CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1229Introduced by Assembly Member SchultzFebruary 21, 2025 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 5030 to the Penal Code, relating to housing.LEGISLATIVE COUNSEL'S DIGESTAB 1229, as introduced, Schultz. Adult Reentry Grant Program.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.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 up to 6 regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness. 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 score applicants applying for grant funds competitively. The bill would require the department to work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program, as specified. 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 a certain percentage of the program funds to be used for specified purposes, including rental and operating subsidies, incentives to landlords, and voluntary multidisciplinary services, as specified. The bill would require the department, within one year of program implementation, 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. 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, including funds allocated by Budget Act of 2025.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 individuals risk of homelessness upon discharge, as specified. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Fifteen percent of Californians on parole are unhoused and nearly all are unsheltered. The rate of individuals on parole who suffer from homeless 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.(b) People on parole are seven times more likely to recidivate when unhoused than when housed.(c) 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 tenants ability to recover from health conditions.(d) In 2018, the Legislature passed, and the Governor signed, Senate Bill 840 of the 201718 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.(e) Transformation of the Medi-Cal program and the states 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. CalAIMs community supports offers people supportive services they need to access housing and remain stably housed. CalAIMs 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.(f) It is the intent of the Legislature to connect the Adult Reentry Grant Programs 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.(g) 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.(h) 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 Californias 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 SEC. 2. Chapter 2.6 (commencing with Section 50480) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 2.6. The Adult Reentry Grant Program for Persons Experiencing or Likely to Experience Homelessness50480. For purposes of this article, the following definitions apply:(a) 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, including ongoing appropriations.(b) 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.(c) (1) 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:(A) Housing transition navigation services for services helping an individual access permanent housing.(B) Housing deposits.(C) Housing tenancy and sustaining services after a participant moves into permanent housing.(2) 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.(d) 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.(e) County includes a city and county or a city that is working with one or more counties to apply for grant funds.(f) Department means the Department of Housing and Community Development, unless otherwise identified.(g) 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.(h) 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.(i) Housing First has the same meaning as in Section 8255 of the Welfare and Institutions Code.(j) 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.(k) 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.(l) Likely to become homeless upon release means the individual has a history of experiencing homelessness and the individual satisfies either of the following:(1) The individual has not identified a fixed, regular, and adequate residence to occupy upon release.(2) The individuals 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.(m) 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.(n) 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 participants health status, and maximizing the participants ability to live and, when possible, work in the community. Permanent supportive housing includes associated facilities if used to provide services to tenants.(o) Program means the Adult Reentry Grant Program, as modified by this act.(p) Provider 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 services to participants experiencing or at risk of homelessness, with demonstrated fidelity to the Housing First model.(q) Regional Administrator means an entity coordinating existing funding sources, including 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, a flexible housing subsidy pool administrator, or other entity the department identifies.(r) 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 tenants income and fair market rent or reasonable market rent as determined by the grant recipient and approved by the department.(s) Subrecipient means a community-based organization that is a private nonprofit provider or public housing authority that the regional administrator determines is qualified to undertake the eligible activities for which the recipient seeks funds under the program, and that enters into a contract with the recipient to undertake those eligible activities in accordance with the requirements of the program.(t) 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.50481. 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.(a) On or before December 1, 2026, the department shall do all of the following:(1) Modify the Adult Reentry Grant program to provide grants to up to six regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness.(2) 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:(A) 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 or partnerships with affordable housing property managers to accept subsidies, and administration and oversight of vouchers or other forms of rental subsidies.(B) Experience administering requests for proposals or a similar competitive process for selecting subrecipients meeting the criteria of the program.(C) A relationship with a public housing authority to connect people to federal vouchers as they turn over.(D) 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.(E) 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 as a provider.(F) 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.(G) 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.(H) A viable plan to meet reporting requirements, as required by this chapter.(3) Establish criteria to score applicants applying for grant funds competitively. Scoring criteria shall include, but not be limited to, the following:(A) Need in the region, which includes consideration of the number of individuals experiencing homelessness among people on parole, to the extent data are available.(B) The viability of plans and extent of experience described in paragraph (2).(C) 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.(D) The applicants 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 applicants commitment and past fidelity to Housing First.(E) The applicants documented partnerships with affordable and supportive housing providers in the jurisdiction.(F) The applicants 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.(G) 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.(4) Work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program through the Justice-Involved Reentry Initiative, parole or probation agents, 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.(b) 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, including funds allocated by Budget Act of 2025.50482. (a) A person is eligible for participation in this program if both of the following are applicable:(1) The individual voluntarily chooses to participate.(2) Either of the following applies:(A) The individual has been assigned a date of release from prison within 30 to 180 days and is likely to become homeless upon release.(B) The person is currently experiencing homelessness as a person on parole or postrelease community supervision and has an experience of prison incarceration within the last five years.(b) 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.50483. (a) Program funds shall be used for the following eligible activities:(1) Up to 3 percent of program funds may be used for the departments administration of the program.(2) At least 70 percent of the funds shall be used for one or more of the following, so long as the housing funded under the program complies with the Housing First model:(A) Rental subsidies in an amount the applicant identifies, but no more than the maximum amount of rent a public housing authority may pay for the community in which the applicant is providing rental assistance.(B) 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.(C) Incentives to landlords to accept rental subsidies and house-eligible participants, including, but not limited to, security deposits and holding fees.(D) Reasonable administrative fees of regional administrators and subrecipients.(3) At least 10% of the funds shall be used for voluntary multidisciplinary services, to include the following:(A) Services assisting participants in transitioning from prison to the community, including linkage to Justice Involved Reentry Program in-reach providers, 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.(B) 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.(C) 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.(D) 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 shall include all of the following:(i) Assistance with completing employment applications.(ii) Identifying potential workplace accommodations that may be required.(iii) Assistance with addressing workplace situations and conflicts.(iv) Assistance with transportation needs.(v) Coordinating vocational training.(vi) Assistance with developing skills to maintain stable employment.(vii) Care coordination and advocacy with health care professionals to support care planning and referrals to other needed services.(E) Services assisting people learn financial literacy and management, as well as managing and building savings, including a process to assist participants in saving a consistent portion of their income from employment.(4) As needed, up to 10 percent of funds for 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.(b) 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 the services.(c) 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.(d) For participants identified prior to release from prison, the regional administrator or subrecipient provider, upon the service providers receipt of referral and, in collaboration with the parole agent or postrelease community supervision probation officer, if assigned to supervision, shall, when possible, do all of the following:(1) Seek all prerelease assessments and discharge plans.(2) Draft a plan for the participants transition into permanent housing in collaboration with the participant.(3) Engage the participant to actively participate in services upon release on a voluntary basis.(4) Assist the participant in obtaining identification and other documentation the participant may need to access housing and services.(5) Assist the participant in applying for any benefits for which the participant is eligible.(e) 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 the Housing First model.50484. (a) A regional administrator awarded a contract shall provide or subcontract with community-based organizations to provide reentry services, housing, community supports, and supported employment that participants need and want by doing the following:(1) 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.(2) Partnering with county behavioral health and health agencies to offer participants services and treatment participants need and want.(3) Partnering with county workforce investment boards.(4) Partnering with the regions homeless continuums of care and coordinated entry systems to coordinate referrals to housing for participants or potentially eligible participants.(5) Partnering with affordable and supportive housing developers to offer ongoing operating subsidies in available housing units for participants.(6) Coordinating with public housing authorities to connect participants to any federal housing subsidies available.(7) Providing administrative assistance to subcontracted community-based organizations in complying with the reporting and other administrative requirements of the department.(8) Working to reduce racial and ethnic disparities in eligible participants receiving housing and services.(9) Developing career pathways for participants, removing structural barriers to employment and promoting equitable access to leadership positions.(b) Any subcontracted providers 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.(c) 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.(d) In selecting subcontracted entities, regional administrators shall select providers that have or will have, by the time of contract start date, the following:(1) Removed barriers to hiring people with lived experience of incarceration.(2) Employed people with lived experience of incarceration and former homelessness.(3) 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.50485. (a) Regional administrators or their subcontracted community-based organizations shall identify and locate 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.(b) Housing identified pursuant to subdivision (a) shall satisfy all of the following:(1) 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.(2) 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.(3) The housing is not subject to community care licensing requirements and is exempt from licensing pursuant to Section 1504.5.(4) Upon referral to housing, participants are allowed to choose whether to share a single housing unit with nonrelatives or to live alone.(c) Shared housing shall meet the following requirements:(1) Participants shall be allowed to choose shared housing over living alone and to choose the people with whom they share housing.(2) Participants shall have their own private bedroom with a lockable door.(3) Every participant shall have their lease.(4) Housing units shall include bathrooms no more than four participants must share.(5) Housing units shall include kitchens on the same floor as the participant, unless living in a single family home.(6) The regional administrator or subcontractor shall ensure participants sharing housing receive services to assist in overcoming conflicts.50486. (a) 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. 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.(b) A regional administrator shall submit to the department an annual report on a form issued by the department, pertaining to the recipients 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:(1) The number of participants served.(2) The types of services provided to program participants.(3) The number of participants currently living in permanent housing, either in housing receiving or not receiving a program subsidy.(4) The average length of participation in the program.(5) Fidelity to Housing First among all providers.(6) 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 days in jail and prison among participants, and health outcomes or change in health status, to the extent data are available.(7) Through participant surveys, satisfaction with the program or changes to participants rating of their health, income, employment, and housing status.(c) Within one year of program implementation, the department shall design an evaluation and hire an independent evaluator to assess outcomes from the program, which shall include, but not be limited to, all of the following, disaggregated by race, gender, and gender identity:(1) The total number of participants served and the type of interventions provided.(2) The housing status of participants at 12, 24, and 36 months after entering the program, to the extent this data are available, including the number of participants who remained in permanent housing.(3) Recidivism among participants, including the number of arrests, days incarcerated, and incarceration in jail or prison.(4) Other outcomes evaluators are able to access through available data.(d) 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.(e) The department may monitor the expenditures and activities of the recipient, as the department deems necessary, to ensure compliance with program requirements.(f) 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.(g) 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.SEC. 3. Section 5030 is added to the Penal Code, to read:5030. (a) 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 individuals risk of homelessness upon discharge. The process shall include the following questions:(1) Do you have a plan for where you will live when you get out?(2) If you have a plan, where do you plan to sleep after returning to your community?(3) Where were you living when you were arrested, prior to your conviction?(4) 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?(b) The department shall not use any of the answers provided to lengthen an individuals term or to otherwise punish or discipline the individual CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1229Introduced by Assembly Member SchultzFebruary 21, 2025 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 5030 to the Penal Code, relating to housing.LEGISLATIVE COUNSEL'S DIGESTAB 1229, as introduced, Schultz. Adult Reentry Grant Program.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.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 up to 6 regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness. 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 score applicants applying for grant funds competitively. The bill would require the department to work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program, as specified. 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 a certain percentage of the program funds to be used for specified purposes, including rental and operating subsidies, incentives to landlords, and voluntary multidisciplinary services, as specified. The bill would require the department, within one year of program implementation, 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. 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, including funds allocated by Budget Act of 2025.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 individuals risk of homelessness upon discharge, as specified. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1229 Introduced by Assembly Member SchultzFebruary 21, 2025 Introduced by Assembly Member Schultz February 21, 2025 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 5030 to the Penal Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 1229, as introduced, Schultz. Adult Reentry Grant Program. 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.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 up to 6 regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness. 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 score applicants applying for grant funds competitively. The bill would require the department to work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program, as specified. 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 a certain percentage of the program funds to be used for specified purposes, including rental and operating subsidies, incentives to landlords, and voluntary multidisciplinary services, as specified. The bill would require the department, within one year of program implementation, 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. 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, including funds allocated by Budget Act of 2025.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 individuals risk of homelessness upon discharge, as specified. 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. 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 up to 6 regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness. 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 score applicants applying for grant funds competitively. The bill would require the department to work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program, as specified. 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 a certain percentage of the program funds to be used for specified purposes, including rental and operating subsidies, incentives to landlords, and voluntary multidisciplinary services, as specified. The bill would require the department, within one year of program implementation, 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. 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, including funds allocated by Budget Act of 2025. 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 individuals risk of homelessness upon discharge, as specified. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Fifteen percent of Californians on parole are unhoused and nearly all are unsheltered. The rate of individuals on parole who suffer from homeless 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.(b) People on parole are seven times more likely to recidivate when unhoused than when housed.(c) 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 tenants ability to recover from health conditions.(d) In 2018, the Legislature passed, and the Governor signed, Senate Bill 840 of the 201718 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.(e) Transformation of the Medi-Cal program and the states 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. CalAIMs community supports offers people supportive services they need to access housing and remain stably housed. CalAIMs 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.(f) It is the intent of the Legislature to connect the Adult Reentry Grant Programs 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.(g) 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.(h) 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 Californias 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 SEC. 2. Chapter 2.6 (commencing with Section 50480) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 2.6. The Adult Reentry Grant Program for Persons Experiencing or Likely to Experience Homelessness50480. For purposes of this article, the following definitions apply:(a) 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, including ongoing appropriations.(b) 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.(c) (1) 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:(A) Housing transition navigation services for services helping an individual access permanent housing.(B) Housing deposits.(C) Housing tenancy and sustaining services after a participant moves into permanent housing.(2) 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.(d) 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.(e) County includes a city and county or a city that is working with one or more counties to apply for grant funds.(f) Department means the Department of Housing and Community Development, unless otherwise identified.(g) 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.(h) 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.(i) Housing First has the same meaning as in Section 8255 of the Welfare and Institutions Code.(j) 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.(k) 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.(l) Likely to become homeless upon release means the individual has a history of experiencing homelessness and the individual satisfies either of the following:(1) The individual has not identified a fixed, regular, and adequate residence to occupy upon release.(2) The individuals 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.(m) 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.(n) 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 participants health status, and maximizing the participants ability to live and, when possible, work in the community. Permanent supportive housing includes associated facilities if used to provide services to tenants.(o) Program means the Adult Reentry Grant Program, as modified by this act.(p) Provider 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 services to participants experiencing or at risk of homelessness, with demonstrated fidelity to the Housing First model.(q) Regional Administrator means an entity coordinating existing funding sources, including 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, a flexible housing subsidy pool administrator, or other entity the department identifies.(r) 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 tenants income and fair market rent or reasonable market rent as determined by the grant recipient and approved by the department.(s) Subrecipient means a community-based organization that is a private nonprofit provider or public housing authority that the regional administrator determines is qualified to undertake the eligible activities for which the recipient seeks funds under the program, and that enters into a contract with the recipient to undertake those eligible activities in accordance with the requirements of the program.(t) 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.50481. 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.(a) On or before December 1, 2026, the department shall do all of the following:(1) Modify the Adult Reentry Grant program to provide grants to up to six regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness.(2) 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:(A) 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 or partnerships with affordable housing property managers to accept subsidies, and administration and oversight of vouchers or other forms of rental subsidies.(B) Experience administering requests for proposals or a similar competitive process for selecting subrecipients meeting the criteria of the program.(C) A relationship with a public housing authority to connect people to federal vouchers as they turn over.(D) 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.(E) 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 as a provider.(F) 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.(G) 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.(H) A viable plan to meet reporting requirements, as required by this chapter.(3) Establish criteria to score applicants applying for grant funds competitively. Scoring criteria shall include, but not be limited to, the following:(A) Need in the region, which includes consideration of the number of individuals experiencing homelessness among people on parole, to the extent data are available.(B) The viability of plans and extent of experience described in paragraph (2).(C) 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.(D) The applicants 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 applicants commitment and past fidelity to Housing First.(E) The applicants documented partnerships with affordable and supportive housing providers in the jurisdiction.(F) The applicants 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.(G) 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.(4) Work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program through the Justice-Involved Reentry Initiative, parole or probation agents, 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.(b) 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, including funds allocated by Budget Act of 2025.50482. (a) A person is eligible for participation in this program if both of the following are applicable:(1) The individual voluntarily chooses to participate.(2) Either of the following applies:(A) The individual has been assigned a date of release from prison within 30 to 180 days and is likely to become homeless upon release.(B) The person is currently experiencing homelessness as a person on parole or postrelease community supervision and has an experience of prison incarceration within the last five years.(b) 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.50483. (a) Program funds shall be used for the following eligible activities:(1) Up to 3 percent of program funds may be used for the departments administration of the program.(2) At least 70 percent of the funds shall be used for one or more of the following, so long as the housing funded under the program complies with the Housing First model:(A) Rental subsidies in an amount the applicant identifies, but no more than the maximum amount of rent a public housing authority may pay for the community in which the applicant is providing rental assistance.(B) 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.(C) Incentives to landlords to accept rental subsidies and house-eligible participants, including, but not limited to, security deposits and holding fees.(D) Reasonable administrative fees of regional administrators and subrecipients.(3) At least 10% of the funds shall be used for voluntary multidisciplinary services, to include the following:(A) Services assisting participants in transitioning from prison to the community, including linkage to Justice Involved Reentry Program in-reach providers, 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.(B) 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.(C) 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.(D) 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 shall include all of the following:(i) Assistance with completing employment applications.(ii) Identifying potential workplace accommodations that may be required.(iii) Assistance with addressing workplace situations and conflicts.(iv) Assistance with transportation needs.(v) Coordinating vocational training.(vi) Assistance with developing skills to maintain stable employment.(vii) Care coordination and advocacy with health care professionals to support care planning and referrals to other needed services.(E) Services assisting people learn financial literacy and management, as well as managing and building savings, including a process to assist participants in saving a consistent portion of their income from employment.(4) As needed, up to 10 percent of funds for 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.(b) 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 the services.(c) 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.(d) For participants identified prior to release from prison, the regional administrator or subrecipient provider, upon the service providers receipt of referral and, in collaboration with the parole agent or postrelease community supervision probation officer, if assigned to supervision, shall, when possible, do all of the following:(1) Seek all prerelease assessments and discharge plans.(2) Draft a plan for the participants transition into permanent housing in collaboration with the participant.(3) Engage the participant to actively participate in services upon release on a voluntary basis.(4) Assist the participant in obtaining identification and other documentation the participant may need to access housing and services.(5) Assist the participant in applying for any benefits for which the participant is eligible.(e) 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 the Housing First model.50484. (a) A regional administrator awarded a contract shall provide or subcontract with community-based organizations to provide reentry services, housing, community supports, and supported employment that participants need and want by doing the following:(1) 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.(2) Partnering with county behavioral health and health agencies to offer participants services and treatment participants need and want.(3) Partnering with county workforce investment boards.(4) Partnering with the regions homeless continuums of care and coordinated entry systems to coordinate referrals to housing for participants or potentially eligible participants.(5) Partnering with affordable and supportive housing developers to offer ongoing operating subsidies in available housing units for participants.(6) Coordinating with public housing authorities to connect participants to any federal housing subsidies available.(7) Providing administrative assistance to subcontracted community-based organizations in complying with the reporting and other administrative requirements of the department.(8) Working to reduce racial and ethnic disparities in eligible participants receiving housing and services.(9) Developing career pathways for participants, removing structural barriers to employment and promoting equitable access to leadership positions.(b) Any subcontracted providers 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.(c) 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.(d) In selecting subcontracted entities, regional administrators shall select providers that have or will have, by the time of contract start date, the following:(1) Removed barriers to hiring people with lived experience of incarceration.(2) Employed people with lived experience of incarceration and former homelessness.(3) 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.50485. (a) Regional administrators or their subcontracted community-based organizations shall identify and locate 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.(b) Housing identified pursuant to subdivision (a) shall satisfy all of the following:(1) 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.(2) 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.(3) The housing is not subject to community care licensing requirements and is exempt from licensing pursuant to Section 1504.5.(4) Upon referral to housing, participants are allowed to choose whether to share a single housing unit with nonrelatives or to live alone.(c) Shared housing shall meet the following requirements:(1) Participants shall be allowed to choose shared housing over living alone and to choose the people with whom they share housing.(2) Participants shall have their own private bedroom with a lockable door.(3) Every participant shall have their lease.(4) Housing units shall include bathrooms no more than four participants must share.(5) Housing units shall include kitchens on the same floor as the participant, unless living in a single family home.(6) The regional administrator or subcontractor shall ensure participants sharing housing receive services to assist in overcoming conflicts.50486. (a) 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. 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.(b) A regional administrator shall submit to the department an annual report on a form issued by the department, pertaining to the recipients 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:(1) The number of participants served.(2) The types of services provided to program participants.(3) The number of participants currently living in permanent housing, either in housing receiving or not receiving a program subsidy.(4) The average length of participation in the program.(5) Fidelity to Housing First among all providers.(6) 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 days in jail and prison among participants, and health outcomes or change in health status, to the extent data are available.(7) Through participant surveys, satisfaction with the program or changes to participants rating of their health, income, employment, and housing status.(c) Within one year of program implementation, the department shall design an evaluation and hire an independent evaluator to assess outcomes from the program, which shall include, but not be limited to, all of the following, disaggregated by race, gender, and gender identity:(1) The total number of participants served and the type of interventions provided.(2) The housing status of participants at 12, 24, and 36 months after entering the program, to the extent this data are available, including the number of participants who remained in permanent housing.(3) Recidivism among participants, including the number of arrests, days incarcerated, and incarceration in jail or prison.(4) Other outcomes evaluators are able to access through available data.(d) 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.(e) The department may monitor the expenditures and activities of the recipient, as the department deems necessary, to ensure compliance with program requirements.(f) 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.(g) 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.SEC. 3. Section 5030 is added to the Penal Code, to read:5030. (a) 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 individuals risk of homelessness upon discharge. The process shall include the following questions:(1) Do you have a plan for where you will live when you get out?(2) If you have a plan, where do you plan to sleep after returning to your community?(3) Where were you living when you were arrested, prior to your conviction?(4) 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?(b) The department shall not use any of the answers provided to lengthen an individuals term or to otherwise punish or discipline the individual The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following:(a) Fifteen percent of Californians on parole are unhoused and nearly all are unsheltered. The rate of individuals on parole who suffer from homeless 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.(b) People on parole are seven times more likely to recidivate when unhoused than when housed.(c) 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 tenants ability to recover from health conditions.(d) In 2018, the Legislature passed, and the Governor signed, Senate Bill 840 of the 201718 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.(e) Transformation of the Medi-Cal program and the states 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. CalAIMs community supports offers people supportive services they need to access housing and remain stably housed. CalAIMs 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.(f) It is the intent of the Legislature to connect the Adult Reentry Grant Programs 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.(g) 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.(h) 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 Californias 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 SECTION 1. The Legislature finds and declares all of the following:(a) Fifteen percent of Californians on parole are unhoused and nearly all are unsheltered. The rate of individuals on parole who suffer from homeless 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.(b) People on parole are seven times more likely to recidivate when unhoused than when housed.(c) 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 tenants ability to recover from health conditions.(d) In 2018, the Legislature passed, and the Governor signed, Senate Bill 840 of the 201718 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.(e) Transformation of the Medi-Cal program and the states 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. CalAIMs community supports offers people supportive services they need to access housing and remain stably housed. CalAIMs 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.(f) It is the intent of the Legislature to connect the Adult Reentry Grant Programs 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.(g) 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.(h) 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 Californias 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 SECTION 1. The Legislature finds and declares all of the following: ### SECTION 1. (a) Fifteen percent of Californians on parole are unhoused and nearly all are unsheltered. The rate of individuals on parole who suffer from homeless 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. (b) People on parole are seven times more likely to recidivate when unhoused than when housed. (c) 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 tenants ability to recover from health conditions. (d) In 2018, the Legislature passed, and the Governor signed, Senate Bill 840 of the 201718 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. (e) Transformation of the Medi-Cal program and the states 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. CalAIMs community supports offers people supportive services they need to access housing and remain stably housed. CalAIMs 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. (f) It is the intent of the Legislature to connect the Adult Reentry Grant Programs 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. (g) 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. (h) 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 Californias 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 SEC. 2. Chapter 2.6 (commencing with Section 50480) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 2.6. The Adult Reentry Grant Program for Persons Experiencing or Likely to Experience Homelessness50480. For purposes of this article, the following definitions apply:(a) 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, including ongoing appropriations.(b) 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.(c) (1) 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:(A) Housing transition navigation services for services helping an individual access permanent housing.(B) Housing deposits.(C) Housing tenancy and sustaining services after a participant moves into permanent housing.(2) 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.(d) 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.(e) County includes a city and county or a city that is working with one or more counties to apply for grant funds.(f) Department means the Department of Housing and Community Development, unless otherwise identified.(g) 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.(h) 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.(i) Housing First has the same meaning as in Section 8255 of the Welfare and Institutions Code.(j) 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.(k) 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.(l) Likely to become homeless upon release means the individual has a history of experiencing homelessness and the individual satisfies either of the following:(1) The individual has not identified a fixed, regular, and adequate residence to occupy upon release.(2) The individuals 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.(m) 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.(n) 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 participants health status, and maximizing the participants ability to live and, when possible, work in the community. Permanent supportive housing includes associated facilities if used to provide services to tenants.(o) Program means the Adult Reentry Grant Program, as modified by this act.(p) Provider 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 services to participants experiencing or at risk of homelessness, with demonstrated fidelity to the Housing First model.(q) Regional Administrator means an entity coordinating existing funding sources, including 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, a flexible housing subsidy pool administrator, or other entity the department identifies.(r) 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 tenants income and fair market rent or reasonable market rent as determined by the grant recipient and approved by the department.(s) Subrecipient means a community-based organization that is a private nonprofit provider or public housing authority that the regional administrator determines is qualified to undertake the eligible activities for which the recipient seeks funds under the program, and that enters into a contract with the recipient to undertake those eligible activities in accordance with the requirements of the program.(t) 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.50481. 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.(a) On or before December 1, 2026, the department shall do all of the following:(1) Modify the Adult Reentry Grant program to provide grants to up to six regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness.(2) 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:(A) 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 or partnerships with affordable housing property managers to accept subsidies, and administration and oversight of vouchers or other forms of rental subsidies.(B) Experience administering requests for proposals or a similar competitive process for selecting subrecipients meeting the criteria of the program.(C) A relationship with a public housing authority to connect people to federal vouchers as they turn over.(D) 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.(E) 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 as a provider.(F) 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.(G) 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.(H) A viable plan to meet reporting requirements, as required by this chapter.(3) Establish criteria to score applicants applying for grant funds competitively. Scoring criteria shall include, but not be limited to, the following:(A) Need in the region, which includes consideration of the number of individuals experiencing homelessness among people on parole, to the extent data are available.(B) The viability of plans and extent of experience described in paragraph (2).(C) 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.(D) The applicants 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 applicants commitment and past fidelity to Housing First.(E) The applicants documented partnerships with affordable and supportive housing providers in the jurisdiction.(F) The applicants 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.(G) 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.(4) Work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program through the Justice-Involved Reentry Initiative, parole or probation agents, 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.(b) 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, including funds allocated by Budget Act of 2025.50482. (a) A person is eligible for participation in this program if both of the following are applicable:(1) The individual voluntarily chooses to participate.(2) Either of the following applies:(A) The individual has been assigned a date of release from prison within 30 to 180 days and is likely to become homeless upon release.(B) The person is currently experiencing homelessness as a person on parole or postrelease community supervision and has an experience of prison incarceration within the last five years.(b) 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.50483. (a) Program funds shall be used for the following eligible activities:(1) Up to 3 percent of program funds may be used for the departments administration of the program.(2) At least 70 percent of the funds shall be used for one or more of the following, so long as the housing funded under the program complies with the Housing First model:(A) Rental subsidies in an amount the applicant identifies, but no more than the maximum amount of rent a public housing authority may pay for the community in which the applicant is providing rental assistance.(B) 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.(C) Incentives to landlords to accept rental subsidies and house-eligible participants, including, but not limited to, security deposits and holding fees.(D) Reasonable administrative fees of regional administrators and subrecipients.(3) At least 10% of the funds shall be used for voluntary multidisciplinary services, to include the following:(A) Services assisting participants in transitioning from prison to the community, including linkage to Justice Involved Reentry Program in-reach providers, 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.(B) 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.(C) 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.(D) 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 shall include all of the following:(i) Assistance with completing employment applications.(ii) Identifying potential workplace accommodations that may be required.(iii) Assistance with addressing workplace situations and conflicts.(iv) Assistance with transportation needs.(v) Coordinating vocational training.(vi) Assistance with developing skills to maintain stable employment.(vii) Care coordination and advocacy with health care professionals to support care planning and referrals to other needed services.(E) Services assisting people learn financial literacy and management, as well as managing and building savings, including a process to assist participants in saving a consistent portion of their income from employment.(4) As needed, up to 10 percent of funds for 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.(b) 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 the services.(c) 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.(d) For participants identified prior to release from prison, the regional administrator or subrecipient provider, upon the service providers receipt of referral and, in collaboration with the parole agent or postrelease community supervision probation officer, if assigned to supervision, shall, when possible, do all of the following:(1) Seek all prerelease assessments and discharge plans.(2) Draft a plan for the participants transition into permanent housing in collaboration with the participant.(3) Engage the participant to actively participate in services upon release on a voluntary basis.(4) Assist the participant in obtaining identification and other documentation the participant may need to access housing and services.(5) Assist the participant in applying for any benefits for which the participant is eligible.(e) 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 the Housing First model.50484. (a) A regional administrator awarded a contract shall provide or subcontract with community-based organizations to provide reentry services, housing, community supports, and supported employment that participants need and want by doing the following:(1) 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.(2) Partnering with county behavioral health and health agencies to offer participants services and treatment participants need and want.(3) Partnering with county workforce investment boards.(4) Partnering with the regions homeless continuums of care and coordinated entry systems to coordinate referrals to housing for participants or potentially eligible participants.(5) Partnering with affordable and supportive housing developers to offer ongoing operating subsidies in available housing units for participants.(6) Coordinating with public housing authorities to connect participants to any federal housing subsidies available.(7) Providing administrative assistance to subcontracted community-based organizations in complying with the reporting and other administrative requirements of the department.(8) Working to reduce racial and ethnic disparities in eligible participants receiving housing and services.(9) Developing career pathways for participants, removing structural barriers to employment and promoting equitable access to leadership positions.(b) Any subcontracted providers 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.(c) 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.(d) In selecting subcontracted entities, regional administrators shall select providers that have or will have, by the time of contract start date, the following:(1) Removed barriers to hiring people with lived experience of incarceration.(2) Employed people with lived experience of incarceration and former homelessness.(3) 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.50485. (a) Regional administrators or their subcontracted community-based organizations shall identify and locate 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.(b) Housing identified pursuant to subdivision (a) shall satisfy all of the following:(1) 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.(2) 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.(3) The housing is not subject to community care licensing requirements and is exempt from licensing pursuant to Section 1504.5.(4) Upon referral to housing, participants are allowed to choose whether to share a single housing unit with nonrelatives or to live alone.(c) Shared housing shall meet the following requirements:(1) Participants shall be allowed to choose shared housing over living alone and to choose the people with whom they share housing.(2) Participants shall have their own private bedroom with a lockable door.(3) Every participant shall have their lease.(4) Housing units shall include bathrooms no more than four participants must share.(5) Housing units shall include kitchens on the same floor as the participant, unless living in a single family home.(6) The regional administrator or subcontractor shall ensure participants sharing housing receive services to assist in overcoming conflicts.50486. (a) 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. 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.(b) A regional administrator shall submit to the department an annual report on a form issued by the department, pertaining to the recipients 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:(1) The number of participants served.(2) The types of services provided to program participants.(3) The number of participants currently living in permanent housing, either in housing receiving or not receiving a program subsidy.(4) The average length of participation in the program.(5) Fidelity to Housing First among all providers.(6) 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 days in jail and prison among participants, and health outcomes or change in health status, to the extent data are available.(7) Through participant surveys, satisfaction with the program or changes to participants rating of their health, income, employment, and housing status.(c) Within one year of program implementation, the department shall design an evaluation and hire an independent evaluator to assess outcomes from the program, which shall include, but not be limited to, all of the following, disaggregated by race, gender, and gender identity:(1) The total number of participants served and the type of interventions provided.(2) The housing status of participants at 12, 24, and 36 months after entering the program, to the extent this data are available, including the number of participants who remained in permanent housing.(3) Recidivism among participants, including the number of arrests, days incarcerated, and incarceration in jail or prison.(4) Other outcomes evaluators are able to access through available data.(d) 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.(e) The department may monitor the expenditures and activities of the recipient, as the department deems necessary, to ensure compliance with program requirements.(f) 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.(g) 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. SEC. 2. Chapter 2.6 (commencing with Section 50480) is added to Part 2 of Division 31 of the Health and Safety Code, to read: ### SEC. 2. CHAPTER 2.6. The Adult Reentry Grant Program for Persons Experiencing or Likely to Experience Homelessness50480. For purposes of this article, the following definitions apply:(a) 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, including ongoing appropriations.(b) 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.(c) (1) 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:(A) Housing transition navigation services for services helping an individual access permanent housing.(B) Housing deposits.(C) Housing tenancy and sustaining services after a participant moves into permanent housing.(2) 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.(d) 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.(e) County includes a city and county or a city that is working with one or more counties to apply for grant funds.(f) Department means the Department of Housing and Community Development, unless otherwise identified.(g) 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.(h) 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.(i) Housing First has the same meaning as in Section 8255 of the Welfare and Institutions Code.(j) 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.(k) 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.(l) Likely to become homeless upon release means the individual has a history of experiencing homelessness and the individual satisfies either of the following:(1) The individual has not identified a fixed, regular, and adequate residence to occupy upon release.(2) The individuals 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.(m) 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.(n) 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 participants health status, and maximizing the participants ability to live and, when possible, work in the community. Permanent supportive housing includes associated facilities if used to provide services to tenants.(o) Program means the Adult Reentry Grant Program, as modified by this act.(p) Provider 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 services to participants experiencing or at risk of homelessness, with demonstrated fidelity to the Housing First model.(q) Regional Administrator means an entity coordinating existing funding sources, including 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, a flexible housing subsidy pool administrator, or other entity the department identifies.(r) 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 tenants income and fair market rent or reasonable market rent as determined by the grant recipient and approved by the department.(s) Subrecipient means a community-based organization that is a private nonprofit provider or public housing authority that the regional administrator determines is qualified to undertake the eligible activities for which the recipient seeks funds under the program, and that enters into a contract with the recipient to undertake those eligible activities in accordance with the requirements of the program.(t) 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.50481. 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.(a) On or before December 1, 2026, the department shall do all of the following:(1) Modify the Adult Reentry Grant program to provide grants to up to six regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness.(2) 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:(A) 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 or partnerships with affordable housing property managers to accept subsidies, and administration and oversight of vouchers or other forms of rental subsidies.(B) Experience administering requests for proposals or a similar competitive process for selecting subrecipients meeting the criteria of the program.(C) A relationship with a public housing authority to connect people to federal vouchers as they turn over.(D) 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.(E) 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 as a provider.(F) 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.(G) 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.(H) A viable plan to meet reporting requirements, as required by this chapter.(3) Establish criteria to score applicants applying for grant funds competitively. Scoring criteria shall include, but not be limited to, the following:(A) Need in the region, which includes consideration of the number of individuals experiencing homelessness among people on parole, to the extent data are available.(B) The viability of plans and extent of experience described in paragraph (2).(C) 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.(D) The applicants 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 applicants commitment and past fidelity to Housing First.(E) The applicants documented partnerships with affordable and supportive housing providers in the jurisdiction.(F) The applicants 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.(G) 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.(4) Work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program through the Justice-Involved Reentry Initiative, parole or probation agents, 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.(b) 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, including funds allocated by Budget Act of 2025.50482. (a) A person is eligible for participation in this program if both of the following are applicable:(1) The individual voluntarily chooses to participate.(2) Either of the following applies:(A) The individual has been assigned a date of release from prison within 30 to 180 days and is likely to become homeless upon release.(B) The person is currently experiencing homelessness as a person on parole or postrelease community supervision and has an experience of prison incarceration within the last five years.(b) 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.50483. (a) Program funds shall be used for the following eligible activities:(1) Up to 3 percent of program funds may be used for the departments administration of the program.(2) At least 70 percent of the funds shall be used for one or more of the following, so long as the housing funded under the program complies with the Housing First model:(A) Rental subsidies in an amount the applicant identifies, but no more than the maximum amount of rent a public housing authority may pay for the community in which the applicant is providing rental assistance.(B) 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.(C) Incentives to landlords to accept rental subsidies and house-eligible participants, including, but not limited to, security deposits and holding fees.(D) Reasonable administrative fees of regional administrators and subrecipients.(3) At least 10% of the funds shall be used for voluntary multidisciplinary services, to include the following:(A) Services assisting participants in transitioning from prison to the community, including linkage to Justice Involved Reentry Program in-reach providers, 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.(B) 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.(C) 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.(D) 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 shall include all of the following:(i) Assistance with completing employment applications.(ii) Identifying potential workplace accommodations that may be required.(iii) Assistance with addressing workplace situations and conflicts.(iv) Assistance with transportation needs.(v) Coordinating vocational training.(vi) Assistance with developing skills to maintain stable employment.(vii) Care coordination and advocacy with health care professionals to support care planning and referrals to other needed services.(E) Services assisting people learn financial literacy and management, as well as managing and building savings, including a process to assist participants in saving a consistent portion of their income from employment.(4) As needed, up to 10 percent of funds for 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.(b) 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 the services.(c) 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.(d) For participants identified prior to release from prison, the regional administrator or subrecipient provider, upon the service providers receipt of referral and, in collaboration with the parole agent or postrelease community supervision probation officer, if assigned to supervision, shall, when possible, do all of the following:(1) Seek all prerelease assessments and discharge plans.(2) Draft a plan for the participants transition into permanent housing in collaboration with the participant.(3) Engage the participant to actively participate in services upon release on a voluntary basis.(4) Assist the participant in obtaining identification and other documentation the participant may need to access housing and services.(5) Assist the participant in applying for any benefits for which the participant is eligible.(e) 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 the Housing First model.50484. (a) A regional administrator awarded a contract shall provide or subcontract with community-based organizations to provide reentry services, housing, community supports, and supported employment that participants need and want by doing the following:(1) 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.(2) Partnering with county behavioral health and health agencies to offer participants services and treatment participants need and want.(3) Partnering with county workforce investment boards.(4) Partnering with the regions homeless continuums of care and coordinated entry systems to coordinate referrals to housing for participants or potentially eligible participants.(5) Partnering with affordable and supportive housing developers to offer ongoing operating subsidies in available housing units for participants.(6) Coordinating with public housing authorities to connect participants to any federal housing subsidies available.(7) Providing administrative assistance to subcontracted community-based organizations in complying with the reporting and other administrative requirements of the department.(8) Working to reduce racial and ethnic disparities in eligible participants receiving housing and services.(9) Developing career pathways for participants, removing structural barriers to employment and promoting equitable access to leadership positions.(b) Any subcontracted providers 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.(c) 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.(d) In selecting subcontracted entities, regional administrators shall select providers that have or will have, by the time of contract start date, the following:(1) Removed barriers to hiring people with lived experience of incarceration.(2) Employed people with lived experience of incarceration and former homelessness.(3) 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.50485. (a) Regional administrators or their subcontracted community-based organizations shall identify and locate 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.(b) Housing identified pursuant to subdivision (a) shall satisfy all of the following:(1) 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.(2) 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.(3) The housing is not subject to community care licensing requirements and is exempt from licensing pursuant to Section 1504.5.(4) Upon referral to housing, participants are allowed to choose whether to share a single housing unit with nonrelatives or to live alone.(c) Shared housing shall meet the following requirements:(1) Participants shall be allowed to choose shared housing over living alone and to choose the people with whom they share housing.(2) Participants shall have their own private bedroom with a lockable door.(3) Every participant shall have their lease.(4) Housing units shall include bathrooms no more than four participants must share.(5) Housing units shall include kitchens on the same floor as the participant, unless living in a single family home.(6) The regional administrator or subcontractor shall ensure participants sharing housing receive services to assist in overcoming conflicts.50486. (a) 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. 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.(b) A regional administrator shall submit to the department an annual report on a form issued by the department, pertaining to the recipients 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:(1) The number of participants served.(2) The types of services provided to program participants.(3) The number of participants currently living in permanent housing, either in housing receiving or not receiving a program subsidy.(4) The average length of participation in the program.(5) Fidelity to Housing First among all providers.(6) 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 days in jail and prison among participants, and health outcomes or change in health status, to the extent data are available.(7) Through participant surveys, satisfaction with the program or changes to participants rating of their health, income, employment, and housing status.(c) Within one year of program implementation, the department shall design an evaluation and hire an independent evaluator to assess outcomes from the program, which shall include, but not be limited to, all of the following, disaggregated by race, gender, and gender identity:(1) The total number of participants served and the type of interventions provided.(2) The housing status of participants at 12, 24, and 36 months after entering the program, to the extent this data are available, including the number of participants who remained in permanent housing.(3) Recidivism among participants, including the number of arrests, days incarcerated, and incarceration in jail or prison.(4) Other outcomes evaluators are able to access through available data.(d) 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.(e) The department may monitor the expenditures and activities of the recipient, as the department deems necessary, to ensure compliance with program requirements.(f) 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.(g) 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. CHAPTER 2.6. The Adult Reentry Grant Program for Persons Experiencing or Likely to Experience Homelessness50480. For purposes of this article, the following definitions apply:(a) 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, including ongoing appropriations.(b) 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.(c) (1) 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:(A) Housing transition navigation services for services helping an individual access permanent housing.(B) Housing deposits.(C) Housing tenancy and sustaining services after a participant moves into permanent housing.(2) 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.(d) 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.(e) County includes a city and county or a city that is working with one or more counties to apply for grant funds.(f) Department means the Department of Housing and Community Development, unless otherwise identified.(g) 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.(h) 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.(i) Housing First has the same meaning as in Section 8255 of the Welfare and Institutions Code.(j) 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.(k) 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.(l) Likely to become homeless upon release means the individual has a history of experiencing homelessness and the individual satisfies either of the following:(1) The individual has not identified a fixed, regular, and adequate residence to occupy upon release.(2) The individuals 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.(m) 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.(n) 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 participants health status, and maximizing the participants ability to live and, when possible, work in the community. Permanent supportive housing includes associated facilities if used to provide services to tenants.(o) Program means the Adult Reentry Grant Program, as modified by this act.(p) Provider 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 services to participants experiencing or at risk of homelessness, with demonstrated fidelity to the Housing First model.(q) Regional Administrator means an entity coordinating existing funding sources, including 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, a flexible housing subsidy pool administrator, or other entity the department identifies.(r) 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 tenants income and fair market rent or reasonable market rent as determined by the grant recipient and approved by the department.(s) Subrecipient means a community-based organization that is a private nonprofit provider or public housing authority that the regional administrator determines is qualified to undertake the eligible activities for which the recipient seeks funds under the program, and that enters into a contract with the recipient to undertake those eligible activities in accordance with the requirements of the program.(t) 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.50481. 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.(a) On or before December 1, 2026, the department shall do all of the following:(1) Modify the Adult Reentry Grant program to provide grants to up to six regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness.(2) 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:(A) 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 or partnerships with affordable housing property managers to accept subsidies, and administration and oversight of vouchers or other forms of rental subsidies.(B) Experience administering requests for proposals or a similar competitive process for selecting subrecipients meeting the criteria of the program.(C) A relationship with a public housing authority to connect people to federal vouchers as they turn over.(D) 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.(E) 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 as a provider.(F) 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.(G) 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.(H) A viable plan to meet reporting requirements, as required by this chapter.(3) Establish criteria to score applicants applying for grant funds competitively. Scoring criteria shall include, but not be limited to, the following:(A) Need in the region, which includes consideration of the number of individuals experiencing homelessness among people on parole, to the extent data are available.(B) The viability of plans and extent of experience described in paragraph (2).(C) 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.(D) The applicants 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 applicants commitment and past fidelity to Housing First.(E) The applicants documented partnerships with affordable and supportive housing providers in the jurisdiction.(F) The applicants 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.(G) 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.(4) Work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program through the Justice-Involved Reentry Initiative, parole or probation agents, 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.(b) 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, including funds allocated by Budget Act of 2025.50482. (a) A person is eligible for participation in this program if both of the following are applicable:(1) The individual voluntarily chooses to participate.(2) Either of the following applies:(A) The individual has been assigned a date of release from prison within 30 to 180 days and is likely to become homeless upon release.(B) The person is currently experiencing homelessness as a person on parole or postrelease community supervision and has an experience of prison incarceration within the last five years.(b) 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.50483. (a) Program funds shall be used for the following eligible activities:(1) Up to 3 percent of program funds may be used for the departments administration of the program.(2) At least 70 percent of the funds shall be used for one or more of the following, so long as the housing funded under the program complies with the Housing First model:(A) Rental subsidies in an amount the applicant identifies, but no more than the maximum amount of rent a public housing authority may pay for the community in which the applicant is providing rental assistance.(B) 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.(C) Incentives to landlords to accept rental subsidies and house-eligible participants, including, but not limited to, security deposits and holding fees.(D) Reasonable administrative fees of regional administrators and subrecipients.(3) At least 10% of the funds shall be used for voluntary multidisciplinary services, to include the following:(A) Services assisting participants in transitioning from prison to the community, including linkage to Justice Involved Reentry Program in-reach providers, 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.(B) 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.(C) 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.(D) 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 shall include all of the following:(i) Assistance with completing employment applications.(ii) Identifying potential workplace accommodations that may be required.(iii) Assistance with addressing workplace situations and conflicts.(iv) Assistance with transportation needs.(v) Coordinating vocational training.(vi) Assistance with developing skills to maintain stable employment.(vii) Care coordination and advocacy with health care professionals to support care planning and referrals to other needed services.(E) Services assisting people learn financial literacy and management, as well as managing and building savings, including a process to assist participants in saving a consistent portion of their income from employment.(4) As needed, up to 10 percent of funds for 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.(b) 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 the services.(c) 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.(d) For participants identified prior to release from prison, the regional administrator or subrecipient provider, upon the service providers receipt of referral and, in collaboration with the parole agent or postrelease community supervision probation officer, if assigned to supervision, shall, when possible, do all of the following:(1) Seek all prerelease assessments and discharge plans.(2) Draft a plan for the participants transition into permanent housing in collaboration with the participant.(3) Engage the participant to actively participate in services upon release on a voluntary basis.(4) Assist the participant in obtaining identification and other documentation the participant may need to access housing and services.(5) Assist the participant in applying for any benefits for which the participant is eligible.(e) 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 the Housing First model.50484. (a) A regional administrator awarded a contract shall provide or subcontract with community-based organizations to provide reentry services, housing, community supports, and supported employment that participants need and want by doing the following:(1) 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.(2) Partnering with county behavioral health and health agencies to offer participants services and treatment participants need and want.(3) Partnering with county workforce investment boards.(4) Partnering with the regions homeless continuums of care and coordinated entry systems to coordinate referrals to housing for participants or potentially eligible participants.(5) Partnering with affordable and supportive housing developers to offer ongoing operating subsidies in available housing units for participants.(6) Coordinating with public housing authorities to connect participants to any federal housing subsidies available.(7) Providing administrative assistance to subcontracted community-based organizations in complying with the reporting and other administrative requirements of the department.(8) Working to reduce racial and ethnic disparities in eligible participants receiving housing and services.(9) Developing career pathways for participants, removing structural barriers to employment and promoting equitable access to leadership positions.(b) Any subcontracted providers 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.(c) 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.(d) In selecting subcontracted entities, regional administrators shall select providers that have or will have, by the time of contract start date, the following:(1) Removed barriers to hiring people with lived experience of incarceration.(2) Employed people with lived experience of incarceration and former homelessness.(3) 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.50485. (a) Regional administrators or their subcontracted community-based organizations shall identify and locate 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.(b) Housing identified pursuant to subdivision (a) shall satisfy all of the following:(1) 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.(2) 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.(3) The housing is not subject to community care licensing requirements and is exempt from licensing pursuant to Section 1504.5.(4) Upon referral to housing, participants are allowed to choose whether to share a single housing unit with nonrelatives or to live alone.(c) Shared housing shall meet the following requirements:(1) Participants shall be allowed to choose shared housing over living alone and to choose the people with whom they share housing.(2) Participants shall have their own private bedroom with a lockable door.(3) Every participant shall have their lease.(4) Housing units shall include bathrooms no more than four participants must share.(5) Housing units shall include kitchens on the same floor as the participant, unless living in a single family home.(6) The regional administrator or subcontractor shall ensure participants sharing housing receive services to assist in overcoming conflicts.50486. (a) 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. 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.(b) A regional administrator shall submit to the department an annual report on a form issued by the department, pertaining to the recipients 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:(1) The number of participants served.(2) The types of services provided to program participants.(3) The number of participants currently living in permanent housing, either in housing receiving or not receiving a program subsidy.(4) The average length of participation in the program.(5) Fidelity to Housing First among all providers.(6) 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 days in jail and prison among participants, and health outcomes or change in health status, to the extent data are available.(7) Through participant surveys, satisfaction with the program or changes to participants rating of their health, income, employment, and housing status.(c) Within one year of program implementation, the department shall design an evaluation and hire an independent evaluator to assess outcomes from the program, which shall include, but not be limited to, all of the following, disaggregated by race, gender, and gender identity:(1) The total number of participants served and the type of interventions provided.(2) The housing status of participants at 12, 24, and 36 months after entering the program, to the extent this data are available, including the number of participants who remained in permanent housing.(3) Recidivism among participants, including the number of arrests, days incarcerated, and incarceration in jail or prison.(4) Other outcomes evaluators are able to access through available data.(d) 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.(e) The department may monitor the expenditures and activities of the recipient, as the department deems necessary, to ensure compliance with program requirements.(f) 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.(g) 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. CHAPTER 2.6. The Adult Reentry Grant Program for Persons Experiencing or Likely to Experience Homelessness CHAPTER 2.6. The Adult Reentry Grant Program for Persons Experiencing or Likely to Experience Homelessness 50480. For purposes of this article, the following definitions apply:(a) 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, including ongoing appropriations.(b) 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.(c) (1) 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:(A) Housing transition navigation services for services helping an individual access permanent housing.(B) Housing deposits.(C) Housing tenancy and sustaining services after a participant moves into permanent housing.(2) 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.(d) 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.(e) County includes a city and county or a city that is working with one or more counties to apply for grant funds.(f) Department means the Department of Housing and Community Development, unless otherwise identified.(g) 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.(h) 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.(i) Housing First has the same meaning as in Section 8255 of the Welfare and Institutions Code.(j) 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.(k) 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.(l) Likely to become homeless upon release means the individual has a history of experiencing homelessness and the individual satisfies either of the following:(1) The individual has not identified a fixed, regular, and adequate residence to occupy upon release.(2) The individuals 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.(m) 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.(n) 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 participants health status, and maximizing the participants ability to live and, when possible, work in the community. Permanent supportive housing includes associated facilities if used to provide services to tenants.(o) Program means the Adult Reentry Grant Program, as modified by this act.(p) Provider 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 services to participants experiencing or at risk of homelessness, with demonstrated fidelity to the Housing First model.(q) Regional Administrator means an entity coordinating existing funding sources, including 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, a flexible housing subsidy pool administrator, or other entity the department identifies.(r) 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 tenants income and fair market rent or reasonable market rent as determined by the grant recipient and approved by the department.(s) Subrecipient means a community-based organization that is a private nonprofit provider or public housing authority that the regional administrator determines is qualified to undertake the eligible activities for which the recipient seeks funds under the program, and that enters into a contract with the recipient to undertake those eligible activities in accordance with the requirements of the program.(t) 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. 50480. For purposes of this article, the following definitions apply: (a) 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, including ongoing appropriations. (b) 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. (c) (1) 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: (A) Housing transition navigation services for services helping an individual access permanent housing. (B) Housing deposits. (C) Housing tenancy and sustaining services after a participant moves into permanent housing. (2) 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. (d) 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. (e) County includes a city and county or a city that is working with one or more counties to apply for grant funds. (f) Department means the Department of Housing and Community Development, unless otherwise identified. (g) 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. (h) 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. (i) Housing First has the same meaning as in Section 8255 of the Welfare and Institutions Code. (j) 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. (k) 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. (l) Likely to become homeless upon release means the individual has a history of experiencing homelessness and the individual satisfies either of the following: (1) The individual has not identified a fixed, regular, and adequate residence to occupy upon release. (2) The individuals 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. (m) 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. (n) 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 participants health status, and maximizing the participants ability to live and, when possible, work in the community. Permanent supportive housing includes associated facilities if used to provide services to tenants. (o) Program means the Adult Reentry Grant Program, as modified by this act. (p) Provider 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 services to participants experiencing or at risk of homelessness, with demonstrated fidelity to the Housing First model. (q) Regional Administrator means an entity coordinating existing funding sources, including 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, a flexible housing subsidy pool administrator, or other entity the department identifies. (r) 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 tenants income and fair market rent or reasonable market rent as determined by the grant recipient and approved by the department. (s) Subrecipient means a community-based organization that is a private nonprofit provider or public housing authority that the regional administrator determines is qualified to undertake the eligible activities for which the recipient seeks funds under the program, and that enters into a contract with the recipient to undertake those eligible activities in accordance with the requirements of the program. (t) 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. 50481. 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.(a) On or before December 1, 2026, the department shall do all of the following:(1) Modify the Adult Reentry Grant program to provide grants to up to six regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness.(2) 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:(A) 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 or partnerships with affordable housing property managers to accept subsidies, and administration and oversight of vouchers or other forms of rental subsidies.(B) Experience administering requests for proposals or a similar competitive process for selecting subrecipients meeting the criteria of the program.(C) A relationship with a public housing authority to connect people to federal vouchers as they turn over.(D) 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.(E) 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 as a provider.(F) 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.(G) 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.(H) A viable plan to meet reporting requirements, as required by this chapter.(3) Establish criteria to score applicants applying for grant funds competitively. Scoring criteria shall include, but not be limited to, the following:(A) Need in the region, which includes consideration of the number of individuals experiencing homelessness among people on parole, to the extent data are available.(B) The viability of plans and extent of experience described in paragraph (2).(C) 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.(D) The applicants 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 applicants commitment and past fidelity to Housing First.(E) The applicants documented partnerships with affordable and supportive housing providers in the jurisdiction.(F) The applicants 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.(G) 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.(4) Work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program through the Justice-Involved Reentry Initiative, parole or probation agents, 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.(b) 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, including funds allocated by Budget Act of 2025. 50481. 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. (a) On or before December 1, 2026, the department shall do all of the following: (1) Modify the Adult Reentry Grant program to provide grants to up to six regional administrators responsible for funding permanent affordable housing and services for people who were formerly incarcerated in state prison and are experiencing homelessness or are at risk of homelessness. (2) 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: (A) 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 or partnerships with affordable housing property managers to accept subsidies, and administration and oversight of vouchers or other forms of rental subsidies. (B) Experience administering requests for proposals or a similar competitive process for selecting subrecipients meeting the criteria of the program. (C) A relationship with a public housing authority to connect people to federal vouchers as they turn over. (D) 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. (E) 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 as a provider. (F) 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. (G) 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. (H) A viable plan to meet reporting requirements, as required by this chapter. (3) Establish criteria to score applicants applying for grant funds competitively. Scoring criteria shall include, but not be limited to, the following: (A) Need in the region, which includes consideration of the number of individuals experiencing homelessness among people on parole, to the extent data are available. (B) The viability of plans and extent of experience described in paragraph (2). (C) 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. (D) The applicants 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 applicants commitment and past fidelity to Housing First. (E) The applicants documented partnerships with affordable and supportive housing providers in the jurisdiction. (F) The applicants 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. (G) 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. (4) Work collaboratively with the State Department of Health Care Services and the Department of Corrections and Rehabilitation to establish a process for referrals of people eligible to participate in the program through the Justice-Involved Reentry Initiative, parole or probation agents, 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. (b) 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, including funds allocated by Budget Act of 2025. 50482. (a) A person is eligible for participation in this program if both of the following are applicable:(1) The individual voluntarily chooses to participate.(2) Either of the following applies:(A) The individual has been assigned a date of release from prison within 30 to 180 days and is likely to become homeless upon release.(B) The person is currently experiencing homelessness as a person on parole or postrelease community supervision and has an experience of prison incarceration within the last five years.(b) 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. 50482. (a) A person is eligible for participation in this program if both of the following are applicable: (1) The individual voluntarily chooses to participate. (2) Either of the following applies: (A) The individual has been assigned a date of release from prison within 30 to 180 days and is likely to become homeless upon release. (B) The person is currently experiencing homelessness as a person on parole or postrelease community supervision and has an experience of prison incarceration within the last five years. (b) 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. 50483. (a) Program funds shall be used for the following eligible activities:(1) Up to 3 percent of program funds may be used for the departments administration of the program.(2) At least 70 percent of the funds shall be used for one or more of the following, so long as the housing funded under the program complies with the Housing First model:(A) Rental subsidies in an amount the applicant identifies, but no more than the maximum amount of rent a public housing authority may pay for the community in which the applicant is providing rental assistance.(B) 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.(C) Incentives to landlords to accept rental subsidies and house-eligible participants, including, but not limited to, security deposits and holding fees.(D) Reasonable administrative fees of regional administrators and subrecipients.(3) At least 10% of the funds shall be used for voluntary multidisciplinary services, to include the following:(A) Services assisting participants in transitioning from prison to the community, including linkage to Justice Involved Reentry Program in-reach providers, 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.(B) 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.(C) 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.(D) 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 shall include all of the following:(i) Assistance with completing employment applications.(ii) Identifying potential workplace accommodations that may be required.(iii) Assistance with addressing workplace situations and conflicts.(iv) Assistance with transportation needs.(v) Coordinating vocational training.(vi) Assistance with developing skills to maintain stable employment.(vii) Care coordination and advocacy with health care professionals to support care planning and referrals to other needed services.(E) Services assisting people learn financial literacy and management, as well as managing and building savings, including a process to assist participants in saving a consistent portion of their income from employment.(4) As needed, up to 10 percent of funds for 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.(b) 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 the services.(c) 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.(d) For participants identified prior to release from prison, the regional administrator or subrecipient provider, upon the service providers receipt of referral and, in collaboration with the parole agent or postrelease community supervision probation officer, if assigned to supervision, shall, when possible, do all of the following:(1) Seek all prerelease assessments and discharge plans.(2) Draft a plan for the participants transition into permanent housing in collaboration with the participant.(3) Engage the participant to actively participate in services upon release on a voluntary basis.(4) Assist the participant in obtaining identification and other documentation the participant may need to access housing and services.(5) Assist the participant in applying for any benefits for which the participant is eligible.(e) 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 the Housing First model. 50483. (a) Program funds shall be used for the following eligible activities: (1) Up to 3 percent of program funds may be used for the departments administration of the program. (2) At least 70 percent of the funds shall be used for one or more of the following, so long as the housing funded under the program complies with the Housing First model: (A) Rental subsidies in an amount the applicant identifies, but no more than the maximum amount of rent a public housing authority may pay for the community in which the applicant is providing rental assistance. (B) 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. (C) Incentives to landlords to accept rental subsidies and house-eligible participants, including, but not limited to, security deposits and holding fees. (D) Reasonable administrative fees of regional administrators and subrecipients. (3) At least 10% of the funds shall be used for voluntary multidisciplinary services, to include the following: (A) Services assisting participants in transitioning from prison to the community, including linkage to Justice Involved Reentry Program in-reach providers, 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. (B) 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. (C) 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. (D) 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 shall include all of the following: (i) Assistance with completing employment applications. (ii) Identifying potential workplace accommodations that may be required. (iii) Assistance with addressing workplace situations and conflicts. (iv) Assistance with transportation needs. (v) Coordinating vocational training. (vi) Assistance with developing skills to maintain stable employment. (vii) Care coordination and advocacy with health care professionals to support care planning and referrals to other needed services. (E) Services assisting people learn financial literacy and management, as well as managing and building savings, including a process to assist participants in saving a consistent portion of their income from employment. (4) As needed, up to 10 percent of funds for 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. (b) 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 the services. (c) 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. (d) For participants identified prior to release from prison, the regional administrator or subrecipient provider, upon the service providers receipt of referral and, in collaboration with the parole agent or postrelease community supervision probation officer, if assigned to supervision, shall, when possible, do all of the following: (1) Seek all prerelease assessments and discharge plans. (2) Draft a plan for the participants transition into permanent housing in collaboration with the participant. (3) Engage the participant to actively participate in services upon release on a voluntary basis. (4) Assist the participant in obtaining identification and other documentation the participant may need to access housing and services. (5) Assist the participant in applying for any benefits for which the participant is eligible. (e) 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 the Housing First model. 50484. (a) A regional administrator awarded a contract shall provide or subcontract with community-based organizations to provide reentry services, housing, community supports, and supported employment that participants need and want by doing the following:(1) 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.(2) Partnering with county behavioral health and health agencies to offer participants services and treatment participants need and want.(3) Partnering with county workforce investment boards.(4) Partnering with the regions homeless continuums of care and coordinated entry systems to coordinate referrals to housing for participants or potentially eligible participants.(5) Partnering with affordable and supportive housing developers to offer ongoing operating subsidies in available housing units for participants.(6) Coordinating with public housing authorities to connect participants to any federal housing subsidies available.(7) Providing administrative assistance to subcontracted community-based organizations in complying with the reporting and other administrative requirements of the department.(8) Working to reduce racial and ethnic disparities in eligible participants receiving housing and services.(9) Developing career pathways for participants, removing structural barriers to employment and promoting equitable access to leadership positions.(b) Any subcontracted providers 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.(c) 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.(d) In selecting subcontracted entities, regional administrators shall select providers that have or will have, by the time of contract start date, the following:(1) Removed barriers to hiring people with lived experience of incarceration.(2) Employed people with lived experience of incarceration and former homelessness.(3) 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. 50484. (a) A regional administrator awarded a contract shall provide or subcontract with community-based organizations to provide reentry services, housing, community supports, and supported employment that participants need and want by doing the following: (1) 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. (2) Partnering with county behavioral health and health agencies to offer participants services and treatment participants need and want. (3) Partnering with county workforce investment boards. (4) Partnering with the regions homeless continuums of care and coordinated entry systems to coordinate referrals to housing for participants or potentially eligible participants. (5) Partnering with affordable and supportive housing developers to offer ongoing operating subsidies in available housing units for participants. (6) Coordinating with public housing authorities to connect participants to any federal housing subsidies available. (7) Providing administrative assistance to subcontracted community-based organizations in complying with the reporting and other administrative requirements of the department. (8) Working to reduce racial and ethnic disparities in eligible participants receiving housing and services. (9) Developing career pathways for participants, removing structural barriers to employment and promoting equitable access to leadership positions. (b) Any subcontracted providers 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. (c) 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. (d) In selecting subcontracted entities, regional administrators shall select providers that have or will have, by the time of contract start date, the following: (1) Removed barriers to hiring people with lived experience of incarceration. (2) Employed people with lived experience of incarceration and former homelessness. (3) 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. 50485. (a) Regional administrators or their subcontracted community-based organizations shall identify and locate 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.(b) Housing identified pursuant to subdivision (a) shall satisfy all of the following:(1) 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.(2) 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.(3) The housing is not subject to community care licensing requirements and is exempt from licensing pursuant to Section 1504.5.(4) Upon referral to housing, participants are allowed to choose whether to share a single housing unit with nonrelatives or to live alone.(c) Shared housing shall meet the following requirements:(1) Participants shall be allowed to choose shared housing over living alone and to choose the people with whom they share housing.(2) Participants shall have their own private bedroom with a lockable door.(3) Every participant shall have their lease.(4) Housing units shall include bathrooms no more than four participants must share.(5) Housing units shall include kitchens on the same floor as the participant, unless living in a single family home.(6) The regional administrator or subcontractor shall ensure participants sharing housing receive services to assist in overcoming conflicts. 50485. (a) Regional administrators or their subcontracted community-based organizations shall identify and locate 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. (b) Housing identified pursuant to subdivision (a) shall satisfy all of the following: (1) 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. (2) 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. (3) The housing is not subject to community care licensing requirements and is exempt from licensing pursuant to Section 1504.5. (4) Upon referral to housing, participants are allowed to choose whether to share a single housing unit with nonrelatives or to live alone. (c) Shared housing shall meet the following requirements: (1) Participants shall be allowed to choose shared housing over living alone and to choose the people with whom they share housing. (2) Participants shall have their own private bedroom with a lockable door. (3) Every participant shall have their lease. (4) Housing units shall include bathrooms no more than four participants must share. (5) Housing units shall include kitchens on the same floor as the participant, unless living in a single family home. (6) The regional administrator or subcontractor shall ensure participants sharing housing receive services to assist in overcoming conflicts. 50486. (a) 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. 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.(b) A regional administrator shall submit to the department an annual report on a form issued by the department, pertaining to the recipients 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:(1) The number of participants served.(2) The types of services provided to program participants.(3) The number of participants currently living in permanent housing, either in housing receiving or not receiving a program subsidy.(4) The average length of participation in the program.(5) Fidelity to Housing First among all providers.(6) 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 days in jail and prison among participants, and health outcomes or change in health status, to the extent data are available.(7) Through participant surveys, satisfaction with the program or changes to participants rating of their health, income, employment, and housing status.(c) Within one year of program implementation, the department shall design an evaluation and hire an independent evaluator to assess outcomes from the program, which shall include, but not be limited to, all of the following, disaggregated by race, gender, and gender identity:(1) The total number of participants served and the type of interventions provided.(2) The housing status of participants at 12, 24, and 36 months after entering the program, to the extent this data are available, including the number of participants who remained in permanent housing.(3) Recidivism among participants, including the number of arrests, days incarcerated, and incarceration in jail or prison.(4) Other outcomes evaluators are able to access through available data.(d) 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.(e) The department may monitor the expenditures and activities of the recipient, as the department deems necessary, to ensure compliance with program requirements.(f) 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.(g) 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. 50486. (a) 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. 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. (b) A regional administrator shall submit to the department an annual report on a form issued by the department, pertaining to the recipients 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: (1) The number of participants served. (2) The types of services provided to program participants. (3) The number of participants currently living in permanent housing, either in housing receiving or not receiving a program subsidy. (4) The average length of participation in the program. (5) Fidelity to Housing First among all providers. (6) 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 days in jail and prison among participants, and health outcomes or change in health status, to the extent data are available. (7) Through participant surveys, satisfaction with the program or changes to participants rating of their health, income, employment, and housing status. (c) Within one year of program implementation, the department shall design an evaluation and hire an independent evaluator to assess outcomes from the program, which shall include, but not be limited to, all of the following, disaggregated by race, gender, and gender identity: (1) The total number of participants served and the type of interventions provided. (2) The housing status of participants at 12, 24, and 36 months after entering the program, to the extent this data are available, including the number of participants who remained in permanent housing. (3) Recidivism among participants, including the number of arrests, days incarcerated, and incarceration in jail or prison. (4) Other outcomes evaluators are able to access through available data. (d) 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. (e) The department may monitor the expenditures and activities of the recipient, as the department deems necessary, to ensure compliance with program requirements. (f) 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. (g) 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. SEC. 3. Section 5030 is added to the Penal Code, to read:5030. (a) 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 individuals risk of homelessness upon discharge. The process shall include the following questions:(1) Do you have a plan for where you will live when you get out?(2) If you have a plan, where do you plan to sleep after returning to your community?(3) Where were you living when you were arrested, prior to your conviction?(4) 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?(b) The department shall not use any of the answers provided to lengthen an individuals term or to otherwise punish or discipline the individual SEC. 3. Section 5030 is added to the Penal Code, to read: ### SEC. 3. 5030. (a) 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 individuals risk of homelessness upon discharge. The process shall include the following questions:(1) Do you have a plan for where you will live when you get out?(2) If you have a plan, where do you plan to sleep after returning to your community?(3) Where were you living when you were arrested, prior to your conviction?(4) 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?(b) The department shall not use any of the answers provided to lengthen an individuals term or to otherwise punish or discipline the individual 5030. (a) 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 individuals risk of homelessness upon discharge. The process shall include the following questions:(1) Do you have a plan for where you will live when you get out?(2) If you have a plan, where do you plan to sleep after returning to your community?(3) Where were you living when you were arrested, prior to your conviction?(4) 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?(b) The department shall not use any of the answers provided to lengthen an individuals term or to otherwise punish or discipline the individual 5030. (a) 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 individuals risk of homelessness upon discharge. The process shall include the following questions:(1) Do you have a plan for where you will live when you get out?(2) If you have a plan, where do you plan to sleep after returning to your community?(3) Where were you living when you were arrested, prior to your conviction?(4) 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?(b) The department shall not use any of the answers provided to lengthen an individuals term or to otherwise punish or discipline the individual 5030. (a) 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 individuals risk of homelessness upon discharge. The process shall include the following questions: (1) Do you have a plan for where you will live when you get out? (2) If you have a plan, where do you plan to sleep after returning to your community? (3) Where were you living when you were arrested, prior to your conviction? (4) 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? (b) The department shall not use any of the answers provided to lengthen an individuals term or to otherwise punish or discipline the individual