(b) Effective July 1, 2026, the sum of five hundred million dollars ($500,000,000), less the amount of funding that has been transferred to Item 2240-001-0001 of the Budget Act of 2025 from the General Fund pursuant to subdivision (d), is appropriated, provided that these funds shall only be disbursed in accordance with both of the following:

1. (1) None of these funds shall be allocated until after enactment of legislation declaring that it addresses the issues described in subdivision (c).

2. (2) Funds from this appropriation shall only be disbursed to a city, county, tribe, or continuum of care for round 7 of the program after declaration by the director of the department, in consultation with the Director of Finance, that both of the following are true of the particular city, county, tribe, or continuum of care that is the subject of the disbursement, with respect to round 6 of the Homeless Housing, Assistance, and Prevention program:

   1. (A) The department has substantially completed its initial disbursement of round 6 funds to the city, county, tribe, or continuum of care.
   2. (B) The city, county, tribe, or continuum of care has obligated at least 50 percent of its total round 6 award.

(c)

1. (1) Consistent with paragraph (1) of subdivision (b), it is the intent of the Legislature to enact future legislation that specifies parameters for round 7 of the Homeless Housing, Assistance, and Prevention program.

2. (2) The following conditions and priorities shall be incorporated into the implementation of round 7 funding, with subsequent legislation to specify the extent to which each shall apply:

   1. (A) Having a compliant housing element.
   2. (B) Having a local encampment policy consistent with administration guidance.
   3. (C) Having a prohousing designation.
   4. (D) Leveraging local resources to scale state investments.
   5. (E) Demonstrating progress on key housing performance metrics.
   6. (F) Demonstrating urgency and measurable results in housing and homelessness prevention.

(d)

1. (1) During fiscal year 2025–26, the department shall prepare to administer round 7 of the Homeless Housing, Assistance, and Prevention program with the goal that, subject to subdivisions (b) and (c), initial round 7 disbursements will be available to grantees meeting the statutory provisions for disbursement beginning September 1, 2026.

2. (2)

   1. (A) The Department of Finance may augment Item 2240-001-0001 of the Budget Act of 2025 by eight million dollars ($8,000,000) for implementation of paragraph (1).
   2. (B) The Department of Finance shall provide notification of any augmentation within 10 days to the Joint Legislative Budget Committee.

3. (3)

   1. (A) The administrative costs for round 7 of the program shall not exceed 5 percent of the total allocated for round 7 of the program.
   2. (B) The amounts provided in paragraph (2) are included in the 5 percent to be allocated for this purpose.