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AB 505

Revises provisions relating to constructional defects. (BDR 3-1144)

2025 Regular Session

AB 505 requires the LAO to evaluate Homekey’s effectiveness and funding timeliness, with findings and policy recommendations due by July 1, 2027.

(No further action taken.)
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Bill Summary · AB 505

AB 505 Summary — Multifamily Housing Program: Homekey: Report

Overview

AB 505, introduced February 10, 2025 by Assemblymember Castillo and currently referred to the House and Local Government Committee (H. & C.D.), would require a formal evaluation of the Homekey disbursement program within California’s Multifamily Housing Program. The evaluation would be conducted by the Legislative Analyst’s Office (LAO) and would analyze both the program’s effectiveness in sustaining homelessness-affected individuals and the timeliness of fund allocations to localities. A final report with policy recommendations would be due by July 1, 2027. The bill would sunset and be repealed on January 1, 2031.

Purpose and Intent

  • Increase transparency and accountability for the Homekey program, which uses funds appropriated to provide housing for people experiencing homelessness or at risk of homelessness, with specific attention to individuals affected by COVID-19 or other communicable diseases.
  • Assess whether Homekey achieves lasting housing stability, and identify bottlenecks or delays in funding and disbursement processes.
  • Provide policy recommendations to address any identified issues and improve program performance.

Key Provisions

  • Creation of Section 50675.17 to the Health and Safety Code (added to follow 50675.16).
  • The LAO must conduct an evaluation with two main focus areas: 1) Effectiveness in sustaining people experiencing homelessness:
    • The number of housing units and projects funded since inception.
    • The percentage of units funded that remain occupied after one year.
    • The number of individuals who transitioned from program housing to stable, long-term housing.
    • The cost per unit of program housing compared to other affordable housing initiatives.
    • Demographic breakdowns (family status, veteran status, disabilities, etc.). 2) Timeliness of fund allocation to localities:
    • Average time between application submission and fund disbursement.
    • Percentage of funds allocated within applicable timelines.
    • Delays in project completion due to funding disbursement issues.
    • Comparison of funding distribution efficiency across funding rounds.
  • Reporting deadline: On or before July 1, 2027, the LAO must submit the report to the Legislature with results and policy recommendations.
  • Reporting format: Must comply with Government Code Section 9795 (standard reporting requirements).
  • Sunset: The provision remains in effect until January 1, 2031, at which point it is repealed.

Affected Parties and Scope

  • Legislative Analyst’s Office (primary evaluator).
  • Department of Housing and Community Development (administrative framework for Homekey, though not required to take new actions beyond the evaluation mandate).
  • Localities that participate in the Homekey program (receiving funds and implementing projects will be subject to evaluation metrics).
  • Populations served by Homekey (indirectly affected through potential program improvements and policy changes).

Timelines and Procedural Details

  • Bill status: Referred to Committee on Housing and Community Development (H. & C.D.) on February 24, 2025.
  • Legislative timeline notes: Version introduced February 10, 2025; may be heard in committee around March 13, 2025.
  • Evaluation deadline: July 1, 2027 for the LAO report.
  • Sunset/Repeal: January 1, 2031.

Potential Impacts

  • Adds an official, data-driven assessment of Homekey performance and efficiency.
  • Could influence future funding decisions or program improvements based on findings and recommendations.
  • Introduces a clear, time-bound timeline for evaluation and oversight, with a formal end-date unless renewed by subsequent legislation.

Note on Budget

  • The bill is non-appropriation in its language, though the Digest indicates a fiscal committee vote is required; any LAO evaluation costs would be determined within the state budgeting process.

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

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