Newsom Releases $1B In Homelessness Funding To Build Small Homes

SACRAMENTO, CA — Gov. Gavin Newsom this week released $1 billion in funding for the state's HomelessHousing, Assistance and Prevention (HHAP) program, which the governor said will help create 1,200 small homes to house people living in encampments around Los Angeles, Sacramento, San Jose and San Diego County.

Newsom unveiled the specifics during a news conference Thursday in Sacramento joined by a group of advocates, partners and local leaders. The governor last year hit pause on the funds after determining that local governments were not designing ambitious plans. The revised approach aims to reduce homelessness by 15 percent across the Golden State by 2025.

Echoing the "more housing, faster" mantra, the state plans to deploy its largest-ever mobilization to deliver small homes and get people off the streets, with help from the California National Guard.

"In California, we are using every tool in our toolbox – including the largest-ever deployment of small homes in the state – to move people off the streets and into housing," Newsom said. "The crisis of homelessness will never be solved without first solving the crisis of housing – the two issues are inextricably linked. We are tackling this issue at the root of the problem by addressing the need to create more housing, faster in California."

The governor said the relatively low cost and quick build time for small homes make them particularly effective in getting people into stable housing fast. Local governments will own the units and be responsible for choosing the where to build them, providing services, and finding future residents. The state will also make surplus land available as needed.

In this first push, 500 units are planned in Los Angeles, 350 units in Sacramento, 200 units in San Jose, and 150 units in San Diego County.

"All different types of housing — small homes, motels, hotels, and more — are needed to urgently confront the crisis," said Los Angeles Mayor Karen Bass. "This housing will help us bring more people inside, which is what our city needs right now."

Republican leaders were skeptical that the plan will prove effective.

"This is just another band-aid on a crisis that is out of control in California," said state Sen. Brian Jones (R-San Diego), the Senate Minority Leader. "California has already spent $20 billion over the last five years on homelessness and this crisis has only gotten worse with more than 172,000 people living on the streets in this state. While I appreciate the governor's creativity to construct 1,200 tiny homes, that is a drop in the bucket."