicant’s partners have experience providing or coordinating housing, homeless
						  services, or reentry services in the region or are entities based in the region.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The viability of plans and extent of experience described in paragraph (2).
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									The extent of coordination and collaboration between the applicant, the continuum of care covering the geographic area, and homeless service providers with a history of serving people reentering communities from incarceration, using the Housing First model.
								</html:p>
								<html:p>
									(D)
									<html:span class="EnSpace"/>
									The applicant’s proposed use of funds, the extent to which the proposed use will lead to overall reductions in homelessness and recidivism based on evidence, and the extent of the applicant’s commitment and past fidelity to Housing First.
								</html:p>
								<html:p>
									(E)
									<html:span class="EnSpace"/>
									The applicant’s documented partnerships with affordable and supportive housing providers in the jurisdiction.
								</html:p>
								<html:p>
									(F)
									<html:span class="EnSpace"/>
									The applicant’s demonstrated commitment to address the needs of people experiencing homelessness and recent incarceration through existing programs or programs planned to be implemented within 12 months.
								</html:p>
								<html:p>
									(G)
									<html:span class="EnSpace"/>
									The applicant’s demonstrated experience working with prison or jail facilities to provide in-reach or reentry services or with parole agents or probation officers. 
								</html:p>
								<html:p>
									(H)
									<html:span class="EnSpace"/>
									For county applicants overseeing housing authorities, the extent to which an applicant demonstrates housing authorities have eliminated or plan to eliminate restrictions on people with arrests or criminal convictions to access
						  publicly funded housing subsidies, notwithstanding restrictions mandated by the United States Department of Housing and Urban Development or federal law.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									Work collaboratively with the State Department of Health Care Services, Department of Corrections and Rehabilitation, and homeless continuums of care, and seek to work collaboratively with county probation departments, to establish a process for referrals of people eligible to participate in the program through the Justice-Involved Reentry Initiative, parole or probation agents under postrelease community supervision, or other avenues of referrals. In establishing a process for referrals, the department shall work to reduce racial and ethnic disparities in the number of people falling into homelessness, as well as ensure a balance in referred participants who are still under
						  supervision between people on parole and people on postrelease community supervision.
								</html:p>
								<html:p>
									(5)
									<html:span class="EnSpace"/>
									Establish benchmarks to promote and track ideal outcomes from the program. The department may take outcomes on benchmarks into consideration when choosing future regional administrators, following the term of the grant agreement, but shall not withhold funding during the grant term if a regional administrator fails to meet the benchmarks. The department shall offer support to regional administrators failing to meet outcome benchmarks. The department’s benchmarks shall include all of the following:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									The percentage of participants currently residing in permanent housing.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The housing retention rates at 12 and 24
						  months.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									The rate of increase in employment and access to benefits that participants are receiving.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									For the first two years of the program, up to 5 percent of program funds may be used for the department’s administration of the program. For subsequent years of the program, up to 3 percent of program funds may be used for the department’s administration of the program. 
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									The Board of State and Community Corrections shall continue to oversee and administer existing grants that have not yet expired, using resources allocated to the board through funds allocated by the Budget Act of 2025.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_F089EFF9-9FA3-4845-A639-29CEA71A3F92">
						<ns0:Num>50482.</ns0:Num>
						<ns0:LawSectionVersion id="id_9A9D02C7-A02A-4240-9600-6B9FA01DC72E">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									A person is eligible for participation in this program if both of the following are applicable:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									The individual voluntarily chooses to participate.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Either of the following applies:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									The individual has been assigned a date of release from prison within 210 days and is likely to become homeless upon release.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The person is currently experiencing homelessness as a person on parole or postrelease community supervision and has
						  experienced prison incarceration within the last five years.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									For purposes of this section, a participant may remain eligible and continue to receive housing and services funded under the program after discharge from parole or postrelease community supervision if the participant continues to need assistance from the program.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_C797D741-3C3E-468C-AF6E-F0A6B16200A2">
						<ns0:Num>50483.</ns0:Num>
						<ns0:LawSectionVersion id="id_DBE847DB-7634-429A-B690-A8666BC6AA0D">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									The regional administrator and subrecipients shall use program funds for the following eligible activities:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Reasonable administrative fees of regional administrators and subrecipients.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Assistance necessary for each participant to access housing stability, reenter the community successfully, and thrive through the following interventions identified in this section, following fidelity to the Housing First model:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									Permanent housing, which shall include one or more of the following, so long as the housing funded under the program
						  complies with the Housing First model: 
								</html:p>
								<html:p>
									(i)
									<html:span class="EnSpace"/>
									Rental subsidies in an amount the applicant identifies, but no more than
						  reasonable rent, including help with any back utility payments due.
								</html:p>
								<html:p>
									(ii)
									<html:span class="EnSpace"/>
									Operating subsidies in new and existing affordable or supportive housing units, in an amount the applicant identifies, but no more than the maximum amount of fair market rent a housing authority may pay, including for small area fair market rent, for the community in which the project is located.
								</html:p>
								<html:p>
									(iii)
									<html:span class="EnSpace"/>
									Incentives to landlords to accept rental subsidies and house-eligible participants, including, but not limited to, security deposits and holding fees.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									Voluntary multidisciplinary services, to include the following:
								</html:p>
								<html:p>
									(i)
									<html:span class="EnSpace"/>
									Services to engage people to participate in
						  services, using evidence-based practices.
								</html:p>
								<html:p>
									(ii)
									<html:span class="EnSpace"/>
									Evidence-based case management services at a case management-to-client ratio sufficient to ensure each participant’s housing and reentry stability. 
								</html:p>
								<html:p>
									(iii)
									<html:span class="EnSpace"/>
									Services assisting participants in transitioning from prison to the community, including linkage to Justice Involved Reentry
						  Initiative prerelease care managers, in-reach providers, and postrelease enhanced care managers,
						  assisting with locating permanent housing with property managers and landlords willing to accept rental or operating subsidies for program participants, linkage to community supports providers and other existing programs funding services upon discharge, if the services allow the participant to successfully reenter their community, offer participants access to permanent affordable housing, and promote housing stability.
								</html:p>
								<html:p>
									(iv)
									<html:span class="EnSpace"/>
									Direct provision of housing transition navigation services, housing deposits, and housing tenancy and sustaining services for participants ineligible for or not yet determined to be eligible for existing programs.
								</html:p>
								<html:p>
									(v)
									<html:span class="EnSpace"/>
									Services coordinating with and connecting participants to the coordinated entry system functioning in the geography to which the
						  participant is returning, coordinating with and linking people to the Medi-Cal Enhanced Care Management benefit and health care providers that participants need to stabilize in housing, and assisting participants in obtaining any available local, state, or federal rental subsidies available.
								</html:p>
								<html:p>
									(vi)
									<html:span class="EnSpace"/>
									Transportation services that support participants’ reentry, housing, or health care needs. 
								</html:p>
								<html:p>
									(vii)
									<html:span class="EnSpace"/>
									Evidence-based supported employment services, including individual placement and support services, that allow participants who are able and want to work to find and maintain stable employment. Supported employment services may include all of the following, based on needs of each participant:
								</html:p>
								<html:p>
									(I)
									<html:span class="EnSpace"/>
									Assistance with completing employment
						  applications.
								</html:p>
								<html:p>
									(II)
									<html:span class="EnSpace"/>
									Identifying potential workplace accommodations that may be required.
								</html:p>
								<html:p>
									(III)
									<html:span class="EnSpace"/>
									Assistance with addressing workplace situations and conflicts.
								</html:p>
								<html:p>
									(IV)
									<html:span class="EnSpace"/>
									Assistance with transportation needs.
								</html:p>
								<html:p>
									(V)
									<html:span class="EnSpace"/>
									Coordinating vocational training.
								</html:p>
								<html:p>
									(VI)
									<html:span class="EnSpace"/>
									Assistance with developing skills to maintain stable employment.
								</html:p>
								<html:p>
									(VII)
									<html:span class="EnSpace"/>
									Care coordination and advocacy with health care professionals to support care planning and referrals to other needed services.
								</html:p>
								<html:p>
									(VIII)
									<html:span class="EnSpace"/>
									Services assisting
						  people with learning financial literacy and management, as well as managing and building savings, including a process to assist participants in voluntarily saving a consistent portion of their income from employment.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									For participants exiting prison into the program and as needed, operating support for interim interventions while participants wait for referral to permanent housing, so long as the interim setting complies with the requirements of Low-Barrier Navigation Centers, as defined in Section 65660 of the Government Code. Interim settings provided pursuant to this paragraph shall not be a substitute for permanent housing.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									Service providers shall offer voluntary services, in accordance with Section 5806 of the Welfare and Institutions Code, in conjunction with
						  housing, to obtain and maintain health and housing stability while participants are on parole and after discharge from parole, so long as the participant needs and wants the services.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									All services shall be offered to participants in their home or be made as easily accessible to participants in the community as possible. Services shall promote housing and health stability, including, but not limited to, assertive community treatment, intensive case management, or other evidence-based models of service provision, as well as engagement to encourage participation in services and Medi-Cal-funded mental health treatment, substance use disorder treatment, and other health treatment, as medically necessary.
								</html:p>
								<html:p>
									(d)
									<html:span class="EnSpace"/>
									For participants identified prior to release from prison, the regional
						  administrator or subrecipient provider, upon receipt of the referral, shall seek to collaborate with the parole agent or postrelease community supervision probation officer, if the participant is assigned to supervision, and shall, when possible, do all of the following: 
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Draft a plan for the participant’s transition into permanent housing in collaboration with the participant.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Engage the participant to actively participate in services upon release on a voluntary basis.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									Assist the participant in obtaining identification and other documentation the participant may need to access housing and services.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									Assist the participant in applying for
						  any benefits for which the participant is eligible.
								</html:p>
								<html:p>
									(e)
									<html:span class="EnSpace"/>
									Upon referral of an individual to the regional administrator, the regional administrator and all subrecipients shall work to promote housing stability, using the core components of Housing First and substantially complying with the Housing First fidelity scale.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_D2F0EF0F-A445-4569-865D-8897EC88049A">
						<ns0:Num>50484.</ns0:Num>
						<ns0:LawSectionVersion id="id_1DBCF99C-D89B-42C0-A4D2-EFA0BB9CDEE6">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									A regional administrator awarded a contract shall provide or subcontract with community-based organizations as subrecipients to provide reentry services, housing, community supports, and supported employment that participants need and want by doing the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Coordinating with managed care plans and partnering with managed care contracted providers to offer participants in-reach services through the Justice-Involved Reentry Initiative, community supports to which the participants are entitled, and the Medi-Cal Enhanced Care Management benefit.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Seeking to partner with county behavioral
						  health and health agencies to offer participants services and treatments that participants need and want.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									Seeking to partner with county workforce investment boards.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									Partnering with the region’s homeless continuums of care and coordinated entry systems to coordinate referrals to housing for participants or potentially eligible participants.
								</html:p>
								<html:p>
									(5)
									<html:span class="EnSpace"/>
									Partnering with affordable and supportive housing developers to offer ongoing operating subsidies in available housing units for participants.
								</html:p>
								<html:p>
									(6)
									<html:span class="EnSpace"/>
									Coordinating with public housing authorities to connect participants who are ready to move on to any federal housing subsidies available.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									Regional administrators shall provide the following support to subrecipients: 
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Administrative assistance to subcontracted community-based organizations in complying with the reporting and other administrative requirements of the department.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Providing support in reducing racial and ethnic disparities in eligible participants receiving housing and services.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									Developing career pathways for participants, removing structural barriers to employment and promoting equitable access to leadership
						  positions.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									Developing a checklist for housing quality standards to promote housing stability. 
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									Any subrecipient shall demonstrate requisite experience the department identifies. The department and regional administrators shall also remove barriers for contracting with culturally sensitive organizations and organizations with people with lived experience of homelessness or former incarceration in leadership positions that may be more equipped to work with marginalized communities, but may have less past public contracting history. Regional administrators shall provide adequate administrative funding to subcontracted entities that allow for regular contract inflationary increases that would support staff
						  cost-of-living adjustments.
								</html:p>
								<html:p>
									(d)
									<html:span class="EnSpace"/>
									In subcontracting with community-based organizations, the department and regional administrators shall work to reduce barriers to subcontracting and simplify the contracting process, and to reduce barriers and delays in participants receiving services and housing.
								</html:p>
								<html:p>
									(e)
									<html:span class="EnSpace"/>
									In selecting subrecipients, regional administrators shall select providers that have or will have, by the time of contract start date, the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Removed barriers to hiring people with lived experience of incarceration.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Employed people with lived experience of incarceration and former homelessness.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									If the subcontracted entity is a community-based organization, at least one individual with lived experience of incarceration and homelessness on the board of directors.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_FF6594E3-147F-4857-914C-DA341D5B2AA7">
						<ns0:Num>50485.</ns0:Num>
						<ns0:LawSectionVersion id="id_2A721337-02DF-414E-9591-51CCAAE4EF0A">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									Regional administrators or subrecipients shall identify housing opportunities for participants prior to release from prison or as quickly upon release from prison as possible, or as quickly as possible when participants are identified during parole or postrelease community supervision.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									Housing identified pursuant to subdivision (a) shall satisfy all of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Tenants have rights and responsibilities of tenancy and are required to sign a lease with a landlord or property manager that complies with the core components of Housing First.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									The housing is located in an apartment building, townhouse, or single-family home, including rent-subsidized apartments leased in the open market or set aside within privately owned buildings, or affordable or supportive housing receiving a publicly funded subsidy.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									The housing is not subject to community care licensing requirements and is exempt from licensing pursuant to Section 1504.5.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									Participants are allowed to choose whether to share a single housing unit with nonrelatives or to live alone.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									Shared housing shall meet the following requirements:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Participants shall be allowed to choose shared housing over living
						  alone and to choose the people with whom they share housing.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Participants shall have their own private bedroom with a lockable door.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									Every participant shall have their lease.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									Housing units shall include bathrooms no more than four participants must share.
								</html:p>
								<html:p>
									(5)
									<html:span class="EnSpace"/>
									Housing units shall include kitchens on the same floor as the participant, unless living in a single family home.
								</html:p>
								<html:p>
									(6)
									<html:span class="EnSpace"/>
									The regional administrator or subcontractor shall ensure participants sharing housing receive services to assist in overcoming conflicts.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_D07F28DD-C027-4127-ACB6-5F3EB90680E8">
						<ns0:Num>50486.</ns0:Num>
						<ns0:LawSectionVersion id="id_CF7BF1BE-342B-4905-B474-026736B2AD9B">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									The department shall distribute funds by executing contracts with awarded regional administrators that shall be for a term of five years, subject to automatic renewal, provided the regional administrator complies with the requirements of this chapter and has achieved the benchmarks identified by the department pursuant to Section 50481. Awards shall be offered to grantees prior to provision of rental assistance and services. One year after a contract has expired pursuant to this subdivision, any funds not expended for eligible activities shall revert to the department for use for the program.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									A regional administrator shall submit to the department an annual
						  report on a form issued by the department, pertaining to the recipient’s program, provider selection process, contract expenditures, and progress toward meeting state goals. Regional administrators shall report the following data, which shall be disaggregated by race, gender, and gender identity and acquired from subrecipients through a database the regional administrator manages:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									The number of participants served.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									The types and number of services provided to program participants.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									The number of participants currently living in permanent housing, either in housing receiving or not receiving a program subsidy.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									The average length of
						  participation in the program.
								</html:p>
								<html:p>
									(5)
									<html:span class="EnSpace"/>
									Fidelity to Housing First among all providers.
								</html:p>
								<html:p>
									(6)
									<html:span class="EnSpace"/>
									Other outcomes for participants, including the number of participants who ceased to participate in the program and reasons why, the number who returned to state prison or were incarcerated in county jails, the number of arrests among participants, the number of participants convicted of a crime, the number of days in jail and prison among participants, and health outcomes or change in health status, to the extent data are available.
								</html:p>
								<html:p>
									(7)
									<html:span class="EnSpace"/>
									Through participant surveys, satisfaction with the program or changes to participants’ rating of their health, income, employment, and housing status.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									Upon implementation of the program, the department shall design an evaluation and hire an independent evaluator to assess outcomes from the
						  program. The evaluation shall include an analysis of data submitted by regional administrators pursuant to subdivision (b) and recommendations for program improvement.
								</html:p>
								<html:p>
									(d)
									<html:span class="EnSpace"/>
									As part of the annual report required pursuant to subdivision (b), a regional administrator shall report to the department on the expenditures and activities of any subrecipients for each year of the term of the contract with the department until all funds awarded to a subrecipient have been expended.
								</html:p>
								<html:p>
									(e)
									<html:span class="EnSpace"/>
									The department may monitor the expenditures and activities
						  of the recipient, as the department deems necessary, to ensure compliance with program requirements.
								</html:p>
								<html:p>
									(f)
									<html:span class="EnSpace"/>
									The department may, as it deems appropriate or necessary, request the repayment of funds from a regional administrator or pursue any other remedies available to it by law for failure to comply with program requirements.
								</html:p>
								<html:p>
									(g)
									<html:span class="EnSpace"/>
									On or before July 1, 2030, the department shall submit the evaluation prepared pursuant to subdivision (c) to the chairs of the Joint Legislative Budget Committee, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Public Safety, the Senate Committee on Housing, and the Assembly Committee on Housing and Community Development. The evaluation shall be submitted in
						  compliance with Section 9795 of the Government Code.
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			<ns0:Num>SEC. 3.</ns0:Num>
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				Section 5036 is added to the 
				<ns0:DocName>Penal Code</ns0:DocName>
				, to read:
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					<ns0:Num>5036.</ns0:Num>
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								The department shall establish a process for engaging an individual scheduled for discharge, within at least 210 days of the scheduled release date, for the purpose of assessing the individual’s risk of homelessness upon discharge. The process shall include the following questions:
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							<html:p>
								(1)
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								Do you have a plan for where you will live when you get out?
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								If you have a plan, where do you plan to sleep after returning to your community?
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							<html:p>
								(3)
								<html:span class="EnSpace"/>
								Where were you living when you were arrested, prior to your conviction?
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								Have you ever slept in a place not meant to be a place to live long-term, such as a shelter, transitional housing, a bus or train station, on the streets, or a motel or hotel?
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								The department shall not use any of the answers provided to lengthen an individual’s term or to otherwise punish or discipline the individual.
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