In March 2024, voters passed Proposition 1, a transformation of California's behavioral health system. The new law includes two parts: the Behavioral Health Services Act and a $6.4 billion Behavioral Health Bond for community infrastructure and housing with services.
This fact sheet provides basic information about housing funding and opportunities made possible by the Behavioral Health Services Act/Mental Health Services Act. The more detailed
Proposition 1 Behavioral Health Services Act: Housing Supports Primer (July 2024) is available.
1. Behavioral Health Services Act - Opportunities for Housing
The Behavioral Health Services Act modernizes the Mental Health Services Act, passed by voters in 2004, to address today's behavioral health system and needs. These reforms expand services to include treatment for people with substance use disorders, prioritize care for individuals with the most serious mental illnesses, provide ongoing resources for housing interventions and workforce, and continue investments in prevention, early intervention, and innovative pilot programs. Housing is an essential component of behavioral health treatment, recovery, and stability. Beginning in 2026 under the Behavioral Health Services Act, 30 percent of each county's funding allocation must be used for housing interventions for Californians with the most significant behavioral health needs who are homeless or at risk of homelessness. Half of that amount is prioritized for those experiencing chronic homelessness.
The Behavioral Health Services Act provides ongoing funding for counties to assist people with serious behavioral health needs with housing and provides a path to long-term recovery, including ongoing capital to build more housing options. Based on projections for Fiscal Year (FY) 2026-2027, the total statewide housing funding will be approximately $950 million annually, dependent upon tax revenues. In addition, to allow counties to address their different local needs and priorities, counties may transfer funding to increase this component up to an additional 14 percent - or decrease funding by up to 7 percent - by transferring funding between the two other Behavioral Health Services Act funding components (Full Service Partnerships and general behavioral health services and supports).
2. Eligible populations
People eligible for Behavioral Health Services Act housing include children, youth, adults, and older adults. The only significant change from Mental Health Services Act is the addition of people with a substance use disorder.
3. Types of housing interventions
Housing interventions eligible for Behavioral Health Services Act funding are broad to help support the range of needs for target populations and help provide stable housing – in coordination with care – to improve health outcomes. Housing interventions may include:
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Rental subsidies
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Operating subsidies
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Shared housing (e.g., recovery housing)
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Family housing
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Non-federal share for Medi-Cal transitional rent (post federal approval)
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Other, as defined by DHCS
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Project-based housing assistance, including master leasing
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Capital development projects: Counties can use up to 25 percent of the 30 percent (i.e., 7.5 percent of the total) for housing intervention to support capital
4. Using Mental Health Services Act funds NOW for housing
There is a high degree of flexibility in how counties can use Mental Health Services Act funds for housing and housing supports. Several parts of a county's current 2023-2026 plan could include housing:
- Community Services and Supports (CSS)
- Full Service Partnerships
- General System Development (GSD)
- Outreach and Engagement
- Housing Assistance
- Mental Health Services Act Housing Program
- No Place Like Home
- Prevention and Early Intervention
- Innovation Funds
- Capital Facility & Technological Needs
Based on the FY 2022-23 Annual Revenue and Expenditure Report, counties are currently expending $286,284,868 on housing and housing supports under the Mental Health Services Act. For more information and specific examples of how each component or program can be used for housing and housing supports, check out
How Can Mental Health Services Act be Used to Support Homeless Individuals?
5. Ongoing funding/one-time funding
There are many one-time state-funded programs that have likely served many individuals who would be eligible to be served by Mental Health Services Act /Behavioral Health Services Act housing funds. These programs include:
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Homekey; Homelessness, Housing, Assistance, and Prevention; No Place Like Home Program; Veterans Housing and Homelessness Prevention Program; Veteran Support to Self-Reliance Program; Encampment Resolution Funding; Family Homelessness Challenge Grants; Transitional Housing and Supplemental Program; Housing Navigators Maintenance Program; Pet Assistance and Support Program; Housing and Disability Advocacy Program; Home Safe; Bringing Families Home; CalWORKs Housing Support Program; Project Roomkey; Community Care Expansion; Behavioral Health Bridge Housing (through counties and tribal entities); and the Housing and Homelessness Incentive Program (through Medi-Cal managed care plans).
6. Combining funding
Local recipients are encouraged to combine Mental Health Services Act/Behavioral Health Services Act funds with other resources, including:
- Medi-Cal (through Medi-Cal managed care plans)
- Medi-Cal housing-related Community Supports and, if approved federally, transitional rent, and the
Enhanced Care Management benefit, to help connect individuals with housing supports and services
- County Realignment
- Federal block grants
- CalVet Mental Health Grant for County Veteran Service Officers
- Proposition 1 Behavioral Health Housing Bond ($2 billion for housing with services)
- Other housing and homelessness federal, state, and local funds, e.g., public housing authorities
- Funding from philanthropic and private sources
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