AB 625

Under current law, the Department of Administration administers a number of grant programs having the purpose of alleviating homelessness. This bill establishes “pay for performance” requirements for certain grants issued under those programs to grant recipients. For each eligible grant awarded to a grant recipient, DOA must withhold between 10 and 50 percent of the amount of the eligible grant for at least nine months after the award. DOA may then pay the amount withheld to the grant recipient only if the recipient demonstrates that it has met one or more of the following performance objectives, as determined by DOA:

1. Increased the number of homeless individuals and families securing continued housing for longer than nine months after participation in a program offered by the grant recipient.

2. Increased the number of homeless individuals securing part-time or full-time employment and an increase in earned income after participation in a program offered by the grant recipient.

3. Reduced the number of homeless individuals and families returning to homelessness after participation in a program offered by the grant recipient.

Any moneys that DOA has withheld and does not pay to a grant recipient due to the grant recipient’s failure to satisfy one or more of the performance objectives may be reallocated as additional grant moneys to other grant recipients that do satisfy the performance objectives.

The bill also requires grant recipients to provide to DOA, at least nine months but no more than 12 months after the award, a detailed report that includes information about the program offered by the grant recipient and demographic information about each individual participating in the program offered by the grant recipient.