LAO Contact

Budget and Policy Post
March 25, 2019

Housing and Homelessness Funding Impacting Children


These materials were prepared for an informational hearing about housing challenges and their impact on the well-being of children by the Senate Select Committee on the Social Determinants of Children’s Well-Being. Figure 1 identifies programs that could help families overcome housing affordability challenges or homelessness. In Figure 2, we identify programs that help families offset housing costs. Figure 3 provides a brief description of the programs.

Figure 1

Housing and Homelessness Funding Impacting Children

(In Millions)

Program

2018‑19 Total

2019‑20 Total

Difference

State Share

One‑Time Funding

Indirect Housing Assistance

Building Housing and Shelter

Building Homes and Job Fund Program (SB 2)

SB 2: California Emergency Solutions Housing Program

$123

‑$123

None

SB 2: Mixed‑Income Loan Program

$40

40

None

SB 2: Permanent Local Housing Allocation Program

193

193

None

SB 2: Planning and Zoning Grant Program

123

‑123

None

X

SB 2: Other

10

70

60

None

Subtotals

($256)

($303)

($47)

Emergency Solutions Grant Program

$23

$23

None

Expanded Mixed‑Income Loan Programa

$500

500

All

X

Expanded State Housing Tax Credita,b

300

300

All

X

Homeless Emergency Aid Program

$500

500

All

X

Housing Planning and Production Grantsa

750

750

All

X

Middle‑Income State Housing Tax Credita,b

200

200

All

X

Multifamily Conduit Lending

429

300

‑129

None

Multifamily Lending

159

120

‑39

None

Office of Migrant Services

9

12

3

Most

Planning and Progress Grants to Address Homelessnessa

500

500

All

X

Proposition 1 (2018)

Infill Infrastructure Grant Program

57

57

All

X

Joe Serna, Jr. Farmworker Housing Grant Program

41

41

All

X

Local Housing Trust Fund Program

57

57

All

X

Multifamily Housing Program

277

277

All

X

Transit‑Oriented Development Program

37

37

All

X

Subtotals

($277)

($469)

($192)

Proposition 2 (2018): No Place Like Home

$400

$400

None

X

State Low‑Income Housing Tax Credit

100

103

$3

All

Special Needs Housing Program

24

20

‑4

None

Subtotals

($2,710)

($5,248)

($2,538)

Direct Housing Assistance

Homeownership Assistancec

Proposition 1 (2018)

CalHome

$55

$57

$2

All

X

Farm and Home Loan Program

56

56

All

X

MyHome Assistance Program

37

107

70

All

X

Subtotals

($148)

($220)

($72)

School Teacher and Employee Assistance Program

$6

$6

None

Single Family Down Payment Assistance

53

‑$53

None

Subtotals

($354)

($445)

($91)

Paying for Housing

Bringing Families Home

$7

‑$7

All

X

CalWORKs Family Stabilization, Housing Component

4

$4

Some

CalWORKs Homeless Assistance Program

57

57

Some

CalWORKs Housing Support Program

71

95

24

Some

Housing and Disability Advocacy Programa

25

25

All

Subtotals

($139)

($181)

($42)

Totals

$3,203

$5,875

$2,672

aProposal included in Governor’s 2019‑20 budget.

bWhile the credits could be awarded in 2019‑20, the credit could not be claimed unit the housing has been built.

cExcludes a recurring loan program available for homeownership assistance.

 

 

Figure 2

Cash, Food, and Medical Assistance Can Offset Housing Costsa

(In Millions)

Program

2018‑19 Total

2019‑20 Total

Difference

State
Share

One‑Time
Funding

CalFresh

$6,291

$6,830

$539

None

CalWORKs Cash Grants

2,685

3,068

383

Some

Earned Income Tax Creditb

6,948

7,600

652

Some

Free and reduced price lunch

2,838

2,936

98

Some

Medi‑Calc

98,500

100,700

2,200

Some

SSI/SSP

9,806

9,931

125

Some

Whole Person Care Pilotsd

100

100

All

X

Totals

$127,068

$131,165

$4,097

aWhere possible, we tried to identify funding targeting children and families.

bEarned Income Tax Credit amounts reflect combination of federal tax year data and state fiscal year data. Tax year 2018 EITC data are not yet available. As such, 2019‑20 is estimated.

cRepresents entire Medi‑Cal budget amount, some of which includes assistance for individuals other than children and families. Due to data limitations, the amount attributable to children and families specifically is not available.

dProposal included in the 2019‑20 Governor’s Budget.

 

 

Figure 3

Glossary of Housing and Homelessness Programs

Programs are supported by state resources and administered by the state unless otherwise noted.

  • Building Homes and Job Fund Program (SB 2)
    • California Emergency Solutions Housing Program. Provides funds for a variety of activities to assist persons experiencing or at risk of homelessness.
    • Permanent Local Housing Allocation Program. Provides funds for eligible housing‑related projects and programs to assist in addressing the unmet housing needs of local communities.
    • Planning and Zoning Grant Program. Provides funding and technical assistance to all eligible local governments to adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production.
  • Bringing Families Home. Grants to county child welfare agencies to provide housing assistance to families involved in the child welfare system who are homeless or at risk of becoming homeless.
  • CalFresh. Counties administer monthly food benefits, formerly known as food stamps, for about 2 million low‑income families and individuals. Food benefit amounts vary based on household earnings and household size.
  • CalWORKs. Counties administer monthly cash grants for about 400,000 low‑income families with children. Grant amounts vary based on earnings and family size. Grants are funded with a combination of federal funds, state General Fund, and county realignment funds.
  • CalWORKs Family Stabilization. Grants to county CalWORKs offices to provide specialized services to CalWORKs families with significant barriers to employment. Services may include mental health treatment, substance use counseling, and some housing assistance.
  • CalWORKs Homeless Assistance Program. Counties provides homeless families (or families at‑risk of becoming homeless) with nightly hotel vouchers for a limited duration.
  • CalWORKs Housing Support Program. Grants to county CalWORKs offices to provide short‑term housing assistance, such as housing vouchers, and longer‑term rental assistance.
  • Earned Income Tax Credit. A state and federal income tax credit for low‑income working families and individuals, which reduces the tax amount owed by the tax‑filer and, in some cases, may provide eligible filers with a refundable income amount.
  • Emergency Solutions Grant Program. Provides grants for projects serving homeless individuals and families through eligible nonprofit organizations or local governments. Grants can be used for supportive services, emergency shelter/transitional housing, homelessness prevention assistance, and providing permanent housing.
  • Free and Reduced Price Meals. School district provide free and low‑cost school meals to low‑income pupils.
  • Homeless Emergency Aid Program. Provides funding to eligible cities and Continuums of Care for a variety of short‑term housing solutions for the homeless, such as shelters and rapid rehousing.
  • Housing and Disability Advocacy Program. Grants to counties to help disabled homeless individuals apply for disability benefit programs. During that process, counties provide housing assistance and help clients secure permanent housing.
  • Housing Planning and Production Grants. Provides grants to local governments meant to accelerate meeting new housing production goals.
  • Low‑Income Housing Tax Credit. A federal and state program that encourages the investment of private equity in the development of affordable rental housing for low‑income households. The Governors’ budget proposes to expand the state tax credit program and establish a new state tax credit program that targets households with relatively higher income.
  • Medi‑Cal. The state’s Medicaid program, which provides health care coverage to over 13 million of the state’s low‑income residents. Counties determine eligibility. Coverage is cost‑free for most Medi‑Cal enrollees. Instead, Medi‑Cal costs are generally shared between the federal and state governments.
  • Mixed‑Income Loan Program. Provides loans to developers for housing developments that include housing for low‑ to middle‑income households.
  • Multifamily Conduit Lending. Provides financing for eligible projects that provide affordable multifamily rental housing for individuals, families, seniors, veterans or special needs tenants.
  • Multifamily Lending. Provides long‑term financing for affordable multifamily rental housing projects.
  • Office of Migrant Services. Provides affordable seasonal rental housing and support services for migrant farmworker families during the peak harvest season.
  • Planning and Progress Grants to Address Homelessness. Provides grants to communities to expand or develop emergency shelters, navigation centers, and supportive housing.
  • Proposition 1 (2018)
    • CalHome. Provides grants to local public agencies and nonprofits to assist first‑time homebuyers become or remain homeowners through deferred‑payment loans. Funds can also be used to assist in the development of multiple‑unit ownership projects.
    • Farm and Home Loan Program. Provides home loans to eligible veterans, including veterans who may not otherwise qualify for a home loan.
    • Infill Infrastructure Grant Program. Provides grant funding for infrastructure improvements for new infill housing in residential and/or mixed‑use projects.
    • Joe Serna, Jr. Farmworker Housing Grant Program. Provides grants and loans for development or rehabilitation of rental and owner‑occupied housing for agricultural workers with priority for lower‑income households.
    • Local Housing Trust Fund Program. Lends money for construction of rental housing projects with units restricted for at least 55 years to households earning less than 60 percent of area median income.
    • Multifamily Housing Program. Provides low‑interest, long‑term deferred‑payment permanent loans for new construction, rehabilitation, and preservation of permanent and transitional rental housing for lower‑income households.
    • MyHome Assistance Program. Provides a deferred‑payment junior loan for down payment and/or closing costs.
    • Transit‑Oriented Development Program. Provides low‑interest loans and grants for rental housing that includes affordable units that are located within one‑quarter mile of a transit station.
  • Proposition 2 (2018): No Place Like Home. Provides funding to counties for the development of permanent supportive housing for persons who are in need of mental health services and are experiencing homelessness, chronic homelessness, or who are at risk of chronic homelessness.
  • School Teacher and Employee Assistance Program. Provides teachers, administrators, and school district employees with loans used for down payment assistance and/or closing costs of first homes.
  • Single Family Down Payment Assistance. Provides loans for down payment assistance. Loans are deferred until home is sold, refinanced, or paid in full.
  • Special Needs Housing Program. Allows local governments to use Mental Health Services Act and other local funds to provide financing for the development of permanent supportive rental housing that includes units dedicated for individuals with serious mental illness, and their families, who are homeless or at risk of homelessness
  • Supplemental Security Income/State Supplementary Payment. Monthly cash benefits for about 1.3 million low‑income aged, blind, and disabled individuals. The state’s General Fund provides the SSP portion of the grant while federal funds pay for the SSI portion of the grant.