Section 8402 - Allocation of Funds(a) The Department will accept and use an amount of the State's annual allocation of ESG funds for Administrative activities not to exceed the amount permitted under 24 CFR 576.100(c). Pursuant to 24 CFR 576.108 (b), a portion of this amount will be shared with ESG Subrecipients that are Units of general purpose local government. The amounts available for Administrative activities will be announced in the Action Plan and annual NOFA.(b) After deducting for State Administrative activities, the remaining ESG funds will be made available for Eligible activities through two allocations according to the formula set forth in subsection (c):(1) the Continuum of Care Allocation to be administered in accordance with section 8403; and(2) the Balance of State Allocation to be administered in accordance with sections 8404 through 8407.(c) The amount of funds available to Service Areas within the Continuum of Care Allocation and the Balance of State Allocation will be based on the amount of ESG funds available in any given year using the following formula factors adjusted biannually using the most recent data available.(1) The point-in-time count published by HUD which includes both sheltered and unsheltered homeless persons prorated to reflect the total population of the ESG Nonentitlement Areas within each Continuum of Care Service Area as published by the Census Bureau;(2) The number of extremely low-income renter households within the ESG Nonentitlement Areas of each Continuum of Care Service Area that are paying more than 50 percent of their income for rent using HUD's Comprehensive Housing Affordability Strategy dataset;(3) The number of persons below the federal poverty line within the ESG Nonentitlement Areas of each Continuum of Care Service Area divided by the total population within the ESG Nonentitlement Areas of each Continuum of Care Service Area. This factor will be double-weighted. Data for these factors will be obtained from the Census Bureau.(4) Notwithstanding subsections (1) through (3) above, the Department may occasionally adjust the weighting of these factors and sources of information to reflect changes in the availability of data sources and to use the best information available. Any changes to the factors or weighting of the formula will be proposed in the Action Plan.(d) The amount of funds available to a Service Area under the formula may be capped in order to achieve a greater geographic balance of the funds among all eligible Continuums of Care of the State. Any cap on amounts available under the formula will be proposed in the Action Plan.(e) In any year where the Department is issuing a NOFA, by January 31st, the Department will notify Eligible Continuums of Care and ESG Entitlement Areas within an Eligible Continuum of Care of the following: (1) Service Areas and preliminary funding amounts within the Continuum of Care Allocation and the Balance of State Allocation(2) In determining the Continuum of Care Allocation, the Department will issue the following: (A) A solicitation of interest for Administrative Entities, pursuant to the requirements of section 8403, which includes timeframes for applications and approval and a solicitation of interest to administer funds for geographically contiguous Continuums of Care that are eligible to receive funds under the Balance of State Allocation; and(B) Where there is no intent to apply to be an Administrative Entity, a solicitation of interest to apply for Rapid Re-housing activities pursuant to 8403(a) (2).(3) In determining the Balance of State Allocation, the Department will issue the following: (A) A solicitation of interest from Continuums of Care to participate in Balance of State Allocation regional competition pursuant to section 8404 (a(4)), and(B) A solicitation of interest in applying for Rapid Rehousing activities pursuant to 8404(a) (2).Cal. Code Regs. Tit. 25, § 8402
1. New section filed 7-14-2004; operative 8-13-2004 (Register 2004, No. 29).
2. Repealer and new section and amendment of NOTE filed 2-25-2016; operative 4-1-2016 (Register 2016, No. 9).
3. Governor Newsom issued Executive Order N-66-20 (2019 CA EO 66-20), dated May 29, 2020, relating to procedures and conditions for the allocation of funds pursuant to Public Law 116-136, due to the COVID-19 pandemic. Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 24 C.F.R. Section 576.100 and 24 C.F.R. 576.108.
1. New section filed 7-14-2004; operative 8-13-2004 (Register 2004, No. 29).
2. Repealer and new section and amendment of Note filed 2-25-2016; operative 4/1/2016 (Register 2016, No. 9).