New California Law Frees Up Money for Sober Homeless Housing

A new law in California will free up state funds for homeless housing that requires sobriety.

Gov. Gavin Newsom recently signed the bill after vetoing a similar effort last year, CalMatters reported.

California has followed “housing first” principles for years when it comes to homelessness. That means funding low-barrier programs that don’t require people to meet extra requirements before they are allowed a place to live. That included getting sober.

That may work for many people who aren’t ready to kick addictions, but it leaves behind those people who want to be sober and are struggling to stay that way, Assemblymember Matt Haney, a Democrat from San Francisco, said. For those people, the only option often is living in housing surrounded by neighbors who use substances, Haney noted.

CalMatters reported that Haney’s legislation, Assembly Bill 1556, clarifies that sober housing providers can qualify for state funds, as long as they follow certain rules.

“People working hard to stay sober deserve the choice to live in a home that supports their recovery,” Haney said in a press release. “I’m incredibly grateful to Governor Newsom for signing AB 1556 and for working with us to get this right. This law will finally give Californians in recovery access to safe, stable, drug-free housing while making sure that if someone relapses, they are supported and stay connected to housing and services.”

Relapses Could Lead to Eviction

CalMatters noted that under the new law, sober residences that get state funds must have a written policy dictating what to do if someone relapses. It reported that the provider must give them the option to move into low-barrier housing.

If they decline, they can be evicted under the law.

This is Haney’s third attempt to get state money for sober housing. His first, AB 2479, died in 2024, CalMatters noted.

Haney’s second attempt, AB 255, made it all the way to Newsom’s desk before the governor vetoed it for a surprising reason: According to Newsom,  Haney’s bill was unnecessary because recent guidelines from the state already allowed state funds to pay for sober housing.

CalMatters reported that it was a surprise to Haney, who had never seen those guidelines before. When CalMatters asked Newsom’s office for a copy, it received a link to a 20-page document that was dated July 2025, but wasn’t published online until the day after Newsom’s veto.

After reviewing those guidelines, CalMatters said that Haney spent a year working more closely with the governor’s office on a new bill.

CalMatters noted that there are several differences between the new sober housing law and last year’s failed bill, the cost chief among them.

$200K Annual Price Tag

Last year’s bill would have set up a new system for the state’s housing department to regulate sober housing, CalMatters said, costing millions of dollars in the first year, according to a Senate Appropriations Committee’s analysis. By contrast, CalMatters noted the new sober housing law comes with an expected $200,000 annual price tag to fund one staff position, according to the Assembly Appropriations Committee.

Some housing organizations opposed the new legislation, arguing it will divert scarce housing funds away from the low-barrier models proven to work, CalMatters reported.