State officials warn housing and homelessness programs face cuts as one‑time funds expire

California Department of Social Services officials told the Senate Budget Subcommittee No. 3 that several housing and homelessness programs that serve families and older adults are at risk as one‑time funds are exhausted.

Hannah Zamati, deputy director for CDSS' Housing and Homelessness Division, said the CalWORKs Housing Support Program (HSP), Housing and Disability Advocacy Program (HDAP), HomeSafe and Bringing Families Home collectively served 42,725 individuals and families last fiscal year. She warned that those programs rely heavily on time‑limited appropriations and that "HDAP funds are anticipated to be exhausted on a statewide level in the 26‑27" fiscal year, with HomeSafe and BFH funds projected to be exhausted in 27‑28 unless new recurring resources are identified.

Zamati told the committee counties have begun scaling back enrollment and services in response to funding declines — reducing or eliminating emergency hotel stays, certain supportive services, and rental subsidy durations — and said counties report implementation challenges when programs repeatedly scale up and down as one‑time funding cycles in and out.

Committee members asked whether the administration planned to propose ongoing funding to replace expiring one‑time dollars. CDSS said it had no administration proposal at the hearing. Thomas Locke of the Department of Finance reiterated the governor's budget does not include additional proposals for these programs at this time.

Zamati also highlighted statutory protections added by Senate Bill 146 (SB146) — including local complaint resolution processes, state administrative hearings when applicable, individualized written housing plans and assistance‑pending rules during appeals — and said CDSS is preparing guidance and technical assistance for counties with final guidance planned in March 2027 and a six‑month county implementation window.

The subcommittee held the items open for further consideration; advocates testifying in public comment urged lawmakers to convert some time‑limited investments into ongoing funding to prevent service disruptions.