What the pandemic taught California about housing

ATTENTION SF AND SILICON VALLEY — We’re hosting an event on AI policy and politics at Manny’s in San Francisco’s Mission district tomorrow. POLITICO’s senior California politics and policy reporter Jeremy B. White will interview state Sen. Scott Wiener, a leading lawmaker on AI regulation, about California’s role in shaping the industry. Bring your own tough questions to ask, starting at 7:30 p.m. — get your tickets here.

THE BUZZ: OPENING DOORS — California’s Covid-era housing program managed to get tens of thousands of people off the street, and could offer valuable lessons for the state as it looks to roll out Gov. Gavin Newsom’s signature mental health and housing initiative.

Project Roomkey, Newsom’s emergency plan for housing people and slowing the spread of the virus during the height of the pandemic, brought about 62,000 people into hotel rooms using state and federal money, according to a new outside report from the firm Abt Global, released Monday night.

The firm did not track where those people are now, but found that around 22 percent of participants moved to permanent housing upon leaving.

The authors described the program design and funding as “unprecedented in their speed and scale,” and said key to its success were services, such as help with doctor’s appointments and behavioral health care, that made it easier to get healthy and stay off the street for good.

To the measure’s supporters, Project Roomkey offers proof of concept for Prop 1 — and a lesson in political will.

“The lesson from Project Roomkey is that we can do this,” said Jason Elliott, the governor’s deputy chief of staff. “A lot of people that were opposed to Prop 1 — publicly or privately — said this just isn’t an addressable issue. We just can’t see this working. And a lot of people said the same thing about Project Roomkey.”

The approach that was tested under Roomkey is being made permanent under Prop 1, with help from $6.4 billion in bond money. But the state is already funding permanent supportive housing, hotel and motel renovations and new outpatient treatment slots through a behavioral health program already in place.

Over 2,600 new treatment and residential beds were funded while the state was waiting for Prop 1 to pass.

California Health and Human Services Secretary Mark Ghaly, in a statement, said Project Roomkey demonstrated the ability of local governments to create housing models that can address peoples’ complex needs — which will also be key to Prop 1’s success.

The positive findings for Project Roomkey come amid heightened scrutiny of California’s homelessness response and pressure from legislators to funnel more money toward housing. A recent state audit showed the state has spent over $20 billion to address homelessness in recent years, with little to show for it.

In the meantime, the governor is turning his focus to local accountability. Newsom last month called for increased oversight of homelessness efforts and, as Elliot put it, the administration does not want to “continue to fund failure.”

“There are some cities and some counties in California that are an example of exactly how to address homelessness, and behavioral health challenges. We want more cities and counties to follow their lead,” Elliott said. “We want fewer cities and counties to continue to fall back on the same excuses for why they can’t do it.”

MORE ON HOMELESSNESS: Newsom will sponsor legislation that would compel cities and counties to plan more housing for homeless people, part of the governor’s larger push to get tougher with local governments on the issue.

The bill being carried by Assemblymember Chris Ward would broaden state-mandated housing blueprints for local governments, requiring them to account for incomes at the very bottom of the income range — in other words, people who are homeless. That could encompass both identifying sites for temporary shelter, planning for longer-term permanent housing, and tweaking zoning rules to ensure units actually get built.

“These new income categories mean everyone will need to focus more intently on the unique needs of people in homelessness,” Elliott said in an interview.

— with help from Jeremy B. White

GOOD MORNING. Happy Tuesday. Thanks for waking up with Playbook.

Meanwhile, you can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts. Or drop us a line at [email protected] and [email protected], or on X — @DustinGardiner and @Lara_Korte.

WHERE’S GAVIN? Delivering remarks at the California Highway Patrol Memorial Ceremony.

NEWSOMLAND

TOUGH TALK — First partner Jennifer Siebel Newsom had some strong remarks for the tech industry on Monday, accusing social media companies of standing in the way of efforts to protect kids’ privacy and safety online.

Speaking at the Milken Institute Global Conference, she accused major firms of failing to address social media addiction and mental health problems among young people. She also noted industry efforts to stymie the state’s landmark Age Appropriate Design Code — a law designed to protect children’s online privacy and safety — that has been held up in courts since the governor signed it in 2022.

“We’re sadly being held back by capitalist interests,” the first partner said. “For me, legislation is necessary if the tech companies aren’t going to be more transparent.”

For more, read Melanie Mason and Lara Korte’s story.

ON THE HILL

E - I - E - I - OH NO — South Dakota Governor Kristi Noem is still fending off criticisms over her revelation that she shot her 14-month-old puppy, Cricket, but at least one California Republican is still excited to hear her speak at the CAGOP convention next week: fellow farmer Rep. John Duarte.

Duarte, in an interview with POLITICO Monday, said he thinks Noem is a “great Republican leader” and is excited to hear what she has to say. The California Republican said he had not read the excerpt of Noem’s memoir yet, but that he doesn’t heavily weigh individual storylines from people’s books: “We’re still talking about Mitt Romney with a dog on the top of his car,” he added.

“If you live on a farm, sometimes you have to take care of the animals,” Duarte said. “I didn’t read the excerpt. I don’t know the details of it. But there are animals that from time to time need to be put down and I’ll trust that she did it humanely and with a great amount of thought.” — Mia McCarthy

ON THE AGENDA

MILKEN GLOBAL CONFERENCE — Former House Speaker Kevin McCarthy is taking the stage in Los Angeles today at 10 a.m. for a conversation with Gerard Baker, The Wall Street Journal’s editor-at-large.

Later in the day, Attorney General Rob Bonta will speak on a panel about AI regulation. Joining him and other panelists is Black Eyed Peas rapper will.i.am.

PUPPY TIME — Going to the Milken Global Conference in LA this week? Need a break from the policy panels? Our senior political reporter Melanie Mason (shown here with her dog, Dottie) will be posting up with some four-legged friends at the “wellness garden puppy time” (yes, that’s a real item on the program) TODAY from 2:30 to 4 p.m. Come say hi!

TOP TALKERS

— One of California’s largest property insurers is hiking its prices as much as 26.7 percent. (San Francisco Chronicle)

— A bipartisan group of California congressmen got together for home-cooked tacos in Washington D.C. If the lawmakers banned together, they could create a whopping 12 percent voting bloc. (Los Angeles Times)

— Officials from all three of California’s public college systems solidified in-state tuition requirements for undocumented immigrant students after years of confusion, misinformation and differing interpretations jeopardized their eligibility. (Northern California Public Media)

AROUND THE STATE

— The city of San Leandro paid nearly $1 million to an unarmed man who suffered a traumatic brain injury after police officers beat, handcuffed and tackled him to the ground in 2021. (San Francisco Chronicle)

— The home of Pixar and Clif Bar is one of California’s fastest growing cities. (KTVU)

— The head of San Francisco’s most powerful political group is under fire for alleged sexual battery and improper coordination with a candidate committee. (The San Francisco Standard)

— The urgency of California’s housing crisis is bringing together two unusual groups behind a bill to convert office buildings to residential housing. (San Francisco Chronicle)

PLAYBOOKERS

PEOPLE MOVES — Justin Maturo is now special assistant to the assistant secretary of Defense for legislative affairs. He previously was deputy chief of staff and legislative director for Rep. Mark Takano (D-Calif.).

BIRTHDAYS — Artie Mandel … (was Monday): Abraham Sofaer ... Daniel Gryczman ... Shira Lazar

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