20250SB__132297AMD INTRODUCED 2026-02-20 AMENDED_SENATE 2026-03-25 AMENDED_ASSEMBLY 2026-06-11 2025 SB AMD Introduced by Senator Richardson LEAD_AUTHOR SENATE Richardson

An act to amend

Section 18999.97 of the Welfare and Institutions Code, relating to public social services. public social services Community Care Expansion Program. Existing law establishes the Community Care Expansion Program, under the administration of the State Department of Social Services.

Under the program, subject to appropriation by the Legislature, the department awards grants to qualified grantees to administer projects for the acquisition, construction, or rehabilitation of property to be operated as residential adult and senior care facilities, or to promote the sustainability of existing licensed residential adult and senior care facilities through the provision of capitalized operating subsidy reserves. Existing law authorizes the department to enter into an agreement with one or more entities to facilitate the grant awards.

Existing law requires the contracting entity to act as a third-party administrator to provide operational services under the contract, including, but not limited to, developing an online application portal and processing invoices and making grant payments. This bill would revise and recast the department’s authorization to enter into an agreement with one or more entities to facilitate the grant application, awards, and implementation and require the department to be responsible for selected operational services previously done by a third-party administrator.

If the grant is awarded to a tribe, the bill would require the department to administer the contract and award process directly with the tribal applicant and require the existing tribal liaison to be included throughout the grant process to ensure tribal sovereignty is honored. The bill would also require that an agreement between the department and a tribe align with federal tribal housing grant agreements.

Existing law requires, subject to an appropriation, the department to award grants to preserve or expand the capacity of residential adult and senior care facilities through the acquisition, construction, or rehabilitation of property and requires counties and tribes receiving funds for this purpose to provide matching funds or real property. This bill would exempt a tribe from providing real property if federal restrictions limit tribal property ownership. Existing law creates the Tribal Housing Grant Program Trust Fund, administered by the Department of Housing and Community Development.

Existing law requires any moneys appropriated and made available by the Legislature through the annual Budget Act for purposes of the fund and 10% of any moneys that will be appropriated and made available by the Legislature to the department through the annual Budget Act for specified housing programs to be paid and deposited in the fund.

Existing law requires the department to monitor the balance of the fund and, when the department determines that sufficient moneys are available in the fund, existing law requires the moneys in the fund to be allocated in accordance with a specified formula, as provided, and for specific purposes, including, among others, housing and housing-related program services for affordable housing, housing and community development project costs, and management services for affordable housing for the benefit of eligible beneficiaries, including, among others, Indian and essential families and individuals residing in an Indian area, as specified.</xhtml:p><xhtml:p>Existing law requires the department, in close consultation with California tribes and a tribal housing grant program trust fund advisory committee, to adopt guidelines to implement the above-described provisions, including determining allocation methodologies.</xhtml:p><xhtml:p>This bill would require the department, in close consultation with California tribes and a tribal housing grant program trust fund advisory committee, to adopt guidelines for grant applications due after January 1, 2028, streamlining and aligning the grant application process with federal tribal grant application requirements.

The bill would require the department to include a tribal liaison designated by the department in discussions with tribes throughout the grant process to ensure that tribal sovereignty is honored.</xhtml:p>"?> MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 18999.97 of the Welfare and Institutions Code is amended to read: 18999.97. (

a) The Community Care Expansion Program is hereby established. Under the program, qualified grantees shall administer projects for the acquisition, construction, or rehabilitation of property to be operated as residential adult and senior care facilities, or to promote the sustainability of existing licensed residential adult and senior care facilities through the provision of capitalized operating subsidy reserves. (b)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>The department may enter into an agreement with one or more entities to facilitate the grant awards.

A contracting entity shall act as a third-party administrator to provide operational services under the contract with the department.

The services may include, but are not limited to, all of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Supporting the development of the notice of funding availability.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Developing an online application portal.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>Executing contracts.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>Processing invoices and making grant payments.</xhtml:p><xhtml:p>(E)<xhtml:span class="EnSpace"/>Providing technical assistance via webinars, learning collaboratives, application assistance, and other methods.</xhtml:p><xhtml:p>(F)<xhtml:span class="EnSpace"/>Reporting.</xhtml:p>"?> (b)

(1) The department may enter into an agreement with one or more entities to facilitate the grant application, awards, and implementation. A contracting entity shall act as a third-party administrator to provide operational services under the contract with the department, including both of the following: (

A) Providing technical assistance via webinars, learning collaboratives, application assistance, and other methods. (

B) Reporting.

(2) The department is responsible for all of the following: (

A) Supporting the development of the notice of funding availability. (

B) Developing an online application portal. (

C) Executing contracts. (

D) Processing invoices and making grant payments.

(3) If the grant is awarded to a tribe, the department will administer the contract and award process directly with the tribal applicant. (2)</xhtml:p>"?>

(4) Funds appropriated for the purposes of this

section shall be awarded, at the discretion of the department, to qualified grantees that include, but are not limited to, counties, tribes, or jointly applying counties and tribes. (3)</xhtml:p>"?>

(5) Qualified grantees may award grant funds to one or more subgrantees for projects consistent with the requirements of this chapter. (

c) Subject to an appropriation of funds in the annual Budget Act for the following purposes, the department shall award grants for one or both of the following as specified in the annual Budget Act:

(1) To preserve or expand capacity of residential adult and senior care facilities through the acquisition, construction, or rehabilitation of property. (

A) Qualified grantees may also use a portion of grant funds to establish capitalized operating subsidy reserves. (

B) Counties and tribes receiving funds under this paragraph shall provide matching funds or real property. A tribe is exempt from providing real property if federal restrictions limit tribal property ownership. (

C) The department, at its discretion, may award grants in a manner that takes into consideration the prioritization of qualified residents who are experiencing homelessness or who are at risk of homelessness.

(2) To provide capitalized operating subsidy reserves to existing licensed residential adult and senior care facilities that serve at least one qualified resident, in order to avoid the closure of facilities and to increase the acceptance of new qualified residents, consistent with Provision of Item 5180-151-0001 of the Budget Act of 2021 (Ch. 69, Stats. 2021). (

A) The department shall award grants in a manner that prioritizes preserving the placement of qualified residents currently residing within a licensed residential adult or senior care facility that is at risk of closure and facilities with the highest percentage of qualified residents. (

B) As a condition of accepting funds, facilities are required to prioritize applications from prospective qualified residents, including those who are currently or formerly homeless or who are at risk of homelessness. (

C) The department shall report to the Legislature at the midpoint of program implementation and within six months after program completion on outcome monitoring, the use of funds, and the impact on retention of current capacity and additional capacity as a result of receiving operating subsidies. The report shall include data on the capacity of facilities serving individuals with a serious mental illness. (

d) If the applicant is a tribe, the department shall include its existing tribal liaison in discussions throughout the grant process to ensure tribal sovereignty is honored. (d)</xhtml:p>"?> (

e) The department shall develop criteria for the program, including, but not limited to, all of the following:

(1) The methodology and distribution of the funds awarded to qualified grantees under paragraphs (1) and (2) of subdivision (c). The department shall consider the distribution of adult and senior care facilities in counties across the state, the share of the latest homeless point-in-time count across the counties, and the relative cost of construction, acquisition, and rehabilitation between counties. The department shall set aside percent of funds for a competitive program for small counties with a population of less than 200,000, and shall redistribute any unexpended funds.

(2) The proportion of funds that may be expended on capitalized operating subsidy reserves pursuant to subparagraph (

A) of paragraph (1) of subdivision (c).

(3) Allowable use of funds awarded under paragraphs (1) and (2) of subdivision (c).

(4) Tracking and reporting procedures. (e)</xhtml:p>"?> (f) “Qualified resident” for the purpose of this

section means applicants or recipients of the Supplementary Security Income/State Supplemental Program (SSI/SSP) pursuant to Subchapter 16 (commencing with

Section 1381) of

Chapter of Title of the United States Code and

Chapter 3 (commencing with

Section 12000), and applicants or recipients the Cash Assistance Program for Immigrants (CAPI) pursuant to

Chapter 10.3 (commencing with

Section 18937), who need the care and supervision that is provided by the licensed facility that receives the grant. “Qualified resident” shall not include SSI/SSP or CAPI applicants or recipients who are receiving services through a regional center. (f)</xhtml:p>"?> (g) “Capitalized operating subsidy reserve” for the purpose of this

section means an interest bearing account maintained by the qualified grantee, the residential adult or senior care facility, or a third-party entity and created to cover potential or projected operating deficits on a facility that provides licensed residential care for at least the term of the reserve, as demonstrated by a deed restriction or, at the discretion of the department, a legally enforceable agreement. The department shall develop guidelines on the qualified grantees’ use of capitalized operating subsidy reserves to ensure safeguards for those reserves, based on use in other state programs. (g)</xhtml:p>"?> (

h) Funds awarded pursuant to this

section shall be used to supplement, and not supplant, other funding available from existing local, state, or federal programs or grants with similar purposes. (h)</xhtml:p>"?> (

i) A qualified grantee or entity operating a program pursuant to this

chapter shall be exempt from any data entry or reporting requirements pursuant to

Chapter 6.5 (commencing with

Section 8255) of Division 8. (i)</xhtml:p>"?> (

j) Utilizing the funds appropriated for purposes of this section, the department shall, in consultation with legislative staff and relevant stakeholders, enter into a contract with an independent evaluation and research agency to evaluate the impacts of the program, collect data, and provide technical assistance. (

k) For purposes of implementing this section, contracts between the department and a tribe shall be aligned with the federal Department of Housing and Urban Development tribal housing grant agreements. (j)</xhtml:p>"?> (

l) For purposes of implementing this section, contracts entered into or amended pursuant to this

section shall be exempt from the following:

(1) Chapter 6 (commencing with

Section 14825) of

Part 5.5 of Division of Title of the Government Code.

(2) The personal services contracting requirements of

Article 4 (commencing with

Section 19130) of

Chapter of Part of Division of Title of the Government Code.

(3) Part 2 (commencing with

Section 10100) of Division of the Public Contract Code and the State Contracting Manual.

(4) Notwithstanding

Section of the Government Code, from review or approval of any division of the Department of Technology, upon approval from the Department of Finance.

(5) From the review or approval of any division of the Department of General Services. (k)</xhtml:p>"?> (

m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code), the department may implement and administer this

chapter through all-county letters or similar instruction that shall have the same force and effect as regulations. (<xhtml:i>l</xhtml:i>)</xhtml:p>"?> (

n) Any project that receives funds pursuant to this

section shall be deemed consistent and in conformity with any applicable local plan, standard, or requirement, and any applicable coastal plan, local or otherwise, shall be allowed as a permitted use, within the zone in which the structure is located, shall not be subject to a conditional use permit, discretionary permit, or any other discretionary reviews or approvals, and shall be deemed as a ministerial action under

Section of Title of the California Code of Regulations. (m)</xhtml:p>"?> (

o) The state shall be immune from any liability resulting from the implementation of this chapter. <caml:Num>SECTION 1.</caml:Num><caml:ActionLine action="IS_AMENDED" xlink:href="urn:caml:codes:HSC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'31.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'6.4.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'50651.1.'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section 50651.1 of the <caml:DocName>Health and Safety Code</caml:DocName> is amended to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_DA6CA61D-6814-4B91-B38B-AA2C15B82158"><caml:Num>50651.1.</caml:Num><caml:LawSectionVersion id="id_7209A953-34DA-4EAE-B676-A64BF02E596B"><caml:Content><xhtml:p>There is hereby created in the State Treasury the Tribal Housing Grant Program Trust Fund to be administered by the department.

All interest or other increments resulting from the investment of moneys in the fund shall be deposited in the fund, notwithstanding

Section 16305.7 of the Government Code.</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>Moneys in the Tribal Housing Grant Program Trust Fund shall not be subject to transfer to any other fund pursuant to any provision of

Part 2 (commencing with

Section 16300) of Division of Title of the Government Code, except to the Surplus Money Investment Fund.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Both of the following shall be paid and deposited in the fund:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Any moneys appropriated and made available by the Legislature through the annual Budget Act for purposes of the fund.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Ten percent of any moneys that will be appropriated and made available by the Legislature to the department through the annual Budget Act for the Multifamily Housing Program (Chapter 6.7 (commencing with

Section 50675)), Infill Infrastructure Grant Program of 2019 (Part 12.5 (commencing with

Section 53559)), Veterans Housing and Homeless Prevention Act of 2014 (Article 3.2 (commencing with

Section 987.001) of

Chapter of Division of the Military and Veterans Code), and Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2 (commencing with

Section 50515.2)). The use of moneys deposited into the fund pursuant to this subdivision shall only be subject to this chapter, regardless of any other law governing the use of the balance of the funds appropriated to programs governed by this division.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>Separate from the fund, and subject to appropriation by the Legislature, moneys made available to the department through voter-approved bonds for the Multifamily Housing Program, Infill Infrastructure Grant Program of 2019, Veterans Housing and Homelessness Prevention Program, and Joe Serna, Jr.

Farmworker Housing Grant Program may be made available as tribal set-asides in alignment with the eligible uses of those funds.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>The department shall monitor the balance of the fund. When the department determines that sufficient moneys are available in the fund to allocate, the department shall allocate the moneys as follows:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Ninety-five percent of deposits into the fund pursuant to subdivision (

b) shall be made available on an entitlement basis to the duly constituted governing body of a California-based federally recognized Indian reservation or rancheria in accordance with a formula allocation to be determined by the department. The formula shall be based on input and guidance from Indian tribes and the tribal housing grant program trust fund advisory committee, which may include, but not be limited to, a specific formula or factors to be used in a formula for allocation.

Funds shall be provided in the form of multipurpose block grants for eligible uses in support of housing and housing-related planning, program, project predevelopment, operating subsidies, staffing, and administrative activities as specified in this chapter.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Five percent of deposits into the fund shall be available for technical assistance to eligible tribes and tribally designated housing entities to build their capacity to independently plan, design, apply for, implement, and operate affordable housing programs and projects.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>Recipients that receive an allocation pursuant to paragraph (1) of subdivision (

d) shall use no more than percent of that allocation for costs related to the administration of funds received on an entitlement basis, unless the recipient receives approval by the department.</xhtml:p><xhtml:p>(f)<xhtml:span class="EnSpace"/>To receive moneys pursuant to this section, tribal governments shall do both of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Annually submit a plan to the department detailing the way allocated funds will be used by the tribe in a manner consistent with this section.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Submit an annual report to the department that provides ongoing tracking of the uses and expenditures of any allocated funds.</xhtml:p><xhtml:p>(g)<xhtml:span class="EnSpace"/>The department shall ensure geographic equity in the distribution and expenditure of funds allocated pursuant to this section.</xhtml:p><xhtml:p>(h)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>In close consultation with California tribes and a tribal housing grant program trust fund advisory committee, the department shall adopt guidelines to implement this section, including guidelines for both of the following:</xhtml:p><xhtml:p> (A)<xhtml:span class="EnSpace"/>Determining allocation methodologies.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>For grant applications due after January 1, 2028, streamlining and aligning the grant application process with federal tribal grant application requirements.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The department may adopt, amend, or repeal guidelines for the administration and implementation of this chapter, in consultation with California tribes and a tribal housing grant program trust fund advisory committee.</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>The department shall include a tribal liaison designated by the department in discussions with tribes throughout the grant process to ensure that tribal sovereignty is honored.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection>"?>