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CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

89

Introduced by Senator Ashby

February 21, 2025

An act to add Article 1.5 (commencing with Section 6539.9.5) to Chapter 5 of Division 7 of Title 1 of the Government Code, relating to housing.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

(1) Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be exercised.

This bill bill, by January 1, 2028, would require the County of Sacramento, the City of Sacramento, the City of Elk Grove, the City of Rancho Cordova, the City of Citrus Heights, and the City of Folsom to participate in and work together to establish a joint powers authority, pursuant to the Joint Exercise of Powers Act, designed to make a meaningful difference for people experiencing housing insecurity and homelessness across the County of Sacramento. In this regard, the bill would require the above-specified local governments together to, among other things, bring the oversight and functions of the Sacramento City and County Continuum of Care under the jurisdiction of the joint powers authority, while maintaining the federally required composition and integrity of the continuum of care. The bill would require the joint powers authority to, among other things, provide direction to the continuum of care lead agency. The bill would specify that a local jurisdiction retains oversight and accountability over funding decisions, projects, and programs administered by the jurisdiction, including contracting for prevention, outreach, sheltering, and housing. The bill would declare that these provisions are severable. The bill would make findings and declarations relating to its provisions.

By requiring the above-described local governments to establish the joint powers authority, this bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for County of Sacramento. The bill would make additional related findings and declarations.

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) Over the past 4.5 years, the State of California has given the City and County of Sacramento and Sacramento Steps Forward nearly $450,000,000 to address homelessness.

(b) Despite these investments, Sacramento County’s population of chronically homeless individuals was the third highest in the nation in 2023, according to the United States Department of Housing and Urban Development (HUD).

(c) HUD’s assessment found that around 72 percent of the people experiencing homelessness in Sacramento County are unsheltered, the fifth-highest percentage in the nation.

(d) The homelessness population of the County of Sacramento has increased 13 percent from 2024 to 2026, according to the most recent point-in-time count.

(e) On any given night, over 7,500 people experience homelessness in the County of Sacramento.

(f) Sacramento has also faced a steep rise in student homelessness, with a 19-percent increase from 2023 to 2024—far surpassing the state’s increase of 9 percent in student homelessness.

(g) To address these issues, the City and County of Sacramento themselves recommended a joint powers authority (JPA) in 2010.

(h) In September 2010, the Sacramento City Council passed a resolution to implement a JPA with a staff recommendation to create it by the end of the 2010–11 fiscal year. However, no JPA was formed.

(i) In November 2010, the Sacramento Steps Forward published a report highlighting its goal of forming a JPA by 2011. However, no JPA was formed.

(j) In December 2010, the City and County of Sacramento adopted a resolution to form a JPA. However, no JPA was formed.

(k) A Sacramento city manager’s report in March 2011 outlined a planned JPA timeline, including the JPA board being seated in March 2012. However, no JPA was formed.

(l) In November 2011, the County of Sacramento presented at a city council meeting, outlining the county’s roles and responsibilities, how it would collaborate with Sacramento Steps Forward, and why a JPA model should be implemented. However, no JPA was formed.

(m) In 2019, the Sacramento Grand Jury reported that a Sacramento JPA is vital and recommended the city and county reconsider a JPA. Still, no JPA was formed.

(n) In November 2022, frustrated Sacramento voters passed Measure O, the Emergency Shelter and Enforcement Act, which required the city and county to work together to expand services and address encampments.

(o) In December 2022, the City and County of Sacramento signed a binding contract to work together to address homelessness. The agreement established shared coordination, joint operational teams, shared planning, and collaboration on funding. However, no consolidation of resources and staffing has been established and no JPA was formed.

(p) Despite this agreement, in the 2022–23 Grand Jury Report, the Grand Jury again recommended that the county and the seven incorporated cities implement a JPA to address homelessness by December 1, 2023. Still, no JPA was formed.

(q) In 2023, the City of Sacramento was sued by the Sacramento District Attorney, alleging that the city failed to enforce its homelessness laws. The litigation remains unresolved.

(r) In 2023, Governor Newsom and Attorney General Bonta sued the City of Elk Grove for violating state fair housing laws, reaching a settlement that included requiring the city to identify and rezone a site for affordable housing and undergo state monitoring to ensure compliance with housing laws.

(s) A 2023 Grand Jury report cited that a lack of a regional authority is a major barrier to progress, noting that efforts are often duplicative, data systems are siloed, and strategic planning is inconsistent across jurisdictions. Again, no joint powers authority was formed.

(t) Homelessness and housing affordability are regional challenges requiring coordinated action among local governments.

(u) The County of Sacramento and the cities located in the county share responsibility for the planning, funding, and delivery of housing and homelessness services.

(v) Improved coordination, accountability, and performance oversight are necessary to maximize the effectiveness of state and federal investments and improve outcomes for individuals experiencing homelessness.

(w) Since the introduction of this act, significant progress has been made toward a more coordinated regional approach to homelessness and housing.

(x) The County of Sacramento, the City of Sacramento, the City of Elk Grove, the City of Rancho Cordova, the City of Citrus Heights, and the City of Folsom, Sacramento Steps Forward, the Sacramento City and County Continuum of Care, and other stakeholders have responded to this act.

(y) The framework proposed by this act is now reflected in conversations between local jurisdictions.

(z) While concepts and timelines have been proposed, no final governance agreement has been approved, and the path forward remains dependent on future negotiations amongst multiple jurisdictions and stakeholders.

(aa) Therefore, this act remains an imperative legislative tool, key to the City of Sacramento’s accountability and coordination on the successful implementation of services related to housing and homelessness.

SEC. 2.

Article 1.5 (commencing with Section 6539.9.5) is added to Chapter 5 of Division 7 of Title 1 of the Government Code, to read:

Article 1.5. Sacramento Regional Housing and Homelessness Joint Powers Authority Act

6539.9.5.

(a) This article shall be known, and may be cited, as the Sacramento Regional Housing and Homelessness Joint Powers Authority Act.

(b) The By January 1, 2028, the County of Sacramento, the City of Sacramento, the City of Elk Grove, the City of Rancho Cordova, the City of Citrus Heights, and the City of Folsom shall participate in and work together to establish a joint powers authority, pursuant to the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500)), designed to make a meaningful difference for people experiencing housing insecurity and homelessness across the County of Sacramento.

(c) The County of Sacramento, the City of Sacramento, the City of Elk Grove, the City of Rancho Cordova, the City of Citrus Heights, and the City of Folsom together shall do all of the following:

(1) Bring elected officials from across the region together through the joint powers authority that provides program and policy guidance and establishes shared goals to improve the efficacy of the region’s homeless response system and affordable housing resources.

(2) Bring the oversight and functions of the Sacramento City and County Continuum of Care under the jurisdiction of the joint powers authority, while maintaining the federally required composition and integrity of the continuum of care.

(3) Work collaboratively with the Sacramento Housing and Redevelopment Authority to develop goals and action plans that address homelessness, affordable housing, and advance a true housing continuum regionally.

(d) The joint powers authority shall do all of the following:

(1) Set system performance goals and, at a minimum, regularly review state and federal performance metrics to address housing and homelessness.

(2) Collaborate to update the regionally coordinated homelessness action plan as necessary and oversee implementation of the plan.

(3) Coordinate on delivery of prevention, outreach, shelter, and housing programs, with local jurisdictions retaining oversight, accountability, and control over land use decisions and programs administered by the local jurisdictions.

(4) Explore better integration with other systems working in homelessness and housing, including county-administered behavioral health, child and adult welfare, and social safety net services.

(5) Align regional funding for housing and homelessness, with local jurisdictions retaining final control and approval over local, state, and federal funds eligible to be administered by local jurisdictions.

(6) Comply with the requirements set forth in the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5).

(7) Provide direction to the continuum of care lead agency.

(8) Provide oversight over continuum of care functions, including all of the following:

(A) The Homeless Management Information System.

(B) The Coordinated Access System.

(C) The Point-in-Time Count.

(9) Develop a committee structure to ensure community voice continues to be incorporated.

(10) Include the County of Sacramento, the City of Sacramento, the City of Elk Grove, the City of Rancho Cordova, the City of Citrus Heights, and the City of Folsom.

(11) Be developed as a formal, robust joint powers authority.

(12) Have a board that consists solely of the elected officials representing the County of Sacramento, the City of Sacramento, the City of Elk Grove, the City of Rancho Cordova, the City of Citrus Heights, and the City of Folsom.

(13) Target both housing and homelessness.

(14) Incorporate meaningful resources to provide services.

(15) Have a governance structure that includes the lead entities, respectively, from both the Continuum of Care and the Sacramento Housing and Redevelopment Agency.

(16) Hold monthly public meetings and incorporate public participation.

(e) A local jurisdiction shall retain oversight and accountability over funding decisions, projects, and programs administered by the local jurisdiction, including contracting for prevention, outreach, sheltering, and housing.

(f) The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 3.

The Legislature finds and declares, with respect to Section 2 of this act, that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique and urgent housing and homelessness conditions in the County of Sacramento and its major cities.

SEC. 4.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.