(a)

1. (1) No later than September 15, 2021, the council shall issue a standard agreement for applicants to apply for round 3 program funds, which shall include, at minimum, a requirement for applicants to submit an application that includes a local homelessness action plan and specific system performance measures based on the Homeless Management Information System performance measures as described in subdivision (b).
2. (2) A standard agreement from an applicant shall be due to the council no later than 30 days from the date the council issues the standard agreement pursuant to paragraph (1).
3. (3) If an applicant does not submit a completed standard agreement by the deadline specified in paragraph (2), the council may distribute that applicant’s share of round 3 program funds to an eligible overlapping jurisdiction, as determined by the council.

4. (4)

   1. (A)

      1. (i) Upon receipt of a standard agreement, and except as otherwise provided in clause (ii), the council shall allocate 20 percent of an eligible city’s, county’s, or continuum of care’s total allocation pursuant to subdivision (a) of Section 50218.6.

      2. (ii)

         1. (I) A city, city and county, single continuum of care, or county may apply jointly with a counterpart entity or entities. An applicant that applies jointly pursuant to this paragraph shall instead be allocated 25 percent of the jointly applying jurisdictions’ total allocation pursuant to subdivision (a) of Section 50218.6.
         2. (II) A joint application submitted pursuant to this clause shall include, at minimum, evidence of collaboration between the jointly applying applicants and an explanation of how the jointly applying applicants will administer the funds allocated to them pursuant to this section.
   2. (B) A recipient may use initial funds awarded pursuant to this paragraph to complete the local homeless action plan, required as provided pursuant to paragraph (1) and in accordance with the requirements of subparagraph (A) of paragraph (3) of subdivision (b), including paying for any technical assistance or contracted entities to support the completion of the homeless action plan.

5. (5) Priority for initial funds, above the costs of completing the application, shall be for systems improvement, including, but not limited to, all of the following:

   1. (A) Capacity building and workforce development for service providers within the jurisdiction, including removing barriers to contracting with culturally specific service providers and building the capacity of providers to administer culturally specific services.
   2. (B) Funding existing evidence-based programs serving people experiencing homelessness.
   3. (C) Investing in data systems to meet reporting requirements or strengthen the recipient’s Homeless Management Information System.
   4. (D) Improving homeless point-in-time counts.
   5. (E) Improving coordinated entry systems to strengthen coordinated entry systems to eliminate racial bias, to create a youth-specific coordinated entry system or youth-specific coordinated entry access points, or to improve the coordinated entry assessment tool to ensure that it contemplates the specific needs of youth experiencing homelessness.

(b) To receive the remaining balance of its round 3 program allocation, an applicant shall submit an application to the council by June 30, 2022, that includes a local homelessness action plan and specific system performance measures in accordance with the following requirements:

1. (1) The applicant shall engage with the council on its local plan and system performance measures before submitting a complete application.
2. (2) For city, county, and continuum of care applicants, local homelessness action plans pursuant to subparagraph (A) of paragraph (3) and system performance measures pursuant to subparagraph (C) of paragraph (3) shall be agendized at a regular meeting of the governing body, including receiving public comment, before being submitted to the council.

3. (3) A complete application submitted pursuant to this section shall provide the following information, in the form and manner prescribed by the council:

   1. (A) A local homelessness action plan, which shall include all of the following:

      1. (i) A local landscape analysis that assesses the current number of people experiencing homelessness and existing programs and funding which address homelessness within the jurisdiction, utilizing any relevant and available data from the Homeless Data Integration System, the United States Department of Housing and Urban Development’s 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.
      2. (ii) Identification of the number of individuals and families served, including demographic information and intervention types provided, and demographic subpopulations that are underserved relative to their proportion of individuals experiencing homelessness in the jurisdiction.
      3. (iii) Identification of all funds, including state, federal and local funds, currently being used, and budgeted to be used, to provide housing and homelessness-related services to persons experiencing homelessness or at imminent risk of homelessness, how this funding serves subpopulations, and what intervention types are funded through these resources.
      4. (iv) Applicants may submit an analysis that was completed in the last three-years if it meets the requirements of this subparagraph, with any relevant updates to the current available funding.

   2. (B) A narrative that includes the following:

      1. (i) An outline of proposed uses of funds requested and an explanation of how the proposed use of funds will complement existing local, state, and federal funds and equitably close the gaps identified pursuant to subparagraph (A).
      2. (ii) Evidence of connection with the local homeless Coordinated Entry System.
      3. (iii) 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.
      4. (iv) A demonstration of how the jurisdiction has coordinated, and will continue to coordinate, with other jurisdictions, including the specific role of each applicant in relation to other applicants in the region.
      5. (v) A demonstration of the applicant’s partnership with, or plans to use funding to increase partnership with, local health, behavioral health, social services, and justice entities and with people with lived experiences of homelessness.
      6. (vi) A description of specific actions the applicant will take to ensure racial and gender equity in service delivery, housing placements, and housing retention and changes to procurement or other means of affirming racial and ethnic groups that are overrepresented among residents experiencing homelessness have equitable access to housing and services.
      7. (vii) A description of how the applicant will make progress in preventing exits to homelessness from institutional settings, include plans to leverage funding from mainstream systems for evidence-based housing and housing-based solutions to homelessness.

      8. (viii) Specific and quantifiable systems improvements that the applicant will take to improve the delivery of housing and services to people experiencing homelessness or at risk of homelessness, including, but not limited to, the following:

         1. (I) Capacity building and workforce development for service providers within the jurisdiction, including removing barriers to contracting with culturally specific service providers and building the capacity of providers to administer culturally specific services.
         2. (II) Strengthening the data quality of the recipient’s Homeless Management Information System.
         3. (III) Increasing capacity for pooling and aligning housing and services funding from existing, mainstream, and new funding.
         4. (IV) Improving homeless point-in-time counts.
         5. (V) Improving coordinated entry systems to strengthen coordinated entry systems to eliminate racial bias, to create a youth-specific coordinated entry system or youth-specific coordinated entry access points, or to improve the coordinated entry assessment tool to ensure that it contemplates the specific needs of youth experiencing homelessness.
      9. (ix) Plans shall include strategies to meet system performance measures pursuant to subparagraph (C).

   3. (C)

      1. (i) Applicants shall establish system performance measures that prevent and reduce homelessness from July 1, 2021, through June 30, 2024, informed by the findings from the local landscape analysis described in subparagraph (A) and the jurisdiction’s base system performance measure from 2020 calendar year data in the Homeless Data Integration System. The system performance measures shall set definitive metrics, based on the United States Department of Housing and Urban Development’s system performance measures, for achieving the following:

         1. (I) Reducing the number of persons experiencing homelessness.
         2. (II) Reducing the number of persons who become homeless for the first time.
         3. (III) Increasing the number of people exiting homelessness into permanent housing.
         4. (IV) Reducing the length of time persons remain homeless.
         5. (V) Reducing the number of persons who return to homelessness after exiting homelessness to permanent housing.
         6. (VI) Increasing successful placements from street outreach.
         7. (VII) Homeless Management Information System trackable data goals related to the system performance measures listed above as they apply to underserved populations and populations disproportionately impacted by homelessness.
      2. (ii) Each applicant shall determine its system performance measures in consultation with the council, and shall not submit its final system performance measures before consulting with the council.
      3. (iii) The council shall assess system performance measures in the application based on the information provided in the local homeless action plan and the applicant’s baseline data on the system performance measures described in this subparagraph and determine whether the system performance measures adequately further the objectives of reducing and preventing homelessness pursuant to this subparagraph.
      4. (iv) Initial system performance measures should be met no later than June 30, 2024, and system performance measures shall be updated regularly, as funding continues.

(d)

1. (1) Within 30 days of receiving the final applications pursuant to subdivision (b), the council shall either approve the application and issue the notice of award to allocate the remaining percent of an applicant’s funding pursuant to subdivision (a) of Section 50218.6 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 agreed upon system performance measures.
   2. (B) Modifications or provision of additional information on the applicant’s proposed funding plan to ensure alignment with the applicant’s stated system performance measures 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 outcome standards in accordance with Sections 50221, 50222, and 50223.
2. (2) An applicant whose application has been returned pursuant to paragraph (1) shall respond to the council’s requested amendments and submit a revised application within 30 days of receipt of the council’s detailed comments and request for specific amendments. If 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.
3. (3) The council shall have 30 days to approve a revised application if, as amended, it addresses the council’s concerns or to provide the grantee with additional guidance and a deadline extension in the case of documented extenuating circumstance for further amending to fully address the council’s concerns.

(e) Except as provided in subdivision (f), a recipient of a round 3 program allocation, including tribal recipients, 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) Interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or existing noncongregate shelters, and operations of existing navigation centers and shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following:

   1. (A) The number of available shelter beds in the city, county, or region served by a continuum of care.
   2. (B) The number of people experiencing unsheltered homelessness in the homeless point-in-time count.
   3. (C) Shelter vacancy rate in the summer and winter months.
   4. (D) Percentage of exits from emergency shelters to permanent housing solutions.
   5. (E) A plan to connect residents to permanent housing.
   6. (F) Any new interim sheltering funded by round 3 funds must be low barrier, comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code, and prioritize interventions other than congregate shelters.
9. (9) Improvements to existing emergency shelters to lower barriers and increase privacy.

(k)

1. (1)

   1. (A) Except as otherwise provided in subparagraph (B), a recipient shall contractually obligate not less than 50 percent of round 3 program allocations no later than May 31, 2024.
   2. (B) Recipients that are counties shall contractually obligate the full amount of round 3 program allocation awarded to them by the council on or before the date specified in subparagraph (A). Any funds that are not contractually obligated by this date shall revert to the continuum of care that serves the recipient county.

2. (2) If less than 50 percent is obligated after May 31, 2024, recipients that are continuums of care and cities shall not expend any remaining portion of the 50 percent of round 3 program allocations required to have been obligated pursuant to subparagraph (A) of paragraph (1) unless both of the following occur:

   1. (A) On or before June 30, 2024, the recipient submits an alternative disbursement plan that includes an explanation for the delay.
   2. (B) The council approves the alternative disbursement plan submitted pursuant to subparagraph (A).
3. (3) On or before December 31, 2024, 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), and those funds shall be reallocated to round 3 grantees pursuant to the provisions of this chapter.

(l)

1. (1) No later than June 30, 2024, recipients shall demonstrate whether they have successfully met their system performance measures pursuant to subparagraph (C) of paragraph (3) of subdivision (b).
2. (2) Jurisdictions that have not met their system performance measures shall accept technical assistance from council staff. In addition, jurisdictions that have not met their system performance measures may also be required to limit the allowable uses of these program funds, as determined by the council.