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AB 1432

Homelessness Accountability, Recovery, and Treatment Act.

2025-2026 Regular Session Introduced by Joshua Hoover

AB 1432 requires nonprofits receiving homelessness funds to report standardized performance metrics annually, increasing transparency and accountability in recovery housing program

Re-referred to Com. on H. & C.D.
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Bill Summary · AB 1432

AB 1432 — Homelessness Accountability, Recovery, and Treatment (HART) Act

Author: Hoover
Introduced: February 21, 2025
Status: Re‑referred to Committee on Housing & Community Development (4/1/2025)

Purpose

AB 1432 creates standardized performance reporting and limited funding flexibility for “recovery housing,” with the stated goals of increasing transparency, improving outcomes, and ensuring accountability of nonprofits that receive state or local funds to serve people experiencing homelessness.

Key provisions

  • Establishes the Homelessness Accountability, Recovery and Treatment (HART) Act (Welfare & Institutions Code, Chapter 6.6, commencing with §8258).
  • Definitions: clarifies terms including “local government,” “nonprofit” (501(c)(3) recipients of state/local homelessness funding), “performance metrics,” “recovery housing,” “state agency,” and “homelessness program.”
  • Funding flexibility for recovery housing (§8258.2): permits a state agency to use up to 40% of existing noncontinuously appropriated funds allocated to a homelessness program on recovery housing that does NOT meet Housing First core components (e.g., programs that require sobriety or are court/condition-of-release mandated).
  • Standardized reporting requirements (§8258.3):
    • Nonprofits receiving state or local homelessness funds must annually report specified standardized performance metrics to the funding state agency or local government.
    • Required metrics (illustrative list in bill): total individuals/families served; placements in permanent and temporary housing; number receiving support services (job training, mental health, substance abuse treatment, case management); number who exited homelessness and maintained stable housing for ≥6 months; cost per individual/family served; cost per individual/family placed in permanent housing.
    • State agency must develop a standardized reporting template (in consultation with local governments and stakeholders), compile and publish an annual summary report of metrics, and provide technical assistance—particularly to smaller nonprofits.
    • Nonprofits must retain supporting records and make them available for audit/review. State agencies, with local governments, will establish certification procedures for metric accuracy. If local governments must fully cooperate, this is identified as a state‑mandated local program; potential reimbursement may be required if the Commission on State Mandates finds a mandate.
  • Regulatory and compliance timeline: state agency must adopt implementing regulations by January 1, 2027. Nonprofits must begin reporting starting with the first full fiscal year after adoption of those regulations.
  • Other: makes technical, nonsubstantive edits to existing Housing First statutes; contains provisions about state reimbursement if the bill creates mandated local costs.

Who is affected

  • Nonprofits (501(c)(3) organizations) receiving state or local homelessness funding: new reporting, recordkeeping, and potential audit obligations.
  • State agencies and local governments that fund or administer homelessness programs: must develop templates, compile and publish reports, adopt regulations, provide technical assistance, and establish certification procedures.
  • Recovery housing operators: may see expanded funding opportunities even if programs do not follow Housing First admission rules (limited to 40% of certain funds).
  • People experiencing homelessness: potential effects include shifts in program funding (more resources for recovery‑focused housing) and increased focus on measurable outcomes.

Procedural notes & timeline

  • Introduced: 2/21/2025; read first time: 2/24/2025; amended and re‑referred: 3/28/2025; re‑referred to H. & C.D.: 4/1/2025.
  • Regulations required by January 1, 2027; reporting begins the first full fiscal year after regulations are adopted.
  • The bill does not appropriate new funds in text shown; it reallocates eligible portions of existing noncontinuously appropriated homelessness funds.

Potential considerations/impacts

  • Accountability and data consistency should improve transparency and enable evidence‑based policymaking.
  • Reporting and audit requirements impose administrative burdens on nonprofits, especially smaller providers—the bill requires technical assistance to mitigate this.
  • Allowing up to 40% of certain homelessness funds to support recovery housing that is not Housing First represents a policy shift that could affect access for people who use substances or refuse treatment; local and state stakeholders may debate tradeoffs between recovery‑focused programming and Housing First principles.
  • If local governments must fully cooperate with certification procedures, the bill could create state‑mandated local costs subject to reimbursement rules.

Compiled from official sources — confirm details with the bill’s official record.

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