California Gov. Gavin Newsom announced $145.4 million in funding to help eight communities reduce homelessness.
The Lake, Orange, Riverside, Sacramento, Santa Clara, Solano, Yolo, and Yuba regions will receive the funds from the state’s Homelessness Housing, Assistance, and Prevention Program (HHAP). In these communities, 80% of the HHAP budgets is dedicated to permanent and interim housing.
The move builds on recent reports that California experienced a 9% decline in unsheltered homelessness in 2025—the largest drop in 15 years.
“We’re making critical investments through programs to help local communities expand housing, strengthen services, and better support people experiencing homelessness,” Newsom said. “But just investing money is not enough—we have to invest in programs and local governments that are producing real results.”
The latest awards underwent a review by the California Department of Housing and Community Development, where awardees had to demonstrate how state funding will make an impact on reducing homelessness. Additional measures include requirements that grantees have and maintain a compliant housing element and mechanisms to claw back the funding from grantees that fail to demonstrate progress.
HHAP is a multiyear grant program that helps local communities prevent and end homelessness through targeted housing solutions. Eligible recipients include 58 counties, 14 large cities with populations over 300,000, and 44 Continuums of Care. According to officials, the program has transitioned more than 100,000 Californians from homelessness into permanent stable housing and accelerated local interventions.
Earlier this year, $419 million in HHAP funding was awarded to the Los Angeles, San Diego, and San Francisco regions, and another $159.3 million was later awarded to 20 regions.
Another HHAP round totaling $500 million is planned for the coming budget year.