Proposition 123 Revenue Uses

Beginning in state fiscal year 2026-27, the act makes the expenditure of up to 5% of the money from each program's allocation of funding for administration of each program subject to annual appropriation by the general assembly and clarifies how that 5% amount is calculated.

The act also allows the division of housing, subject to annual appropriation by the general assembly, to expend money under the program serving persons experiencing homelessness for:

Capital needs at 2 state-owned supportive residential communities for persons experiencing homelessness (supportive residential communities); and Direct and indirect costs of operating the 2 supportive residential communities.

Proposition 123 also included a prohibition on the general assembly appropriating funds from the fund and the affordable housing financing fund to supplant other state support for affordable housing projects. The act clarifies when appropriations from the fund and the affordable housing financing fund would violate this prohibition. (Note: This summary applies to this bill as enacted.)