County BHSA housing interventions: time-limited and interim settings

State mental health tax money the county must spend on housing.

What it is

Since voters passed Proposition 63 in 2004, California has charged an extra 1% tax on personal income above $1 million. The money pays for county mental health care. In March 2024 voters approved Prop 1, which renamed the program the Behavioral Health Services Act (BHSA), added addiction treatment, and told counties how to split their share: 30% for housing, 35% for Full Service Partnerships (intensive team-based care for the sickest clients) and 35% for other services.

In Los Angeles County the Department of Mental Health (DMH) runs this money. From July 1, 2026, DMH must spend the housing share on what the law calls housing interventions: rent help, interim housing such as motel rooms, operating subsidies for buildings and some construction. On a normal Tuesday, DMH caseworkers place clients in interim beds and pay rent help for people who have a serious mental illness or an addiction and are homeless or about to be.

DMH's three-year plan budgets $902,531,000 of BHSA money for housing interventions, $270,759,000 of it in year one (July 2026 to June 2027). Counting every funding source, housing interventions total $1,008,713,415 over three years, and $447,213,671 of that, 44%, goes to time-limited and interim settings. That averages about $149 million a year. This interim money is the line on our diagram.

Who qualifies: a person must meet BHSA criteria, meaning a serious mental illness or a substance use disorder, and must be homeless or at risk. State rules limit how long BHSA pays for an interim bed. A person who is not eligible for Medi-Cal Transitional Rent can stay up to 12 months. A person who is eligible uses Transitional Rent first, and BHSA can then pay for the remaining months, with a combined limit of 12 months of interim housing across both.

We ask DMH to put $1.46 million a year of its interim money into the 150 Santa Monica beds, for residents who meet BHSA criteria. That is Santa Monica's share of the county's homeless count, about 0.98%, applied to the $149 million. At $57,000 to $76,400 a bed, $1.46 million pays for 19 to 26 bed-years. Because DMH's interim pool is fixed, those 19 to 26 bed-years move here from somewhere else in the county. That is what the diagram means by '19 to 26 bed-years move here.'

How it started

California voters created the Mental Health Services Act with Proposition 63 in 2004, a 1% tax on personal income above $1 million (fact, California Budget and Policy Center). Under it, counties received 95% of the money and split it 76% community services, 19% prevention and early intervention and 5% innovation (secondhand, search extract of the same source). Housing was allowed but not required. On March 5, 2024, voters approved Prop 1, which had two parts: the Behavioral Health Services Act, which rewrote the 2004 law, and a $6.38 billion bond for treatment beds and supportive housing (fact, CBPC). Under BHSA, counties receive 90%, and must spend 30% on housing interventions, with half of that prioritized for people who are chronically homeless and up to 25% allowed for capital (secondhand). Every county had to adopt a three-year Integrated Plan for FY 2026-27 through FY 2028-29. Los Angeles County posted its draft for comment from February 11 to March 13, 2026 (secondhand), released its budget companion on April 3, 2026 (fact), and the Board of Supervisors adopted the plan on June 9, 2026 (fact, Board letter). The county began operating under BHSA on July 1, 2026 (secondhand). In December 2025 and March 2026, the state Department of Health Care Services set the interim housing time limits and the rule that Medi-Cal Transitional Rent pays first (fact, DHCS FAQ). The bond's first round, announced May 12, 2025, gave $51.1 million to CLARE|MATRIX for treatment beds on its Pico campus in Santa Monica (fact, provider release).

What we take and when

Starting July 1, 2027, in DMH's FY 2027-28 spending, $1.46 million a year of BHSA interim-settings money is assigned to the 150 non-congregate beds for Santa Monica referrals. It pays for residents who meet BHSA criteria, after Medi-Cal Transitional Rent where that applies. The money is ongoing.

The numbers today

BHSA housing interventions, year one$270,759,000FY 2026-27 fact
BHSA housing interventions, three years$902,531,000FY 2026-27 to 2028-29 fact
Housing interventions from all funding sources, three years$1,008,713,415FY 2026-27 to 2028-29 fact
Time-limited and interim settings, three years (44%)$447,213,671FY 2026-27 to 2028-29 fact
Time-limited and interim settings, average per yearabout $149,071,224FY 2026-27 to 2028-29 inference
BHSA split for counties30% housing, 35% Full Service Partnerships, 35% servicesfrom July 1, 2026 fact
Santa Monica share of the county homeless count (718 of about 73,000)0.98%2026 count inference
Our take$1,460,000 a yearFY 2027-28 onward inference
Bed-years the take pays for at $57,000 to $76,40019 to 26FY 2027-28 onward inference
Interim limit paid by BHSA12 months if not eligible for Transitional Rent; up to 12 months combined with Transitional Rent if eligiblecurrent rule fact

What we give up

About 19 to 26 bed-years of DMH interim housing in other parts of the county, out of about $149 million a year. This line creates no new beds countywide. It moves beds to Santa Monica, and people with serious mental illness elsewhere wait longer for them.

Why this works

People with serious mental illness or addiction are among the hardest to bring indoors. BHSA is the only county source that must be spent on housing for exactly this group, and DHCS lists hotel and motel stays and non-congregate interim housing as allowed settings (fact, DHCS FAQ). Beds are what move the number of people sleeping outside. Culver City paired its 2023 camping ban with a safe sleeping site and 73 Homekey units, and its unsheltered count went from 139 in 2023 to 115 in 2024, then from 51 in 2025 to 38 in 2026 (fact/secondhand, Wave and Culver City Crossroads). New York, which must offer shelter to everyone, had about 3.5% of its homeless population unsheltered in 2025, against 66% in Los Angeles County (fact, NYC DSS and LAHSA). Clearing camps without places moves people instead of housing them: in Venice, Hollywood and Skid Row, RAND found about three vehicles or rough sleepers added for every four tents removed (fact, RAND). Houston's unsheltered count rose 15.8% in 2025 after its shelter capacity fell (fact, Coalition for the Homeless). Santa Monica moved 72 people from the street into interim housing in FY 2025-26 (secondhand, SMDP).

The strongest case against

This takes beds from the sickest people in the county and gives them to the city that organized a petition. DMH's interim pool serves people with serious mental illness from Lancaster to Long Beach, and in April 2026 the county's Behavioral Health Commission warned that 200 or more clients were at risk of losing housing subsidies (secondhand). BHSA money can only house people who meet its criteria. Many people in Santa Monica's doorways may not qualify or may refuse an assessment, so the beds could sit empty or fill with referrals from elsewhere. State rules make Medi-Cal Transitional Rent pay first for most Medi-Cal members, so BHSA cannot simply buy beds. And the 12-month interim limit pushes people out whether or not a permanent unit exists. The state's own Behavioral Health Planning Council says 12 months is too short in much of California.

Our answer

We ask for 0.98% of DMH's interim pool, which is Santa Monica's share of the county's homeless count. That is the county average, not a premium. Santa Monica's street population is concentrated in one downtown area (secondhand, RAND via SMDP), so beds placed here reach a dense group. The money would follow DHCS's own sequence: Transitional Rent first where it applies, then BHSA for the remaining months, only for residents who meet the criteria. The 12-month limit is real. That is why the petition pairs these beds with 200 permanent housing subsidies from the city. How many people in Santa Monica meet BHSA criteria is not established. If too few qualify, the unused money should stay with DMH, and we say so.

Who decides

Who votes: DMH drafts updates to the BHSA Integrated Plan. The Los Angeles County Board of Supervisors (Horvath, Solis, Mitchell, Hahn, Barger) adopts them. The June 9, 2026 adoption delegated to the DMH Director authority to amend the plan only for administrative revisions and statutory or policy changes requested by the State (fact), so a move of money to Santa Monica likely needs Board action (inference).
Votes needed: 3 of 5 supervisors
When: FY 2027-28 starts July 1, 2027. The date of DMH's FY 2027-28 update is not established. We ask the Board to direct it when it adopts the Measure A plan on January 26, 2027, after Measure A comment closes November 20, 2026.
Note: Placement in each bed also depends on the resident meeting BHSA criteria, which DMH determines.

The agenda or process

Questions people ask

Isn't this just moving money around?

Yes. DMH's interim money is a fixed pot, and we ask that Santa Monica's share of it, 0.98%, pay for beds in Santa Monica. It adds 19 to 26 bed-years here and removes the same number elsewhere.

Why not use the Prop 1 bond instead?

The bond pays to build treatment beds and housing, not to run a bed every night. Its first round already gave $51.1 million to CLARE|MATRIX in Santa Monica. Running costs have to come from yearly money such as BHSA.

Will people in Santa Monica actually qualify?

Not established. A resident must have a serious mental illness or a substance use disorder, which DMH determines. We ask that unused money stay with DMH rather than fill the beds with people from elsewhere.

What happens after 12 months?

BHSA stops paying for an interim bed after the 12-month limit. The person must move to permanent housing for BHSA to keep paying. That is why the petition also asks the city for 200 permanent housing subsidies.

Why does Medi-Cal pay first?

State rules say that for Medi-Cal members eligible for Transitional Rent, the health plan pays up to six months first, and BHSA covers the remaining months. That stretches the county's money further.

Sources

DMH BHSA Integrated Plan budget companion, 2026-04-03$270,759,000 year one; $902,531,000 three-year BHSA housing; $1,008,713,415 all-fund housing; $447,213,671 time-limited and interim
Board letter adopting the DMH Integrated Plan, 2026-06-09Adoption date; limited delegation to the DMH Director
DHCS BHSA Housing Interventions Policy FAQ, updated March 2026Interim limits of 6 and 12 months; 12-month combined cap with Transitional Rent; allowed interim settings
California Budget and Policy Center: Understanding Prop 11% tax above $1 million since Prop 63 (2004); 30/35/35 split; 90% to counties; $6.38 billion bond
DHCS: Proposition 1 overviewProp 1 structure and timeline
Welfare and Institutions Code 5830BHSA housing interventions statute (moderate confidence on the section number)
LAHSA 2025 count releaseCounty count used for count shares
Behavioral Health Commission letter, April 2026200+ clients at risk of losing housing subsidies (secondhand, search extract)
California Behavioral Health Planning Council recommendations on BHSA housingArgues 12 months is too short in many regions (secondhand, search extract)
SMDP on RAND's Santa Monica studySanta Monica street population concentrated downtown (secondhand)
CLARE|MATRIX press release$51.1 million Prop 1 bond award for the Pico campus in Santa Monica
Culver City touts progress in reducing homeless numbers (Wave)Culver City unsheltered 139 in 2023 to 115 in 2024
Homeless counts raw data (Culver City Crossroads, 2026-08-03)Culver City unsheltered 51 in 2025 to 38 in 2026
NYC DSS press release, 2025About 3.5% of New York's homeless population unsheltered
LAHSA finalized 2025 countLos Angeles County about 66% unsheltered
RAND RR-A4903-1, LA LEADSAbout three vehicles or rough sleepers added for every four tents removed
Coalition for the Homeless, 2025 PIT resultsHouston unsheltered up 15.8% in 2025 (1,107 to 1,282)
SMDP: Santa Monica realignment plan first year72 people street to interim housing in FY 2025-26

Words on this page

bed-year: One bed paid for 365 nights. Two beds for six months is also one bed-year.
BHSA: Behavioral Health Services Act. California's tax on personal income above $1 million for mental health and addiction services, renamed and redirected by Prop 1 in 2024.
Board of Supervisors: The five elected officials who govern Los Angeles County. Three votes pass a motion or a spending plan.
DMH: Los Angeles County Department of Mental Health. It runs the county's BHSA money.
FY: Fiscal year. County and city budget years run July 1 to June 30. FY 2027-28 runs July 1, 2027 to June 30, 2028.
housing interventions: The BHSA category for rent help, interim housing, operating subsidies and housing capital for people with serious mental illness or addiction who are homeless or at risk.
Integrated Plan: The three-year plan each county must adopt under BHSA showing how it will spend all behavioral health money. Los Angeles County's covers FY 2026-27 through FY 2028-29.
interim housing: A temporary place to sleep indoors (shelter, motel room, tiny home) while a person works toward a permanent home.
Medi-Cal: California's Medicaid program, paid with state and federal money, covering low-income residents.
MHSA: Mental Health Services Act. Proposition 63 of 2004, the 1% tax on personal income above $1 million that BHSA replaced.
non-congregate: Interim housing where each person or couple has a private room or unit, such as a motel room or tiny home, instead of a shared dormitory.
Prop 1: A statewide measure on the March 5, 2024 ballot. It turned the Mental Health Services Act into the Behavioral Health Services Act and approved a $6.38 billion bond for treatment beds and housing.
Transitional Rent: A Medi-Cal benefit, required of every Medi-Cal health plan from January 1, 2026, that pays up to six months of rent in an interim or permanent setting for eligible members.