Existing law establishes the Department of Housing and Community Development within the Business, Consumer Services, and Housing Agency and sets forth its powers and duties. Existing law, the Governor’s Reorganization Plan No. 1 of 2025 (GRP), which became effective on July 5, 2025, transfers the Department of Housing and Community Development to the California Housing and Homelessness Agency, which the GRP also establishes, as of July 1, 2026.

Existing law establishes a low-income housing tax credit program, through which the California Tax Credit Allocation Committee, chaired by the Treasurer, allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state. Existing law sets forth procedures and criteria under the program for housing credit applicants, who are owners, sponsors, or developers of qualifying low-income buildings or projects, as specified.

Existing law, the Multifamily Housing Program, administered by the Department of Housing and Community Development, makes available deferred payment loans to pay for the eligible costs of housing development projects. Existing law specifies particular requirements for projects funded with funds appropriated for supportive housing projects, including, among other things, that supportive housing projects provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents. Existing law also requires that funds appropriated to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness and who are impacted by 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.

Existing law, known as the No Place Like Home Program, requires the Department of Housing and Community Development to award $2,000,000,000 among counties to finance capital costs, including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the target population, as specified.

This bill would permit a sponsor or housing credit applicant of any unit funded by one of the above-described programs to receive and process referrals of prospective tenants from sources outside of the coordinated entry system or equivalent referral system if more than 180 days have passed since the sponsor or applicant initially notified the coordinated entry system or equivalent referral system of an available unit.

This bill would require the California Housing and Homelessness Agency and the California Tax Credit Allocation Committee to, by January 1, 2028, complete a comprehensive review of compliance documentation required for DASH units, as provided. The bill would require the agency and committee to submit a report on this review to the Legislature by April 1, 2028, and to implement revised compliance requirements based on the review by July 1, 2028.