California governor chides some cities, counties for failing to address housing crisis

REDWOOD CITY, Calif. (CN) — Governor Gavin Newsom on Tuesday touted the expansion of a behavioral health treatment facility in the Bay Area, slamming some cities and counties for failing to tackle the homelessness and housing crisis the Golden State faces.

Standing before the San Mateo County building, Newsom pointed to Proposition 1 — a $6.4 billion bond issuance approved in March by voters — saying local governments now have unprecedented financial resources, despite budgetary cuts he announced on Friday.

“It’s time to do your job,” Newsom said. “It’s time to get things done.”

The Democrat said that billions of dollars in funding will become available soon. Notices of funding will be sent over the next few months, with application approvals happening in early fall. He expects money will reach local governments early next year.

The governor said he wants projects that quickly become reality, using Homekey as an example.

Homekey is a program that rehabilitates buildings into housing for the unhoused. The state auditor has said its cost is hundreds of thousands of dollars less than building new structures.

Newsom spoke Tuesday at a behavioral health treatment center that’s tapped into bond construction funding. He emphasized Proposition 1 will make more funding available. Flanked by local and state leaders, the governor said he’s never been more optimistic about addressing the state’s homelessness issue.

However, he had strong words for cities and counties he said aren’t pulling their weight, specifically calling out Huntington Beach.

The city and state have battled in court over the local government’s obligation to build housing.

Newsom said the state had no plan for the homelessness crisis five years ago. Instead, it had a half-billion dollar appropriation to cities and counties with no oversight.

Much has changed since then. In October, Newsom signed a bill that expanded the definition of “gravely disabled,” which provides more leeway as to when someone can be involuntarily detained.

That bill was written by state Senator Susan Talamantes Eggman, a Stockton Democrat. She also wrote one of two bills that became Proposition 1.

Eggman, who attended Tuesday’s press conference, said she’s held jobs at every level of care.

“People were dying with their rights on,” she said of people facing mental and behavioral health issues before changes in state law.

According to Eggman, some opponents of those changes argued that voluntary, as opposed to involuntary, care is best. She agreed, though she added that sometimes more intervention is needed.

Some opponents have decried not only the possibility of increased involuntary care, but also the shift in funding. Under Proposition 1, counties receive a smaller percentage of funding, which instead goes to the state.

State Senator Josh Becker, a Menlo Park Democrat whose district includes the Redwood City facility, said some of his constituents say they have “compassion fatigue.” He’s seen judgment against unhoused people grow.

“It could happen to our children or a loved one,” Becker said of someone facing a mental health issue.

The solution isn’t only in Proposition 1, but also in changes to the Mental Health Services Act and the Community Assistance, Recovery and Empowerment (CARE) Court, Becker said. Newsom agreed, saying no one change will lead the state to achieve its goals on housing and homelessness.

California is at “a hinge moment,” Newsom said. The changes and funding made available give local governments the ability to make progress.

Again, Newsom hammered the cities and counties that haven’t taken advantage of the changes while praising San Mateo County and its expanded facility.

San Mateo County used Behavioral Health Bridge Housing funds for the expansion. It also will implement its CARE Court by July, instead of waiting for the Dec. 1 deadline.

That program connects someone with untreated mental illness, and sometimes drug abuse, with a court-ordered plan. It’s managed by a team and can include prescribed interventions, supportive services and a housing framework.

“I just want to encourage you to never give up, never give in,” said Mike Callagy, San Mateo’s CEO and clerk of the board.