Although the epidemic keeps getting worse, California has actually spent billions of dollars in recent years to curb its homelessness. In its 2021-22 Budget, California puts aside $7.2 billion to address homelessness. Experts say, with this, the government would have spent $42,000 a year per homeless person.
“They’re trying really hard to keep people alive,” Kushel said. “And they’re kind of stuck in this vicious cycle of not having the housing to send people to.”
Between 2018 to 2022, as discussed earlier, the Gold State has spent a stunning $17.5 billion, in attempting to deal with its homelessness.
A total of $20.6 billion has been allocated through 2024 to combat homelessness. Nearly $4 billion went to local governments to spend on anti-homelessness initiatives. $3.7 billion went to a program dubbed “Project Homekey”, which also funds local governments, but specifically to buy properties like motels and commercial buildings and turn them into affordable permanent housing. So far 13,500 units have been finished but Elliott thought it’s not enough.
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A further $2 billion from the huge allotment went toward tax credits for developers to build affordable housing, which has seen 481 new units completed so far, with thousands more anticipated. Another $2 billion went to kick-start affordable housing projects, stalled by funding shortfalls. And nearly $2 billion was spent on emergency rental assistance.
Gov. Gavin Newsom has also sought to create homelessness courts. While it’s neither a perfect nor sweeping solution, a court system ordering treatment programs for homeless people could make an impact.
Both Newsom and his predecessor, Gov. Jerry Brown, have publicly supported CEQA reform, which is a start. A better plan would be a legislative initiative to repeal and replace.
Further, cities across California are erecting tiny homes for unhoused people to quickly and cost-effectively get them indoors where they will have access to basic resources such as electricity.
Reports show that Gov. Gavin Newsom announced 300 tiny homes for Sacramento. These houses are to be located in an abandoned office park and the state fairgrounds. Another 900 tiny homes from the governor will go up on a parcel of land in San Jose and yet-to-be-determined locations in Los Angeles and San Diego. Newsom first announced the plan for the 1,200 homes in March.
Government tiny home action came after Sacramento’s top prosecutor sued the city over its failure to clean up homeless encampments.
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In August, Sacramento County successfully opened its first tiny-home village, consisting of 100 structures, as part of its Safe Stay program.
Denver has taken part in the tiny homes initiative as Mayor Mike Johnston announced plans to house 1,000 homeless people by the end of 2023.
Travis County, in 2023, approved a $35 million contract with the nonprofit Mobile Loaves and Fishes to create nearly 500 tiny homes and other forms of shelter.
While the initiative of tiny homes is gaining popularity with California’s authority, Austin has had tiny homes for almost a decade. Its Community First Village for formerly homeless residents opened in 2015, and tiny-home projects have expanded in the Lone Star State’s capital since then.
And, while the tiny homes are considered a viable solution, they have been criticized for not offering enough services, and for this reason have been described as mere waiting rooms.
The California Department of Housing and Community Development (HCD), was also reported to have intended the grant of $179.7 million through its program called Homekey to create 710 units through nine developments in Fresno, Los Angeles, Modesto, Sacramento, San Buenaventura, San Diego and Visalia.
On the federal level, the president of the US unveiled an initiative called “ALL INside” to help unhoused people in cities with high homeless populations access federal services. Those cities include Los Angeles, Chicago, Dallas, Phoenix and Seattle. The federal government’s target is to reduce homelessness nationwide by 25% by January 2025.
California generally needs more housing. It was well-established at the beginning that California’s homelessness is a product of the lack of affordable housing, besides poverty. The fact remains that the city does not have enough homes for its residents. Thus, experts suggest that the state needs 2.5 million more homes, but that it has no plan to build them by 2030.
