Cal. Health & Safety Code § 50220.5

(a) To receive a round 2 program allocation, an applicant shall submit an application according to a calendar established by the council consistent with the following requirements:
1. (1) The council shall make an application for round 2 program allocations available no later than November 30, 2020.
2. (2) Applications shall be due to the council no later than 60 days from the date the council makes those applications available pursuant to paragraph (1).
3. (3) Within 60 days of receiving an application pursuant to paragraph (2), the council shall either approve the application or return it to the applicant with written, detailed comments and request one or more of the following specific amendments to the application:
  1. (A) Greater detail on any aspect of the application so that the council can ensure fidelity with the applicant’s proposed use of funds and stated measurable goals as defined in paragraphs (4) and (5), respectively, of subdivision (b).
  2. (B) Modifications or provision of additional information on the applicant’s proposed funding plan to ensure alignment with the applicant’s stated measurable goals as defined in paragraphs (3), (4), and (5), respectively, of subdivision (b) and with evidence-based solutions to reduce homelessness.
  3. (C) Any other modifications or provision of information that would allow the council to better monitor and evaluate the applicant’s ability to meet objective performance standards in accordance with Sections 50221 and 50222.
4. (4) An applicant whose application has been returned pursuant to paragraph (3) shall respond to the council’s requested amendments and submit a revised application within 45 days. Where the revised application differs from the council’s requests, the applicant shall include an explanation of the differences and the rationale for departing from the council’s requested amendments.
5. (5) The council shall have 30 days within which to approve the application, as amended, to address the council’s concerns.
(b) An application submitted pursuant to this section shall provide the following information, in the form and manner prescribed by the council:
1. (1) A demonstration of how the jurisdiction has coordinated, and will continue to coordinate, with other jurisdictions, particularly regarding their share of the regional need to address homelessness, and how the requested funds will help meet the jurisdiction’s share of that need and coordinate with other regional funding.
2. (2) Identification of all funds currently being used or anticipated to be used by the applicant to provide housing and homeless services for the homeless populations in the jurisdiction, including all federal, state, and local funds. Funds described in this paragraph specifically includes funding made available under the federal Emergency Solutions Grants Program (42 U.S.C. Sec. 11371 et seq.), the federal Community Development Block Grant Program (42 U.S.C. Sec. 5301 et seq.), or the federal Coronavirus Relief Fund (42 U.S.C. Sec. 801) pursuant to the federal Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136) where applicable.
3. (3) An assessment of the current number of people experiencing homelessness, existing programs and funding which address homelessness within the jurisdiction, and a detailed identification of gaps in housing and homeless services for the homeless populations in the jurisdiction utilizing any relevant and available data from the United States Department of Housing and Urban Development homeless point-in-time count, continuum of care housing inventory count, longitudinal systems analysis, and Stella tools, as well as any recently conducted local needs assessments.
4. (4) An outline of proposed uses of funds requested and an explanation of how the proposed use of funds will complement the funds described in paragraph (2) and equitably close the gaps identified pursuant to paragraph (3).
5. (5) A list of clearly defined and measurable goals, including, but not limited to, the number of individuals to be served and, of those served, the number to be successfully placed in permanent housing as a result of requested funding.
6. (6) Evidence of connection with the local homeless coordinated entry system.
7. (7) An agreement to participate in a statewide Homeless Data Integration System, and to enter individuals served by this funding into the local Homeless Management Information System, in accordance with local protocols.
(c) The council may request additional documentation and information from the applicant with respect to round 2 program allocations consistent with the requirements of subdivision (b).
(d) Except as provided in subdivisions (e) and (f), a recipient of a round 2 program allocation shall expend funds on evidence-based solutions that address and prevent homelessness among eligible populations including any of the following:
1. (1) Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees.
2. (2) Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves.
3. (3) Street outreach to assist persons experiencing homelessness to access permanent housing and services.
4. (4) Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing.
5. (5) Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations including families and homeless youth.
6. (6) Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions.
7. (7) Prevention and shelter diversion to permanent housing, including rental subsidies.
8. (8) New navigation centers and emergency shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following:
  1. (i) The number of available shelter beds in the city, county, or region served by a continuum of care.
  2. (ii) The number of people experiencing unsheltered homelessness in the homeless point-in-time count.
  3. (iii) Shelter vacancy rate in the summer and winter months.
  4. (iv) Percentage of exits from emergency shelters to permanent housing solutions.
  5. (v) A plan to connect residents to permanent housing.
(e) Up to 5 percent of an applicant’s round 2 program allocation may be expended for the following uses that are intended to meet federal requirements for housing funding:
1. (1) Strategic homelessness plan, as defined in Section 578.7(c) of Title 24 of the Code of Federal Regulations.
2. (2) Infrastructure development to support coordinated entry systems and Homeless Management Information Systems.
(f) The applicant shall not use more than 7 percent of a round 2 program allocation for administrative costs incurred by the city, county, or continuum of care to administer its program allocation. For purposes of this subdivision, “administrative costs” does not include staff or other costs directly related to implementing activities funded by the program allocation.
(g) A recipient of a round 2 program allocation shall comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.
(h) Notwithstanding Section 27011 of the Government Code, or any other statute governing the deposit of funds in the county treasury, a county may accept or deposit into the county treasury funds from any source for the purpose of administering a project, proposal, or program under this chapter.
(i) For purposes of Section 1090 of the Government Code, a representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county.
(j) The council shall post submitted final round 2 program applications to its internet website within 30 days of disbursal to the applicant.
(k)
1. (1)
  1. (A) On or before May 31, 2023, a recipient shall contractually obligate not less than 50 percent of round 2 program allocations.
  2. (B) Recipients that are counties shall contractually obligate the full round 2 program allocation awarded to them by the council on or before this date. Any funds that are not contractually obligated by this date shall be reverted to the continuum of care that serves the county.
2. (2) If less than 50 percent is obligated after May 31, 2023, recipients that are continuums of care and cities shall not expend any remaining portion of the 50 percent of round 2 program allocations required to have been obligated pursuant to subparagraph (A) of paragraph (1) unless and until both of the following occur:
  1. (A) On or before June 30, 2023, the recipient submits an alternative disbursement plan that includes an explanation for the delay.
  2. (B) The council approves the alternative disbursement plan.
3. (3) On or before December 31, 2023, recipients that are continuums of care and cities shall return to the council any funds that have not been expended pursuant to an alternative disbursement plan approved pursuant to subparagraph (B) of paragraph (2) for a subsequent round of awards by the council.
(l) The council may request additional information, as needed, to meet other applicable reporting or audit requirements.
(m) In addition to requirements in Section 50222, the council may monitor the expenditures and activities of an applicant, as the council deems necessary, to ensure compliance with round 2 program requirements.
(n) The council may, as it deems appropriate or necessary, request the repayment of round 2 program funds from an applicant, or pursue any other remedies available to it by law for failure to comply with program requirements.
(o) Any remaining amounts of round 2 program allocation funds not expended by June 30, 2026, shall revert to, and be paid and deposited in, the General Fund.