Policy & Legislation

MHSA Housing Program Update

April 02, 2008

The California Department of Mental Health (DMH) is finalizing regulations to govern the initial $400 million for the Mental Health Services Act (MHSA) Housing Program. As with other new programs, many questions persist as to how the program will operate and what can be expected in the coming years.

One of the unique aspects of MHSA is that the resources are determined and allocated at the county level. Right now, counties are at various stages in approving and implementing plans to spend MHSA funds, including funds for the housing program. The counties agreed to allocate an initial $400 million for the housing program, representing three and a half years of funding. After this initial commitment, each county will individually re-assess its commitment to continue funding homes.

Because budget difficulties have hit counties, the counties have decided to wait to commit to funding levels until MHSA revenues are assured, as opposed to committing to funding levels based on revenue estimates.

What does this all mean for developers wanting to access MHSA Housing Program funds? First, we must ensure that the funds are used to build quality developments throughout the state, so when counties begin to assess the impact, they see solid results. Second, we need developers to build relationships with advocates and county staff to ensure that stable homes are a part of any plan for MHSA funds.

For more information about the status of the MHSA Housing Program in each county, contact each county's MHSA coordinator.

Contact: Zack Olmstead, (916) 447-0503 x 108 or .

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