Important Update:
Just four months after the law passed, Governor Newsom announced up to $3.3 billion in grants to create more places for people with mental health and substance use issues to get treatment. He also introduced a guide for counties on how to use funds from the Behavioral Health Services Act for housing.
Brand New Housing Funding in California!
Governor Gavin Newsom just announced up to $3.3 billion in grants from Proposition 1 to improve mental health care, especially for those who are very ill, vulnerable, or homeless. Proposition 1 includes $6.4 billion for two things: building treatment facilities and housing with services, and updating the Behavioral Health Services Act to focus on those with the most serious needs.
The state also released a guide for counties on spending Behavioral Health Services Act funds on housing. Proposition 1 requires that 30% of these funds go to housing each year. By 2026-2027, this will be about $950 million annually. The guide can be found online.
Governor Newsom said, “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 launched the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP). Cities, counties, non-profits, for-profits, and tribal entities can apply by December 13, 2024. More funding will be available in 2025. This funding is expected to create 6,800 residential treatment beds and 26,700 outpatient treatment slots.
Annual Funding: Starting in 2026-2027, 30% of county funds from the Behavioral Health Services Act will go to housing, about $950 million annually. Counties can adjust this amount slightly based on their needs.
Bigger Picture: California is updating its behavioral health system to be more accountable and transparent. DHCS has already awarded $1.7 billion in grants for new facilities and mobile crisis services. Proposition 1 will provide more funding to expand these services.
What’s Next: The Department of Housing and Community Development (HCD) and the California Department of Veterans Affairs (CalVet) will manage up to $2 billion to build housing for veterans and others who are homeless or at risk. More guidelines will be issued in late 2024. DHCS will also release another round of funding in May 2025.
Learn More and Apply: Interested applicants can find more details and check eligibility requirements on the BHCIP website. More information about housing supports and California’s mental health and substance use disorder system is available at mentalhealth.ca.gov. To find more affordable housing options near you, make sure to visit Section8Search.org, the most comprehensive housing database online. Visit here!