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California Sees 9% Decline in Unsheltered Homelessness; Governor Newsom Allocates $419M for Housing Initiatives in San Francisco, Los Angeles, San Diego

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Published on January 17, 2026
California Sees 9% Decline in Unsheltered Homelessness; Governor Newsom Allocates $419M for Housing Initiatives in San Francisco, Los Angeles, San DiegoSource: Governor Newsom press release

California has witnessed a notable 9% decrease in the number of unsheltered homeless individuals, the first statewide reduction in over 15 years. In an effort to further this progress, Governor Gavin Newsom has announced an investment of $419 million into the Homeless Housing, Assistance and Prevention (HHAP) program to bolster housing and services across key regions including San Francisco, Los Angeles, and San Diego.

The HHAP funds are earmarked to not only expand but to also sustain interim housing and accelerate local interventions proven to effectively combat homelessness. These investments are supplemented by the multi-billion dollar Proposition 1, approved by voters in 2024, which aims to address California’s mental and behavioral health needs with robust care and housing assistance.

According to an announcement by Governor Newsom, "We put Proposition 1 on the ballot because Californians are demanding we do more to confront the mental health crisis and the homelessness emergency head-on. Voters gave us the tools and we are putting them to work, delivering treatment, housing, and real support, and proving that this state can lead the way on a challenge facing the entire nation." San Francisco Mayor Daniel Lurie echoed this sentiment, expressing gratitude for the state's assistance in reducing the city's number of encampments by 44% from 2024 levels.

The latest round of HHAP funding is not solely about providing resources but also enforcing greater responsibility. The program now incorporates enhanced accountability measures, including the ability to claw back funding from grantees failing to demonstrate tangible progress. A seventh round of HHAP with an additional $500 million is anticipated for the coming budget year, seeking to further extend these accountability standards to maximize the impact of these investments.

In addition to these efforts, Friendship House in San Francisco was highlighted by the Governor's office for its recent $31.4 million award from Proposition 1, Round 1, Behavioral Health Continuum Infrastructure Program (BHCIP), helping to build a new wellness center for its substance use disorder programs, serving communities with a focus on Native American needs.

Increasing housing affordability also remains a cornerstone of the state's agenda, with the California Dream for All program slated to begin application acceptance in February, providing significant down payment assistance to first-generation homebuyers. As homelessness continues to rise nationally, California takes pride in its proactive approaches, underpinned by landmark housing reforms and strategic investments, reflecting Governor Newsom's commitment to directly tackle this longstanding social challenge.