Governor Newsom today launched a first-of-its-kind program to improve public safety — with new federally funded investments to create long-term supportive housing and comprehensive wrap-around services for individuals exiting incarceration. The funding opportunity is collaboratively administered by the California Department of Housing and Community Development (HCD) and the California Department of Corrections Rehabilitation (CDCR). The agencies are now accepting proposals for efforts aimed at reducing the risk of homelessness and recidivism for people who were formerly incarcerated and are reentering society, for the mutual benefit and safety of the individuals being housed and the communities to which they return.

“Ensuring that those exiting our prison system have the resources and housing they need makes us all safer,” said Governor Gavin Newsom. “We are grateful for this federal funding to help us reduce homelessness and support those looking for a clean start.”

Formerly incarcerated individuals are nearly 10 times more likely than the general public to experience homelessness. However, formerly incarcerated individuals are often excluded from participating in public and affordable housing programs. Studies also indicate reductions in recidivism may occur when formerly incarcerated individuals can secure housing.

In a concerted effort to lower barriers to housing for people exiting correctional institutions or programs in California, HCD and CDCR will partner to implement the federally funded HOME American Rescue Plan (HOME-ARP) Reentry Housing Pilot Project (RHPP), backed with $16 million from the U.S. Department of Housing and Urban Development. The aim is to lower the rate of homelessness among formerly incarcerated and justice-involved populations, while increasing success in securing employment, furthering education, and helping establish links to health care—all of which lower rates of recidivism.

“Too often, people leaving prison face a life sentence of housing instability,” said HCD Director Gustavo Velasquez. “Our communities and society are all better for it when we choose to lay the foundation for successful reentry, and housing is the first most critical cornerstone for a more hopeful future.”

“CDCR knows firsthand how homelessness impacts California communities and is committed to enhancing public safety and promoting successful community reintegration,” said CDCR Secretary Jeff Macomber. “Housing stability is an important aspect to successful reentry, and this groundbreaking effort in partnership with HCD will provide a valuable opportunity to address these challenges.”

CDCR offers numerous wraparound resources to facilitate successful community reintegration. Research shows that education and employment opportunities for formerly incarcerated individuals have a positive impact on recidivism rates and help them avoid reoffending. Resources for housing, substance use disorder, and other needs such as life skills, jobs, and education are all important in attaining long-term sustainable change.

Building on those efforts, the Governor is directing HCD and CDCR to work together to add a final step for reentry services, which will provide permanent supportive housing linked to comprehensive, evidence-based programs and services that support successful outcomes and long-term stability.

“The Reentry Housing Pilot Project will provide safe and stable homes, along with permanent supportive services to people exiting the justice system,” said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. “Stable housing is a crucial foundation for everyone, including those who were formerly incarcerated. The pilot program will enable them to secure employment, receive necessary health care and reunite with their families. These opportunities and tools serve to benefit both individuals and our communities so we can all succeed.”

Successful applicants for HOME-ARP-RHPP funding must have extensive experience in developing and operating transitional housing and permanent supportive housing for the reentry population. Funds may be used to acquire, rehabilitate, and/or construct permanent housing for individuals exiting a CDCR institution or program who are placed under CDCR parole supervision.

Applications for this competitive program are being accepted now and must be submitted by 5:00 p.m. PST on December 31, 2024. HCD will hold an RHPP Notice of Funding Availability and Application Webinar. Interested parties may sign up to be notified about this and other HCD-administered federal programs. Pre-application consultations will be available beginning November 4. Native American Entity Applicants are encouraged to participate in an optional pre-application technical assistance meeting to discuss their options, including any potential modifications or waivers.

Initial HOME-ARP Reentry Housing Pilot Project awards are anticipated in early summer of 2025. Read more about the program and eligibility requirements.

More housing. More accountability.

Since taking office, Governor Newsom has invested $40 billion in housing production. The state has also invested more than $27 billion to help communities address homelessness.

Governor Newsom championed the creation of the Housing Accountability Unit at HCD to ensure cities and counties fulfill their legal responsibilities to plan and permit their fair share of housing. This focus on accountability has, in part, led to a 15-year high in housing starts in California. Since its establishment, the Housing Accountability Unit has supported the development of 7,513 housing units, including 2,765 affordable units, through enforcement actions and by working with local jurisdictions to ensure compliance with housing law.

Addressing the homeless crisis

This also follows the Governor’s recent executive order urging local government to quickly address encampments and provide individuals experiencing homelessness with the care, compassion, and support they need. Earlier this month, the Governor announced $130.7 million in new funding for local communities to help people experiencing homelessness in dangerous encampments, paired with robust accountability measures.

California recently announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness, with strong accountability and transparency measures and clear expectations to ensure that local strategies to address homelessness are measurable and effective.