Recovery housing: funding.

New subsection (b) of Section 11999.45 requires applicants for state homelessness funding for recovery housing to demonstrate the availability of a range of interventions within the jurisdiction, including harm-reduction-focused permanent housing.

The requirement that recovery housing programs have consent and confidentiality protections for residents consistent with state and federal law, including HIPAA and Part 2 of Title 42 CFR, was removed entirely.

Paragraph (5) on nonclinical services: the exception allowing programs that are separately licensed or certified to provide clinical treatment services was removed. The provision now flatly states it does not authorize a recovery housing program to provide clinical treatment services.

Paragraph (8) on medications: the exception allowing entities separately licensed by the State Department of Health Care Services or another licensing authority to directly provide or prescribe medications was removed. The provision now flatly states the residence does not directly provide or prescribe such medications.

The definition of 'recovery housing' was replaced from a self-contained description (cooperative living arrangement supporting personal recovery from substance use disorder, not requiring licensure) to a cross-reference to paragraph (3) of subdivision (c) of Section 8256 of the Welfare and Institutions Code, limited to housing provided through state programs as defined in subdivision (e) of Section 8255.

Subsection (c) was reworded from 'shall not be conditioned on the provision of clinical treatment services by the residence' to 'shall not be conditioned on requiring the recovery housing to provide clinical treatment services,' shifting the focus from what the residence does to what is required of it.

The term 'recovery residence' is replaced with 'recovery housing' throughout the bill, and the division title changes from 'Recovery Residences Housing' to 'Recovery Housing.' A new definition section (11999.45) is added that cross-references paragraph (3) of subdivision (c) of Section 8256 of the Welfare and Institutions Code, limiting the definition to housing provided through state programs as defined in subdivision (e) of Section 8255.

The return-to-use policy approval requirement is broadened from requiring approval by a NARR affiliate specifically 'for consistency with NARR best practices' to allowing approval by a NARR affiliate or 'a similar entity,' giving programs more flexibility in who validates their policies.

In the return-to-use policy requirements, paragraph (E) is narrowed: the old version listed 'the possession or use of alcohol, cannabis, or any other controlled substance or repeated program violations' as actions that may result in eviction or discharge. The new version removes the specific reference to substance possession or use and retains only 'repeated program violations' as a stated ground.

A new paragraph (12) is added requiring that the residence meet the requirements for recovery housing programs listed in subparagraph (C) of paragraph (1) of subdivision (c) of Section 8256 of the Welfare and Institutions Code, incorporating additional existing statutory requirements by reference.

Subdivision (c) is reworded from 'shall not be conditioned on the provision of clinical treatment services by the residence' to 'shall not be conditioned on the provision of clinical treatment services by the residence requiring the recovery housing to provide clinical treatment services,' clarifying that funding eligibility cannot require programs to provide clinical treatment.

The core defined term shifts from 'recovery residence' to 'recovery housing.' The definition no longer embeds the Housing First, abstinence, and design feature requirements; those are moved entirely into the eligibility section. This broadens the conceptual framing from a physical place to a housing program.

The services requirement changes from 'treatment and nonclinical services' to only 'nonclinical services.' The residence now explicitly facilitates voluntary access and linkages to licensed treatment providers rather than providing treatment itself. This clarifies that recovery housing programs are not treatment facilities.

The prior provision requiring a two-step warm handoff process before eviction for return-to-use (first offering permanent housing, then interim housing or an ASAM-appropriate level of care) is removed and replaced with a simpler requirement that the program allow the resident to stay until another harm-reduction permanent housing option is secured.

The requirement that all prospective residents must agree to the return-to-use policy as a condition of residency is removed from the bill.

A new reporting and oversight mechanism requires local grantors of state funds to submit documentation of alleged lease violations or program requirement violations to the appropriate state agency, and to include that information in their annual reporting. This creates a state-level accountability trail for evictions and discharges.

The bill's digest changes from 'Recovery residences: funding' to 'Recovery residences: housing: funding,' and the new Division 10.95 is retitled 'RECOVERY RESIDENCES HOUSING.' The language throughout shifts from addressing a physical residence to addressing a housing program, potentially broadening which entities fall under the bill's requirements.

The definition of 'recovery residence' now requires the residence to serve individuals seeking a cooperative living arrangement supporting personal recovery, must not require licensure or provide licensable services (citing Chapter 7.5 of Division 10.5), and explicitly includes sober living homes, sober living environments, and unlicensed alcohol- and drug-free residences.

New requirement that the residence provides treatment and nonclinical services that are participant-driven and facilitates voluntary access to licensed treatment providers, while explicitly stating this does not authorize the residence to provide clinical treatment services unless separately licensed or certified.

New provision stating that a recovery residence does not directly provide or prescribe medications for mental health or substance use disorder treatment unless the operating entity is separately licensed by the State Department of Health Care Services or another applicable licensing authority.

New disclosure requirement (paragraph 12) that the residence discloses applicable rules, behavioral expectations, participation requirements, and program policies to prospective residents through lease agreements, intake materials, resident handbooks, or other documentation.

The relapse/eviction rule was tightened: relapse is no longer an absolute bar to eviction but is prohibited as grounds for eviction 'unless there is another lease violation,' and must be handled consistent with the return-to-use policy.

New subsection (c) states that participation in recovery residence programs and eligibility for state or local funding shall not be conditioned on the provision of clinical treatment services by the residence.

New subsection (b) clarifies that for purposes of the federal Fair Housing Act and Americans with Disabilities Act, a recovery residence is a housing provider and not a treatment facility solely on the basis of providing nonclinical services.

Finding (d) no longer references the U.S. Department of Housing and Urban Development's Recovery Housing Policy Brief as a standard for recovery housing programs.

New return-to-use policy provisions require that before evicting a permanent resident or discharging an interim participant, the operator must secure comparable harm-reduction housing with a comparable level of supportive services. If an unlawful detainer proceeding is initiated, the operator must submit documentation of the alleged violation to the local grantor of state funds.

The warm handoff language was simplified: 'long-term supportive permanent housing' changed to 'permanent housing,' and 'emergency shelter, interim supportive housing' changed to 'interim housing.'

Removed the legislative intent statement (former Section 1) that declared it was the Legislature's intent to enact legislation relating to the 'Supportive-Recovery Residence Program.' This removes the bill's framing as a named program and narrows it to setting eligibility requirements for state funding of recovery residences.

Section 1(d) now references both the US Department of Housing and Urban Development's Recovery Housing Policy Brief AND the Interagency Council on Homelessness guidance document 'Implementing Recovery Housing in Alignment with California Housing First Requirements' published in July 2025, adding a California-specific standard to the legislative findings.

In the return-to-use policy requirements, the warm handoff option changed from 'long-term supportive housing' to 'permanent housing,' which is a narrower and more specific housing category under Housing First terminology.

The fiscal committee vote designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee review, likely due to the expanded scope of findings or other budgetary considerations.

The bill now adds Division 10.95 (Sections 11999.45-11999.50) to the Health and Safety Code, transforming it from a mere intent statement into operative law with binding requirements for recovery residences seeking state funding.

Added legislative findings citing California's homeless population of 187,084 (2024), a 488 percent surge in overdose deaths among homeless Americans between 2010 and 2020, and guidance from the California Interagency Council on Homelessness that the system must support people in their recovery journey.

Defines 'recovery residence' as housing for individuals experiencing or at risk of homelessness who opt into a drug-free environment, must satisfy Housing First core components under Welfare and Institutions Code Section 8255, use substance use-specific design features, emphasize abstinence, and offer permanent or temporary housing.

Establishes that residency must be initiated by the resident (unless court-ordered) and that the resident or family must be offered at least one harm-reduction housing placement option before choosing a recovery residence. The two options do not need to be available for move-in simultaneously.

Requires that relapse is not cause for eviction and that residents receive relapse support. Also requires the residence to support, and not restrict, resident access to prescribed medications including buprenorphine, methadone, and naltrexone.

Mandates emergency preparedness and overdose prevention training for staff and residents, and requires overdose reversal medication (e.g., naloxone) to be available and readily accessible onsite.

Requires consent and confidentiality protections consistent with HIPAA and 42 CFR Part 2 for all residents.

Requires a written return-to-use policy approved by a National Alliance for Recovery Residences (NARR) affiliate. The policy must include a non-punitive standard response, contact information for treatment providers, and a prohibition on eviction for return-to-use violations unless the resident first rejects both a warm handoff to long-term supportive housing AND at least one additional warm handoff to emergency shelter, interim supportive housing, or appropriate level of care per ASAM criteria.

Fiscal committee review changed from 'no' to 'yes,' indicating the bill now has fiscal implications requiring committee analysis, consistent with the new state funding eligibility framework.