‘Not interested in funding failure’: Gov. Newsom pushes homelessness spending accountability plan

California Governor Gavin Newsom speaks during a news conference about the state’s Homekey program which transforms former office space, hotels, and other buildings into housing for those experiencing homelessness, at a former Motel 6 converted to apartments for the homeless in Costa Mesa on Thursday, January 18, 2024.

Newsom’s plan calls for stricter benchmarks for jurisdictions receiving state homelessness grants and threatens tougher penalties, including potentially withholding funding, if the goals aren’t met.

“This grant here that we received today is expected to serve hundreds of our most complex unsheltered individuals living across 26 encampments,” said San Mateo County Executive Mike Callagy.by the California State Auditor early this month that found the state cannot account for all of its billions of dollars in homelessness spending and has no concrete way to measure the success of programs receiving the money.

In 2022, Newsom briefly held more than $1 billion in state homelessness funding hostage until local governments submitted “homeless action plans” that satisfied state regulators. The plans are supposed to detail how local officials plan to spend state funds, reduce the number of people living on the street, and boost permanent housing.

A new homelessness team within California’s Housing Accountability Unit will be tasked with much of the new oversight and enforcing state laws meant to combat homelessness. Last year, the unit worked with the state attorney general to sue Huntington Beach for failing to develop a housing plan. In March, a judge stripped the city of some of its authority to block new housing.

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