Politichaos

Resolving the Ruckus

Proposition 2

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Authorizes Bonds to Fund Existing Housing Program for Individuals with Mental Illness

legislative statute

Official Summary

Ratifies existing law establishing the No Place Like Home Program, which finances permanent housing for individuals with mental illness who are homeless or at risk for chronic homelessness, as being consistent with the Mental Health Services Act approved by the electorate.

Ratifies issuance of up to $2 billion in previously authorized bonds to finance the No Place Like Home Program.

Amends the Mental Health Services Act to authorize transfers of up to $140 million annually from the existing Mental Health Services Fund to the No Place Like Home Program, with no increase in taxes.

Fiscal Impact: Allows the state to use up to $140 million per year of county mental health funds to repay up to $2 billion in bonds. These bonds would fund housing for those with mental illness who are homeless.

Notes

This was passed by the Legislature, but bond funds need to be approved by the people.

Designates funds within the Mental Health Services Act (established in 2004) to the No Place Like Home program.

It is currently in the courts to approve the plan to pay for No Place Like Home using Mental Health Services Act funds. If the court approves the plan, this proposition will have been irrelevant. If the court rejects the plan, this proposition allows the state to move forward anyway.

Main points:

  • Approves up to $140 million of Mental Health Services Act funds per year to the No Place Like Home program.

  • Authorizes $2 billion in bonds for No Place Like Home, with the repayment handled by the Mental Health Services Act fund, typically $120 million per year.

  • Less funding would be available to non-No Place Like Home county mental health services.